The Need for a Great Real Estate Attorney
AM 570 Podcast
Column from The Wave
Not all attorneys are created equal. Just because you know someone with a law license, or you saw someone advertising cut-rate fees for closings, doesn't mean that's the best person to represent you when selling a property. There's good and bad in all professions. Like brokers, lawyers often get a bad rap. Many times, in both cases, it's well deserved; However, when you find an exceptional lawyer who's experienced, accessible, empathetic, humble and communicates well, you've struck gold.
Brokers and attorneys have very distinct roles in a real estate transaction. Fundamentally, the broker cultivates the deal between the parties and composes a "Deal Sheet" that's then sent to both attorneys. In residential transactions, the seller's attorney discusses the terms of the Deal Sheet with their client, then uses it as an outline to draft a contract and send it over, unsigned, to the buyer's attorney for review. The buyer's attorney then meets with their client to discuss the contract, sign, and return it to the seller's attorney (with their deposit) for the seller to sign. The contract isn't official until signed by both parties. Depending upon the complexities of the deal, as well as the availability of the attorneys to communicate with each other, their clients, and the broker, this could take weeks to accomplish.
Like brokers, attorneys are fiduciaries and must put their clients' needs ahead of everyone else's, including their own. They advise and legally protect their respective clients at all times. While the broker's primary job is to negotiate and bring the buyer and seller together, it's the attorney's job to legally protect their client while getting the contract drafted, signed and closed.
The broker should clarify as many terms as possible between the parties before sending the Deal Sheet so that there's little, if any, ambiguity going forward. Many times brokers avoid rolling up their sleeves and working through the issues beforehand. Instead, they'll pass the buck and say "let the attorneys figure it out". That's unacceptable, unprofessional and inexcusable. It's the broker's job to broker the deal just as it's the lawyer's job to legally protect their client throughout the deal and beyond. Brokers should always utilize their unique role of being able to speak directly with all interested parties in a transaction in order to fully settle the issues before sending the Deal Sheet to the attorneys. There are enough potential legal issues that may arise during the transaction for attorneys to deal with; They shouldn't be expected to, nor do they generally want to, broker the deal too.
Time kills deals and so do surprises. That's why a great broker forecasts, identifies and works through the issues beforehand to insure that the contract will be signed without delay and the deal will actually close. Brokers need to work together with the attorneys at all times in order to insure a successful outcome for their client. Great attorneys are always available and accessible to both clients and brokers, especially when an issue arises. It's essential for the client that their trusted professionals work together to always keep the transaction moving forward. Attorneys are also responsible for coordinating seller's payoffs, working with the bank attorneys and title companies, and so much more. Cooperative attorneys who are easy to reach and are willing to collaborate with brokers are absolutely invaluable and worth their weight in gold. As a broker, I've worked closely with real estate attorneys throughout my career with great success and mutual respect. Scrimping on an attorney (and broker) is never a good idea, especially with the high financial stakes involved when selling real estate.
