Four Reasons to Hire a Real Estate Attorney

By Charles J. Kovaleski

Whether you are a renter hoping to buy your first home or a veteran homeowner looking for a change, now is the time to make the move. With 30-year mortgages at their lowest rates in decades, it is in actuality a buyer's market.

So, what now? If you are like most buyers today, you have an abundance of home-buying information at your fingertips, including on the Internet and on the shelves at the local bookstores. Today's buyers are the most educated in history.

Whatever your information resource, you will find that it is prudent to line up an attorney whose expertise is real estate before you see even one house, condo, townhouse or co-op. Your attorney will be the quarterback of your real estate team, and will oversee some of the most important details of your transaction.
The advantage of hiring your own real estate attorney is simple: His job is to represent and support your interests only, protecting you from a range of potential problems that can vary from the merely annoying to the very costly. The earlier in the process you involve the attorney, the more value, insight and protection you gain from him or her; in other words, do not begin the real estate process or sign anything before you find your attorney.

So, how does your real estate attorney work in your best interest once you have decided to buy a home? By doing the following:

• Reviewing relevant contracts. Your real estate attorney will review anything that requires your signature, including binder agreements and sales contracts drawn up by the seller's representative. Your attorney's primary concern is that these contracts contain only provisions and contingencies that benefit and protect you and will negotiate any changes to that end. The inclusion of key language into your contract and the elimination of vague or unenforceable terms also falls to your attorney. For instance, failure to include a phrase such as "time is of the essence" can create problems if there are delays caused by the seller. Your attorney can also include special language to cover any unusual conditions or circumstances. Some examples include a seller needing to stay a few more days in the house or a buyer wanting to store some furniture in the garage before the closing. Your attorney can also draft an agreement requiring money to be put aside in case the parties do not live up to their agreements, protecting both the buyer and the seller.

• Reviewing "construction contracts." If you are having a home built or are buying a brand-new home from a builder/contractor, you have a unique set of legal issues. Construction contracts can vary in complexity, but they are written by the builder's attorneys and are always written to protect the builder's interests. Your attorney can negotiate the inclusion of certain things into the contract, such as who pays the transfer tax, the estimated cost of the changes and how disputes should be resolved. Other protections might include the requirement of sworn statements from subcontractors that work has been completed before any money is released; a firm completion date on the construction and remedies in case of failure to complete; and language specifying the materials to be used in the new house.

• Obtaining a title search. When buying a home, a thorough search of the title must be completed to see if there are any liens or other outstanding judgments against the property, such as back taxes. Your attorney can evaluate the status of the title and pursue appropriate legal remedies to clear any title defects. He will also advise you on what your title insurance policy does and does not protect against, emphasizing marketability of the title when you sell. Many people confuse title insurance with a home warranty, but the two are unrelated. If the title company misses a lien, the insurance is there to cover it. Your attorney will also interpret and counsel you about all legal documents related to the title and transaction, including deeds, mortgages and closing statements.

• Preparing for closing. Once there is a mortgage commitment, your attorney will set a closing date with the seller's attorney. Prior to that date, he will prepare or review the closing statement and discuss with you any contingencies that might affect your interests. Most real estate attorneys also encourage their clients to do a final inspection of the house to make sure it is in the same condition as when the sales contract was signed. Your attorney will likely review with you what to expect during the closing, tell you which certified checks to bring to cover closing costs and prepare a bill of sale to cover any personal property that you and the buyer agree shall remain in the home.

Real estate attorneys are key players to any real estate transaction, but where to find one? Real estate agents or mortgage brokers can often make excellent recommendations. One of the most fail-safe ways to find a good real estate lawyer is word of mouth: Ask friends and colleagues if they were satisfied with the lawyer who handled their closing. Be sure to ask if the lawyer specializes in real estate; you do not want a lawyer whose primary work is litigation and who only does a few closings a year. You can also log onto www.fundhomeinfo.com to search a database of real estate attorneys by zip codes.
Finally, use this buyer's market to your advantage. Real estate is a terrific long-term investment, and negotiating the right deal can make it even better.

Charles J. Kovaleski is president of Attorneys' Title Insurance Fund, Inc., (The Fund) the leading title insurer in Florida and the sixth largest title insurance company in the country. Acknowledged as the Florida residential real estate expert, The Fund has been in business for more than 50 years and supports a network of more than 6,000 attorney agents statewide who practice real estate law. The Fund, based in Orlando, underwrites more than 300,000 title insurance policies for owners and lenders in Florida every year. For more information, visit www.fundhomeinfo.com.