Many people that buy and sell homes always wonder what a real estate lawyer really does for them. There are lots of papers and fancy terms but what is the real use of a Real Estate lawyer you might ask and can I just get a cheap lawyer? There are many cheap services popping up who state they have the ability and authority to complete all the paperwork needed to complete your real estate transaction. Many new and even old home consumers are tempted by these companies just in the name of saving a few bucks but at what price? Many cheap services save cost by cutting down your security, searches, and insurances. Lawyers are your defense and protection against fraud and keep the deal from falling through. Most people hear a quote from lawyers over $1000 and assume this is all going to the lawyer when in actuality majority of the funds are spent on paper work and insurance to cover your asset. Things like title Searches, title insurance, and mortgage registrations are what takes up majority of the funds and usually leaves the real estate lawyer with only a small fraction of the request price.
After going into a $500,000 investment the lawyer is the last place you want to save money, cheaper lawyers tend to rely heavily on real estate clerks, who require no legal or post-secondary education. They can hire anyone off the street give them a check list to run through and miss important details which could cost you much more to fix in the end. If things are not done correctly it could cost you the deal, or worse cost you the home as missed back taxes, leans, and even fraud could cause one of the greatest moments in your life to be the biggest nightmare. With Condos becoming the greater transactions seen, the only difference between extra costs brought on by special assessments and insuring that the reserve fund is in good health and the nightmare of waking up to a notice stating you have to make 3 payments of 10,000 in the next 6 months is the 200$ saves by using a cheaper lawyer who didn’t bother to warn you.
A good rule to remember is that “you get what you pay for”. If you’re cutting corners by not purchasing title insurance, and solicit the services of low-priced or discounted legal services you may find that you are not hiring a lawyer but their legal clerk. Choose wisely as this is commonly the biggest purchase and investment of your life.