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Lawyers are like seat belts. You never know when you may need one. Your deal is rolling merrily along when out of nowhere - slam, bam, wham - you hit a legal pothole and end up in Sue City.
The real estate purchase agreement you sign is a legally binding contract between you and the buyer. If you have any questions about the legality of your contract, get a lawyer on your team immediately. No one else on the team is qualified to give you legal advice.
Suppose the buyer's contract is presented to you at night or on a weekend when a lawyer isn't readily available. Put a clause in the contract to stipulate that your acceptance is contingent upon review and approval of the contract by an attorney of your choice within five business days after you sign it.
To determine whether you need a lawyer on your team, check out the following factors:
- If no agent is involved: For example, suppose that you're selling your house by yourself. If neither you nor the buyer has an agent, get a lawyer to prepare the contract, and have the lawyer do the work that an agent would normally handle. Eliminating the real estate agent doesn't eliminate the disclosures, inspections, contingency removals, and other details involved in the house-selling process.
- The location of your property: In states such as California, lawyers rarely work on deals that only involve filling in the blanks on a standard, preprinted purchase agreement that's been previously reviewed and approved by members of the state bar association. In other states, however, lawyers routinely do everything from preparing purchase contracts to closing the escrow. Your agent, if you're working with one, knows the role that lawyers play in your locale.
- The complexity of your transaction: You need a lawyer if you get into a complex financial or legal situation that can't be covered by a standardized contract. For example, suppose that you hold title as a tenant-in-common and are selling a partial interest in the property, or that you want to structure the transaction as an intricate installment sale. Whatever. Unless your agent also is a lawyer, the agent isn't qualified to do creative legal writing.
- If consulting an attorney helps you sleep at night: You may have the world's easiest deal. Still, if you feel more comfortable having a lawyer review the contract, your peace of mind certainly is worth the cost of an hour or two of legal time.
