Many real estate transactions, including the purchase and sale of residences, can involve significant and complex issues. Hiring an experienced real estate attorney can help you navigate challenges that may arise in a real estate transaction. Although Pennsylvania does not require parties in a residential real estate transaction to hire a lawyer, having legal counsel can offer numerous benefits.
The Basics of Real Estate Transactions in Pennsylvania
A residential real estate transaction in Pennsylvania involves several steps, including:
- Making offers and counteroffers as the parties negotiate the sale price for the property
- Executing the purchase and sale agreement that binds the parties to close on the transaction pending satisfaction of closing conditions
- Inspecting the property to look for latent defects or damage
- Securing mortgage financing
- Conducting title searches to confirm the seller has a marketable title and purchasing title insurance to protect against undiscovered title issues
- Closing, where the parties exchange transaction documents, the mortgage lender or escrow agent releases the purchase price, and the buyer takes title to and possession of the property
Various parties play different roles in a Pennsylvania residential real estate transaction. For example, real estate agents will handle negotiations over the purchase price and terms. The buyer’s agent may also coordinate home inspections. Mortgage lenders and escrow agents handle the money paid to the seller. Finally, title companies handle the closing process in Pennsylvania. Other states require attorneys to oversee closing, but as a “title state,” Pennsylvania allows title companies to assume that role.
When Might You Need a Real Estate Lawyer?
Although you do not have to hire a real estate lawyer to complete a residential real estate transaction, you might want to hire an attorney in certain circumstances, such as:
- The purchase and sale agreement involves complex custom terms or contingencies
- You’ve negotiated a purchase without the assistance of a real estate agent, or you’ve engaged in a for-sale-by-owner transaction (the seller does not have a real estate agent)
- A title search has revealed issues, such as unresolved liens, easements, changes in boundary descriptions between deeds, or breaks in the chain of title
- You’ve purchased a newly constructed property, as the transaction will involve other legal documents, such as builder warranties
- You purchase a property through a foreclosure, tax, or estate sale
- The property has zoning or land use issues, such as existing non-conformities
Benefits of Hiring a Real Estate Lawyer
Some of the benefits you might enjoy by hiring a real estate lawyer to represent you during a residential purchase include:
- A real estate attorney can protect your rights and interests throughout the transaction, including helping you negotiate favorable terms in the purchase and sale agreement, reviewing builder’s warranties for new construction homes, or identifying title, zoning, or land use issues.
- An attorney can explain your rights and obligations under the purchase and sale agreement or other documents in the transaction.
- Attorneys can spot legal red flags before they become serious issues later in the transaction or after closing.
- An attorney can advocate on your behalf if a dispute arises between you and the seller or another party involved in the transaction, such as a title insurance company.
- A real estate lawyer can provide peace of mind to first-time home buyers or to purchasers who are coming from out-of-state.
Contact a Real Estate Lawyer Today
When you’ve found a house to buy in Pennsylvania, hiring a real estate lawyer can help you protect your financial and legal interests. Contact Gusty Sunseri & Associates, P.C., today for an initial consultation to discuss the benefits of retaining a real estate attorney for your residential real estate transactions.