Why You Need to Consult a Lawyer Before Buying a Home
Having the help of a lawyer when buying a house can help you avoid some common problems. For example, a seller may sign a brokerage agreement that fails to address a number of legal problems. This happens quite often. Realtors often use standard forms, expecting that they will cover all circumstances or will be easily customizable for unusual circumstances.
But in the absence of an agreement to the contrary, the seller may become liable to pay a brokerage commission even if a sale does not occur, or to pay more than one brokerage commission. If the agreement allows the seller the right to negotiate on his or her own behalf, for example, you may avoid this problem. A lawyer can explain the effect of multiple listings. He or she can negotiate the realtor’s rights if the seller withdraws the property from the market, or can’t deliver good marketable title.
Even if a lawyer is not needed during the course of negotiations, the buyer and seller each may have to consult with a lawyer to answer important questions, such as the tax consequences of the transaction. To a seller, the tax consequences may be of critical importance.