I'm buying my first home. Do I really need a lawyer?

Question

I think I can figure it out on my own. Is a dual agent enough?

Answer 1

You don't need a lawyer - it's just a really good idea.

The real estate business is full of predators, and if you don't know what you're doing, that makes you easy pickings.

Problem is this: your realtor and your mortgage broker are in business for only one reason - to make easy money for themselves. No matter how friendly they are, or how helpful they seem, don't believe for a second that they want to "help" you. Wait until after the transaction to pass judgement on that.

You can take steps to make sure they conduct themselves in accordance with the law - the best way is to review your loan program and contract with an attorney. It'll cost you a few hundred bucks, and can save you tens of thousands. Most attorneys will give you an initial consultation for free.

Dual agency is an excellent example of how crooked this industry is. So you approach the listing agent about the property, and they offer to put the deal together for buyer and seller (taking the full 6% commission).

Whose interest is the agent representing? Are they going watch out for yours? Of course not - they only get paid when you sign on the dotted line. This is a direct conflict of interests, and in most other industries, it's totally illegal. Who's going to make sure you don't buy a lemon, or the property taxes are paid, or there are no liens on the property? If you think things like that are an automatic part of the process, think again.

Real estate is a complex business, there are people who are very, very good at it. Some are honest. Many are not. How do you know? I think the obvious answer is that you don't, so take all necessary steps to protect yourself. Going it alone as a first timer is very risky.

Answer 2

There's no need for a lawyer when buying a house, unless you are trying to do something unusual, like buying it in a trust. Otherwise, any good real estate agent will direct you to what you need to do, from making the offer to signing the final papers.

Some people don't like the idea of a dual agent (representing both buyer and seller), since both sides want the best possible deal for themselves. They believe the dual agent will work more on behalf of the seller, since a higher sales price means more commission. If the agent is ethical, it shouldn't be a problem, but it is also not hard to find another agent to represent you only.

Answer 3

No, you do not want a dual agent. That agent is not able to give you full representation because they also represent the Seller. The most important thing is price and a dual agent can not advise you on price. You want a Buyer's Agent who can help you determine the true value of the home.

If you have a Buyer's Agent you probably don't need an attorney if it is just a basic transaction. If there is anything out of the ordinary then it is in your best interest to discuss it with an attorney.

Answer 4

I would suggest a lawyer. We are in the process of buying a car and a house and there is absolutely no way I would sign any documents until my lawyer has reviewed them. You have to protect yourself , no one else in that room is going to protect you. TRUST ME. I have seen a few real estate deals go extremely bad. While I can not suggest an attorney because I do not know where you are located , I can let you know that the company i work for offers UNLIMITED document review and consultaion as ONE of their free services and i use that to my advantage. The lwyer will review your documents before you sign them and let you know if your rights are covered and if everything is clear and legal. I would strongly suggest it. it is your home and your life , I can tell you though .... I would not personally sign for anything that big unless my lawyer has looked at it and gave me the go ahead. Feel free to check out my website http://www.prepaidlegal.com/hub/dhaller and click on the family plan. The company is 34 years old and we are listed on the New York Stock Exchange and members of the Better Business Bureau. You owe it to yourself to check it out at least. The services are available immediatly, for instance .. if you signed up tonight you could use the service tommorow. plus you get a Will prepared for free and the good thing is , you can cancel at anytime. I would not cancel , i am definatly a member for life. But to each his own. Have a Great Day! Demetria

Answer 5

if you are in the US you certainly don't need a lawyer. Your Real Estate agent will help enough and so will your broker.

If you are buying on your own you should seek some advise but not from a lawyer.

Make sure you go over the terms carefully with the Escrow agent

Answer 6

The contracts to purchase are generally about eight pages long, and the Buyer is agreeing to pay three times their annual income within about 45 days.

It's unwise to rely on a realtor for legal advice. There's a reason that most if not all states prohibit them from giving any.

Oh, one other thing. If you do choose not to involve an attorney, don't make the mistake of thinking anyone else in the room is on your side. Everyone else is at least in part representing another party to the transaction.

Answer 7

your morgage company should be including attorny's fees already. what do you need the lawyer for. look up a counsler in your area. i know fha does it for free. they will help you not bet ripped. just google you city and state for help with down payment or closing cost or first time home owner programs. there is lots of free help out there. don't go pay a lawyer if you don't need to. it is just another rip off way to get the business to them. they make you feel like you need them or you will get ripped. look for free help it is set up by the gov. in your area.

Answer 8

You don't need a Lawyer at all. Who told you that?

Answer 9

Do it on your own...otherwise you're just wasting money. We did ours on our own and it was our first home, it's pretty cut and dry. Don't feed the fat pckets of a lawyer, save the money for decorating! :)

Enjoy!!!