{"id":108874,"date":"2019-03-24T05:00:00","date_gmt":"2019-03-24T11:00:00","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=108874"},"modified":"2021-03-16T14:52:59","modified_gmt":"2021-03-16T20:52:59","slug":"situations-you-need-real-estate-lawyer","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/situations-you-need-real-estate-lawyer","title":{"rendered":"Buying? Selling? New to the Business? Why You Need a Lawyer Now"},"content":{"rendered":"

There is a popular misconception that you only need to call a lawyer when something has gone wrong. This simply isn\u2019t true\u2014at least not in the world of real estate. <\/span><\/p>\n

In fact, the best time to hire a lawyer is well before you have a problem. Despite our training, we do not own time machines and what you don\u2019t know can always hurt you. For this reason, it\u2019s important for you to know when to call for legal help. <\/span><\/p>\n

Here are four common situations where an investor like you may need the assistance of a real estate attorney.\u00a0<\/span><\/p>\n

1. When You’re Buying a Real Estate Investment<\/h2>\n

A lawyer can be extremely valuable in helping you evaluate deeds, titles, and the terms of contracts. Too often, clients call for help after they\u2019ve made a purchase or signed a contract that wasn\u2019t in their best interest. <\/span><\/p>\n

If you have a lawyer by your side throughout the buying process, you are less likely to make these types of mistakes. A good attorney<\/a> can also identify potential legal problems with a property that would sail past you or even recognize a very competent (or incompetent) agent. <\/span><\/p>\n

Most importantly, they can offer legal advice and will generally have more contract insight than an agent. Whether your state requires the use of an attorney for closing or not, a good lawyer can prove useful.<\/span><\/p>\n

You may also need a lawyer\u2019s help any time you\u2019re making moves with unfamiliar legal implications. If it\u2019s your first time attempting a property transfer or using a newly-created entity, have a pro help out.<\/span><\/p>\n

\"two-story<\/p>\n

Related: <\/strong><\/em>3 Reasons NOT to Buy an LLC Online<\/a><\/em><\/p>\n

2. When You’re Selling Your Investment Property<\/h2>\n

There are times when you may need a lawyer to assist with a sale. Generally, this will be when you are making a complex sale or one that has potential legal issues. <\/span><\/p>\n

Examples may include selling interest in a land trust-owned property, portions of raw land, or sales with many parties or other possible complications. Similarly, a seasoned real estate attorney may notice opportunities for you to save on taxes and otherwise keep more money in your own pocket.<\/span><\/p>\n

3. When You Need Asset Protection<\/h2>\n

If you plan to be in the real estate business for the long term, asset protection is a serious consideration. I tend to recommend that all investors have some type of asset protection strategy in place. <\/span><\/p>\n

That said, the best way to get an asset protection strategy that is customized to your personal needs is to hire a sharp asset protection attorney. An experienced lawyer can ensure you\u2019re setting up the best entities for you and effectively deterring lawsuits.<\/span><\/p>\n

Note that while not all real estate attorneys assist with asset protection, most should be able to point you to someone who can. If this is your primary legal need, look for someone with the appropriate qualifications to help you.<\/span><\/p>\n

\"gray<\/span><\/p>\n

Related: <\/strong><\/em><\/span>Asset Protection in Real Life: How My Client\u2019s Strategy Avoided a Lawsuit<\/a><\/em><\/p>\n

4. When You’re Not Sure What You’re Doing<\/h2>\n

Does someone want you to sign a contract you can\u2019t make heads or tails of? Alternatively, do you need to draft an effective contract yourself? <\/span><\/p>\n

These, and many more mundane situations such as needing to hire or fire someone, are common scenarios that can trip up new and seasoned investors alike. It\u2019s alright to not know everything about every facet of investing. Having a qualified real estate attorney by your side can make figuring out the best decisions for your business easier. <\/span><\/p>\n

Keep in mind that this is not an exhaustive list. If you\u2019re in any kind of situation where you think you <\/span>might <\/span><\/i>need a lawyer, spring for a consultation with a good attorney, and bring a list of your questions. Your preparation may save your backside\u2014or keep it out of court entirely\u2014in the future.<\/span><\/p>\n

\"\"<\/p>\n

Any questions about any of these scenarios? When have you found it helpful to have been working with an attorney as an investor?\u00a0<\/em><\/p>\n

Let me know in a comment below.\u00a0<\/b><\/p>\n","protected":false},"excerpt":{"rendered":"

There is a popular misconception that you only need to call a lawyer when something has gone wrong. This simply isn\u2019t true\u2014at least not in the world of real estate. In fact, the best time to hire a lawyer is well before you have a problem. <\/p>\n","protected":false},"author":23983,"featured_media":108993,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[5524],"tags":[],"class_list":["post-108874","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-investing-for-beginners"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/108874","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/23983"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=108874"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/108874\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/108993"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=108874"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=108874"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=108874"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}