Real estate transactions are typically the most substantial business deal that the average American is involved in. Regardless of whether the property is residential or commercial, these deals involve real property and large sums of money, and they can also be quite complicated with page after page of seemingly incomprehensible paperwork. This all adds up to the potential for mistakes and disputes.
Critical legal issues attorneys address
Good real estate agents can be a tremendous asset to sellers and buyers, but real estate transactions involve a variety of legal issues that lawyers understand. This enables them to protect clients from making poor or uninformed decisions regarding:
- Contracts: Just because the deal is put down on paper doesn’t mean that the contract is a legally binding document filed with authorities. Moreover, an attorney can ensure that the agreement follows all applicable Arizona laws.
- Titles: Title searches ensure that the property is free from such legal encumbrances as judgments or liens. Searches can uncover other problematic issues, which the attorney can also provide guidance to address.
- Property transfers: Property transfers involving a family home may not be a significant part of the process, but these get much more complicated when there are corporations, partnerships or trusts. These organizations may have charter agreements in place that can’t be violated, or they may need to follow specific laws.
- Filings: Paperwork needs to be filed at the county or state level. There will be additional red tape for commercial transactions involving a tax identification number as well as information for validating the client as a legal business entity. Improper filings for any real property can lead to fines, but failure to secure this tax and business information could result in shutting down a business until the party provides the information.
Helpful for both buyers and sellers
Closings are hard enough as it is, so thorough preparation can reduce or eliminate unnecessary stress. Handling all the above issues, attorneys can generally avoid or reduce the chances of the transaction ending up in court, delayed or in some way leading to mistakes that cause additional expense.