Why Should I Hire a Real Estate Contract Attorney?
Contracts and other agreements are a necessary part of any real estate transaction. But a poorly worded contract or even a misplaced word or comma can delay a real estate transaction, end the deal, or result in years of expensive and protracted litigation. To ensure that your real estate contracts are legally enforceable and avoid unnecessary delays or future litigation, you should consider working with an experienced real estate attorney.
At Fremstad Law, our lawyers have extensive experience preparing and negotiating real estate contracts. We have been involved in all aspects of real estate transactions, including litigating contracts and deals that have gone awry. We know real estate and contract law inside and out and will use our knowledge and experience to your advantage to ensure that your transaction goes smoothly and that your interests are protected.
Representing Buyers and Sellers in Residential and Commercial Transactions
Whether you are the buyer or the seller or are involved in a residential or commercial property transaction, the real estate attorneys at Fremstad Law can help. We provide legal advice, offer guidance, assist with real estate contract negotiation strategies, and ensure that your transaction proceeds smoothly and your interests are protected.
Well-versed in commercial and residential transactions as well as real estate litigation, our attorneys will prepare and review the purchase agreement and other contracts necessary to facilitate the transaction. We will conduct negotiations, assist with due diligence, evaluate title issues, and represent you at the closing.
When to Hire a Real Estate Lawyer
If you are considering buying or selling real estate, it is wise to involve a lawyer as soon as possible. It is especially important to hire a real estate lawyer before a letter of intent or purchase agreement is signed. However, involving an attorney earlier in the process is recommended since review and revisions to a document prepared by the other side can be both time consuming and contentious.
You may want to consider hiring a real estate lawyer before a property is identified, since local attorneys may have deeper knowledge about certain properties, or even people ready to buy or sell your property. Additionally, having your own attorney draft key documents that address the most important issues you are concerned with can ensure you are better protected and may actually decrease your overall costs.
Having a Real Estate Agent May Not Be Enough
In most real estate transactions, one or both sides have an agent, so the question is why add a lawyer to the mix? In a standard residential home sale, a lawyer may not always be necessary. However, if either side is planning anything unique, you should seriously consider having an attorney review. Many real estate agents work from form documents that are not good at addressing anything beyond a simple purchase and sale.
In deals involving commercial property, template agreements simply are not good at addressing many types of issues such as existing tenants, existing contracts that may be tied to the property, operating costs and prorations, extensive due diligence, and environmental reviews and testing to name a few. A good real estate attorney can address these items and streamline the transaction so that unnecessary terms and conditions are not included in a deal.
While there is a lot to be said for a good real estate agent, especially one who has their ear to the ground and is well connected, they are paid on commission. Sometimes that can lead to pressure to get a deal done, when in reality you may need to consider walking away or renegotiating. Additionally, you may want to have legal counsel review any listing agreement with the real estate agent to carve out certain buyers from commission and address what happens if a sale falls through.
Overall, the more you communicate with your attorney about your risk tolerance and goals, the better the attorney can tailor an agreement to your needs.
How a Real Estate Lawyer Will Help
Real estate transitions are complex and can often involve enormous amounts of paperwork. Our lawyers will prepare and review letters of intent, purchase agreements, deeds, and other documents to facilitate the transaction, protect your interests, and ensure that you comply with applicable local, state, and federal laws.
Letter of Intent
A letter of intent is a document that is often used in a commercial real estate transaction and is generally non-binding, but that outlines the key deal terms. Price is almost always addressed in a letter of intent, but it may also include other items parties want to know there is agreement on, such as: contingencies, due diligence items, warranties, representations and beyond.
Purchase Agreement
The purchase agreement is a contract between the buyer and seller that specifies the terms of the sale. It will identify the property being sold and provide information about the buyer, the seller, the pricing, and financing information. The purchase agreement can include many other items depending on the nature of the deal, such as:
- Fixtures or appliances that are included or excluded from the sale
- Inspection and testing dates and conditions
- Closing and possession dates
- Amount of the earnest money deposit
- Who is responsible for closing costs
- Conditions for terminating the sale
- Conditions that must be met for the sale to be completed
- Due diligence whether property taxes and other costs will be prorated
- Property and environmental conditions
- Whether the buyer has acknowledged receipt of the seller disclosure statement
Title Issues and Other Restrictions
We can also help you understand title issues and insurance, building and use restrictions, and identify other items that might impact your ownership interest in the property.
Representing You at Closing
Closing a real estate transaction represents the culmination of months of hard work. It is an exciting time, but you must be sure to meet all applicable dates and other legal requirements. Our lawyers will themselves, or with an experienced closing company set a closing date, organize the closing documents, and oversee the process.
Before the closing, due diligence will be completed, and will generally include the obtaining of an updated abstract and title opinion to identify any liens, easements, or other issues with the property. We will prepare and review the closing documents and represent you at the closing (which these days is often done electronically as opposed to in person) to answer any final questions and ensure that the transaction proceeds smoothly. Finally, we will ensure that the money is distributed properly at the end of the sale.
Fremstad Law Moves You Forward
At Fremstad Law, our lawyers will assist you with all aspects of your real estate transaction. We are here to move you forward and protect your interests. To learn more and schedule a consultation to discuss your situation, contact us today.
