Buying a house is stressful. Selling a house is stressful. Property transactions in general are stressful. These are facts. According to a 2022 national survey from U.S. News & World Report’s 360 Reviews “Respondents ranked moving as the most stressful life event — more stressful than breaking up with a romantic partner, planning a wedding, or having a baby.” The complexities of the process, whether buying or selling, are why most people assemble a team of professionals to help them navigate the process.
Among these professionals, real estate agents (or realtors) and real estate attorneys play crucial roles, but their functions and responsibilities differ considerably. Understanding what a real estate attorney does that a realtor doesn’t can help you better navigate the home buying or selling process and ensure that all legal bases are covered.
Real Estate Attorney: Your Legal Advocate
- Legal Documentation and Review
A real estate attorney’s primary role is to ensure that all legal aspects of the transaction are handled properly. This includes drafting, reviewing, and explaining legal documents such as the purchase agreement, title documents, and closing documents. They ensure that the contract terms are fair and legally sound, and they can negotiate modifications if necessary.
- Title Examination and Insurance
One of the critical functions of a real estate attorney is to conduct a title search to confirm that the property’s title is clear of any liens, encumbrances, or other legal issues. They will also assist in obtaining title insurance, which protects against potential future claims on the property’s title.
- Resolving Legal Issues
If any legal issues arise during the transaction, such as disputes over contract terms or property boundaries, the real estate attorney will work to resolve them. They provide legal advice and represent your interests in negotiations or court if necessary.
- Closing Process
During the closing, the real estate attorney will review and ensure that all documents are correctly executed, handle the legal transfer of ownership, and facilitate the disbursement of funds. Their role is crucial to ensuring that the closing proceeds smoothly and that all legal requirements are met.
Real Estate Agent (Realtor): Your Market Expert
- Market Analysis and Pricing
A real estate agent provides expert knowledge about the housing market. They conduct comparative market analyses to determine the appropriate listing price for a property or to make a competitive offer on a home. They have insights into market trends, neighborhood values, and can help you make informed decisions based on current conditions.
- Marketing and Search
For sellers, real estate agents create marketing strategies to showcase the property, including listing it on multiple listing services (MLS), staging the home, and hosting open houses. For buyers, agents use their networks and resources to find properties that match their clients’ criteria and arrange viewings.
- Negotiation and Transactions
Real estate agents act as intermediaries in negotiations between buyers and sellers. They help in formulating offers, counteroffers, and negotiating terms to reach an agreement that benefits their clients. They also assist in coordinating with other professionals involved in the transaction, such as home inspectors and mortgage lenders.
- Transaction Management
Agents manage the overall transaction process, ensuring that deadlines are met, and that all necessary paperwork is completed and submitted. They guide clients through each step, from making an offer to closing, and address any issues that arise during the process.
Collaboration for a Smooth Transaction
While real estate attorneys and agents have different roles, their collaboration is key to a successful real estate transaction.
For buyers, having both professionals involved means you benefit from comprehensive support: the agent navigates the market and negotiates on your behalf, and the attorney ensures that the legal side of the transaction is flawless. For sellers, the agent helps maximize the sale price and manage the marketing process, while the attorney ensures the sale is legally binding and free from complications.
According to attorney Nick Montagnese, “At Cherewka, our goal is to have a productive relationship with our clients’ realtors so that we are all working together on behalf of the client. It’s important for everyone to know that we are on the same side, crossing the finish line together.”
Understanding the distinct yet complementary roles of real estate attorneys and agents helps ensure that your home buying or selling experience is as smooth and successful as possible. Whether you’re diving into the real estate market for the first time or you’re a seasoned investor, leveraging the expertise of both can make all the difference in achieving your goals and managing the emotional toll the process can take. In the end, the only tears that should be shed are happy ones.
