Myths of the Real Estate Transaction
1. My (Realtor, mortgage broker, title company, friend, long lost relative, etc.) told me that I don't need a real estate lawyer.
True. Florida law does not require real estate attorneys to be involved in most real estate transactions. However, a real estate transaction is based on a legally binding contract involving a complex area of law. Only an attorney licensed to practice in Florida is qualified to give you legal advice on purchasing or selling real estate in Florida. Real estate agents, mortgage brokers, title companies, friends, long lost relatives, or even a lawyer from New Jersey or New York (if not licensed to practice law in Florida) are strictly prohibited from giving you legal advice of any kind in Florida. To give unlicensed legal advice in Florida constitutes the commission of a 3rd degree felony. Remember, possibly hundreds of thousands of dollars, or even millions of your hard earned money is at stake in a real estate transaction. So why wouldn't you hire a qualified Florida real estate lawyer to protect your interest?
2. Real estate lawyers only complicate things and make real estate transactions more expensive.
False. See Myth 1. Qualified Florida real estate lawyers are trained to provide you with the legal advice and strategies you need to have a successful real estate closing. In a complicated transaction involving many professionals with different goals of their own, real estate attorneys bring guidance and leadership to the table to keep transactions as smooth as possible. With so many professionals involved, it is common for miscommunication to derail a transaction or set it back. Real estate lawyers keep their clients informed of all developments in the transaction and keep everyone involved on the same page, and resolve the issues that would prevent the contract from closing. This, in turn, keeps the transaction on track, saving you the time and expense of litigating over miscommunications or other issues. As mentioned elsewhere "penny wise is often pound foolish".
3. The title company has attorneys, and I'm buying the title insurance, so I don't need to hire my own real estate lawyer.
False. Attorneys working for a title company represent the title company, NOT YOU. Attorneys must represent the interest of their client to the detriment of all others. If you think a title company is representing you as your attorney, ask to see the written attorney-client agreement.
4. I'm not required to have title insurance.
Maybe. If you purchase real property without a loan from a conventional lender, you do not have to buy title insurance. However, to do so exposes you to terrible financial risk of loss. If at a later time a defect is discovered in your title you risk the loss of your entire investment without any recourse.
5. My real estate agent works for me and will give me all the advice I need.
False. Real estate agents broker real estate. They are utterly unqualified to give legal advice unless the are dual licensed as a Florida attorney; in fact, it is a 3d degree felony to give legal advice in Florida unless the person giving that advice is an attorney. Consider this: to practice law in Florida, one must complete 3 years of law school, pass stringent Florida Bar requirements and complete 30 hours of continuing legal education every 3 years. Do your research! Ask your other real estate professionals what was required for them to obtain a license in their profession, then let common sense dictate who you should take legal advice from.
6. I'm just going to lease my property to a tenant, and leases are simpler than a purchase or sale contract, so I don't need a real estate lawyer.
False. A lease, even for residential property, is more complex than a sale and purchase transaction. Leases are a conveyance (just like a purchase and sale) plus a contract, plus a re-conveyance. The law governing leases in Florida is technical and a trap for the unwary. Commercial leases are exponentially more complex.
7. I don't need to hire a real estate lawyer to deed my property to someone else.
True. But do you know the nuances of a quit claim deed as opposed to a warranty deed? How does a special warranty deed differ and when would you use it? Which one would meet your goal best? What effect would the deed have on your mortgage? How should the transferee take title? Only a qualified real estate attorney has the answers.
8. I don't need a written contract to sell my property; a hand shake is good enough for me!
False. The sale or conveyance of real estate falls under the statute of frauds. In order to be enforceable the contract must be in writing and signed by all parties. Only a real estate attorney is qualified to create customized contracts or clauses to suit your specific needs.
True. Florida law does not require real estate attorneys to be involved in most real estate transactions. However, a real estate transaction is based on a legally binding contract involving a complex area of law. Only an attorney licensed to practice in Florida is qualified to give you legal advice on purchasing or selling real estate in Florida. Real estate agents, mortgage brokers, title companies, friends, long lost relatives, or even a lawyer from New Jersey or New York (if not licensed to practice law in Florida) are strictly prohibited from giving you legal advice of any kind in Florida. To give unlicensed legal advice in Florida constitutes the commission of a 3rd degree felony. Remember, possibly hundreds of thousands of dollars, or even millions of your hard earned money is at stake in a real estate transaction. So why wouldn't you hire a qualified Florida real estate lawyer to protect your interest?
2. Real estate lawyers only complicate things and make real estate transactions more expensive.
False. See Myth 1. Qualified Florida real estate lawyers are trained to provide you with the legal advice and strategies you need to have a successful real estate closing. In a complicated transaction involving many professionals with different goals of their own, real estate attorneys bring guidance and leadership to the table to keep transactions as smooth as possible. With so many professionals involved, it is common for miscommunication to derail a transaction or set it back. Real estate lawyers keep their clients informed of all developments in the transaction and keep everyone involved on the same page, and resolve the issues that would prevent the contract from closing. This, in turn, keeps the transaction on track, saving you the time and expense of litigating over miscommunications or other issues. As mentioned elsewhere "penny wise is often pound foolish".
3. The title company has attorneys, and I'm buying the title insurance, so I don't need to hire my own real estate lawyer.
False. Attorneys working for a title company represent the title company, NOT YOU. Attorneys must represent the interest of their client to the detriment of all others. If you think a title company is representing you as your attorney, ask to see the written attorney-client agreement.
4. I'm not required to have title insurance.
Maybe. If you purchase real property without a loan from a conventional lender, you do not have to buy title insurance. However, to do so exposes you to terrible financial risk of loss. If at a later time a defect is discovered in your title you risk the loss of your entire investment without any recourse.
5. My real estate agent works for me and will give me all the advice I need.
False. Real estate agents broker real estate. They are utterly unqualified to give legal advice unless the are dual licensed as a Florida attorney; in fact, it is a 3d degree felony to give legal advice in Florida unless the person giving that advice is an attorney. Consider this: to practice law in Florida, one must complete 3 years of law school, pass stringent Florida Bar requirements and complete 30 hours of continuing legal education every 3 years. Do your research! Ask your other real estate professionals what was required for them to obtain a license in their profession, then let common sense dictate who you should take legal advice from.
6. I'm just going to lease my property to a tenant, and leases are simpler than a purchase or sale contract, so I don't need a real estate lawyer.
False. A lease, even for residential property, is more complex than a sale and purchase transaction. Leases are a conveyance (just like a purchase and sale) plus a contract, plus a re-conveyance. The law governing leases in Florida is technical and a trap for the unwary. Commercial leases are exponentially more complex.
7. I don't need to hire a real estate lawyer to deed my property to someone else.
True. But do you know the nuances of a quit claim deed as opposed to a warranty deed? How does a special warranty deed differ and when would you use it? Which one would meet your goal best? What effect would the deed have on your mortgage? How should the transferee take title? Only a qualified real estate attorney has the answers.
8. I don't need a written contract to sell my property; a hand shake is good enough for me!
False. The sale or conveyance of real estate falls under the statute of frauds. In order to be enforceable the contract must be in writing and signed by all parties. Only a real estate attorney is qualified to create customized contracts or clauses to suit your specific needs.