Do You Need a Real Estate Attorney to Buy or Sell a House?
Whether you need a lawyer to buy or sell a home depends first on where you live, and second on how complicated the deal is.
States where lawyers are part of closing
In some states, an attorney must conduct or supervise the closing, or by custom almost every closing involves one. In much of the Northeast and Southeast, attorney closings are standard; in many Western and Midwestern states, title and escrow companies handle closings without lawyers. Rules change and the details are technical, so ask your agent or a local attorney what's required where the property is.
What a real estate attorney does
- Reviews or drafts the purchase contract, including contingencies for inspection, financing and appraisal.
- Reviews the title search and resolves problems like old liens, judgment liens, boundary issues or missing heirs.
- Explains the closing documents, including the mortgage and note, before you sign.
- Conducts the closing and handles the funds in an escrow or trust account, in attorney-closing states.
- Records the deed and mortgage.
Typical fees
Residential closings are commonly billed as a flat fee, often in the high hundreds to low thousands of dollars depending on the area and complexity. Disputes and litigation are usually hourly.
When hiring one is worth it, even if it's optional
- For-sale-by-owner deals with no agent on either side.
- Title problems: liens, an estate sale, an unclear chain of ownership.
- Unusual property: land, multi-family, commercial, a home with tenants.
- Contract disputes: a seller backing out, an inspection fight, a lost deposit.
- New construction contracts, which builders write in their own favor.
- Short sales and foreclosures.
- Selling inherited property, especially with several heirs.
Agent vs. attorney
A real estate agent markets the home and negotiates price; they generally can't give legal advice. A title company insures title and often runs closings, but works for the transaction, not for you personally. An attorney is the only one whose job is to protect your legal interests.
Find a real estate attorney near you. Related: eviction process for landlords and tenants.
This guide is general information, not legal advice. Closing practices vary by state.