What Does a Texas Real Estate Lawyer Do?

What Does a Texas Real Estate Lawyer Do?

Real estate is typically the biggest purchase a person makes in their life. They invest in their future with this purchase and want to make no mistakes as the transaction is carried out. A minor mistake can be costly, and a major one could devastate the person financially. A real estate attorney can help prevent this from happening.

Transactional real estate attorneys function to transfer property from sellers to buyers. They handle all tasks associated with this legal transfer, including document preparation and title research. The duties vary by the client, as a seller needs different tasks completed than a buyer or lender. Litigation real estate attorneys typically assist in resolving disputes involving real estate transactions. Regardless of whether transactional or litigation, state laws play a role in the duties of a real estate attorney, along with other factors.

What Does the Real Estate Attorney Do?

An attorney offering services in this area handles transactions or litigation involving real property, often referred to as real estate. This property comes with land and possibly one or more permanent structures already in place. In a large number of cases, the real property is the purchase of a home.

When buying or selling a home, the parties involved won’t need to appear in court. Instead, the real estate lawyer typically handles all matters in their office or another location of the parties’ choosing. The attorney prepares and/or reviews all the paperwork. This might include the sales contract, additional agreements made between the various parties, title documents, transfer papers, and more. The local real estate attorney might also appear at the closing, either in person or virtually.

The attorney may take on additional duties, depending on the client’s needs. For instance, the client may ask them to conduct a title search to verify there aren’t outstanding claims and liens against the property. This might also include supplying documentation regarding the transfer of funds between parties or assisting with this transfer as an independent party. The duties they assume depend in part on what the client desires. A real estate attorney can also help if a problem comes up during the sale or anytime thereafter.

Tasks a Real Estate Attorney Might Take On

A real estate attorney might take on several tasks. The following tasks are ones often requested by clients.

• A real estate attorney conducts due diligence to protect the client’s interests and advises the client to ensure the transaction complies with state and federal rules and regulations.
• The attorney might negotiate the deal on behalf of the client to get terms that are favorable to the client.
• The attorney might draft the real estate contract or simply review a contract prior to its execution. Doing so ensures the document complies with all legal requirements.
• The attorney might complete a title search to make certain the seller can legally transfer the property and there are no liens that could lead to issues in the future. This search ensures all property taxes are paid and there are no restrictions on land use.
• Title insurance policies protect an owner when an issue is discovered after closing. The attorney might draft this policy or review existing policies to uncover exclusions and exceptions while ensuring the client remains protected.
• The attorney may also prepare closing documents and make certain all are present and filed.
• If any disputes or litigation result from the transaction, a litigation real estate attorney can represent the client and handles these matters.
• Litigation real estate attorneys may be called on to represent clients in foreclosure actions or landlord-tenant matters.
• Zoning and land use issues might arise with a property. The attorney can guide the client through getting these matters resolved.
• If title disputes arise, such as a quiet title action, the attorney can assist the client in resolving these disputes.
• A person might wish to have an attorney draft or review a lease or sublease to ensure the terms aren’t problematic.
• Attorneys can also handle construction loans and contracts when requested along with closings. These matters are more complex than loans and contracts for residential purposes, so it is strongly advised that the buyer have an attorney assist in these transactions.
• Working with an attorney when buying property in another state, conducting an estate sale, or selling as part of a divorce agreement, can ensure these are done correctly.
• An attorney can assist in resolving issues that arise when one or more buildings on the property have structural issues or the property is in an area with known hazards, such as being in a flood plain.
• An heir or executor of a property should work with a real estate attorney when selling a property once the owner passes.

Is a Real Estate Attorney Needed?

According to Realtor.com, Texas doesn’t require a real estate attorney when a person or entity is buying or selling property. As a result, many people choose to save their money. Doing so might not be a wise financial move. The attorney adds an extra layer of protection for the client if something goes wrong with the sale.

However, state law isn’t the only thing a person must consider when determining whether they need a real estate attorney. The mortgage lender might require an attorney to be involved in the transaction. When this is the case, the lender pays the attorney’s fees because it is the party being represented by the lawyer. Keep in mind that the attorney is working to protect their client’s best interests, so an attorney working for another party involved in the transaction won’t protect the parties that have not retained their services.

Any person who is looking to sell a property with or without the help of a real estate agent can benefit from working with an attorney who practices in this area. The attorney can draft all documents associated with the sale and review documents that others have drafted. In addition, they ensure the transaction is legal and incorporates all of the terms agreed to by the parties, so problems don’t arise in the future.

When buying a foreclosure or a purchasing a rent-to-own property, always work with a real estate attorney. These situations can be problematic. The attorney works to ensure all steps are carried out, so the transaction complies with all applicable rules and regulations.

When is an Attorney Not Needed?

A simple home purchase rarely calls for the services of a real estate attorney, although a person should hire one if this would give them peace of mind. Simple transactions can be completed with the help of a title company. Bringing an attorney in could make this simple transaction more complex than it needs to be.

Real Estate Attorney Fees

People often want to know how much they will pay to have a real estate attorney represent them in a transaction or litigation. There is no set answer to this, as many factors play a role in their fees. The services requested by the client play a major role in the cost, as does how the attorney handles billing. Some attorneys charge flat fees and bundle services. The client picks a bundle and knows how much the fee will be for those charges. The attorney may or may not allow the client to add services to the bundle as needed. Other attorneys charge an hourly fee.

Any fees charged by the attorney for real estate transactions are often included in the closing costs. Look at the loan estimate document to determine how much the fee will be. It is found under the “services you can shop for" portion of the document. This fee might change as a person can choose the attorney and the services they need this professional to provide.

Choosing a Real Estate Attorney

Most people first ask friends and family for recommendations when they need a real estate attorney. Real estate agents are another good resource when a person is looking for a professional of this type. However, once one or more names have been provided, it falls on the client to conduct research and ensure the professional has the qualifications they need and can provide the desired services.

Turn to the American Bar Association for recommendations. The directory may be used to find attorneys in Texas who work in real estate law. The American Bar Association may also direct a person to the Texas Bar Association.

Read online reviews of attorneys to learn more about each professional. These review sites often provide information about an attorney’s areas of practice, their fees, and more. Use this information to learn about their communication style, office staff, and more, as all could play a role in which attorney is selected to handle the matter.

Certain real estate attorneys only handle commercial transactions. They help individuals buy and sell commercial properties, work with clients in need of office space, or litigate issues involving commercial property. Others focus solely on residential housing. Still other attorneys take on both commercial and residential projects. A person in need of a real estate lawyer must ensure the professional they are considering handles similar tasks regularly to obtain the best representation in their legal matter.

Any person buying or selling property should consider working with a real estate lawyer. Doing so ensures the chances of something going wrong are minimized. Furthermore, having an attorney review all aspects of the transaction provides all parties with peace of mind, as they know all bases have been covered. If something does arise throughout the sale process, the attorney is there to help guide the client through the steps that need to be taken to resolve the matter. No price can be put on the guidance and expertise they bring in this situation.

If you have any questions regarding whether a real estate attorney would benefit you, give us a call.

Disclaimer:

Ruelas Andino Law, PLLC makes no claims as to the accuracy of the information contained within the external links in this blog article nor does it endorse any of the businesses contained in the links. Information contained in this blog is for informational purposes only and may not be construed as legal advice.