Why Should You Use a Lawyer for a For Sale by Owner Closing?
Real estate transactions are complex and time-consuming. From finding a home buyer to closing the deal, the process gets pretty overwhelming for the seller. While most people work with a realtor to streamline the transaction, we’ve seen an increasing number of people choosing for sale by owner transactions.
As the name suggests, FSBO involves the buyer and the seller, eliminating any middleman. FSBO comes with many perks. For one, you get to keep the full amount from selling the property. There’s no agent’s commission or finder fee of any kind. Whether you work with a realtor or sell your home independently, you should hire FSBO legal services to guide you through all legal aspects of the transaction.
Do You Need an Attorney?
In the US, 21 states require a certified real estate attorney at the time of closing. Even if your state doesn’t mandate a real estate lawyer for FSBO transactions, you should hire one.
Hiring an attorney makes sense for an FSBO transaction. With the mountain of paperwork, required title clearance, inspections, contingencies, and other matters that can cause legal issues, it is best to leave the legal work to a professional. Knowing that you have a qualified attorney to take care of all legal aspects of your deal, you will have peace of mind.
Selling your home without an agent gives you greater control over the process. You get the freedom to schedule buyers’ visits whenever you are free and show your property to whomever you like. However, for sale by the owner also comes with greater responsibilities. With an attorney working with you, you can rest assured that you will make informed decisions and that your transaction will be handled properly.
A legal representative will help you avoid any pitfalls. They give you legal guidance regarding how the sale must be conducted, the latest property laws in your state that you must abide by, what you need for closing, and so on. If you are still unsure about an attorney for FSBO, let’s check out a few important reasons why you must work with an attorney.
Legal Paperwork and Property Contracts
First, you have to draft a purchase agreement — a document that lays out the terms and conditions for sale. It consists of the information about the property in question, an introduction about parties involved in the contract, price, initial deposit amount, conditions that may terminate the contract, the closing and possession dates, etc. This document is drafted, reviewed, and edited by an attorney to ensure that your purchase agreement complies with federal and state laws and that all terms of the transaction are properly documented.
The attorney will also take care of the insurance policies, property inspection reports, appraisals, condominium association documents, and closing documents. FSBO sellers selling their property to a family member, or a friend do not hire an attorney, as they believe the real estate transaction can be executed without any complex paperwork. However, if any problem arises in the future, you won’t be able to claim possession of your property. So, whether you are selling your home to a closed one or someone from the general public, always work with a professional for effective closing.
Deal With Third Parties
In a regular real estate transaction, a realtor is supposed to work with third parties to execute the deal. But those conducting an FSBO sale need to handle the legal aspects of the transaction themselves. That’s where an attorney steps in. If you have chosen an attorney, they will take responsibility for third-party transactions. It involves home inspection companies, appraisers, construction teams, and lenders.
There’s also a risk of the buyer defaulting at the last minute. With an attorney representing your case, it will be much easier to handle these problems effectively.
They Represent You at Closing
After months of hard work and dedication, you will want the closing to go as smoothly as possible. Even if your transaction was not as complicated, the closing could present new challenges. That’s why it’s important to have an attorney representing you at the time of closing. They will prepare, review, edit, and organize all documents required for a successful closing.
The buyer also brings their attorney to review the purchase and closing agreement. The buyer’s and seller’s attorneys work together to make changes to the final documents to ensure that the interest of both parties is properly represented.
Hire the Best FSBO Lawyers in Illinois
Top real estate lawyers at FSBO Legal Services have been representing FSBO sellers for years. With several years of experience and the best qualifications, real estate attorneys at FSBO Legal Services (FLS) have what it takes to close an FSBO deal smoothly and quickly. If you are also looking for the top real estate attorneys in Illinois, hire FSBO Legal Services. They will guide you through the process and will simplify the real estate transaction for you.