What does a real estate lawyer do?
A real estate lawyer may be useful in many different aspects of real estate and land use transactions and matters, especially since the laws that govern real estate and land use vary significantly between different states. In some states real estate lawyers are required for the transfer of property in order to assist with closing requirements. In other states, real estate transactions may be conducted without hiring an attorney who specializes in real estate, although it is never advised to forgo legal expertise.
When hiring a real estate lawyer, be sure that the lawyer you hire is licensed in the state where the property or land use matter is located or arises.
Furthermore, the laws that apply to real estate and land use may vary from county to county. In some circumstances, it is important to have an attorney who is familiar with a particular locality.
A real estate lawyer may assist clients with:
the buying and selling of both residential and commercial real estate, including for-sale by owner transactions;
reviewing easements, road maintenance agreements, or rights-of-way;
advising clients with regard to real estate development, including zoning, city and county ordinances, and permitting;
reviewing title or conducting a chain of tile review;
drafting of agreements and documents related to property rights, including, but not limited to deeds, disclosures, mortgages, deed of trusts, notes to secure debts, commercial and residential leases;
reviewing homeowner’s association declarations and subdivision covenants; and
advising clients unfamiliar with real estate transactions.
Litigation vs Transactional Real Estate Lawyers
There are two main categories of real estate lawyers (although there are attorneys who may handle both the litigation and transactional aspects of real estate law):
Litigators who are real estate lawyers who handle real estate transactions after they have gone wrong and the parties are suing one another, and
Transactional lawyers who handle the drafting, negotiating, and reviewing of contracts, advise clients on real estate and land use matters, and provide general real estate and land use expertise.
KLH Advisors offers transactional real estate and land use services to clients, and that’s what we’ll focus on here.
Who Does a Real Estate Lawyer Represent?
A real estate lawyer will either represent the seller or buyer in real estate transactions. The real estate attorney should never represent both the buyer and seller in any single transaction. You may find an attorney willing to do so, but that is not in either parties’ best interest and is contrary to a lawyer’s ethical responsibilities.
Real estate lawyers may represent individuals with matters relating to real property and property rights, or business entities or individuals who are involved in commercial real estate transactions or development projects. Additionally, real estate lawyers may be hired to represent landowners or tenants with regard to commercial and residential leases.
I Have a Broker, Do I Still Need a Real Estate Lawyer?
Again, this question will partially be answered depending on the state where the real property is located. An attorney may be required in certain transactions. However, even in states where a real estate lawyer is not required, in many transactions, the hiring of a real estate lawyer is strongly encouraged.
A real estate lawyer may be hired, in addition to the broker, to:
help with complex transactions,
review the purchase or buy-sell agreements,
conduct title searches for the seller or buyer,
review title commitments,
help with any due diligence that may be required or suggested, depending on the type of transaction.
Consequences of Not Hiring a Real Estate Attorney
Even in what may be considered a simple transaction—like the purchasing of a home—individuals may still benefit from hiring a real estate attorney.
It is impossible to count the number of calls my firm receives from prospective clients stating they purchased property and they:
did not know there was a huge development planned for vacant land,
were not aware they could not rent their property on VRBO or Airbnb according to their covenants and/or county ordinances and permitting requirements,,
did not receive the mineral or water rights through the transaction.
It is always better to resolve these potential issues prior to a real estate transaction, rather than needing to litigate these matters or just suffer the consequences, sometimes at a significant cost.
Protect Yourself With a Real Estate Lawyer
While not all real estate attorneys have expertise in all the areas mentioned above, the usefulness of hiring the right attorney may save you lots of time and money down the line. When you are involved in any real estate or land use transaction or matter, it is worth a call to a real estate lawyer to determine any potential pitfalls that might come up or that may already exist with a transaction that you are unaware of.
Hire KLH Advisors for Your Real Estate Needs
KLH Advisors is a transactional law firm with expertise in real estate and land use transactions and matters located in Montana and Colorado. Call us today to discuss your matter and whether hiring our firm would be beneficial to protecting your legal interests.
