Real Estate Attorney? (West, Howe: sale, HOA, lawyer)

[three_fish]

Here in Jersey a real estate attorney is a MUST for the buyer of a new home. There's a whole period of "attorney review" after the initial offer has been accepted (usually a period of 3-5 days) where the attorneys try to tweak the language of the contract (inserting contingencies etc...) and both parties have the right to drop out of the contract at any time during that process.

I'm learning that the process in TX is a bit different. Doesn't appear that there's any sort of "attorney review" process. That being said, do most people hire a real estate attorney to review the contract before proceeding with the offer/acceptance process? I'm not sure I see why you'd need one if there's just one "official" TX State conformed contract. Am I missing something?

If I should get an attorney, when do they usually get involved? Should I have an attorney review any potential offer, or would they only get involved after the offer/acceptance period? Funny how you think "your" state must do things the way every other state does, only to be suprised when things are vastly different.

Thanks for your advice.

[Trainwreck20]

RE Atty are not generally involved, although I am sure there are exceptions. Generally, the generic paperwork (that was developed by attorney's, I am sure) has a sort of 'fill in the blank' approach that takes care of almost all the private home sales. It has option periods and contingencies that are pretty standard. If you are doing something really unusual, then a RE Atty might be practical.

[mandib]

wow. I've never heard of that. We just bought a new home a couple of months ago and worked just with our realator and the seller's. no problems, the paperwork was very thorough.

[three_fish]

Amazing. Although it's POSSIBLE for a seller to get through a closing w/out an attorney, it is not common, and the buyer ALWAYS has an attorney here in NJ (and in NYC). Have to say the TX way seems much better as long as there are no crazy issues. I get the feeling maybe the real estate attorneys have just tried to MAKE themselves necessary around here. I think the big thing here is that there is no one conformed offer/acceptance contract, so each time you enter into one of these transactions both attorneys are trying to get more favorable terms for their client.

Gotta hand it to you Texas... good move.

[gigi927]

West coast/southwest areas are much more progressive on this front than the midwest and eastern parts of the U.S. AZ and CA are the same as Texas.

[austifornian]

Originally Posted by three_fish

I'm learning that the process in TX is a bit different. Doesn't appear that there's any sort of "attorney review" process. That being said, do most people hire a real estate attorney to review the contract before proceeding with the offer/acceptance process? I'm not sure I see why you'd need one if there's just one "official" TX State conformed contract. Am I missing something?

That's because, most times the legal work is done up front. While there is no official standard contract there are promulgated and standard contracts developed by attorneys to simplify things. Real estate agents are authorized to work with these contracts but can't stray to far away from them since agents are not allowed to practice law.

The real key in contracts is understanding exactly what it is you are legally binding yourself to perform and what you are getting in exchange. If you have any doubts about this especially if you are entering into a non-standard contract or acting without representation, having an attorney review your contract, HOA rules, etc. is a small price to pay for peace of mind.

[pbnj07]

I had my real estate license in NJ, although I was not a practicing agent (I helped one friend buy a house). Quite frankly, I think they're useless in 95% of the cases. They're only useful if someone breaks the terms of the contract agreement.

We didn't use one when we purchased our home in TX. All negotiations went back and forth through the buyer/seller agents.

[TexasHorseLady]

In Texas, you can have an attorney review the contract if you wish to pay one to do so. However, there's a promulgated form (written by Texas Real Estate Commission attorneys) for almost everything you can imagine - the standard contract, addenda, and various other forms. We (real estate agents) can't change the contracts - we can fill out the form, and we can write in things under the special provisions channel that are business details pertinent to the contract, only. Because, as said, we're not licensed to practice law, and that's stated, as well, on the buyer's rep and listing agreements.

On land deals, attorneys are used more often, if it's particularly complex. In most cases, the title company and the agents are all that are used.

[MJinAustin]

Originally Posted by three_fish

. I get the feeling maybe the real estate attorneys have just tried to MAKE themselves necessary around here..

BINGO! My parents - after buying and selling homes in Colorado, Arizona and other western states, moved to NY and bought a house on Long Island. It was a totally easy/clean sale yet an attorney HAD to be involved to the tune of $1000 so he could just come sit in the signing meeting and thumb through a few papers. It's a RACKET in the NE...just like so many other things are up there.

No, you don't need a lawyer here. It's easy.

[Austin-Willy]

Most people work with agents, and not lawyers, on typical residential deals in Texas, and that works fine most of the time. (Construction contracts and purchase contracts on builders' forms are a different story, and I would suggest that you always have an attorney review these non-standard contracts.)

However, having seen the interaction between agents and attorneys many times over, I would only caution that asking an agent whether an attorney is necessary is like asking a fox whether you should have a dog guarding the hen house. Ok, maybe that is a little bit of an overstatement. But the two professions are often times at odds because of the role of each.

One should understand that an agent doesn't get paid unless the deal closes. An attorney gets paid whether or not the deal goes through. A commissioned salesperson is not paid (or qualified) to protect you. An attorney is. An attorney is not going to pull comps for you, but an agent will.

Legally speaking, neither attorneys nor agents are necessary for a residential transaction in Texas. If you are trying to decide between one or the other, look at each one's expertise and decide which would be more helpful. Do you want someone who is in tune with the market and will help you feel good about the purchase price and assist with some of the mechanical aspects of the closing, or do you want someone to protect your interests and reduce your risk from a legal standpoint?

As for the cost of an attorney, in most cases it would be less expensive to hire an attorney than to hire an agent.