- How Much Money Is Needed To Invest In Rental Property?
- Should A Real Estate Investor Get An Agent’s License?
- 5 Big Factors That Affect The Costs Of Renovating Your Home
- SIBOR Hike – What You Can Do With Your Current Loan
- 6 Basic Don’ts Of Real Estate Negotiation Tactics
- Will New Condo Relaunches Trigger The Great Property Sale We Have All Been Waiting For?
- 10 Proximity Amenities That Add Value To Real Estate
- How To Get Personal Loans More Easily With Good Credit
Do You Really Need To Hire A Lawyer On Your Team?
When we think about the professionals we need to hire when dealing with real estate, it is without doubt that property agents are the first to pop to mind.
Yet sometimes you might find that the sellers or buyers you are dealing with have lawyers, attorneys, or legal advisors on their side of the fence.
And you have none. This can leave you thinking…
Are you missing something out? Is there something you don’t know that you don’t know?
Here are some instances where having a competent lawyer on your team might be necessary.
1) Absence of agents
While unusual, it is not uncommon to find buyers and seller dealing with each other directly without any buying or selling agents representing either of them.
Let’s remind yourself that real estate is serious business meant for serious people.
Buying a house or building a hotel is not as easy as rolling a dice, landing on Parkway, and handing over cash like in Monopoly.
Making a transaction agreement without agents who have trusted contract templates in hand, or lawyers to prepare a legally binding one can come back to bite you one day.
It’s not in the realms of fantasy for a buyer you previously dealt with in the past to sue you after finding loopholes in the contract agreed upon years ago.
You might want to save on agent commission fees. And so do your buyer.
In this case, do spend that small amount to have a proper lawyer practicing in areas of real estate to prepare a contract agreement… so that no one would come back and bite you from behind.
Even if you are new to the world of buying and selling property, you should instinctively know that real estate rules and regulations in one area does not apply throughout all state.
And it goes without saying that if you are dealing with properties in New York, you can’t be using contract templates prepared for you by lawyers dealing with Los Angeles real estate in the past.
They might cover all angles in protecting you in one state. But leave you exposed to all kinds of exploitation by investing sharks in another.
So if you are making deals in a new territory that you are unfamiliar with, especially if it’s the first time, it is best to consult the expertise of a real estate attorney before signing on any acceptance documents.
There’s a reason why whenever we see photographs or video clips of people in power suits preparing for merger and acquisition negotiations, a whole team of lawyers are part of the negotiating team from both sides.
Corporate mergers are complex and complicated deals. And in mane cases, the two companies even operate with different languages making deals prone to lost in translation.
While that is an extreme case of the necessity of lawyers expertise in dealmaking, sometimes you can run into deals with odd terms and conditions.
In events like these, especially if you are working with special terms, it is better to have qualified legal advise.
Sometimes one single condition requested by a buyer or seller can throw a huge spanner into the works.
And only a lawyer will be qualified to advise you where your risks are from a legal standpoint. And also provide recommendations of amendments that can cover the risks.
4) Peace of mind
Sometimes even if you feel that you have everything covered, the what ifs can still bug you so much that it affects your beauty sleep.
In this case, probably only hiring a lawyer to vet through your documents and agreements could give you peace of mind.
This factor can actually be priceless to a lot of investors.
At times, if you find yourself doing a deal without the presence of a lawyer, yet you feel that legal advice is necessary, insert a clause in the contract stipulating that the agreement is contingent upon review of your attorney within 7 days after the date of the agreement.