A common question I get asked all the time by friends or family is whether or not they need to hire an attorney to represent them for a real estate transaction.  The short answer is no that they do not “need” to hire an attorney and that the bank/lender involved in the transaction will provide an attorney that they can also use.  The problem with this situation is that the bank’s attorney represents the interests of the bank first and yours second.

In almost all other areas of law it is actually considered unethical for an attorney to represent two parties in a single transaction due to a conflict of interest.  For instance, a criminal attorney cannot represent two defendants in the same criminal trial because the two defendants have interests that may be competing and it would be nearly impossible for a single attorney to “zealously” represent both defendants.

Real estate provides an exception to this general rule as the transaction taking place is usually amicable and not adversarial in nature.  So why hire an attorney?  There are a number of reasons why hiring your own attorney to handle your real estate transaction is strongly recommended.

First, it is a good idea to hire an attorney right from the start so that he or she can review and approve your purchase/sale contract.  While most purchase agreements are fairly standard and real estate agents are well versed in in the additional terms, it is still a good idea to have an attorney review and approve the purchase agreement to make sure you understand all the terms.  Generally, once all the parties have signed the agreement, the time for attorney approval runs very quickly (i.e. 3 business days).  Once the contract is set firm then a breach in the contract by either party may result in monetary loss.

Another good reason to hire your own attorney is because you want to have someone representing only your interests.  As I stated before, the bank’s attorney is the banks attorney, and if push comes to shove, the bank’s attorney is going to act in the best interests of his or her client, the bank/lender.

Finally, you may want to hire your own attorney so that you have access to information.  If you have questions or concerns and need answers fast you may have a hard time getting those answers from the bank/lender or their representative.  However, if you have your own attorney working on your dime, you are more apt to have an open line of communication to have your questions or concerns answered, which is something that can give you piece of mind, especially for you first time home buyers.

Christopher Stringham

Email: cstringham@mcvlaw.com

Phone: 315-471-1664

Christopher Stringham graduated from Western New England College School of Law in 2010 and was admitted to the New York State Bar as well as the United States District Court, Northern District of New York in 2011. He is a member of the New York State Bar Association, Onondaga County Bar Association, and the Injured Workers’ Bar Association of New York. He has been a member of Meggesto, Crossett & Valerino, LLP since October 2010.