Should I use a real estate attorney?
When an attorney is required
In states like New York, New Jersey, and Massachusetts, a real estate attorney typically handles the closing. In others, like California, escrow companies or title agents often manage the process without attorney involvement.
If you're buying off-market directly from a seller, especially without a real estate agent, an attorney can help ensure the contract is fair and legally sound.
When an attorney is optional but wise
Even in states where it's not required, hiring an attorney can be smart for complex deals: seller financing, lease options, subject-to transactions, or properties with title issues.
Attorney fees vary widely. For a simple review, you might pay $200–$500; for full representation, $1,000–$3,000 or more, depending on the state and complexity.
- Seller financing or creative financing structures
- Properties with liens, judgments, or probate issues
- Out-of-state or absentee sellers
- Deals involving entities like LLCs or trusts
- Any contract you don't fully understand
How to find a good attorney
Look for a real estate attorney with experience in your specific type of transaction. Your local bar association or real estate investor groups can be good sources for referrals.
Ask about their fees upfront and whether they charge flat rates or hourly. A quick phone call can often tell you if they're a good fit.
Common mistakes
- Assuming you never need an attorney because your state doesn't require one—complex deals can still benefit from legal review.
- Hiring a general practice attorney instead of one who specializes in real estate and understands off-market transactions.
- Skipping an attorney to save money, then facing costly legal issues later over contract terms or title problems.
