WHY DO I NEED A REAL ESTATE ATTORNEY?
There is an old lawyer joke: How many lawyers does it take to change a light bulb?
Answer: Fifty four. Eight to argue, one to get a continuance, one to object, one to demur, two to research precedents, one to dictate a letter, one to stipulate, five to turn in their time cards, one to depose, one to write interrogatories, two to settle, one to order a secretary to change the bulb, and twenty-eight to bill for professional services.
Who doesn't like a good lawyer joke? Yet when you're contemplating the purchase of a home, commercial property or vacant land, it's no laughing matter. Navigating the process these days can be more difficult and burdensome than ever. A qualified real estate attorney can help ease that burden.
Many states require the use of an attorney when purchasing real estate. That is not the case in Florida. Here you have the option of engaging the services of an attorney or a title company. It is the assumption of many buyers and sellers that the use of the professional services of an attorney is out of their reach because they will be subject to billing at an hourly rate for the duration of the transaction. This is absolutely not the case.
As you know, attorneys belong to a heavily regulated profession, which requires that certain standards be met and maintained. The biggest benefit you will receive by hiring an attorney is representation. Not only will you have access to the attorney you engage, but you typically have a legal assistant at your disposal as well. If you have questions for your attorney you do not get a bill for phone calls or office visits. A title company cannot represent you and is prohibited by law from offering legal advice. The scope of their service is limited to conducting the closing. Although a title company has an attorney on hand for assistance, that attorney represents the title company, not the interests of any of the parties to the contract.
Real estate contracts designate whether the buyer or the seller pays for the owner's title insurance policy and the associated closing fees and costs. When representing the party who is paying for title insurance (typically the buyer) the attorney is compensated by the closing fee and a portion of the title insurance premium as an agent for the underwriter on which the title insurance is written. Promulgated title insurance rates are set by the State of Florida so the price of a title premium is not higher when closing with an attorney. An attorneys' closing fee is very competitive with that of a title company. Engaging counsel gives you the added value of an attorneys' legal advice.
When acting as the closing agent and representing you as the party who is paying for title insurance, the attorney will review your contract (preferably prior to it being signed) and ensure that your interests are protected, hold the escrow money deposit, order and examine title, satisfy all of the title requirements, order and examine a survey, work with your lender if you are obtaining a mortgage, prepare closing documents, conduct the closing, disburse funds, and issue the title insurance.
When representing the party not paying for title insurance (typically the seller) the attorney will review your contract and ensure that your interests are protected, contact the closing agent to provide the title insurance commitment and pertinent documents for review, including the deed and the closing statement. This service is usually available for a flat fee. A title company is prohibited from providing services to a seller when they are not issuing title insurance in the transaction.
Whether or not you are the party paying for title insurance, representation by an attorney gives you access to counsel for questions relating to how you should be vested in title, tax consequences, estate planning considerations, and issues related to short sales and the purchase of REO (bank owned) property. The attorney can be of assistance with the review of homeowners' or condominium association documents, leases, and compliance with FIRPTA regulations as it relates to foreign sellers. Representation provides you with advice in the resolution of title, inspection, and survey issues and with the performance of the opposing party under the contract. A successful closing is a collaborative effort between you and your legal team.
Real estate is the largest asset in most people's lives. In these days of financial turmoil and fraud it is more important than ever to have your real estate interests protected, whether you are buying or selling. A qualified real estate attorney is there for just that purpose.
