10 Responsibilities of a Real Estate Attorney
Responsibilities of a Real Estate Attorney
What does a real estate attorney do? Here are ten important responsibilities of a real estate attorney!
A real estate attorney is a specialized lawyer who is licensed to handle all legal responsibilities during a real estate transaction. Real estate attorneys have all of the knowledge and experience needed to provide all parties involved valuable insight related to buying and selling a home.
From preparing documents to negotiating contracts, the real estate attorney's job covers multiple responsibilities, making them a valuable asset during the real estate process.
North Carolina is just one of the many states that require the presence of a real estate attorney during a closing. During this time, a real estate attorney will review everything and approve the closing for everyone's benefit.
Depending on how the real estate contract has been negotiated will determine whether the buyer or the seller will be responsible for covering the cost of the real estate attorney at the time of closing.
Hiring a real estate attorney during a real estate transaction comes with many benefits but certainly does not come cheap. The average cost of one call to a real estate attorney is $300 per hour.
Even though charges will vary, most attorneys will charge a fixed hourly rate or a fixed rate for specific services, whether drafting legal documents or attending a home closing.
There are many real estate attorneys in the area to choose from, but it is important to find one that is reputable and knows what they are doing. Some of the best ways to find a good real estate attorney are to ask for recommendations from friends and family or to check online reviews.
If you are considering hiring a real estate attorney, whether you are the buyer or the seller, here are ten important responsibilities of a real estate attorney.
This is what a real estate attorney is responsible for
Chapters
1. Title Search
One of the many responsibilities that a real estate attorney has is to conduct a property title search, which is essentially an examination of public records to determine a property's legal ownership.
A comprehensive title search is needed during the real estate transaction process to transfer a title once someone buys a home legally. Performed by an attorney or a title company, the title search process typically takes up to two weeks to process.
When a person is buying a home, a title search is necessary to ensure that a property does not have any claims or liens that could impact the sale of the home.
2. Contract Preparation and Negotiation
During a home sale, the real estate attorney will prepare the contract between the two parties for the purchase and sale of real estate. In most real estate transactions, a real estate attorney is legally authorized to prepare and review all documents and contracts related to the sale and purchase of a home.
A real estate attorney can be hired for both the buyer and the seller and will be ready to assist with any negotiation of legal documents related to the purchase or selling of the home.
A real estate attorney can help you negotiate real estate and price negotiation when a home is under contract, and they can also help explain things in the contract that you may not understand. An experienced and knowledgeable real estate attorney will support you during this big financial transaction.
3. Closing Facilitation
Closing attorneys are real estate attorneys who specifically represent their clients during the closing process when buying a home. In the state of North Carolina, an attorney is required to handle all real estate closings and provide buyers with information on closing costs.
The role of a closing attorney is to take care of all of the final stages of a real estate transaction, oversee the transfer of funds, and ensure that all parties fulfill their obligations as outlined in the contract.
Providing an extra layer of protection in case of a contractual breach and having an attorney facilitate a closing will provide extra peace of mind for both the buyer and seller.
A real estate attorney is required to conduct a closing in the following states:
- North Carolina
- Connecticut
- Delaware
- Georgia
- Massachusetts
- New York
- South Carolina
- West Virginia
4. Litigation
In case of a breach of contract during a real estate transaction, a real estate attorney is responsible for taking legal action. Litigation is the process of resolving disputes through the public court system, and in some cases, it is necessary in real estate.
A real estate litigation attorney, in particular, is someone who handles all real estate disputes and conflicts that are mostly brought on when one party does not fulfill their obligations in a real estate contract.
Here are five common causes for real estate litigation:
- Breach of contract
- Failure to disclose a problem with the property
- Boundary dispute
- Failure to perform obligations in the real estate contract
- Negligence or breach of duty
5. Land Use
In North Carolina, certain areas are zoned, can only be used for different types of things, and are divided by residential, commercial, or industrial use. Zoning and land use laws can impact property owners, which is why a real estate attorney should be current on these public land use laws that could impact homebuyers.
A real estate attorney is needed to research land use and zoning laws if a homebuyer is interested in buying land or building a home. Before purchasing real estate, it is important to be aware of any land-use zoning laws, especially if you plan on building or adding to your home in the future.
A real estate attorney will have knowledge of local land-use zoning laws in your area and provide the proper advice if you are looking to buy a piece of land or sign a lease if you are considering renting or buying a home.
6. Purchase Agreements
A purchase agreement in real estate is a legally binding agreement or contract between a buyer and seller that outlines the details of a home transaction during the home-buying process. Since one of the responsibilities of a real estate attorney is to prepare and negotiate contracts, this also includes handling the purchase agreement.
A real estate attorney will prepare the purchase agreement and will make sure that all details are covered in the purchase agreement. The real estate attorney will advise all participating parties throughout the entire process of creating and signing the purchase agreement once it is reviewed and agreed upon.
The purchase agreement will provide all of the specifics and outline the terms of the real estate transaction. This is the document that finalizes the purchase of a property and is very important for both the buyer and the seller.
Most of the time, a purchase agreement will include specific terms such as the price of the property, conditions of the property, details of the earnest money deposit, contingencies that the buyer and the seller have agreed to, and the closing date.
7. Eliminating Title Problems
After a title search, if there appears to be a problem with the title, then a real estate attorney should be contacted to clear up the issue. Some of the most common title problems that can occur are an error in public records, a break in the chain of title, a lien on the property, or any issues associated with boundary lines.
Once all title issues have been identified, it will be time for the real estate attorney to fix the problems by obtaining the necessary legal documentation, communicating with all parties involved, and, in some cases, pursuing legal action if there is no other option.
8. Foreclosure Proceedings
A foreclosure is a legal process when a lender seizes the sale of a property when a borrower is unable to make their repayment obligation. In a foreclosure a real estate attorney will handle all aspects of a foreclosure and help during the process.
A foreclosure will lower your credit score and make getting new loans at a good interest rate difficult. A good real estate attorney will handle the case and defend the party impacted.
9. Deals With Complex Transactions
In a complicated or complex transaction, a real estate attorney will provide the guidance you need, often a necessary addition during home-buying. If a real estate transaction becomes problematic, a real estate attorney will look out for your best interest and handle anything confusing to you.
They will help you navigate complex legal documents, answer your questions, and smooth over any inconveniences during a real estate transaction. Having someone in your corner with legal expertise will make a huge difference whether you are buying or selling a home.
10. Draft Legal Documents
The real estate attorney will draft all the legal documents associated with a real estate transaction. Some of the most common legal documents that will be drafted include the purchase agreement, the deed to the property, and the mortgage note.
A real estate attorney will be in charge of all of these documents and will use these documents to negotiate with lenders on your behalf. Most real estate attorneys will charge a flat fee for drafting contracts and reviewing documents.
Methodology
We used data and information from NC Realtors and Title Search Direct in North Carolina to determine the top ten responsibilities of a real estate attorney during a real estate transaction.
FAQs
Is a real estate attorney required in NC?
According to North Carolina state law, a licensed real estate attorney is required to handle all real estate closings, but it does not require the attorney to be physically present.
How much does a real estate attorney cost in NC?
In most cases, real estate attorneys will likely charge either by the hour or a fixed fee. Depending on who you hire and the location, many real estate attorneys in North Carolina will charge between $750 to $1,200.
What does an NC closing attorney do?
Closing attorneys are responsible for all documents related to the closing of a home, including gathering information about the contract and loan, insurance information, home warranties, termite inspections, land surveys, and the title to the property.
Responsibilities of a Real Estate Attorney - Final Thoughts
A real estate attorney has many important responsibilites and can provide much needed help during a real estate transaction. Though working with one is generally not cheap, a real estate attorney can help you understand any confusing legal steps and will have your back during the whole real estate process which could be worth the cost.
Whether you choose to work with a real estate attorney throughout the process is up to you but one will be needed at closing. It is best to work with a real estate attorney that has good reviews and has been reccomended by other people that you know.
If you are moving to Raleigh and are interested in buying or selling a home, contact the experts at Raleigh Realty. We are here to help.
Ryan Fitzgerald
Hi there! Nice to 'meet' you and thanks for visiting our Raleigh Real Estate Blog! My name is Ryan Fitzgerald, and I'm a REALTOR® in Raleigh-Durham, NC, the owner of Raleigh Realty. I work alongside some of the best Realtors in Raleigh. You can find more of my real estate content on Forbes, Wall Street Journal, U.S. News and more. Realtor Magazine named me a top 30 under 30 Realtor in the country (it was a long time ago haha). Any way, that's enough about me. I'd love to learn more about you if you'd like to connect with me on Facebook and Instagram or connect with our team at Raleigh Realty. Looking forward to connecting!
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