Buying a Home? Retain a Real Estate Attorney!

Obtain Independent Advice

For most people, the purchase of a home is their single largest financial and contractual commitment. And yet remarkably few people consult a real estate lawyer for independent advice on how to negotiate the maze of decisions and documents intricately woven into the transaction of buying land with a home situated on it. But for a relatively small investment, buyers can secure a higher level of peace and some comfort with the process and the transaction by engaging the services of real estate lawyer.

Basics of Texas Contract Law

Here are two rules to carefully ponder before you begin the process of shopping for a home:

Rule #1: If you don't understand what someone is asking you to sign, don't sign it. It's that simple.

Rule #2: If both the seller and the buyer have already signed a contract, and you want to know how to "get out" of the contract, don't expect a miracle from your attorney. In Texas, there is no automatic right of recision period for real estate contracts. You are more than likely bound by the terms of whatever you signed. But a Houston real estate lawyer may be able to help you, or at least explain to you what you agreed to, and point out your options (if any). To avoid the application of Rule #2, invoke Rule #1 - and then call a real estate attorney.

Ways that a Real Estate Lawyer Can Serve You

A lawyer who is knowledgeable in real estate transactions can serve you in the following ways: (a) by carefully listening to your understanding of the offer and noting any of your specific concerns; (b) by reviewing and then explaining to you the content of the documents prepared by a licensed Texas real estate agent (normally on document forms approved by the Texas Real Estate Commission, that is “TREC” documents), pointing out possible alternatives or changes in the proposed contract, and then permitting you to make the decision on whether or not the proposed offer agrees with your understanding of the transaction; (c) by reviewing and then explaining to you the content of the commitment for title insurance issued by the title company; (d) by reviewing and then explaining to you the content of the survey plat of the property; and (e) by reviewing and then explaining to you the content of the loan documents prepared by your mortgage lender which you will sign at the closing of the home purchase.

Title Issues Affecting Property

A real estate law firm or lawyer will also understand the complexities relating to the "title" of the property. The attorney will be able to explain what an owner's policy of title insurance will actually cover in the event of a loss, and what losses that title insurance policy will not normally cover.

Contract Negotiations

Are you a good negotiator? Most real estate lawyers are seasoned negotiators, and they already know in advance which terms are commercially reasonable, and which terms are frequently subject to negotiation. And an attorney may be more objective than you are, and help you to fairly consider the downside of purchasing the property.

Independent Advice

The licensed real estate agents who represent the seller and the buyer are normally only compensated if the home is sold, and the buyer pays the seller (usually through the buyer’s mortgage company) at the closing. They are only paid if there is a sale. If you engage a real estate lawyer at the very beginning of the process, you have hired someone who is looking out solely for you - because you will pay for the attorney’s services whether or not you elect to purchase the home. But a seasoned lawyer understands your goals, and will strive to achieve those goals for you if possible.

Hoping for the Best vs. Wise Counsel

Trying to unwind a transaction with significant problems is often very difficult. You must carefully weigh now whether to proceed without legal counsel and hope for the best. Or purchase a level of comfort at the beginning of the process to avoid more expensive legal bills in a transaction that develops problems after the contract has been signed.