Now that we’ve started looking at homes, it’s time for you to pick a Real Estate Attorney to represent you in the transaction. While hiring an attorney is not mandatory in New York City, it is highly recommended. In fact, almost all buyers and sellers in the area have an attorney involved. You don’t want to be the only one without legal representation if the seller has an attorney.
Some buyers may feel they don’t need an attorney, but we strongly recommend it to ensure a smooth transaction. Real estate deals often come with unexpected challenges, and having a skilled attorney can help resolve any issues that arise. Think of it as an insurance policy in case things don’t go as planned.
Why You Need a Real Estate Attorney: A real estate attorney performs several key roles, including:
- Reviewing the contract and negotiating any changes with the seller’s attorney.
- Assisting with negotiations regarding any inspection issues.
- Clarifying the contract and ensuring your interests are protected.
- Helping you decide how to take title to the property.
- Ensuring the title is clear (free of any legal claims).
- Filing extension requests (for inspection, attorney review, mortgage, etc.) when needed.
- Coordinating with your lender to ensure a timely loan commitment.
- Reviewing the settlement statement to check for any taxes owed, adjustments, closing cost credits, etc. before closing.
- Preparing all legal documents related to the sale.
- Scheduling the closing and ensuring everything goes smoothly.
- Conducting the closing at a title company or attorney’s office, and explaining all of the documents to you as you sign them.
- Ensuring title insurance is in place to protect your investment.
If anything goes wrong during the transaction, such as a contract needing to be canceled or earnest money needing to be refunded, your attorney will handle those issues too.
Cost of a Real Estate Attorney: In New York City, a real estate attorney typically charges between $1,000 and $2,000, depending on the complexity of the deal. You don’t pay the attorney upfront. Instead, their fee is typically included in your closing costs and paid at closing. If the transaction is canceled (e.g., due to an inspection issue), you usually don’t owe the attorney anything unless the deal closes.
We recommend emailing the attorneys to inquire about their fees, see who responds the quickest, and choose the one you feel most comfortable with. Once you’ve selected an attorney, please let us know. It’s best to make this decision while we’re still searching for properties so we can add your attorney’s details to the contract when we’re ready to make an offer.
A successful transaction relies on a great team, which includes your Realtor (the Buy Sell Love New York team), your mortgage lender, your attorney, and your home inspector.