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WHY DO I NEED A REAL ESTATE ATTORNEY?

A real estate attorney handles some of the complicated transactions involved in a home purchase. Although he or she is involved in the process for a relatively limited time, you'll find that an attorney can play a pivotal role in your home-buying success.

Do I Need an Attorney?
If you're looking for a home, it's a good idea to have an attorney on board. Since you're new to home buying, it's helpful to have a legal expert on your side for advice and direction. Hire an attorney who specializes in real estate law, because your family lawyer may not know enough about real estate contracts and closings to guide you effectively.

Your attorney should be involved from the beginning of the negotiation process, starting with the purchase and sale agreement. As settlement time nears, he will assist you through the closing process and help you understand the many documents you will be asked to sign.

Home buying involves a considerable number of official documents - as many as 40 for the closing alone! - and an experienced real estate attorney can walk you through the "legalese". Your attorney can make sure that the sales agreement you signed before the closing still fits your needs. He can make sure that you get a fair contract that includes the right conditions (contingencies).

The closing is the most paperwork-intensive part of buying a home. Some of the most important documents you will deal with at that time include:

• Escrow documents: The escrow holder is a neutral third party who makes sure that all conditions (documents and money) of the real estate transaction are met. Escrow documents restate the sales agreement and direct the escrow holder to gather all documents, signatures, and money necessary to complete the deal.
• Title: The escrow holder will receive a preliminary title report on the property. This document reviews the title, or legal document, that grants ownership of a real estate property. This also proves that the seller is the legal homeowner and has the right to transfer ownership over to you.
• Agreement to pay for title insurance: An agreement meant to protect the buyer and lender should an issue arise regarding the legitimate possession of a home.

There also are several fees and taxes to sort out at the closing. Your attorney will make sure that these responsibilities are divided fairly between you and the seller, as appropriate. These costs can include, but aren't limited to: surveyor, settlement and recording fees, transfer taxes, and outstanding property taxes.

In addition to dealing with paperwork, an attorney can help smooth over any potential disputes that may arise.

When deciding on whether to hire an attorney, keep costs in mind - they are paid by the hour, so find out their rates in advance. To help keep legal fees down, try to resolve small disagreements without enlisting professional assistance.

Finding a Good Attorney
Referrals are the best way to find a real estate attorney. Ask your real estate agent, friends or family members for recommendations; see if your family lawyer can provide you with names. If you can't find a suitable candidate through these sources, call the Bar Association in your area and ask for suggestions.

The right real estate attorney can provide you with valuable guidance and, even more importantly, peace of mind. But don't forget the importance of educating yourself about the nuts and bolts of home buying, so that you know what to expect through the process.