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How much are real estate attorney fees, and what do they cover?
There are numerous closing costs when buying a house, from the home inspection and appraisal to application and credit report fees. Depending on your location and situation, you may need to add a real estate attorney fee to your list of closing costs.
Real estate attorneys are mandatory in certain U.S. states. But even if they aren’t required where you live, you might still decide they’re worth the cost.
Learn more: Closing on a house — What to expect and how to prepare
In this article:
What does a real estate attorney do?
A real estate lawyer specializes in property transactions, including residential and commercial property. Real estate attorney fees vary according to their services. Lawyers who focus on real estate are trained to understand the rights and responsibilities of both buyers and sellers, review paperwork, check that funds are properly transferred, ensure compliance with local regulations, and verify all title issues are resolved before the transaction is complete.
The duties of a real estate attorney vary from one state to another and depend on the individual transaction. In many cases, a real estate attorney will handle the following responsibilities:
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Conduct a title search to confirm that all owners are identified
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Look for unpaid claims or liens against the property
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Review contracts
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Provide conflict resolution
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Prepare financial documents
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Assist with the closing process
Read more: What is title insurance?
Pros and cons of hiring a real estate attorney
Whether you are the buyer or seller, you may want to hire a real estate lawyer to represent your interests and protect your investment. Some states require a real estate lawyer to be involved in every transaction. If you’re buying or selling a home in a complex situation, such as the house being in foreclosure, a real estate lawyer can be helpful.
Even if you don’t have these specific issues, when you have a choice, you may want to consider the following benefits and disadvantages of hiring a real estate attorney:
Pros
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You can have an expert review contracts before you sign them.
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If you’re buying or selling without the help of a real estate agent, you can benefit from help negotiating terms and understanding the legal language of the contract, as well as using the protection of a legal review of your contract.
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If there are concerns about a property, such as illegal living spaces on the land, a lawyer can help resolve them.
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If the buyer and seller have a conflict, a lawyer may be able to find a solution.
Cons
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Real estate attorney fees for the home closing process add to the total real estate transaction cost.
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Some real estate transactions, particularly when real estate agents are involved, are simple enough that legal assistance is not required.
Learn more: Can you sell a house without a real estate agent?
How much do real estate lawyers cost?
Real estate attorney fees vary according to your location and the work you’re hiring them to do for your transaction. They may also charge more if they have substantial experience. In addition, real estate attorney fees are charged in different ways depending on the transaction and local customs.
You may pay a real estate attorney an hourly fee ranging from $150 to $500 or more per hour. Or they may charge a flat fee, such as $750 or $1,500 for closing, or a lower fee for a specific task, such as reviewing a contract. Some also charge an up-front retainer fee.
Dig deeper: How much money do I need to buy a house?
How do you find a real estate attorney?
Just as with any other professional you hire, it’s smart to get recommendations, read reviews, and contact references. You can talk with more than one real estate attorney to find the right fit. To find a real estate lawyer, try these sources:
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Friends, family, and coworkers
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Your real estate agent and mortgage lender
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Your state bar association
Some states, such as Connecticut and Rhode Island, typically require you to use a real estate lawyer for certain transactions. Several states don’t have any laws about whether you need a real estate attorney. Talk to your mortgage lender and real estate agent about whether you need a lawyer, where to find one, and how much you can expect to pay based on your situation.
Real estate attorney FAQs
Who does a real estate lawyer represent?
A real estate lawyer represents the client who hires them, either the buyer or the seller, but not both. It is possible for the buyer and the seller to hire real estate attorneys from the same law firm without a conflict.
If I sell my house to a relative, do I need a real estate attorney?
Yes, if you live in a state that requires a real estate attorney to handle real estate transactions. Even if you live in a state that doesn't require an attorney, you may want to hire a real estate lawyer to be sure that your interests are protected, and that the paperwork for the transaction is completed accurately and recorded according to state laws.
Do I need a real estate attorney if I buy new construction?
While you might not need to hire a real estate attorney when buying a new construction home, you may want to hire one to review all contracts and ensure your interests are represented. You probably don’t want to just rely on the builder’s title company to take care of the details.
This article was edited by Laura Grace Tarpley.
