Attorneys that specialize in real estate law will document and go over property transactions such as purchases, leases, appraisals and inspections. They may also assist in resolving any insurance and environmental issues.
When something happens with a transaction, these lawyers go to court to defend property owners that are involved in lawsuits. One of the main things a lawyer will do is to draft documents that in adherence with real estate law. They put together purchase contracts, conveyance transactions, financing agreements and leases and rental agreements. It is important to understand that property agents may help their client to fill out these types of paperwork but only a licensed attorney who is experienced with real estate law can draft and revise the documents.
Attorneys that are experienced with various types of property transactions know that it is not uncommon for clients to request that their help to negotiate terms and conditions of various deals. This normally involves working alongside other attorneys, brokers, developers and investors. There are some lawyers that only deal with reviewing and giving advice on real estate transactions. In this case, the clients will negotiate their own transactions as well as sign the contract and at that point they will request the lawyer look over the deal and give them advice about it. What this entails is that the attorney will look at the legal title issues as well as any environmental issues and any reports, contracts or other documents that are involved in the deal.
The reason that clients will turn to a lawyer for this type of advice is that these types of lawyers have the training to notice an issue that their client may not recognize. Many times real estate deals do not go as planned and when this happens the courts are usually involved in a lawsuit. This is where attorneys and their experience comes into play. The attorney will put together the legal pleadings to file with the judge, file appeals as needed, bargain with the legal counsel on the opposite side to try and work out a settlement deal as well as participate in the necessary hearings and court proceedings.
Most attorneys in this field are trained in mortgage and trust foreclosures. These attorneys are often needed during tough economic times. There are some attorneys that will represent the lender and others that represent the borrower. The ones that represent the lender will help the lender understand the foreclosure process. The ones that represent the borrower will look for mistakes that have been made in the foreclosure process and will also negotiate with the lender to come up with a settlement so that they can stop the foreclosure from going forward.
Real estate attorneys play an important role in handling real estate law. They have many duties and responsibilities when it comes to brokering various deals. It is important to understand that different property attorneys will charge various rates. Some lawyers will have a set price that will cover everything that is needed for your case or they will have a per hour rate that they will charge to work on your case. Most individuals with any kind of substantial assets know that having a will is the best way to ensure that those assets are divided up according to your wishes upon your death. Few realize that drafting a will is just the beginning. There are many complexities that need to be considered in order to get the exact distribution of assets that you were envisioning. When you work with estate attorneys, these complexities should be taken into account and possible solutions explained to you. Learning about these complexities now will help you understand the solutions with even more clarity once they are presented.
A Will Isn’t Always So Simple
The larger your assets, the more difficult it will be to ensure that they end up divided according to your wishes. The primary reason for this is human nature. When large amounts of money are at stake, people are more likely to hire probate attorneys and contest a document not favorable to them. A standard or simple will isn’t likely to hold up under particularly intense scrutiny from modern probate attorneys, leaving a strong possibility that the document would be compromised unless crafted with more care.
Complex Desires Can Be Worked In By Estate Lawyers
Regardless of the size and nature of your assets, you may simply have unique requirements that you want to see met. For example, many individuals want to establish some kind of fund for their children in the event of a particularly early passing. However, they don’t want this fund immediately accessible to a minor child, who might irresponsibly spend it all. In this case, estate lawyers can assist with the setup of a specialized trust fund or restricted bank account. These options are not right for everyone, but they can provide a way to transfer funds sometime after the will has been executed. Trusts are just one example of ideas that estate attorneys can offer to those who are planning out their wills. There are other concerns that may need to be addressed, like the division of a home or the care of children. All of these are special topics, and working with estate lawyers to resolve them often sheds new light on the situation.
Thinking About Tax Concerns Is Important
The entire tax situation for most wills is complex and highly varied. Probate attorneys are not generally tax experts, but they should readily be able to put you in touch with someone who is, and may be able to provide some advice themselves. The most important thing is that you be aware of tax requirements or other taxes that you might not be expecting. A good lawyer will be able to help you achieve the end result distribution that is closest to your desires, navigating all necessary tax questions along the way.
Cookie-Cutter Documents Are Unwise
Every testament is drafted by someone with a different situation, different needs, and different assets to distribute. Even if your situation seems quite simple, and even if you have just one heir, it is still wise to consult a professional. If you leave instructions that seem simple but have not been written with the assistance of a legal professional, you increase the chance that probate attorneys will contest the document and convince a judge to overrule it. Spending a little bit of time now can ensure that your wishes are followed in the future.
FSBO Versus Hiring a Real Estate Broker
It’s true that the global economy has slowly recovered after the financial crisis and COVID 19 hit in 2020. The recovery process has somehow been felt in many developed countries as shown in improvements in their employment rate as well as in other aspects of the business sector including the real estate industry. While some people are excited about this development, those planning to buy residential properties should not yet jump on the chance. Yes there may be some housing markets where it’s cheap to buy houses but it’s best to do a little research first before making your final decision. Again, careful planning is very important when making investments especially when purchasing properties. For their part, homeowners should also think many times before selling their houses at this time. There may be some very eager to let go of their properties but as always, doing your homework is crucial. This means obtaining information about your area’s housing market, the current prices and statistics in terms of the houses bought in the recent months.
Homeowners have several options in terms of selling their residential properties. They can either sell on their own or what is known as for sale by owner (FSBO). Another option is they can utilize the services of a real estate agent and real estate broker. Selling on your own has its own benefits. First and foremost, it’s cost effective and when the property is finally sold, the homeowner can keep all the profits without having to shell out a certain percentage to a real estate agent. This option, however, requires that the property owner has sufficient knowledge and negotiating skills as much paper work needs and consultation needs to be done. One may also need to consult with a real estate lawyer and real estate agents to obtain the right information on the selling process and the documents required. Unless the homeowner is patient and committed to selling the property via FSBO, this route can be time consuming.
On the other hand, getting a real estate broker or agent can mean a speedier home selling process. As these people are already skilled and knowledgeable about the real estate market and have dealt with many clients in the past, they can prepare the necessary documents in a shorter period of time and proceed with the negotiating process with ease and less efforts. But whatever route you prefer to take, research and planning are vital. Right now, not all housing markets in the Roosevelt Utah. are in good condition. These areas have a great number of unsold homes including condominiums and apartments for quite some time now. These residential properties, mostly single family homes, were constructed during the housing boom in an effort to meet the increased demand at that time only to be left unoccupied during the height of the global financial crisis.
FSBOs: The Pros
• No Agent Commission: The most obvious advantage of selling FSBO vs REALTOR that you don’t pay an agent a commission fee. In most housing markets in the Utah, the typical real estate commission is 5-6%, split between the seller’s agent and the buyer’s agent. Importantly, this fee is usually covered by the property seller. This means that if you go for the FSBO option, you will make an additional profit of 5-6%. This amount of money is significant for people who are selling their home to replace it with a new house as they can put the saved up money towards the purchase of their new home. This sum is also important for real estate investors whose long-term return will automatically go up if their sale costs go down. This 5-6% of the sale price could be the difference between making a profit and making a loss when selling an investment property.
• Being Fully in Charge: When you decide to sell your home with an agent or a broker, you transfer to him/her not only the majority of the responsibilities associated with this task but also most of the decision making. While you have the ultimate say in who the next owner of your property will be, you are generally not very involved in the selling process. The opposite is true in the case of a FSBO. You, as the property seller, have full control over the process including the marketing of your house for sale, setting the price, the staging, the open houses, the viewings, the communication with interested buyers, the negotiations, and the ultimate sale. An experienced real estate investor would like to be fully involved in selling his/her investment property as he/she has the necessary skills and knowledge to succeed with the transaction. Moreover, the investor is ready to put all the energy and efforts necessary to sell at the highest possible price as every dollar counts for his/her return. Meanwhile, for an agent this is just another deal.
• Knowing Your House Best: Whether you are a homeowner or a property investor, you know your home for sale the best. You’ve lived there or you’ve managed it for a number of years, and you know the ins and outs of it. You are familiar with the most attractive features of your house, and you know how to bring the attention of potential buyers to them. In addition, you are aware of the problems with your property for sale and can somewhat conceal them, without being misguiding. This means that you are the best possible person to market your house during open houses and viewings. This is an important benefit of going for a FSBO vs. Realtor.
• Working at Your Own Pace: When you sell by yourself, you can move forward in the process at your own pace. Naturally, a real estate agent would be in a hurry to sell your home as soon as possible in order to move to the next deal. This might not be in congruence with your timeline, and it might actually compromise the best possible outcome for you.
FSBOs: The Cons
• No Access to MLS Listings: The major drawback of selling as a FSBO is that you, as a regular homeowner, don’t have access to the MLS database. This means that you cannot list your property on this most popular platform for selling and buying homes in the Utah, United States. Of course, you can have an agent list your property for you on MLS, but you will have to pay a fee for this service, which will eat into your profit. Not having access to the MLS will make marketing your real estate for sale significantly harder. That’s arguably the biggest hurdle of selling your home without a realtor.
• No Real Estate Network: Real estate is very much a people’s business. The most important factor for success in the real estate industry is whom you know and who is in your network. Real estate agents and brokers take years to build a solid network of property buyers and sellers as well as other professionals and ordinary people who are of help when they have to sell a house. You, as a homeowner, do not have the luxury of a strong real estate network, which will further complicate your marketing efforts. If you are a real estate investor with a few years of experience in the business, chances are that you already have a network. This makes an FSBO more feasible for an investor than for a homeowner.
• Poorer Negotiation Skills: Unless you work in sales, you probably don’t have much experience negotiating prices. Exactly the opposite is true for agents who survive and thrive in the business just because of their ability to negotiate the best price for their clients. This means that once the time to negotiate the sale price with interested buyers comes, an agent will be able to get you a much better price and terms than you can get on your own. Indeed, the difference between the prices you can get and the price an agent can get for your house will usually exceed the 5-6% agent commission on a typical real estate transaction. Once again, if you selling your investment property and have done that a few times, you might have the necessary negotiation skills and experience to score a good sale price. However, first-time homeowners don’t usually have what it takes to make the most out of their sale.
• Taking More Time: Selling as a FSBO vs. REALTOR generally takes more time. After all, real estate agents are professionals who sell properties for a living, and they know how to be efficient. This means that if you are in a hurry to buy a new home or to invest the sale money in a new investment property, you should work with an agent. This will significantly shorten the time your property spends on the market. Moreover, the number of days on the market has a direct negative impact on the selling price. The longer your home stays listed for sale, the more you will have to drop the price before you find a buyer. Buyers get suspicious about why your home has spent so many days on the market if everything is perfectly fine with it, so they will not be willing to pay the initial asking price.
• Dealing with Legal Issues: The last major con of selling real estate on your own is the legal issues related with it. First of all, you will need to go through a number of legal procedures and sign legal texts which might not make sense to someone outside the real estate world. This is of particular concern to homeowners and less so to property investors who are more likely to be familiar with the terminology. Furthermore, many locations require an attorney to participate in the sale of real estate. This is something which your agent can help out with as he/she is bound to have real estate lawyers in his/her network.
As you can see, both selling your house on your own and with an agent has advantages and disadvantages. However, generally speaking, it is a more reasonable choice for homeowners to work with an experienced realtor when considering if selling FSBO vs. REALTOR. When it comes to real estate investors, their choice should depend on their previous experience, their personal skills, and their strategy: active investments vs. passive investments.
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It’s not a matter of if, it’s a matter of when. Legal problems come to everyone. Whether it’s your son who gets in a car wreck, your uncle who loses his job and needs to file for bankruptcy, your sister’s brother who’s getting divorced, or a grandparent that passes away without a will -all of us have legal issues and questions that arise. So when you have a law question, call Ascent Law for your free consultation (801) 676-5506. We want to help you!
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States
Telephone: (801) 676-5506