Buying a house without a lawyer?

[Wade Lippman]

I have bought 3 houses in NY. On one, the lawyer found there was still a $70,000 lien on it at closing; and we had a full moving truck on it's way. He got the lien removed and compensation from the seller. Sure am glad we had that lawyer.

My son is buying a house in WI. They don't use lawyers in WI. I pointed out that the seller has to deliver good title; but how is he to know if the title is any good, siince he has no idea what it is even supposed to look like. He doesn't know, just that no one he knows has ever used a lawyer.

So, how does that work? It seems crazy to me to save a few hundred dollars and risk a $400,000 disaster, but perhaps there is a reason for it.
Anyone know?

[Adam Herman]

that's why you hire a title company. they insure the title is good, and make all the necessary filings. The title company has insurance that will cover their mistakes.

no Realtor involved?

we have never hired a lawyer for a real estate transaction.

[Greg R Bradley]

Lots of different systems to ensure the title is clear. Sounds like NY uses a lawyer, which sounds completely strange to me in CA where we use a title company through the escrow company. State law probably requires a certain procedure and may be quite different in different states.

[Jim Becker]

Each state is different in how this kind of thing is handled. Here in PA, lawyers are not the norm, but title search and title insurance is part of the process for closing on a property. The title company conducts the actual closing, too.

[BOB OLINGER]

For what it's worth, we use attorneys in Iowa. I wouldn't buy real estate without a title opinion which we get from attorneys in IA.

[Scott Brader]

I've used a lawyer in WI just to make sure my interests were protected. Plus, having him go over everything ahead of time makes for a very smooth and very fast closing. The title company lawyer said my closing was the fastest he had ever seen. It cost me a few bucks, but it was worth it when he had a few tweaks done to the paperwork before closing.

Scott

[Pat Barry]

MN banks require a Title company for loan origination. If you buy in cash then you better hire the Title company or get a good lawyer.

[Jerome Stanek]

I go to the court house and search the title

[Wade Lippman]

Well, the title was just an example. I am sure there are other problems a lawyer would pick up that my son wouldn't. Making sure surveys are in order, that all fixtures are included; whatever.

[Perry Hilbert Jr]

I just retired from practicing law in PA. Having a lawyer at settlement is not uncommon, but certainly not normal. A standard bank mortgaged transaction with title search and title insurance is fine, but it does not cover those instances where the sale is not performed under the regulations pertaining to mortgages and banking. A cash sale, a transaction between family, or a rent to purchase arrangement are just a few examples. Such non-mortgage transactions happen more than some folks think and it makes me nervous to think folks do it without at least having title searched etc. Had one client that bought a house and tried to get a mortgage years later to build a large addition. Seems the bank's staff realized the house he was living in for 15 years was not on the lot described in the deed he was given. He came to me to straighten the mess out. Much Much more expensive than having a lawyer at settlement. In my practice, I represented many sellers in the transactions. I drafted the sale contract, I drafted the deeds, I wrote the disclosure notices if there was a problem with the property. On two occasions I felt the buyers were foolish for not having an attorney. I have also seen situations where folks had sale contracts with sellers who did not own the property. A lawyer may not catch everything, but a real estate lawyer knows where to look and the places where problems hide.

[Rich Riddle]

Purchase the title insurance......it's a policy that guarantees the title. Many title companies employ lawyers who look over documentation prior to closing. The closer at our last house from the title company was an attorney.

[Jim Becker]

Perry, you bring up some good points and clearly, I generalized too much in my previous statement. I was thinking about my own transactions, which always involved mortgages and title searches with the title company "running the show". It's absolutely true that many, many transactions are different and I agree that a qualified attorney is worth whatever the cost is to insure that the transaction is handled efficiently and with complete due-diligence. Thanks for your mentioning that!

[Bruce Wrenn]

Bought a lot, with lawyer doing closing. Found out ten years later I didn't own the lot. Surveyor and lawyer both missed it. Church next door owned it. We found this when church needed me to sign off on them building an addition closer to property line than zoning allows. (I furnished both plans and some materials for addition.) Church has grave yard located on next guy over's land. Been there since 1952. He gave church grave yard, plus a buffer, and church gave me what I had supposedly bought. Things turned out well for all. Having a lawyer didn't prevent mistake, and he didn't work out details. We as neighbors did.

[Rich Engelhardt]

Title company & title insurance here in Ohio also - even for cash purchases.

[Jerome Stanek]

Is a lawyer responsible if something goes wrong and there are problems after the sale