A real estate attorney protects your legal interests in a property transaction. They review or draft the purchase contract, examine the title for problems, prepare and explain closing documents, and handle disputes before or after the sale. In some states an attorney must be involved in the closing; in others it is optional but often worth it for complex deals.
Key takeaways
- Real estate attorneys focus on contracts, title, closing documents and disputes, not on finding a home.
- Several states require or customarily use an attorney at closing.
- Flat fees for a standard residential closing are common; complex matters are often billed hourly.
What a real estate attorney does
Reviews and negotiates the contract
The purchase agreement decides your price, deadlines, contingencies for financing and inspection, who pays which costs and what happens if either side backs out. An attorney explains your obligations, flags risky terms and negotiates changes before you sign.
Examines the title
The attorney or title company reviews public records for liens, unpaid taxes, easements, boundary problems or gaps in the chain of ownership. If something is wrong, the attorney works to resolve it before closing, for example by getting a lien released.
Prepares and explains closing documents
Closing involves the deed, the settlement statement, loan documents and affidavits. An attorney can draft the deed, confirm the numbers on the settlement statement, explain each document and, in many states, conduct the closing and handle the transfer of funds through an escrow account.
Handles problems and disputes
Attorneys step in when a deal goes wrong: a seller refuses to close, inspections reveal hidden defects, a buyer’s financing falls through, or neighbors dispute a boundary. They also handle landlord-tenant matters, zoning questions and commercial leases.
Which states require a real estate attorney?
Rules change and depend on how state law defines the practice of law, but states such as New York, Massachusetts, Connecticut, Georgia, South Carolina and Delaware are known for requiring an attorney at closing or using one as standard practice. In many western states, title and escrow companies usually handle closings without attorneys. Check your state bar or a local attorney for current requirements.
How much does a real estate attorney cost?
For a standard residential purchase or sale, many attorneys charge a flat fee, often somewhere in the range of several hundred to a couple of thousand dollars depending on the market and the work involved. Hourly rates for complex matters commonly run from about $150 to $500 or more. Ask for a written fee agreement that states what is included.
When should you hire one even if it is not required?
- You are buying or selling without a real estate agent (“for sale by owner”).
- The property is part of an estate, a divorce or a short sale or foreclosure.
- The title search turns up liens, easements or boundary questions.
- You are buying commercial property, land for development or a multi-unit building.
- The contract is non-standard, or the other side has a lawyer and you do not.
Real estate attorney vs real estate agent
| Attorney | Agent | |
|---|---|---|
| Main job | Legal advice, contracts, title, closing | Marketing, finding properties, negotiating price |
| Can give legal advice | Yes | No |
| Typical pay | Flat fee or hourly | Commission on the sale price |
Frequently asked questions
Does the buyer or seller pay the attorney?
Each side usually pays its own attorney. In attorney-closing states, the buyer’s lender may require a closing attorney whose fee appears on the settlement statement.
Can one attorney represent both buyer and seller?
Some states allow it with informed written consent, but it creates a conflict of interest. Many attorneys avoid it.
When should I contact an attorney?
Ideally before you sign the purchase contract, because changing terms afterwards is much harder.
Requirements and costs vary by state, so confirm local rules before you buy or sell. Forming a company to hold property? Compare an LLC and a sole proprietorship.