Do You Really Need an Attorney When Purchasing a Home?

By: Attorney Nicholas Verhaalen

For many buying a house, it is often the largest asset they will ever purchase.  That alone is reason enough for a homebuyer to wish the purchase is done right.  A common misconception among homebuyers is that a real estate agent can help them with every aspect of a transaction.  While real estate agents play a valuable role in connecting a buyer with a seller and often go above and beyond to assist their clients, there are limits to what they can do.  A key limitation is that real estate agents cannot offer their clients legal advice unless they are also licensed attorneys.  If legal advice is needed, only a licensed attorney can provide it.

Real estate transactions, including the purchase of a house, can be complex.  Because of this, prospective home buyers can often benefit from legal guidance throughout the process.  When representing a homebuyer, a real estate attorney’s primary role is to help protect their client from potential risks associated with the transaction.  An experienced real estate attorney can help you anticipate and identify issues before they become a problem.  They can tailor purchase agreements to fit the unique needs of your transaction, negotiate key terms of your agreement, and assist you in determining which contingencies are best suited to protect your interests.  Additionally, a real estate attorney can review the property's title to ensure you receive good title at closing and ensure that your closing documents are in order.

While some prospective buyers may decide that retaining an attorney is not practical for their home purchase, there are several situations where seeking the advice of a real estate attorney is wise.  These include:

• When the property is being sold “for sale by owner” or in other transactions where no real estate agents are involved;
• When the property is being purchased with cash and no bank financing is involved;
• When a property is being acquired by a land contract; and
• When post-closing agreements are required, such as shared well or driveway easements.

In these cases, having an attorney can help ensure the transaction is legally sound and your interests are well protected.

Being represented by an experienced real estate attorney can help you feel confident that your legal interests are protected when purchasing your house.  Please call Dan Pettit, Brett Ekes, or Nick Verhaalen at DeMark, Kolbe & Brodek, S.C. if you are interested in learning more about representation in the purchase of real estate.