Buying a Home

Do I really need an attorney?

Buying a home is, for most of us, the largest single purchase we will make in our lifetime. Typically, we sign many documents without fully reading or understanding the underlying obligations that require us to repay many thousands or even hundreds of thousands of dollars over the life of the loan. And these documents are prepared by lawyers, primarily to protect the seller of the property and lender(s) of the money. Without an attorney, nobody represents the interests of the buyer.

Doesn't the real estate agent represent me? After all, they work for me, don't they?

In most cases the answer is "no." Real estate agents, by law, are supposed to disclose who they represent and have you sign an acknowledgement that you understand that, in most cases, they represent the seller only. However, this pamphlet is often overlooked or not fully explained and signed in ignorance by the buyers.

The fact is that, in most cases, real estate agents are paid by the seller at closing. They are engaged in a contract with the seller to sell the house at the best price ("highest price") possible and the agent gets paid from this price. Even though you are paying the sellers the money, you are (unless you've entered into a special arrangement with your agent who is a "buyer's agent") not hiring the real estate agent.

Remember, the real estate agent makes his or her living by finding buyers for people who enter into contracts with them to sell their house. If the agent doesn't sell the house, they don't get paid a penny.

Can't the agent take care of the legal details?

Absolutely not! Real estate transactions require the filling out of complicated legal forms. Under North Carolina Law, creating or filling out these forms by anyone other than a licensed attorney amounts to the unauthorized practice of law and is a criminal offense.

Ok then, can't I just rely on the seller's lawyer to handle everything?

Watch out. Remember that whoever is paying for the lawyer gets the benefit. If the seller offers to pay for all closing costs or all legal fees, then it's the seller's interests that are being protected, not yours.

When should I consult an attorney in the process of buying a home?

The earlier in the process, the better. Real estate agents will often provide you with a "standard" offer to purchase form that you fill out when making an offer to purchase a home or other property. This is a legally binding contract once accepted by the seller. Without fully understanding the "fine print" you might be agreeing to forfeit your earnest money or deposit under circumstances that are beyond your control.

In some cases, you might even be forced to complete the purchase of the home!

Among some things that should be done to protect buyers in the process of purchasing a home are:

• A complete review of the terms and conditions of purchase contained in the offer to purchase.
  • Remember that most people obligate themselves to pay hundreds of thousands of dollars when making offers to purchase a home. Don't ever be pressured into making a quick uninformed offer because "other offers" are on the table. Better to miss one opportunity than be stuck with a home that makes you miserable for many years.

• Title Insurance: Just because the seller or lender has title insurance, it doesn't mean you are protected. In fact, unless you purchase a "buyer's policy" you are not protected against any claims made by others who might have a superior interest in the property.
  • We proudly issue Title Insurance Policies by:

• Always have a full title search done. This is the only way to be sure that nobody else has a legitimate right to the property. Wills, gifts, unrecorded deeds, squatters may wind up having a superior right to the property you just obligated yourself to pay $150,000.00 for.

• Have an independent survey done by a licensed surveyor hired by the buyer.
  • This is the best and often the only way to discover any encroachments or other boundary problems that may affect the value of the property.

• Have a home inspection done by an independent inspector hired by the buyer. Never rely on the county inspection as the standards for passing a home for a certificate of occupancy are different than those any reasonable buyer would accept.

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