Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I've used a buyer's agent from a huge national real estate company. They had a 10+ page offer contract that's pre-written. It's for a standard sale with a listing agent (not a FSBO). On the contract, the buyer's agent checks some boxes, fills-in some blanks (or leaves empty), and signs. This agent said that having a real estate attorney review the offer contract isn't necessary, but I could pay for it if I wanted it done.
Are real estate attorneys needed to review standard sale offers from a major RE company's buyer's agent/contract? If so...
Should the initial written offer be reviewed by a RE attorney before submitting it to the seller? Or, is it better to wait until the seller signs the offer? (Saves wasted time/money if the offer is flat rejected without countering).
Some say not necessary and I say abso-friggin-lutely - ESPECIALLY in this case and because the company is national or major. You see, a contract written for everyone is not specific to you, your state, this situation. This is the single largest investment you will make in your life and you're going to trust it to someone writing a contract for everyone - not only that but "blanks" are a major no-no to this retired paralegal. Also, have you ever heard of "gee, I didn't mean to check that box this time, it doesn't apply/mean/whatever. Just ignore it." Un hunh, yup, right. So, to protect your $200K, $400K, or whatever investment, you'll just wing it? Some states DO have a contract that is written by lawyers specifically for that state, and I'd be more inclined to say ok, but if you're not in that state, then heck no.
OTOH, if you are comfortable trusting your understanding and knowledge of contracts and contract law and you actually read every single word, then go for it. I did with our contracts - even to having one agent sit there sighing as I read every single word, put a "-----X----" through every space left blank and added some of my own wording where the contract was missing it. Will you recognize that?
Quote:
Originally Posted by Sky-Blue
Do RE attorneys visit the property before reviewing the contract, or at least look at the online listing to get an understanding of the property before they go over the contract? They might see a potential legal issue to avoid upfront with a specifically worded clause in the contract. For example, the seller's Uncle JoeBob is living on the RV pad may refuse to leave after the house is sold.
Not without a compelling reason and then it would definitely cost you more. There's little reason - if Uncle Bob is on the RV pad, then you should have seen that situation and so inform YOUR attorney.
Quote:
Originally Posted by illtaketwoplease
I would think you would want an attorney to review the contract BEFORE you sign it. Afterwards makes little sense.
I would think you would want an attorney to review the contract BEFORE you sign it. Afterwards makes little sense.
I guess it depends what state your are in. In NJ there is a 3 day attorney review period after the contracts have been agreed upon by both parties. I certainly wouldn't want to waste money on an attorney if I don't even know if the contract was accepted.
Should the initial written offer be reviewed by a RE attorney before submitting it to the seller? Or, is it better to wait until the seller signs the offer? (Saves wasted time/money if the offer is flat rejected without countering).
If you're going to engage the services of a qualified real estate attorney, you should do so before submitting an offer. Once a contract has been executed, it's pretty much too late (unless there's a statutory review period).
I generally do not like the long, legalistic contracts that used to be commonplace. I don't know what your proposed contract looks like, but you need to read it very carefully beforehand. If you have any doubts about it, you should contact an attorney. And since there apparently may be someone living on the property, the contract should specifically call out the situation and, preferably, require the property to be free of any tenant prior to closing.
ive had good luck with attorneys, and not so good luck,
the lawyers get paid on "billable hours"
and if another attorney is involved, then you are set up for war, (they both get paid on billable hours, not solutions, not conclusions)
most real estate contracts were written by lawyers, and if things arent spelled out or clear enough,,,then yes hire a lawyer.
i see it mostly on commercial properties up this way, not on residential
ive had good luck with attorneys, and not so good luck,
the lawyers get paid on "billable hours"
and if another attorney is involved, then you are set up for war, (they both get paid on billable hours, not solutions, not conclusions)
most real estate contracts were written by lawyers, and if things arent spelled out or clear enough,,,then yes hire a lawyer.
i see it mostly on commercial properties up this way, not on residential
Some say not necessary and I say abso-friggin-lutely - ESPECIALLY in this case and because the company is national or major. You see, a contract written for everyone is not specific to you, your state, this situation. This is the single largest investment you will make in your life and you're going to trust it to someone writing a contract for everyone - not only that but "blanks" are a major no-no to this retired paralegal. Also, have you ever heard of "gee, I didn't mean to check that box this time, it doesn't apply/mean/whatever. Just ignore it." Un hunh, yup, right. So, to protect your $200K, $400K, or whatever investment, you'll just wing it? Some states DO have a contract that is written by lawyers specifically for that state, and I'd be more inclined to say ok, but if you're not in that state, then heck no.
I think you may be misjudging the situation. Most of these forms are not national forms. In fact, most of these real estate brokerages are not national brokerages either. While the brand is national, the location is often an independent franchise or a member of a local franchise group. The forms more often than not are ones developed by the local Realtor board and the brokerage just throws their logo on top to make it look like it's their form. So, in truth these forms are written specifically for transactions in that state and they're trial tested in the courts of that state and re-written when new case law is created.
Would it be a waste of money to hire a RE attorney to review a contract if you are buying a new build in a new community?
It depends on what you considered "waste". Will the attorney be able to make any changes? No. What you get from the builder is what it is. They will not change anything. Is it good to have their contract explained to you so you understand it? Yes. This is because Realtors can't practice law, which would include interpreting a contract. We are allowed to explain our state forms because we use them everyday, but a builder's contract is different and an attorney could explain it.
Would it be a waste of money to hire a RE attorney to review a contract if you are buying a new build in a new community?
No, I don't believe it would be a waste of money to hire an experienced real estate attorney to review a contract for a new build. All contracts are negotiable--even ones offered by builders--so it's important to fully understand the contract being proposed and to recognize when other terms would be preferable. Contracts from builders can be especially one-sided since they are most often written by the builder's attorney to be solely in the builder's benefit. There are enough horror stories about buyers being cheated by builders that would render attorney review worthwhile.
The sales contracts are written to benefit the sales person and to protect their commissions. Although there some laws regulating them they are not written as a consumer protection document.
Before signing a legal document for such a huge purchase see your lawyer first as anyone else has a financial interest in the outcome of the deal. It is just pure common sense. There are many threads here started by buyers/sellers who failed to seek legal advice before the sales people influenced them. This especially true for young first time buyers who think that a sales person will look out for their interest. You have every right to seek legal advice from local, qualified professionals and use only independent inspectors, appraisers if you chose to go forward.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
