What Does a Real Estate Contract Lawyer Do?
A real estate contract lawyer specializes in the intricacies of property transactions and disputes. One of their primary responsibilities is to help clients navigate the complexities of real estate contracts. Attorneys are responsible for reviewing, drafting, and negotiating the terms of a contract to ensure that the language is clear, all necessary provisions are included, and the client’s interests are adequately protected. During the review process, a contract lawyer identifies potential legal issues or ambiguities in the language of the agreement that could lead to future disputes. They also verify that the contract complies with all relevant state and local laws, as well as any specific industry regulations that may be applicable . This comprehensive assessment of the contract is vital to preventing drawn-out legal battles over ambiguous contract terms. In addition to reviewing the contract, the real estate contract lawyer will draft the agreement and negotiate its terms on behalf of the client. When handling negotiations, the attorney works to ensure that the client secures the most favorable terms under the circumstances. Since many real estate transactions involve multiple parties and interests, accurate and effective negotiation is essential to preventing potential future litigation. Finally, when dealing with disputes that arise out of a contract, an experienced contract lawyer can represent you during negotiation or even litigation when the parties cannot reach an agreement.
How to Choose the Right Real Estate Contract Lawyer for Your Needs
You realize that it’s time you had a lawyer advise you and draft your next contract for you, or at least have them review the real estate contract you have drafted, so that you have additional legal advice before you send it out. However, you don’t know much about lawyers, let alone real estate contract lawyers, and you certainly have no idea where to find one. So you do a search on the internet and you find a lot of small ads and links to various different law firms, but you are now more confused than ever.
You may be thinking: are commercial real estate contract lawyers better than residential real estate contract lawyers? Are real estate contract lawyers another category of small business lawyer, or do we really have to look for a lawyer who only does commercial and real estate? How would I know how to narrow my search down to a real estate contract lawyer? Aren’t all lawyers the same? Well, these are all very good questions that we will now answer below.
Real estate contract lawyers may or may not be small business lawyers. Real estate contract lawyers literally practice what their name says, which is law dealing with real estate contracts and the buying and selling of real estate. Whether they are small business lawyers or not really depends on what they do for their clients and how they classify themselves as a business. For example, some of them are business purchase and sale lawyers who also do commercial lease lawyers who also do residential lease lawyers. Others may be business lawyers who also do franchise lawyers who also do intellectual property lawyers who also do restrictive covenant lawyers. Others may do business law, but end up doing a lot of real estate contracts for clients and other may do real estate law, but also do business law for clients. They may also be called commercial real estate contract lawyers, but we prefer to call them real estate contract lawyers because commercial real estate cover all kinds of real estate law work, like really big factories. But that’s just personal preference.
Real estate contract lawyers are usually corporate securities lawyers or small business lawyers, and even if they say they just do real estate law, they have likely done small business law for their clients. Some real estate contract lawyers are litigation lawyers who do real estate litigation, which is not rare, but is another article for another day.
Real Estate contract lawyers literally do real estate contracts, and many of our clients are not small businesses, but rather they are individuals purchasing or selling their homes or businesses making real estate purchases.
You want to consider two key things when looking for a real estate contract lawyers:
Qualifications: Do they have relevant courses in real estate law in law school? What law school did they go to? What university did they go to? What city are they based out of? Do they practice law by themselves, with or without other lawyers?
Experience: What kind of experience do they have with real estate law? Do they work with a team of other real estate lawyers and assistants? Was our lawyer referred to us by another lawyer?
Specialization: Do they say they focus on real estate contracts? Have they published anything in the area of real estate law? Do they attend seminars on real estate law? Do they show you they are specialized or do they also say in their profile that they do sales tax and charity law?
On this last point, a specialist should be saying that they do real estate law and call themselves a real estate contract lawyer. If they say they do real estate law but then say they also do construction, municipal law, franchise law or foreign corrupt practices law, then it is probably not fair to call them a specialist because they do too many other areas of law. A real estate contract lawyer does not mean a real estate contract litigation lawyer, so do not confuse the two.
How a Local Real Estate Contract Lawyer Can Help You
One of the most significant advantages of hiring a local real estate contract lawyer is their knowledge about the laws specific to their region. These attorneys have firsthand experience in dealing with local statutes that could affect your contract, purchase, or sale. Also, if any issues arise, your lawyer will already have experience in handling them. The same can be said for any set of complications related to market practices. Your local lawyer will be able to expertly guide you through any of these issues with confidence.
Large law firms can be intimidating. When you work with a lawyer from one of those firms, you will typically end up communicating with paralegals instead. With a local attorney, clients get the chance to directly communicate with someone who understands their case. Local attorneys are on the ground in the same area where residential or commercial real estate transactions take place. They know the legal history of the region and the challenges that have arisen. Another benefit of hiring a local attorney is simply the convenience of signing documents. Local lawyers have offices that clients can simply walk into and sign documents in person.
It is worth noting that, while the Internet makes it easy to find an attorney no matter where you live, there are some exceptions. For example, if you are closing on a home or other property outside of your home state, you may need a lawyer in the appropriate jurisdiction.
Common Legal Disputes in Real Estate Contracts
The world of real estate transactions is fraught with potential for misunderstandings, misrepresentations, and outright disputes. One of the most frequent legal challenges in dealing with real estate lies in the presence of title issues. These can occur when a buyer or seller attempts to transfer a property that is not technically transferable because of second mortgages, joint ownership among family members, or other issues. Simply put, if a dispute arises over who really owns the property, or who has the legal authority to sell or refinance the property, legal battles can ensue that ultimately end up in real estate court.
Another common legal issue involves zoning laws. Many areas and properties have specific zoning restrictions that limit what they can be used for. For example, a property designated for single-family residential use might not be able to be expanded into a multi-family home or even a small apartment building. Commercially zoned spaces might have strict rules on the type of activities that can be conducted from the location , and agricultural land may not allow for certain types of development. If the proper permits have either not been obtained or if there is dispute on the correct use of a property, litigation can arise. Like title and zoning issues, these concerns can wind up in real estate court.
Along with land-use issues, another problem that frequently gives rise to legal disputes involves breach of contract on the part of one of the parties. For instance, when a buyer does not comply with the purchase agreement, he or she can be confronted with a lawsuit filed by the seller to enforce the sale. Conversely, when the seller does not comply with the agreement on his or her end, the buyer may be forced to file suit in real estate court to demand performance of the agreement.
While real estate contract lawyers are not involved in every real estate transaction, their presence can make the difference between an efficient and smooth process and a long legal battle that can potentially ruin one or both of the parties involved.
How to Locate a Real Estate Contract Lawyer in Your Area
Perhaps the most commonly recommended way to find a real estate contract attorney near you is via a directory. Handled online, these directories typically just require you to input your zip code, after which it will show you who and where is available around your area. You can also use these directories to match the attorney’s expertise with your own needs. For example, if you are an investor looking to speak to someone about due diligence steps you have taken or closing documents, you can look specifically for someone who only deals with real estate contracts.
If you are looking for a lawyer locally and do not want to rely on the internet, an excellent option is going through the bar associations. As these are highly respected authorities in most communities, almost always involving lawyers that have gone through a formal vetting process, the lawyers that they recommend are well qualified and you can trust their advice. These are also very useful, as you can get a list of vetted contacts in your area, as well as referrals for what kind of lawyer you will need.
If you already know your neighbors well and are on good terms with them, then getting a personal recommendation is also a great method to finding a lawyer. The recommendations of people that you know and trust can be very persuasive, as well as very useful if you find yourself needing to prove something in court.
Essential Questions to Ask Your Real Estate Contract Lawyer
During the initial consultation, ask your lawyer questions such as:
Experience: How many real estate cases have you handled? Have any of your clients had similar cases to mine? What was the outcome?
Years in Practice: How long have you been practicing law? Have you specialized in real estate contracts, or are you a jack-of-all trades (or can you refer me to a specialist)?
Knowledge of Phoenix Area Real Estate Law: Do you focus on real estate contract law specific to the Phoenix area? Do you have relationships with other real estate professionals?
Fee Structure: How much does it cost to hire you? How do you handle retaining clients and retainer balances? Do you bill by the hour or offer flat-rate fees?
Time for the Case: How much time will you spend on the case? What is your caseload like? Will this allow you to spend an adequate amount of time on my case?
Availability: How can I contact you, and how soon can I expect to hear back? What is your availability schedule? If you are out of town, who will handle matters on your behalf?