Do I Need a Real Estate Attorney When Buying or Selling a Home?

Many people ask me, "Do I have to hire an attorney to represent me when I buy or sell a house?" The short answer is, "No." That answer is different, however, from what you SHOULD do. Also, whether or not people hire an attorney is different geographically speaking. For example, in Pennsylvania, people don't really use attorneys. The same holds true for certain parts of New Jersey. Most of my transactions occur in Central NJ, and almost every client of mine has used an attorney, with rare exception.


Real estate contracts in New Jersey clearly state that Buyers and Sellers will not get any legal advice unless they have their own lawyer and that real estate agents cannot represent their clients with respect to legal matters. The contract also states that the contract will become final and binding unless an attorney cancels it within three business days following signing of the contract. The contract mentions that a buyer without a lawyer runs special risks, including issues relating to the seller's title, surveys, inspections and other areas.


What this means is that, if the buyer in the transaction wants to cancel the contract within the 3 day rescission period, that party must hire an attorney to do so, otherwise the seller isn't obligated to return any deposit money. Attorneys can help explain parts of the contract that aren't clear, as well as add or change wording such as, "seller limited to $2000 with respect to requests for inspection repairs." Or, "subject to house appraising for contract price or higher, otherwise either buyer or seller can cancel the contract without penalty or re-negotiate the price."

One of the main things an attorney does is process all the paperwork and the closing is often held at his/her office. If the buyer chooses not to hire an attorney, the closing usually takes place at a title company and any deposit money is held in escrow by the buyer's real estate agent. Real estate attorney fees are fairly reasonable (around $600-1000) and can be worth it for peace of mind.

Speaking from personal experience, an attorney has helped get my buyers out of jams a few times.. A lawyer might especially be important if you are an out-of-town buyer, the property is a short sale/foreclosure/estate sale, or located in a flood/earthquake zone. If you would like a referral for a real estate attorney in Central New Jersey, please contact me at atustin@kw.com or visit my website at www.anne-marietustin.com.


Anne-Marie Tustin
Realtor Associate in NJ & PA
Keller Williams Realty
Princeton NJ
(609) 987-8889 office
(609) 575-8801 direct
atustin@kw.com
www.Anne-MarieTustin.com