Do I Need an Attorney to Review My Real Estate Contract?

 Posted on November 26, 2024 in Residential Real Estate

When signing a purchase agreement for the sale of a property, both buyers and sellers face certain legal risks. Buyers in particular are exposed to legal pitfalls when they spend significant money on a home that they are not deeply familiar with. Therefore, both parties usually hire attorneys to review the real estate contract before signing it.

Involving an Illinois real estate attorney is not required by law, but it is highly recommended. A trained legal eye can scrutinize the purchase agreement for nuances that threaten your interests. Zoning laws, title issues, and easements are just some of the legal problems a buyer can face when purchasing a property. In fact, a common clause in Illinois real estate contracts allows for an attorney review period where the lawyers have up to five days to modify or cancel the agreement. There are significant risks to entering into a real estate transaction without legal guidance, and major benefits to involving an attorney early on.

What Are the Risks of Signing a Real Estate Contract Without a Lawyer?

Signing a purchase agreement without having it reviewed by a qualified real estate attorney can put you at legal and financial risk. For example:

• Title issues: A buyer might unknowingly be purchasing a property with easements or restrictions on its use or disputes over its ownership. The contract should thoroughly address this.

• Unfair terms: Some contracts may contain terms that favor one side over the other. For example, a clause may allow one side to back out of the transaction while imposing penalties on the other party for doing the same.

• Non-compliance: A contract might not comply with relevant laws and regulations. Not only does the agreement need to conform to contractual legal standards, but it also should include required documents like a Seller’s Disclosure Notice which lists the property’s flaws and features.

• Misinterpretation: A contract might have vague clauses that can be misinterpreted. For example, a clause that states the property needs repairs but does not specify who is obligated to pay for them can result in the buyer unnecessarily shelling out for renovations.

What Are the Benefits of Involving an Attorney Early in the Transaction?

The earlier you involve an attorney in a real estate transaction, the more legal benefits you can receive. For example:

• Contract negotiation: In addition to reviewing the contract, an attorney can help you negotiate better terms that protect your interests.

• Title review: An attorney can review the title documents for any possible issues such as unpaid taxes, ownership disputes, or zoning violations.

• Legal compliance: A real estate lawyer can make sure all documents are valid and in compliance with relevant laws and regulations. The attorney can also help ensure legal procedures such as the escrow process are being followed appropriately.

• Dispute prevention: An attorney may be able to help prevent disputes before they happen by anticipating certain issues and taking the appropriate legal steps to forestall them.

Contact an Alsip, IL Real Estate Attorney

Every real estate transaction is different and it is common for unexpected issues to arise. Make sure you are prepared and protected by hiring a Calumet City, IL real estate lawyer. At The Sherrod Law Firm, Ltd., we take a personalized approach to guiding our clients through real estate transactions and providing them with the best legal protection possible. Call 312-321-6910 now to get a free consultation today.