Should you be using a lawyer instead of a realtor?

When it comes to buying or selling a home, the first person most people think to call is a real estate agent. But did you know that, sometimes, it might make more sense if you’re using a lawyer instead of a realtor? A real estate attorney could be your go-to professional for navigating the tricky waters of real estate laws.

Real estate attorney vs. real estate agents: What do they do?

Real estate agents are great at what they do – helping you find that perfect house or the ideal buyer for your property. They know the market inside and out and can guide you through the process of listing, marketing, and negotiating a sale by owner.

But, they aren’t legal experts. Real estate laws are complex, and sometimes, you need more than just a good real estate agent to ensure everything is in order. This is where a real estate attorney comes in. A lawyer focuses on the legal aspects of the transaction. They can provide legal advice, draft contracts, and ensure that you’re not overlooking any critical legal issues that could come back to bite you later.

What do the real estate laws in the United States dictate?

Keep in mind that real estate laws are different in every state. However, in most cases, you don’t have to use a real estate agent. They can help with putting together a home purchase contract, but they’re not required.

Now, when it comes to real estate lawyers, it’s a bit different. In states such as New York and Massachusetts, only an attorney can handle certain tasks. These include preparing purchase documents, doing a title search, or closing the deal. So, while there’s still plenty for a real estate agent to do, it’s definitely a team effort. If you’re curious about what’s typical where you live, any local agent can fill you in.

What are the reasons you might want to hire an attorney?

Here are a few reasons home buyers as well as home sellers choose to hire an attorney instead of (or in addition to a real estate broker).

• If the deal is a complex one involving unique legal issues, such as disputes over property boundaries, zoning problems, or title issues, a real estate attorney is equipped to handle these complications. Realtors might be good at finding buyers and negotiating prices, but they aren’t trained to deal with legal disputes.
• Real estate transactions involve a lot of paperwork – contracts, disclosures, and real estate agreements that can be confusing to the average person. An attorney can explain these documents to you, ensuring you understand what you’re signing. And, they can also negotiate terms that are in your best interest.
• Hiring lawyers may come at a lower cost. Attorneys charge a flat fee for their services. This can be more economical than a commission-based payment. Especially, if your property sells for a high price. Remember that realtors typically charge a commission of around 5-6% of the sale price. 
• Attorneys are handy in a For Sale by Owner (FSBO) situation. In such a case, you might not need a real estate agent at all. But, you will still need to ensure all legal aspects are covered. Your real estate attorney can help you with contracts, closing real estate deals, and ensuring everything is legally sound.

What can you expect your real estate lawyer to do for you?

If you decide to hire a real estate lawyer, you’ll want to know what to expect. Real estate attorneys typically handle the following tasks. 

• Contract review and drafting: They’ll go over all contracts related to the transaction, making sure everything is in order. They can also draft any additional agreements needed to protect your financial interests.
• Closing the deal: At the closing table, the lawyer ensures all documents are properly executed, the title is transferred correctly, and funds are distributed as agreed.
• Handling property disputes: If any issues arise during the transaction, a real estate lawyer is there to resolve them.
• Legal protection: Ultimately, a real estate lawyer ensures that your transaction is legally binding and that you are protected from future legal claims.

When should you use a realtor or agent?

Of course, there are times when sticking with a real estate agent makes sense. For instance, if you’re looking for someone to help you market your home, find buyers and sellers, and negotiate offers. A good real estate agent understands the market trends and can often sell your property faster than you could on your own.

Read more: Realtor red flags that you can’t ignore

Using a lawyer instead of a realtor: Last thoughts

When it comes to real estate transactions, sometimes, using a lawyer instead of a realtor makes more sense, Especially, when legal issues are involved. However, if your transaction is straightforward and you need help navigating the market, a real estate agent might be your best bet. Whether you’re planning to buy or sell a home, there’s no one-size-fits-all solution. It’s important to weigh your hiring options and your local laws before using a lawyer instead of a realtor.

Read more: What percentage of realtors own real estate?

Written by Ramona Sinha. November 1, 2024

Ramona is the Senior Content Writer for Kukun. This experienced blogger uses simple and succinct words to decipher the complex phenomenon called life. She has written articles covering a broad range of topics, such as real estate, lending and mortgage, finance, business, taxation, home designs, home improvement projects, decor concepts, and more. An avid traveler, she’s a digital nomad at heart and an animal lover from the depth of her soul.