What Does a Real Estate Attorney Do for a Seller?

In this article:

• Do I need a real estate attorney to sell my house?
• Circumstances to hire a real estate attorney 
• How to find the right real estate attorney
• How much does a real estate attorney cost?
• If I have an attorney, do I need an agent or broker to sell my house? 

Real estate attorneys help oversee home sales, from the moment the contract is signed through the negotiating period (aptly called the 'attorney review') to closing. A seller’s attorney reviews sales contracts, communicates terms in a professional manner and attends closings to prevent mishaps. 

Selling a home is a complex process that requires knowledge of and familiarity with local, state and federal laws. An attorney helps you protect your investment and assets while ensuring you're conducting your side of the transaction legally — which can prevent costly missteps. 

Real estate attorneys are required in many states, but even if you aren't legally required to use an attorney while selling, it can be a good idea. 

Do I need a real estate attorney to sell my house?

In 21 states and the District of Columbia, attorneys are legally required as part of the closing process. Attorney-required states include:

• Alabama
• Connecticut
• Delaware
• District of Columbia
• Florida
• Georgia
• Kansas
• Kentucky
• Maine
• Maryland
• Massachusetts
• Mississippi
• New Hampshire
• New Jersey
• New York
• North Dakota
• Rhode Island
• South Carolina
• Vermont
• Virginia
• West Virginia

As a best practice, if the other party in your transaction has a lawyer representing them and supporting their best interests, you should too.

Do I need a lawyer to sell my house privately?

If you live in one of the states mentioned above, you're required to use an attorney, whether you're selling your home on your own or with an agent. 

If you're selling on your own and don't live in a state that requires hiring a lawyer, it's up to you. Use your best judgement on whether your situation requires the help of a legal professional. 

Circumstances to hire a real estate attorney

Some sellers view real estate attorneys as indispensable. After all, with so much money on the line and a mountain of paperwork, legal guidance can help curb potential issues throughout the process. Even if your state doesn't require you to hire an attorney, there are a few special circumstances where it's recommended to use one. 

Liens: If there are outstanding liens on your home, an attorney can help resolve those issues and clear the path to closing. They can communicate with the title company to make sure all lien holders get paid correctly. 

Joint sale: If you are selling a home with someone other than your spouse, an attorney can help you keep both your best interests in mind. As mentioned before, an attorney for each party ensures both sellers’ interests are prioritized.

Short sale: Because your lender is agreeing to let you sell your home for less than you owe in a short sale, there are extra hoops to jump through. An attorney can help you navigate the complexities. 

Estate sale: If you inherited the home you're selling, hiring an attorney to sort through ownership documents can ease the burden, which is especially helpful when you’re grieving the loss of a family member. 

How to find the right real estate attorney

Like any professional relationship, finding the right representative is key. Here are two common ways sellers find their real estate lawyers.

1. Referrals

From your agent: Experienced real estate agents often have a list of attorneys they work with regularly and recommend. They may even have a referral for an attorney who is an expert in your specific type of sale. 

From a friend: Ask colleagues, family members, friends or neighbors who they used in their home sales. 

From past experience: Of course, you can always use the attorney you used to buy the home. 

2. Online reviews

The internet puts a wealth of customer reviews at your fingertips, even for lawyers. Check Zillow, Yelp, Google and other review sites to find reviews on the real estate lawyer you're considering. 

How much does a real estate attorney cost?

How much you'll pay for real estate attorney fees depends on your market and how involved they are in the transaction, but they typically charge a flat rate of $800 to $1,200 per transaction. Some attorneys charge hourly, ranging from $150 to $350 per hour. 

If I have an attorney, do I need an agent or broker to sell my house?

Whether you need an agent or broker depends on your comfort level with managing all of the listing, marketing and showing tasks. Having an attorney on hand if you're selling for sale by owner (FSBO) can take some of the work off your plate and minimize anxiety related to tasks like contracts, negotiations and closing paperwork. But a lawyer won't do any of the work related to attracting buyers and providing market-specific advice. 

Keep in mind that along with a lawyer, there are several types of professionals typically involved in a home sale. Here are a few of the most common:

Broker/agent: Their job is to get your home listed on the MLS, find a buyer, facilitate the transaction and make sure all deadlines are met. 

Inspector: The inspector is hired by the buyer. Their job is to make sure the buyer knows about everything that may need to be repaired on the home. Sellers also sometimes hire an inspector to do a pre-inspection so they can make any necessary repairs before putting the house on the market. 

Appraiser: Hired by the buyer (or their lender), an appraiser ensures the buyer isn't paying more than fair market value for a home. 

Title company: A representative of the title company is responsible for underwriting the title insurance and transferring the clean title of the home to the buyer. 

Escrow manager: The escrow manager, officer or agent is a third-party representative responsible for holding funds during the transaction and making sure every party gets paid the correct amount at closing. In some cases, escrow officers work at title companies, blurring the lines of which party is distributing funds at the closing table.