If everything is going well and you have an excellent agent, you may not require the services of a lawyer. However, there are situations when to hire a real estate lawyer is a good question.
When to Hire a Real Estate Lawyer
When Buying Without a Broker
A “for sale by owner” transaction will save you money on real estate commissions, but someone is needed to create the purchase agreement, title deed, and other paperwork. A lawyer may aid you in organizing your paperwork, ensuring that the title is clear, and assisting you with the finer points of the transaction.
When You are The Buyer, and You Have No Agent
If you make an offer on a house without using a real estate agent, the seller’s agent will offer to handle everything for you. This type of deal might need a lawyer because one agent cannot represent your and the seller’s interests. When you hire a lawyer, you may rest assured that they will only work for you and safeguard your interests.
When There is an Issue With the Property or the Transaction
A lawyer can assist you in resolving some of the difficulties that may arise. For example, easements, rights of way, boundary disputes, and other concerns about the house’s land can have problems. If the property is in foreclosure or further legal proceedings, you could require legal assistance if you disagree with the buyer or seller. If someone threatens to sue you, you should always see a lawyer.
When You Are Buying Notes
Mortgage notes are loans created when a home sells. A bank or lending institution funds private mortgage notes. Mortgage notes are also known as cash flow notes, seller-financed notes, owner-financed notes, or seller carry-back notes. Investors can purchase these notes. They are reasonably secure investments because the real estate secures the note.
Lenders sell mortgage notes at a discount. The buyer pays a discounted rate for the loan and, in turn, receives all future payments made on the loan by the mortgagee.
There are some risks involved. A Real Estate lawyer specializing in mortgages and mortgage note selling or buying can assist you in understanding the complexities involved.
When You’re Concerned About the Ramifications for Your Tax Situation
As the seller, you may be subject to capital gains tax if the home’s value has increased. If you’re the one who’s buying, you may be able to deduct interest on a mortgage from your taxes. If you want to rent the property, you’ll need to track your rental revenue and expenses on your taxes. A lawyer or CPA can assist you in determining how the purchase or sale of your home may impact your tax return.
When You Intend to Make Changes to the Home’s Exterior
Your local government, historic district, or homeowners’ organization may have tight guidelines for what you can and cannot do to the exterior of your property. These guidelines might apply to anything from demolition to additions to solar panels to new paint colors. A lawyer can interpret and clarify these rules and advise you on the viability of your plans and assist you in structuring the transaction and obtaining the necessary approvals.
Paige Panzarello, the “Cashflow Chick,” Founder of The Tryllion Group, Investor/Entrepreneur having done $150 Million+ in real estate transactions; Specializing in Non-Performing Notes. She has been a regularly featured guest on “The Cashflow Guys” podcast, and you can also find her on many other Real Estate and Entrepreneurial podcasts and in the Wall Street Journal as well. She also speaks at various Real Estate Investing clubs and conferences across the country. Paige teaches the “Building Wealth with Notes” Workshop that drills down into the details of how to successfully buy Non-Performing Notes, create passive income, and mitigate risk. www.CashflowChick.com/training
Surviving the crash of 2007, Paige knows how “life happens” every day. Her passion is to help people build wealth, secure their financial future, enjoy life, and be ready-not broken! Whether it is improving communities one house at a time, assisting borrowers in staying in their homes, or working with other investors to learn a new way to earn higher investment dollars for their retirement years potentially, Paige dedicates herself and her business to helping people improve their lives in every way. For more information got to www.CashflowChick.com
