Selling a home involves contracts, disclosures, negotiations, paperwork, and legal footwork. You want every step to go right, but it feels like so much could go wrong. How do you protect yourself? Do you need to hire a real estate attorney? In most states, you can complete a home sale without hiring an attorney. However, some states require their involvement at closing. And even if not required, getting legal guidance can be helpful, especially if your sale involves tricky title issues, an inherited property, a divorce, or other circumstances that might present complications. In this post, we tap the experience of three industry experts to help explain:
Usually, no, but it depends on your state and your situation. The vast majority of traditional home sales are handled primarily by: But there are a handful of states that require a real estate attorney to oversee certain parts of the closing process. In states where attorneys aren’t legally required, you might still want to hire one for additional legal protection or help with complicated transactions. Required or not, a real estate attorney may be helpful if: If hired or required, a real estate attorney can draft or review contracts, help resolve title issues (such as liens or boundary disputes), review disclosure documents, and oversee the final closing. They can also address disagreements between parties and provide legal advice to help protect you if problems arise during the transaction. “It’s basically like hiring a bodyguard for your assets,” says Brett J. Wasserman, a partner at the law firm of Bronstein & Wasserman in Southern California. “We represent you. We make sure you’re not taken advantage of in any way, and we make sure that you’re happy at the end of the day.” An attorney’s specific duties can vary depending on state laws and the specifics of the transaction. To learn more, see the National Association of Realtors’ consumer guide: Working With a Real Estate Attorney. Beyond any state-mandated closing involvement, let’s take a closer look at some situations that can increase the value of having legal guidance in a home sale: If questions come up about ownership, easements, liens, or property boundaries, legal guidance can be important before closing. If not addressed early and properly, these issues can quickly derail your home sale. Learn more: What do title companies do for your home sale? If you’re selling your home For Sale By Owner (FSBO), you may not have a real estate agent guiding you through contracts, disclosures, negotiations, and deadlines. In this case, a real estate attorney can help review paperwork and reduce the risk of costly legal mistakes. Learn more: Pros and cons of a FSBO home sale Inherited homes can involve probate proceedings, multiple heirs, or questions about ownership rights. A real estate attorney can help clarify legal responsibilities before you move forward with the sale. They can also mediate family disputes. Learn more: How to sell an inherited house Home sales connected to divorce or estate settlements often involve additional legal coordination and documentation. Attorneys may help resolve disputes, review settlement agreements, or confirm that all parties have authority to sell the property. “In terms of a trustee selling something out of a trust, there could be specific language in the trust requiring certain terms,” Wasserman says. “You’re going to want an attorney to review that to make sure that you’re complying with all the terms of the trust, and that you’re not breaching your fiduciary duty by selling the property.” Learn more: How to sell a house during a divorce Landlord-tenant laws vary widely by state. If you’re selling a tenant-occupied property, an attorney may help you understand notice requirements, lease obligations, and local regulations that could affect the sale. Wasserman says the easiest option is to wait until your tenant is out of the property to sell it; otherwise, you’ll have to rely on their cooperation throughout the selling process. Learn more: Can I legally sell my rental property with tenants in it? Short sales can involve lender approvals, complex negotiations, and additional legal paperwork beyond a traditional transaction. A real estate attorney may help you understand deficiency judgments, review agreements, and navigate communications with your lender. “If [the homeowner] is not current on the mortgage, if they’re underwater, or if they owe more on their house than what it’s worth, then I actually get them pre-approved with an attorney that specializes in short sales,” says Eric Pakulla, a top listing agent in Columbia, Maryland. “Once they get pre-approved, the attorney can often help them avoid foreclosure.” Learn more: How to find a trusted short sale Realtor If you’re facing foreclosure, legal guidance can help you better understand your rights, deadlines, and possible alternatives before the sale moves forward. An attorney may also help review lender correspondence or identify other options to avoid foreclosure altogether. Wasserman says homeowners facing foreclosure may benefit from seeking legal advice as early as possible. “If you get a foreclosure notice, the first thing that you should do is contact an attorney,” he advises. “There are ways to save the foreclosure and get an injunction, but it takes time, and the more time that you have, the better.” Learn more: Can you sell a house in foreclosure?
In strict “attorney states,” having a lawyer for both sides may be mandatory and heavily ingrained into standard procedures. In states with more flexible requirements, closings are typically handled by an escrow or title company, and attorneys are only hired if either party wants specific legal guidance. Examples of states that are often considered “attorney closing states” include: It’s important to check with a local real estate agent or legal professional to see if, as a seller, you need to hire an attorney. In Massachusetts, for example, buyers use a bank attorney at closing instead of a title company. Because of this, most Massachusetts home sellers also hire a real estate attorney to level the playing field. “The bank attorney is going to make changes to the contract to benefit the buyer,” says Nancy Rogers, a top Massachusetts agent with 45 years of experience. “I’m not a lawyer, so I always recommend a lawyer to look at it to make sure the seller is OK with those changes.” In Maryland, on the other hand, buyers and sellers aren’t required to hire an attorney. Pakulla says he rarely sees his Maryland sellers hire an attorney. “I’ve been doing this for 22+ years. We’re selling hundreds of homes per year, and people do not use real estate attorneys at all.” He notes that even in states where attorneys are considered optional, some sellers still choose to hire one for added peace of mind during more complex transactions. Wasserman agrees. “In terms of closings for a general person selling, it’s always good to have someone there to make sure all of the T’s are crossed and the I’s are dotted.” Learn more: What happens the week before closing on a houseQuick answer: Do sellers need a real estate attorney?
What does a real estate attorney do during a home sale?
When hiring a real estate attorney may make sense
Title or boundary disputes
Selling your home without an agent
Selling an inherited property
Divorce or estate-related sales
Selling a tenant-occupied property
Selling a home through a short sale
Selling a home in foreclosure
Which states require a real estate attorney at closing?
