In this article we discuss Michael Fralin on the importance of getting legal advice from a real estate attorney.
Purchasing or selling real estate property is among the most significant and largest transactions that you’ll ever make in your whole lifetime. It involves real estate law, a branch of law that usually presents special issues of law practice as well as legal problems that are rarely or never encountered in other transactions. Therefore, it’s very important to involve a real estate lawyer when selling or purchasing real estate property.
Michael Fralin: I ask you “Why is it important to get legal advice from a real estate attorney?”
Answer: To safeguard your interests
It’s usual for all parties in a real estate transaction to have conflicting interests. The seller wants to dispose his/her property at the highest possible price, whereas the buyer wishes to obtain it at the least possible price. On the other hand, the involved professionals also need to get their cut. A real estate attorney will safeguard your interests in the complex real estate transaction.
Brokerage agreement
An attorney can advice and guide you on matters concerned with the brokerage agreement. He/she can clarify the meaning of terms used. The attorney can also establish if the agreement for sale/purchase and brokerage is in order.
Tax implications
Are you aware that a real estate attorney can help you understand tax implications of the real estate transaction? He/she can give you valuable advice on how to take full advantage of provisions that allow for exemption of capital gains tax in particular circumstances.
Purchase agreement
This is the most important legal document in real estate transactions. Even though you may understand the information contained in standard printed forms, the attorney can not only shed more light on the info contained therein, but also make necessary addictions and/or subtractions to reflect your wishes.
Financial aspects
If you intend to finance the real estate transaction using a mortgage, it’s very important to involve a lawyer. Mortgage loan documents and loan commitments are generally complex. A real estate attorney can help to read through and understand information contained in the documents as well as the implications.
State of land title
A real estate attorney plays the significant role of reviewing status of the property’s title and giving an opinion regarding the title policy.
If the property lies in a region where insurance of the title is mandatory, the lawyer can help appraise the title search, clarify the title exceptions and establish the existence of any conflicts with previous owners or adjoining owners.
The closing process
Most buyers and sellers find the closing process extremely complex and confusing; especially since each of the parties involved (the seller, buyer, their attorneys, real estate broker, and title closer as well as representative of the financial institution) wants to get the best out of the transaction. A real estate attorney can handle the closing process on your behalf with great ease.
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