There are various reasons to hire a real estate attorney to protect your interests. Although professional real estate agents handle most of the work, there are situations which require a licensed lawyer to help resolve problems. These range from minor to major circumstances. Because buying or selling a home involves a substantial sum of money, it's reasonable to guard against risk. This is what your listing agent or buyer's agent will help with in almost all transactions. However, there are times when you'll need the help of a real estate attorney.
Reasons to Hire a Real Estate Attorney
It's important to note in a balanced, health local residential real estate market, about 10 percent of all pending transactions are delayed or fail to finalize. Here in Maricopa County, conditions still favor sellers over buyers. When the market is not at parity and there is more or less than six months' of inventory to sell all available listings at the current pace, that figure increases significantly. In other words, during a seller's or buyer's market, the percentage of delayed or failed closings rises to nearly 50 percent of all pending transactions.
Except in states where it's mandated, an ordinary real estate transaction doesn't require an attorney's help. By now, real estate transactions are so standardized that most people in your state will use the exact same purchase contract, just filling in a few blanks. However, if legal issues arise that your real estate agent can't answer, you'll need an attorney's help. Although good agents know a lot about the negotiating and contracting part of the process, they can't make judgments on legal questions. --Nolo.com
So why do so many residential real estate transactions ultimately fall through? Well, as you'll probably guess, there are a number of reasons. Buyers or sellers might experience a significant life change, like divorces, job losses, or sudden employment relocations. The buyer's financing might not receive final approval or the appraisal doesn't support the agreed purchase price. In these instances and more, there's typically not a need for a lawyer. But, there are reasons to hire a real estate attorney:
- Failure to disclose. The seller fails to disclose details about the property. For instance, failure to disclose unpermitted work. Even if the current owner did not do the unpermitted work, he or she still remains responsible for disclosing it, if he or she knows about its existence. Or, it could be failure to disclose material defects, which are issues that cause safety and/or health hazards and/or devalue the home.
- Builder obligations. If you are entering a contract to buy new construction, you should definitely go over the fine print more than once. In some instances, builders do not complete work that is in the contract. For instance, the builder might forego installing an amenity. Another circumstance is a builder using materials other than those specified like laminate countertops instead of marble or granite.
- HOA issues. A homeowners association has a duty to fulfill its legal obligations. Sometimes, these entities mismanage funds, triggering special assessments which residents must pay. If an HOA causes issues due to its own mismanagement, by omission, or other reasons, you'll need to consult a real estate attorney.
- Specific performance. In practically every real estate contract, there is a specific performance clause. It's there to protect both parties and believe it or not, can be used to force one party to go through with a transaction. There have been cases where seller or buyers were ordered to complete the sale by a court of law.
- Misrepresentation. Of course, if misrepresentation is involved, it's a good idea to consult a real estate attorney. For example, if a seller lists a property claiming the lot is a certain size but is actually smaller, that's misrepresentation.
If you are buying or selling a home in or nearby Sun City Festival, whether it's around Sun Valley Parkway, West Desert Vista Boulevard, the Copper Canyon Golf Club, or elsewhere in Buckeye, we are here to help. Just give us a call at 623-206-9936.