Many people hire attorneys to review both Listing Contracts and Purchase and Sale Agreements before they sign them (and often prefer to have attorneys close the transaction as well).
Others, however, will not stop before signing critical documents when making the most important decisions of their lives (like buying or selling a home). They may think that making an “offer” on a piece of property is a simple matter, with little more than the price being involved. WRONG! ALL of the terms of the transaction are in that offer, and a lot of thought should be put into that proposed contract.
Sometimes it’s impulsiveness or someone’s description of the agreement as a “standard contract” (there’s no such thing). They are anxious to get the deal done and let others “steer” them on the fine print. The real estate agent seems so reassuring, what could go wrong?
In many states, seeking the advice of an attorney first is the norm. There (unlike Florida), all sales contracts must be written by attorneys.
Listing contracts frequently contain language that Sellers should think twice about before signing, such as binding arbitration, or language which might make the Seller responsible for the commission even when the sale doesn’t close. If you change your mind about selling, or are unsatisfied with the agent’s work, there are often very tough conditions attached to cancellation. These terms can lead to outcomes you would never expect.
Every year, there are more regulations, such as the Sellers’ duty to disclose, along with zoning, building regulations, deed restrictions and survey issues.
A good real estate lawyer knows the community and the common legal issues there, what agents are successful in the marketplace and the relative ethics of agents. Some real estate attorneys actually teach contract and real estate law to agents, to help satisfy the agents’ continuing education requirements.
Many brokers tell me that they are relieved when there’s an attorney on the team, because their liability decreases as the lawyer provides another set of eyes, and that much greater expertise. Being represented by an attorney gives you greater control over the transaction, from the exact language of all the documents to who will close the transaction. The end result is a smoother process for you throughout.
Some people are concerned about the cost of hiring an attorney. In truth, having a real estate attorney assist with the transaction and close the deal usually doesn’t cost any more than trusting it to a title company that lacks the specialized training and experience a lawyer enjoys.
To their credit, most real estate brokers work extremely hard to get your property sold and are usually successful, but just as good fences make for good neighbors, good contracts make for good professional relationships.
If you’re thinking of buying or selling property, talk to a real estate attorney. He (or she) will tell you what to look out for, the questions to ask and what pitfalls to avoid. Peace of mind is a wonderful thing and something you are entitled to.
Article by Tom Brodersen, Esq.
Anderson & Brodersen, P.A. | 350 Corey Avenue, St. Pete Beach, FL 33706 | 727.363.6100 | {rp[ertyLawGroup.com