Real Estate Law

Take advantage of free state law resources to better understand real estate law and make a more informed decision about your next property purchase.

Speaking with a property attorney can give you an idea of what to expect when buying a home, what you’re legally required to disclose about a property, and what legal paperwork you need to file in order to transfer ownership of a property. Read now to learn more about when it’s in your best interest to hire a real estate lawyer.

Do you need help finding a real estate attorney to look over your paperwork? Enter your ZIP code above to find affordable real estate lawyers in your area.

When You Need a Real Estate Lawyer

A real estate lawyer specializes in overseeing real estate transactions, including contract review. Often, when buying a home, you may be able to work directly with a real estate agent to move smoothly through the home-buying process. You may never have to involve a lawyer.

In some cases, however, particularly if you buy your home under special circumstances or there is a problem with the transaction, a real estate lawyer can step in.

In this video, our experts explain when you need a real estate attorney.

Do you need a lawyer for the purchase or sale of a home or property?

Yes, it is in your best interest to hire a real estate attorney in the following situations:

When Your State Requires a Real Estate Lawyer

Some states require a real estate lawyer to be involved in the transfer of property. These states include:

If you live in one of these states and you plan to purchase or sell a property, you’ll need to have a real estate lawyer involved in the process of purchasing property.

When You’re Moving Into a New Area

Even if you have purchased a home in the past, a new area may have new regulations and requirements which you will need to meet. A real estate lawyer can help ensure that you aren’t missing anything about the property buying process and that all the paperwork gets per state law as you move to your new location.

When You Need to Evict Tenants From the Property After Purchase

In some cases, you may need to evict tenants who are not holding up their end of the bargain, or you may need to evict tenants who have been living in a rental property so you can live there yourself. Other times, previous owners need to be evicted until new buyers can move in.

Hire a real estate lawyer before evicting any tenants to make sure you don’t overstep your state real estate laws. An attorney with specialized experience in real estate law will know what paths to take to make sure you can move in quickly and legally.

Find Out More: How far can a landlord go to evict tenants?

When the Property Has Serious Structural Problems

As either buyer or seller, you may want to make sure that a real estate lawyer looks over the terms of the transaction before closing on a property that has significant structural issues.

When Dividing Home Sale Proceeds in a Divorce

During a divorce, spouses may sell their shared home and divide the remaining proceeds. The divorce agreement should clearly explain how the mortgage balance, closing costs, taxes, and sale profits will be handled.

A real estate lawyer can help ensure the transaction follows the divorce settlement or court order. They can also address ownership, required signatures, liens, and disagreements over accepting an offer.

The attorney may also help determine how repair costs, agent commissions, and other sale expenses affect each spouse’s final share. Clear terms can reduce conflict before the property reaches closing.

Legal guidance is especially helpful when one spouse contributed more to the property or remains responsible for related debts. Resolving these issues before listing can help prevent delays and disputes at closing.

When You’re in Foreclosure or Have a Property Lien

Foreclosure, property liens, and other financial issues can make selling a home more difficult. A real estate attorney can review your situation, help clear title problems, and guide you through the process if you need to sell quickly.

Before listing the property, it’s important to confirm who has a legal claim to it and whether any debts must be paid from the sale proceeds. Addressing these issues early can help prevent delays at closing.

Foreclosed homes are often sold as-is, so buyers may not know the property’s full condition before closing.

If you’re considering buying a foreclosed house, a real estate lawyer can review the sale documents, check for title or lien issues, and help you avoid potential legal or tax problems.

Buyers should also review inspection options, financing requirements, and any deadlines tied to the sale. Understanding the terms before making an offer can reduce the risk of unexpected costs or disputes.

When the Property Faces Unique Disclosure Issues

If there are things that you need to disclose about the property you’re selling, you may need to fill out a specific disclosure form that will list any known problems. There may be specific forms for each type of disclosure, including lead paint or natural hazards.

Talk to your real estate agent and a property attorney about what you need to disclose and how you need to share that information with potential buyers, including what forms you need to fill out in order to make sure that you have covered all necessary information.

What a Seller Must Disclose About a Property

When a buyer looks into a new property, they want to know everything about it: all the little details that have the potential to spell trouble down the road.

Most things the seller can reasonably expect the buyer to check out on their own: a lack of storage space, small closets, or outdated wallpaper, for example. Other things, however, the seller is legally required to disclose before the buyer makes an offer. For instance, the buyer would likely be interested in knowing whether your listing was previously a rental property.

If you have doubts about whether or not you should disclose something, consult with a real estate attorney or make sure that it’s included in your real estate disclosures.

Most state property laws require sellers to disclose the following:

Lead Paint, Asbestos, or Other Hazards According to Real Estate Laws

When you know that your home has had a serious problem, even if it’s been removed or remediated in the past, the potential buyer needs to know. A buyer with young children may not want to move into a home that they know has lead paint or other serious hazards.

Federal law requires you to disclose lead-based paint in a home built before 1978 so that precautions can be taken if any further work is done on the property.  However, if you don’t know whether lead-based paint was used in the home’s construction, real estate law doesn’t require you to investigate before selling.

Potential buyers might want to ask about the presence of lead-based paint in homes built before 1978, or have it included as part of their inspections if sellers aren’t sure.

Real estate laws by state have some stringent disclosure requirements. In California, you must let buyers know if the house is in danger of any potential natural hazards, including fires, earthquakes, floods, or specific environmental hazards in the area.

These disclosures let buyers make a more informed decision about the property and the area where it’s located, rather than being surprised by those potential challenges down the road.

Pest Problems or Infestation

Some pest problems your potential buyers can clearly see if they know the signs: rodent droppings, signs of bugs scurrying away as they turn on the lights, or clear termite damage. In some cases, however, you might feel that you can hide the signs of those pests. Our advice? Don’t.

If you have pest problems on the property, you need to disclose those issues to potential buyers. You may also want to disclose large-scale pest issues that you have dealt with in the past so that buyers can act quickly if they see any potential problems in the future.

Known Drainage Issues

When it rains, there’s a spot in the basement that frequently gets wet. You have pools of water that gather in specific locations, especially standing water that seems to take a very long time to dissipate after a storm. Water issues can cause serious problems with the home, some of which homeowners’ insurance might not cover.

If you’re selling a home with water issues, you may want to make sure that you disclose them to potential sellers. This includes drainage problems that you may think you have remediated fairly recently, since the new buyer may become aware of problems with the so-called remediation after they move in.

Problems with Neighbors or Property Lines

If you have a known dispute with your neighbors, from a fence that happens to extend across the boundary or someone tried cutting down a tree straddling to owners’ properties, you need to disclose them to the new property owners ahead of time.

Boundary disputes, in particular, can cause serious issues. You want new owners to know exactly what they’re buying into when they settle on a new property.

Property History That Could Cause Emotional Distress

A property’s history may affect a buyer’s decision. This can include a death on the property, especially a violent death or suicide, or a home built over a former cemetery.

Some buyers are comfortable purchasing an older home with a complicated history, while others may find it upsetting.

Disclosure requirements vary, but sellers should share known facts when required so buyers can make an informed decision about the property.

In general, you may assume that there’s no reason to disclose a potential haunting. The truth is that some states, including Arizona, have laws on the books that require you to disclose all known material facts about the property, and that could include hauntings or paranormal activity.

Failure to disclose this information when a potential buyer asks, especially if you have proof of that paranormal activity, like a past exorcism on the property, could leave you in a legal bind.

What to Do if the Home Has Problems at Purchase

Before buying a home, schedule an independent inspection.

Even if the seller has already completed one, your own inspector may catch problems that were missed or provide a different assessment.

Your real estate agent may be able to recommend a local inspector who can check for structural damage, safety hazards, and other issues that aren’t easy to spot.

If the inspection finds problems, you may need to determine who is responsible for the repairs before deciding how to move forward.

Related Info: Responsible Party for Home Repairs Following a Home Purchase

Decide Not to Purchase the Property

Some inspection problems may be too costly, time-consuming, or risky to take on. Major foundation damage, lead paint, or other deal-breakers may be enough to walk away.

Your ability to cancel the purchase depends on the contract terms. Many agreements include an inspection contingency that may let you back out after significant problems are found.

Ask the Seller to Fix the Issues

The seller may agree to repair problems found during the inspection, such as a plumbing leak or damaged paint. This can make moving in easier because the work is completed before closing.

Before agreeing to seller repairs, decide which issues are most important and set a reasonable deadline for completing the work.

Your purchase agreement should state who will handle the repairs and what standards must be met.

Seller repairs may delay your move-in date, and the work may not meet the terms of your agreement.

Make sure the repair requirements are clearly documented and verify that the work is complete before closing. If the repairs don’t match the agreement, speak with a real estate attorney about your options.

Ask the Seller to Lower the Price for Repairs

Some inspection issues may be manageable enough to fix after closing. In that case, your real estate agent can ask the seller to lower the price based on the estimated repair costs.

A lower price may help you avoid overpaying for a home that needs work and leave more room in your budget to handle the repairs yourself.

Accept the Issues and Purchase the Property

You may decide the problems aren’t serious enough to delay the purchase, especially if you need to move soon or you’re buying in a seller’s market.

Before accepting the property as-is, consider the repair costs and risks. A real estate attorney can help you understand your options and make an informed decision.

When You Really Need Homeowners Insurance

Homeowner’s insurance is a vital part of homeownership and an important part of your budget following your purchase. In many cases, homeowner’s insurance is the only option you have for taking care of repairs or replacement of your home after a disaster.

Do you have to have homeowner’s insurance? A real estate lawyer can discuss your legal responsibilities. There are, however, many circumstances under which you may want to check your coverage and make sure it meets your needs. Scroll down to learn about when you really need homeowners insurance coverage.

When You Take out a Mortgage on the Property

If you finance a home, your mortgage lender will usually require homeowners insurance. This coverage protects the lender’s financial interest if the home is damaged by a covered event.

Keeping the policy active is often a condition of the mortgage. If your coverage lapses, the lender may buy force-placed insurance and add the cost to your mortgage payments.

Your lender may also set requirements for coverage limits and deductibles. Review the mortgage terms before choosing a policy to make sure your coverage meets those requirements.

Homeowners insurance premiums are often included in your monthly mortgage payment through an escrow account. The lender then pays the insurer when the premium is due.

When You Live in a Disaster-Prone Area

Some areas of the country are more likely to experience significant natural disasters than others. California, for example, is particularly prone to fires, especially during the dry summer season, while coastal Florida suffers immense hurricane threats each year. Your area likely has its own unique potential hazards and challenges you need to contend with.

Check your homeowner’s insurance policy to make sure it covers the disasters you’re most likely to face. If you fail to carry adequate insurance, a disaster could leave you floundering, with no way to replace your home or your possessions.

When You’re a Landlord

As a landlord, you do not need to carry insurance on the possessions inside a property. You do, however, need to make sure you carry adequate insurance to protect the structure itself and the property.

Whether you have renters who fail to take care of the property as they should or a disaster hits your property, renters’ insurance will not cover those expenses. Without the proper insurance policy, you may find yourself without the property you’ve invested so much into.

When You Can’t Afford to Replace the Property Without Insurance

Many people’s homes are the biggest investment they will ever make. No one likes to imagine that disaster will strike. However, disaster can strike any home at any time.

Floods can hit any area of the country, often entirely unexpectedly. Tornadoes, earthquakes, and hurricanes do not discriminate. Fires can hit due to electrical problems or even a moment’s carelessness, especially if you have children.

A real estate lawyer or insurance agent can help go over your property to determine how much insurance you need to carry in order to maximize your protection.

Those disasters can all spell ruin if you do not have adequate insurance to protect your family’s investment.

Whether you’re considering buying or selling your property, a real estate lawyer can help ensure that your arrangements are in your best interest. Need help finding real estate law firms in your area? Enter your ZIP code to find affordable property attorneys near you.