When to Hire a Real Estate Attorney

Real estate attorneys can advise on legal issues, provide legal representation, and offer guidance during a real estate transaction. You may consider hiring a real estate attorney to review contracts or negotiate on your behalf when navigating complex transactions, such as commercial real estate deals, for-sale by owner (FSBO) sales or creative financing situations like rent-to-own. Some states may even require you to hire a real estate attorney to act as a settlement agent during the closing process. If a real estate attorney is required for your home purchase or sale, your real estate agent or mortgage lender will advise you of this.

We’ll help answer some more specific questions related to when you may need to hire an attorney and cover why most real estate deals can be completed without an attorney present.

Do I need a real estate attorney?

When navigating the complexities of a real estate transaction, having the right legal support can make all the difference. That being said, hiring a real estate attorney is usually not required during the closing process. When you're buying or selling a  home, you’ll work with your real estate agent and a closing or settlement agent, which is usually the title company. They will perform the financial and administrative aspects, such as title searches, preparing and reviewing documents, managing and distributing funds, and ensuring the legal transfer of property ownership. 

Of course, even if it's not mandatory where you are, having an attorney by your side can still provide invaluable benefits when navigating complex or unusual situations, such as buying a for-sale by owner (FSBO) property if not using your own agent. The attorney can then help review purchase contracts.

Ultimately, whether you need an attorney depends on your specific situation. If you're ever uncertain, consulting your real estate agent and lender is a smart step to make sure that your interests are well-protected throughout the process.

Do you need a lawyer to sell a house?

In some states, you may be required to hire a lawyer to sell your home, but not all situations require an attorney to be present. Use your listing agent as a guide when navigating the home selling process. They’ll know what’s required in your specific location. 

Here are some situations where hiring a real estate attorney when selling a house could be especially valuable:

Liens: If there are outstanding liens on your house, an attorney can help resolve those issues and clear the path to closing. They can communicate with the title company to ensure that 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 agrees 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. 

Do you need a lawyer to buy a house?

Similarly to selling a home, a lawyer is not required to buy a home, but some states may require you to have an attorney present during the closing process. If a lawyer is required for your real estate purchase, your mortgage lender will advise you that one is needed to close the deal. 

Complex transactions, like buying a FSBO property, may benefit from having a lawyer present to review the purchase contract. In most real estate transactions, you’ll work with your buyer’s agent and a title company to review all documents before you close to ensure their authenticity. When you buy a home with us at Zillow Home Loans*, you’ll work with our Zillow Closing Services team. In many states, they will perform the financial and administrative aspects during the closing process. 

Do you need a lawyer at closing?

Real estate attorneys are legally required as part of the closing process in a handful of states. In these areas, their presence is not just a formality but rather an integral part of the transaction. The closing process is the final step in transferring property ownership, and it involves a series of crucial steps that ensure the transaction is legally binding and free of complications.

During this process, various documents, such as the deed, mortgage paperwork, and title transfer documents, need to be reviewed, signed, and properly filed. The attorney’s role is to provide legal oversight throughout these procedures, making sure everything is in order before the closing. If any legal issues arise, such as discrepancies in the documentation or unaddressed contingencies, the attorney is there to resolve them before the transaction can be finalized.

In most states, a title company will act as the neutral third party to facilitate a smooth and legal transfer of property ownership. They’ll conduct all the same responsibilities that a real estate attorney would, essentially removing the need of a separate lawyer.

Why hire a real estate attorney?

Some 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. Whether they’re engaged to review contracts, facilitate closing, or simply check for any title issues, a real estate attorney can provide peace of mind. Remember, in most states, a title company will handle your closing. 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. 

Legal expertise

A real estate attorney brings valuable legal expertise to the table, especially when it comes to the maze of complex documents involved in a property transaction. These documents often include contracts, disclosures, and terms that can be difficult to understand, even for the most seasoned buyers and sellers. 

With an attorney by your side, you’ll have someone to thoroughly review these documents, explain every clause in detail, and make sure you fully understand what you’re agreeing to before you sign anything. 

Customized contract protection

Real estate transactions often come with their own unique set of circumstances, and a standard contract may not always fully protect your best interests. That’s where a real estate attorney truly shines. They can draft or modify contracts to reflect your specific needs, making sure you’re protected in ways that typical forms may not account for. 

Whether you’re dealing with unusual contingencies, multiple sellers, or other complexities, your attorney will make sure that the contract addresses all of your concerns. With their help, you can rest easy knowing every detail is considered, reducing the risk of future misunderstandings or disputes.

Title and lien review

One of the key roles of a real estate attorney is to ensure that the title to the property is clear and free from any potential issues. Title problems, liens, or zoning issues can unexpectedly halt a transaction or even create major headaches down the road.

A skilled attorney will identify any potential title issues or encumbrances before they become an obstacle, helping to resolve them quickly and efficiently. Their expertise protects your investment, and you can move forward with confidence, knowing that your property rights are secure and the title is free from unwanted surprises.

Negotiation support

Negotiating the terms of a real estate deal can be tricky, especially if you're not familiar with the ins and outs of the legal jargon. A real estate attorney can step in to negotiate on your behalf, whether it’s about repairs, contingencies, or other important aspects of the transaction. With their legal experience, they know how to advocate for your best interests, making sure you don’t get caught agreeing to terms that may not be in your favor. 

Closing oversight

The closing process is where everything comes together, but it can also be overwhelming, with piles of paperwork and legal terms to decipher. A real estate attorney provides crucial oversight at this stage, reviewing the final documents and explaining any financial breakdowns or terms that may still be unclear. Their expertise ensures the smooth transfer of ownership, so you can walk away from the closing table feeling confident and secure in your new property.

Dispute resolution

Occasionally, issues arise during the transaction process, whether it’s a breach of contract, a property defect, or other disputes that need to be resolved. In these situations, having a real estate attorney on your side can be a game-changer. They are equipped to handle legal disputes and can work on your behalf to resolve the matter effectively and efficiently. 

Protect your investment every step of the way

Real estate transactions can be complicated and stressful, but with a skilled attorney by your side, you can feel confident that your interests are protected every step of the way. Whether you’re buying, selling, or dealing with any of the complex legalities of a real estate transaction, an attorney can provide the expertise and support needed to ensure a smooth process. If you’re unsure if you’re required to hire a real estate attorney, your real estate agent is a helpful resource. 

*Zillow Home Loans; an equal housing lender. NMLS #10287