People and businesses seeking to acquire real estate usually hire professionals. Real estate agents help facilitate real estate transactions. The advice and support that real estate agents provide can make or break pending transactions. Buyers and sellers rely on agents to help them find the right property, optimize sale prices and navigate the complexities of closings. Professionals help arrange for financing and manage the various details required to get from a listing or an offer to a completed transaction.
Those professionals have some degree of liability, which they may try to defray with specialized insurance coverage. They may also want to work with an attorney to limit their liability and offer the best caliber of service possible to their clients. How can an attorney help a real estate professional limit their exposure?
With support prior to a transaction
Attorneys familiar with real estate law can help conduct title research and other aspects of the due diligence process prior to a real estate transaction. They may be able to identify issues that might undermine the value of a transaction for a client. Lawyers can also provide support while making an offer or executing pre-listing documents. The creation of bespoke documents customized to a client’s needs can help ensure their optimal protection throughout the real estate transaction. Agents who have lawyers on hand can secure custom documents quickly. They can also consult with the attorney representing them in scenarios where there may be legal questions, such as whether an investor should acquire property as a limited liability company (LLC), as an individual or through a trust.
With guidance during the transaction
Agents may be experts at networking and marketing, but they may struggle with intense negotiations. Attorneys can help facilitate negotiations, which can improve the client’s satisfaction with the final terms set. Additionally, attorneys can help review final documents before the closing to ensure that they are accurate according to the terms set in the initial agreement. Attorneys can also help address issues that might arise between the negotiation of an offer and the closing, such as unexpected appraisal or inspection results. Their assistance with negotiations can reduce the likelihood of a closing falling apart at the last minute.
With continued support after the closing
Sometimes, issues arise after a real estate closing. Buyers claim that the seller failed to disclose defects. Sellers refuse to vacate the property on schedule. Countless things can go wrong, and people may turn to their agents for help or accuse them of causing the issue. Attorneys who are already familiar with the transaction are in an excellent position to help resolve post-closing conflicts. They can help protect agents from litigation and professional insurance claims that could affect their finances or their professional reputations.
Securing proper support when working in a high-risk, high-reward industry such as real estate can be a smart move for professionals.