Buying a home is a BIG deal. It’s big financially. It’s big legally. It’s big emotionally.
As real estate brokers we can help you throughout the process and carefully provide guidance on real estate topics – but we cannot offer specific advice on financial and legal matters. That’s why it’s important to have key advisors by your side to assist with the most critical matters of this process.
In many cases, we urge buyers to interview and hire a real estate attorney – not just any person with a Law degree – to ensure your concerns are heard, legal or financial complexities are clarified and your best interests are protected.
In many states – mostly east of the Mississippi – lawyers handle the closing process. Not so here in Washington state, where escrow and title representatives, as neutral parties, hold earnest monies and other payments, oversee the final paperwork, and independently verify documentation is clean and accurate before completing the real estate transaction and dispensing funds to all parties.
When it comes to allocating funds from across multiple sources, with possible tax implications as well, you would be wise to first discuss your strategy to pay for the home with an accountant, financial planner or trusted banker – someone who has your best interests in mind. There are several qualified individuals in the Seattle/King County area who can help, and we can also supply a short list of experts who have worked with John L. Scott brokers in the past.
To be sure, not all real estate transactions are smooth. Some can be tougher to navigate than a back road in the countryside on a wet, dark night.
Your legal representative can take the wheel to help you through that process, just as real estate brokers guide you through the home-viewing, offer-writing, and negotiating stages.
Your attorney can be there to:
- Review contracts and supporting documents, particularly the Seller Disclosure Statement
- Inspect title reports for issues such as easements and possible boundary disputes
- Negotiate concerns regarding a home inspection
- Review condo association bylaws and the homeowners’ association financial status
- Help on cancelled contracts and, when warranted, claw back earnest money on buyers’ behalf
In some of the above cases, real estate, mortgage, title and escrow professionals can help explain the process and probable outcomes. But neither your real estate, mortgage nor title/escrow representatives can provide legal or financial advice. They will “stay in their lanes” and allow legal and financial experts help you when needed.
“I think having a good inspection and understanding title issues are the main things that I see,” says Lawrence Glosser, real estate attorney and partner at Ahlers Cressman & Sleight in Seattle.
Should buyers always hire a real estate attorney?
“I don’t think it’s realistic to expect every home buyer to hire an attorney,” Glosser says. “I think when buyers are dealing without a real estate broker, I’d say it’s almost mandatory.
“If there are particular issues – about title, occupancy or boundary lines – at that point buyers should be advised by the real estate broker to contact an attorney for help.”
Typical real estate attorneys’ fees can range from $300 to $900, depending on the frequency of your discussions and the attorney’s experience. Although rare, fees for service can be attached to the closing costs – but be sure to ask before hiring an attorney.
Just as you agreed to work with a broker for real estate expertise, it’s prudent to have specialized representatives ready to help with legal and financial matters.
It’s only the biggest purchase of your life.