looking to buy home in Surprise...a few legal questions (real estate, foreclosure)

[stevek64]

We are are looking to relocate/buy a home in Surprise in the next few months. We're not from AZ(we currently reside in upstate NY). We're not sure if we're buying new, existing, or a foreclosure but if I had to guess, I would say we'll probably go for an existing home. We'll be using a real estate agent to help us find a home, but they won't be a "buyers agent" for us, ie making bids for us/representing us.

A few questions:

1.) Any recommendations on a good real estate lawyer in the Surprise area?

2.) I was reading on another post on this forum that Arizona is a "Title only State" and the author opinion was a lawyer wasn't needed. I have no idea what a "Title only State" means but in NY state, it's common for buyers and sellers to use a real estate lawyer, no matter how "easy" or complex the transaction is.

Any comments/recommendations would be greatly appreciated.

Thanks!!!

Steve

[asufan]

Originally Posted by stevek64

We are are looking to relocate/buy a home in Surprise in the next few months. We're not from AZ(we currently reside in upstate NY). We're not sure if we're buying new, existing, or a foreclosure but if I had to guess, I would say we'll probably go for an existing home. We'll be using a real estate agent to help us find a home, but they won't be a "buyers agent" for us, ie making bids for us/representing us.

A few questions:

1.) Any recommendations on a good real estate lawyer in the Surprise area?

2.) I was reading on another post on this forum that Arizona is a "Title only State" and the author opinion was a lawyer wasn't needed. I have no idea what a "Title only State" means but in NY state, it's common for buyers and sellers to use a real estate lawyer, no matter how "easy" or complex the transaction is.

Any comments/recommendations would be greatly appreciated.

Thanks!!!

Steve

Arizona is different. You don't use lawyers here, as title companies take care of all the legwork. You'll be surprised how little it costs to close in AZ compared to NY as well. Don't know why you would not use a buyers broker, as there is no cost to you, and they are the ones that are supposed to be experts. Find a good realtor in the Surprise area, I think it is a must for out of state buyers.

[stevek64]

Originally Posted by asufan

Arizona is different. You don't use lawyers here, as title companies take care of all the legwork. You'll be surprised how little it costs to close in AZ compared to NY as well. Don't know why you would not use a buyers broker, as there is no cost to you, and they are the ones that are supposed to be experts. Find a good realtor in the Surprise area, I think it is a must for out of state buyers.

Thanks for the info asufan. I agree on your advice in using a good Realtor to find a home and we certainly will be doing that.

Maybe I'm using the incorrect term when I say buyer broker. The individual I'm thinking of is one who makes offers on a home on a buyers behalf after finding the home for the buyer. Everything I've read is such a person charges a % to the home buyer for providing such a service. We're just looking for an agent to help us find homes based on our needs/wants and as you mentioned, my understanding is such a service is "free" to the buyer. My understanding is such an agent, while helping a buyer find a home, still represents the seller for that's who's paying them a % of the home sale.

One thing I found in AZ is it's standard for the seller of the house to pay the title insurance. In the area of NY we are in, the buyer usually pays. I won't argue with that!

[SouthernBelleInUtah]

Don't know about AZ, but every state I've ever heard of, the buyer's agent is under contract to represent the buyer but is paid by the seller. That way, you get someone who is interested ONLY in your best interests. The commission is split between the seller's and the buyer's agents. Why would you pay above and beyond that?

[stevek64]

Originally Posted by SouthernBelleInUtah

Don't know about AZ, but every state I've ever heard of, the buyer's agent is under contract to represent the buyer but is paid by the seller. That way, you get someone who is interested ONLY in your best interests. The commission is split between the seller's and the buyer's agents. Why would you pay above and beyond that?

Good point and makes sense.

Question....can one be a buyer's agent and a seller's agent for the same house? I would think that's a conflict of interest. Or is this something that's prohibited in the buyer agent agreement?

[SouthernBelleInUtah]

They can't be both - conflict of interest. If you don't have a buyer's agent, which is a signed contract wherever I've bought houses, the agent is the seller's agent.

[stevek64]

Originally Posted by SouthernBelleInUtah

They can't be both - conflict of interest. If you don't have a buyer's agent, which is a signed contract wherever I've bought houses, the agent is the seller's agent.

Makes sense....that's what I would have thought. I was ready to ask the agent that question.

I appreciate your input!

[asufan]

Originally Posted by SouthernBelleInUtah

They can't be both - conflict of interest. If you don't have a buyer's agent, which is a signed contract wherever I've bought houses, the agent is the seller's agent.

They sure can be both, but they just have to disclose that fact to both the buyer and seller, because it may be a conflict of interest. It's called dual agency.

[rjrcm]

Originally Posted by SouthernBelleInUtah

They can't be both - conflict of interest. If you don't have a buyer's agent, which is a signed contract wherever I've bought houses, the agent is the seller's agent.

Perhaps in Utah, but different in AZ. First, they can be both, called Dual Agency. Not recommended, but legal. In this case, the agent represents both buyer and seller by written agreement on both sides, and must not disclose confidential information to either party. This typically happens when the listing agent finds a buyer that agrees to be represented by them. It could also happen if the buyer decides to purchase a property represented by the buyer's agent's broker.

Second, a buyer's agent does not require an employment contract, although we do require full disclosure of agency prior to submitting offers. A buyer's agent owes fiduciary duty to the buyer, not the seller. The buyer's agent is paid through a co-broke fee provided by the listing agent through the MLS.

[rjrcm]

Originally Posted by stevek64

...Maybe I'm using the incorrect term when I say buyer broker. The individual I'm thinking of is one who makes offers on a home on a buyers behalf after finding the home for the buyer. Everything I've read is such a person charges a % to the home buyer for providing such a service.

This typically is not the case in AZ. The listing agent normally provides a co-broke fee to the buyer agent/broker through the MLS. However, you could sign an employment contract with a buyer agent to pay their fee. This may happen for example, if you buy a FSBO where there is no co-broke fee, or the agent requires a minimum fee not covered by the co-broke.

We're just looking for an agent to help us find homes based on our needs/wants and as you mentioned, my understanding is such a service is "free" to the buyer. My understanding is such an agent, while helping a buyer find a home, still represents the seller for that's who's paying them a % of the home sale.

Not correct. Buyer agents do not represent the seller unless there is a dual agency situation, for example of the seller is also represented by the buyer's brokerage. As mentioned payment comes from the listing agent through a co-broke fee (a sharing of their commission through the MLS).

One thing I found in AZ is it's standard for the seller of the house to pay the title insurance. In the area of NY we are in, the buyer usually pays. I won't argue with that!

This is correct, although it can be negotiated in the contract who pays. Typically the seller pays the for an owners policy and the buy pays for their lenders policy.

I hope this clears things up a bit.