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Do You Need a Real Estate Attorney to Buy or Sell a Home? That Depends on Where You Live

Buying or selling a home can be complicated. 

After all, there are a variety of laws that regulate real estate transactions, and they vary widely by location. That’s why many states require a real estate attorney to close a home sale. 

Even if you aren’t legally required to use a lawyer, working with one may still be worthwhile, especially if your transaction has unique terms or legal concerns. 

“It’s the real estate attorney that has the client’s best interest at heart and acts as both an advocate for, and counselor to, the client,” said Scott Smiler, real estate attorney at Gallet Dreyer & Berkey, LLP in New York City.

To help you decide whether a real estate attorney is a necessary resource for your transaction, here’s a closer look at what they do, how much they cost, and where they’re legally required to buy or sell a home. 

What do real estate attorneys do?

Real estate transactions involve a legally binding contract with several contingencies. That’s where real estate attorneys come in. They advise and protect both sides to ensure a fair, arms-length transaction. 

In states where they aren’t required, buyers and sellers typically work with real estate or title agents and companies.

You can count on a real estate attorney to prepare or review the purchase contract with negotiated terms, examine the title search report and remove any defects, and prepare the deed and other documents for closing.

An attorney may also check paperwork for any errors and conduct or supervise the closing. And they may disburse the transaction funds through their escrow account. (Escrow accounts typically hold the earnest money buyers contribute to show they are serious about the deal before it closes.) 

Additionally, attorneys can help with resolving easement disputes on properties, paying off liens (aka debts) on properties, breach of contract issues, earnest money problems, and seller disclosure violations discovered post-closing.

How much do real estate attorneys cost?

The cost of a real estate attorney depends on a few factors, including where you live, the skill and experience level you desire, and what sort of expertise you need.

In most cases, real estate attorneys charge a flat rate per hour.

The national average hourly fees for real estate lawyers range from $250 to $345,

according to Thumbtack. However, most people pay a total of $504 to $1,554 for their services. That can be higher in pricier parts of the country, such as New York.

Fortunately, most attorneys offer a free or highly affordable consultation so you can determine whether someone is a good fit for your budget, transaction, and goals. 

When you may need a real estate attorney, even if it’s not required 

A woman in a navy suit standing in a library with her arms crossed.

Many experts agree that you should always work with a real estate agent, even if your state doesn’t mandate one. 

“Many buyers and sellers forgo an attorney to save a few hundred or thousand dollars, which is crazy, since the home is likely one of the greatest investments of their life,” said Jonathan Greene, associate broker at Country House Realty in Kingston, NY. “They’re putting their savings and credit on the line.”

Of course, there are some situations that warrant a real estate attorney more than others. 

For example, if you’re going through a divorce and plan on selling the home that you and your partner both own, it may be helpful to hire an attorney.

A real estate attorney may be helpful for breaches of contract as well. This is when the buyer or seller violates the contract before, or even after a deal is closed.

If you’re trying to sell an inherited property, a lawyer can help sort out things like questions of ownership, which between family members can be a bit tricky. A real estate attorney may also come in handy for homeowners who plan to use a quitclaim deed to transfer the property to a new owner.

In addition, if the home involves a short sale, auction, or new construction property where the entire transaction is usually designed by lawyers on the builder side, involving a real estate attorney may be beneficial. 

States that require real estate attorneys

If you live in any of these states, you’ll need to involve a real estate attorney in the closing and/or title process:

  • Alabama
  • Connecticut 
  • Delaware
  • Georgia
  • Kentucky 
  • Louisiana 
  • Massachusetts 
  • Mississippi 
  • New Hampshire 
  • New York 
  • North Carolina 
  • North Dakota 
  • Rhode Island
  • South Carolina
  • Vermont 
  • West Virginia 
  • Wyoming

States where real estate attorneys not required

Though you’re legally not required to use a real estate attorney if you live in any of the following states, you might still want to do so, depending on your situation. 

  • Alaska
  • Arizona
  • Arkansas
  • California
  • Colorado
  • District of Columbia
  • Florida
  • Hawaii 
  • Idaho
  • Illinois
  • Indiana
  • Iowa
  • Kansas
  • Maine 
  • Maryland 
  • Michigan
  • Minnesota
  • Missouri
  • Montana
  • Nebraska
  • Nevada
  • New Mexico
  • Ohio
  • Oregon
  • Pennsylvania
  • South Dakota
  • Tennessee
  • Texas
  • Utah
  • Virginia
  • Washington
  • Wisconsin
  • New Jersey

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Contributing Writer, New American Funding

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