When to Hire a Real Estate Lawyer in Michigan

For most people, the purchase or sale of a house is often one of the most financially significant transactions that they will make. Consequently, an experienced real estate lawyer is the best way to make sure the numerous and sometimes complex legal questions are addressed properly.

The Role of a Real Estate Lawyer

The real estate lawyer’s primary role in a real estate transaction is to protect the client and act in accordance with the client’s best interest. Most importantly, only attorneys can provide you with legal advice. Your real estate agent, lender, title company and others involved in real estate transactions cannot provide you with legal advice. In addition, many documents involving real estate transactions advise persons that an attorney should review and approve the document before signing

Why Hiring a Real Estate Lawyer Can Be Cost Effective

While many persons involved in real estate transactions, including home buyers and sellers, believe that hiring a real estate lawyer will be expensive, it is important to understand that there are no set legal fees for real estate services.

Before hiring an attorney for real estate services, you should ask whether the attorney’s services can be based on a “flat fee” (sometimes referred to as a fixed fee) instead of the traditional hourly rate and whether the services can be limited to specific tasks such as reviewing documents or handling a home sale or purchase from start to finish.

A written flat fee for services should be agreed upon before an attorney begins work on a legal matter. A person will then know in advance what legal fees they will be responsible for and also have a clear understanding of the legal services that will be provided. Flat fees provide a straightforward and transparent approach to billing and also creates a mutual expectation that is beneficial to both lawyer and client in real estate transactions.

General Considerations for Sale or Purchase of a House

Purchase Agreement/ Sales Contract

When deciding to purchase or sell a house it is advisable to have a real estate lawyer to draft or at least review and approve the document in order to ensure you fully understand terms of the document and that the document complies with the law and custom in your area. Also, real estate documents typically contain legalese and “boiler plate” language that may not be clear to the average buyer or seller. It is also important to note that most real estate forms used by real estate agents and title companies advise persons that an attorney should review the form before signing or provide a time period for attorney review and approval after signing.

Required Disclosure Documents

Michigan and Federal law require that a seller of residential property must provide written disclosures about the condition of property they are intending to sell. Under Michigan’s Seller Disclosure Act (MCL 565.951 et seq.) a seller must provide a signed Seller’s Disclosure Statement to a prospective buyer. A seller’s failure to fully and accurately complete the disclosure statement can have serious consequences, including cancellation of the sale or a legal claim against the seller after completion of the sale. It should also be noted that for homes built before 1978, the federal government requires that a seller must also provide a buyer with a Lead Based Paint Disclosure form regarding the presence of possible lead-based paint hazards in the property. It is best to engage a real estate lawyer about any questions you have about the disclosure requirements under Michigan and Federal law.

Title Insurance

An attorney approved owner’s policy of title insurance should be included as a condition for the purchase or sale of real estate. The initial Title Insurance Policy Commitment, which a title company usually provides a week or two following approval of a sales contract, is a description of the title insurance coverage for a buyer. It provides important information about mortgages, liens, easements, building and use restrictions, condominium and homeowners’ associations, taxes, and other matters that may apply to the property. As a buyer, you should have a clear understanding of the owner's title policy commitment along with any recorded documents relating to the property that will affect your ownership and use of the property. As a seller, title insurance will show that you are disclosing all recorded information to the buyer about restrictions and other matters affecting title to the property. A real estate lawyer can interpret the title insurance policy commitment and ensure that the requirements for issuing the policy are complied with.

Talk With an Experienced Michigan Real Estate Lawyer

Ager Law Office has a reasonable “flat fee” billing structure for most real estate transactions in place of the traditional hourly rate. Of course, there are real estate services, such as resolving disputes and litigation where it is difficult to determine how extensive the legal work will be. In these types of cases an hourly rate or a modified hourly rate may be more appropriate. Nevertheless, Bill Ager will do his best to provide a reasonable flat fee quote so you will know up front the legal fees you will pay for a particular matter and the specific services that will be provided. You will also appreciate working with an experienced and knowledgeable attorney who works collaboratively with you to achieve your desired results.

From his Ann Arbor office, Bill serves clients throughout Washtenaw County. For a free consultation:

• Call (734) 649-0784
• Send an email to bill@agerlawoffice.com or
• Use our online contact form.