Buying A Home? You Should Consider Hiring A Real Estate Lawyer

Buying a home is one of the largest financial commitments and a stressful process. It is a fast-paced and can involve dozens of documents. From negotiating the purchase price to reviewing the contract and documents provided by the seller, an attorney can help simplify the process and ensure you meet all important deadlines.

A common misconception is that hiring a real estate attorney duplicates the services provided by a real estate agent. It does not. In fact, many of the purchase contracts in Colorado explicitly advise buyers and sellers that they are signing a legal document and should consult with an attorney.

Your real estate agent, if you choose to have one, plays an important role in helping you find a property, negotiate the transaction, coordinate with the other parties, and navigate the practical aspects of the purchase. An attorney, on the other hand, provides legal advice and representation. A real estate agent is not your lawyer and cannot provide you with legal advice about your rights and obligations under a contract. Your attorney would be there to look at the transaction from a legal perspective and advocate for your interests.

Some examples of how an attorney can help with the purchase of a property includes: 

• Reviewing the Purchase Contract: A residential purchase contract is a legally binding agreement. It establishes the rights and obligations of both the buyer and seller. A lawyer can explain what these provisions mean and identify terms that may create unexpected risks for you as the buyer or seller.
• Reviewing the Title and Title Commitment: A title commitment may contain easements, covenants, restrictions, liens, exceptions, or other matters affecting the property. Examples may be shared driveways, covenants and restrictions, liens and other encumbrances affecting title, and boundary issues. Some of these items may be routine. Others may have a significant impact on how you can use the property. An attorney can help you understand these items and determine whether additional investigation or negotiation is appropriate. Importantly, title insurance does not necessarily mean that every potential title issue is covered. Title policies contain exceptions and exclusions, making it important to understand both the title commitment and the policy you are purchasing.
• Inspection: An inspection may uncover significant defects. In Colorado, a Seller has an obligation to disclose defects with the Property that they have knowledge of, but an inspection can give a greater understanding of property’s condition. Inspections and disclosure of defects can quickly become legal questions and something to negotiate prior to closing. Having a lawyer involved before a dispute arises is valuable.

While hiring a lawyer is not required for every home purchase in Colorado, having an attorney involved can help you understand the legal documents you are signing, identify potential problems, and protect your interests throughout the transaction. And, hiring an attorney does not necessarily mean having a lawyer involved in every conversation or document throughout the entire transaction.

Contact our firm to find out what role an attorney can plan in your transaction.