Using a Real Estate Attorney

[AaronSOLD]

What does an attorney do for you in the states that it is common?

All of our forms are standardized, it is uncommon to mark up the boilerplate, mortgage notes cannot be edited... so what is there for an attorney to do?

[judyo]

Our contracts have a built-in attorney's review period usually from 3-7 business days from contract acceptance (depending on the contract used) where they can make changes or "find a loophole" (if necessary). Many agents turn any inspection problems directly to the attorneys to handle.

The seller's attorney orders title and in my area they usually order the survey and sometimes other inspections. In my area they also get any condo docs/forms that are necessary. They also set up the prior mortgage pay-off for the seller.

The attorneys set up the closing with the title company and sit with the seller/buyer (each with their own attorney), and explain every page they have to sign and where to sign. Our title officers do not like doing this. I have a great real estate attorney that charges $350.00 for these services.

[AaronSOLD]

We don't have the attorney's review period. Our title companies do all the orders for survey, payoffs, any final association disclosures, etc.

[gail]

Very seldom are attorneys envolved here in Nevada. Most people just depend on the trust they put into their agents. If they would feel more comfortable having an attorney review the contract I would definately encourage it...peace of mind goes a long way in a major purchase such as a home. I had an investor from NewYork who was shocked that we didn't use attorneys all the time.

Gail Kotalion
Quality 1 Realty
Mesquite, Nevada
www.sellmesquiterealestate.com

[judyo]

Attorneys are used for more than just reviewing contracts. Many agents defer any inspection problems directly to the attorneys to handle. In my area attorneys order title, survey, condo docs/paperwork, sometimes termite inspections and handle prior mortgage pay-offs and village transfer tax stamps. Many times attorneys will handle any extensions needed.

The attorneys attend the closings and explain each piece of paper the buyer or seller has to sign. They handle any disputes prior to closing and sometimes at the closing table (such as something not working discovered at the final walk-through).

It is rare for a buyer or (especially) a seller not to use an attorney in northern IL.

[Fort Lauderdale]

In my experience (in South Florida), most buyers usually opt to use a Title Company versus an attorney. However, a good percentage of Title Companies are owned by an attorney. It is also real common for a seller to use the buyers Title co or attorney to prepare their documents (done as a courtesy) rather than get their own attorney.
john

[judyo]

We close at title companies but the attorneys do the preliminary work. Title officers do not want to walk sellers & buyers through the closing papers anymore (sometimes they're handling more than one closing at a time).

And although I've seen it happen a couple of times, one party's attorney usually doesn't want to deal with the other party that chose not to hire their own.

[jasoncrouch]

In eleven years of real estate here in Austin, I have only had a handful of clients use an attorney to assist them (maybe 3-5?) and most times we all regretted it. Our paperwork is standardized, and the attorney has to feel like they are doing something by altering the contracts.

However, we do occasionally close the transaction at an attorney's office (5% or so of the time I'm guessing) rather than at a title company.

[Malok]

As an agent what percent of your buyers/sellers also use a real estate attorney to close?

Been a full time Realtor since 1992, my experience is as follows:


Closing attorneys: 100%.


An additional real estate attorney representing either the buyer or seller?
For my residential side: 5%

For commercial: 95%


Generally, the larger, and/or more complex the deal - the more likely I've seen the additional representation.