Do I need a real estate lawyer to buy? (bank owned, for sale)

Wwanderer · 01-31-2011, 07:36 AM

I've been given to understand by my realtor that legally we don't need a lawyer to handle our property purchase. That realtors in Florida have the same legal responsibilities as a real estate lawyer would.

I'm Canadian so have no experience with U.S. procedure, let alone Florida. I have talked to a CPA about any tax issues involved, so that's under control.

Can anyone reassure me about this one way or another, or point me to a website that has advice on this? (We are avoiding foreclosures, short sales and REOs, so title issues should not be a problem.)

bbronston · 01-31-2011, 07:58 AM

You do not need an attorney to purchase real estate in Florida. In my experience, an attorney is involved maybe 10% of the time for simple residential property transfers and that might be pushing it. That doesn't mean you can't use one but it isn't necessary. However, you can use an attorney for your title work/closing (again not necessary) and often they will offer what amounts to free legal advice for any minor issues that might arise.

Wwanderer · 01-31-2011, 08:12 AM

Quote:

Originally Posted by bbronston

... However, you can use an attorney for your title work/closing (again not necessary) and often they will offer what amounts to free legal advice for any minor issues that might arise.

Thanks very much for the reply. Not sure I understand your last sentence--if you use a lawyer for the title work/closing, isn't that the main part of the work a lawyer does?

When I tell my husband or our financial advisor here that we don't need a lawyer, they just roll their eyes, so I'm trying to gather information about this so we can save a bit of money.

I'll be talking to another Florida attorney this week on another matter, so I'll ask him for an opinion as well, although I'm betting that lawyers will tend to suggest that I need one!

beachmouse · 01-31-2011, 08:29 AM

Quote:

Originally Posted by Wwanderer

Thanks very much for the reply. Not sure I understand your last sentence--if you use a lawyer for the title work/closing, isn't that the main part of the work a lawyer does?

More common down here to use a title insurance company for that than a lawyer for it down here. If you're financing the home, you'll have to buy title insurance anyway, and it's assumed to be part of the title insurance service.

We did use a lawyer, but it was because we were buying a For Sale By
Owner and since we didn't have a realtor, we needed someone else to draw up a sales contract appropriate for the state.

Wwanderer · 01-31-2011, 08:53 AM

Thanks for this reply too. No, we won't be financing (impossible for a Canadian anyways, in general, at least right now--if we did finance, we'd be doing the loan here in Canada.)

I'll ask my realtor about the title insurance--we will certainly need that, we have it for our condo here in Toronto and it already paid off when the city tried to overcharge us for taxes.

Donna-501 · 01-31-2011, 09:25 AM

No, you do not need a lawyer.

Some title insurance companies have a lawyer that does the closing but you do not need one.

bbronston · 01-31-2011, 09:39 AM

I probably should have mentioned that part of the negotiation process includes a decision as to which party pays for the owner's title insurance policy and where the closing will take place. Typically, whoever pays gets to choose the title/closing company. If you decide that you want the protection of an attorney, you could just have an attorney review the contract but you could alternatively agree to pay for your own title policy and the costs associated with the title search and examination. You would then select a real estate attorney to do the title work and, if something tricky comes up, you use that attorney for advice and a solution. Hope that is a bit more clear.

Wwanderer · 01-31-2011, 10:38 AM

Thanks, that's a little clearer.

theresamatella · 02-27-2011, 04:46 AM

Hello, Congrats for wanting to buy a home in Florida! What a great investment!! Where are you from in Canada? I was born in Ont.

I realize that you are cautious about buying in Florida, but let me assure you. I am currently working with 9 Canadian buyers, and I have sold MANY homes to Canadian buyers, & I have only seen 1 buyer consult an attorney, because of the situation with transferring funds. The best thing that I have found with my Canadian buyers are that they open a US account - we have TD here in our area (clermont-orlando florida area) and it will make the transaction smoother.

You should always consult an attorney if you are worried, but the title company and agents will assist you with less of a cost to you. I am assuming that if you are wanting to purchase in the US that you are a cash buyer? If so, there is very little closing cost to you in transactions. For example, it may run your a few hundred dollars to a couple of thousand of dollars if you are paying cash(which is most likely the case).

Good Luck fellow Canadian in buying in the Florida Real estate market! If I were you, I would purchase a bank owned property, you are going to get a lot of house for your money.. p.s. you are probably going to buy the home for .20-.50 cents on the US dollar. That is a steal!

Happy House Hunting!

ozlo · 02-27-2011, 07:14 AM

Quote:

Originally Posted by Wwanderer

When I tell my husband or our financial advisor here that we don't need a lawyer, they just roll their eyes, so I'm trying to gather information about this so we can save a bit of money.

9 out of 10 lawyers agree... that you need a real estate attorney! So does the financial advisor, who probably never batted an eye to warn you about the brown stuff hitting the oscillating device a few years ago, eh?