What does a real estate attorney do? (2023)

What is a real estate attorney?

A real estate attorney, or real estate lawyer, is someone who is licensed to practice law in a particular state and is specifically focused on real estate transactions. They can advise all the parties involved in a real estate transaction, including the buyer, seller and lender, although typically they only represent one of these parties.

Stacy Mestayer, chief legal officer of Voxtur, a real estate and mortgage service provider, summarized the role as follows: “A real estate attorney specializes in matters related to real property, including the buying and selling of homes. In a real estate transaction, the attorney ensures that their client’s interests are protected and the purchase agreement accurately reflects their client’s understanding of the transaction.”

What a real estate lawyer does

Your real estate attorney plays an important role when it's time to close on your new house. Among their many tasks, they’re responsible for making sure you understand what’s in the Closing Disclosure before you sign (though it’s still your responsibility to read the documents carefully and compile a list of any questions you have).

Their role can include:

• Completing the title search, which investigates any ownership claims on the property
• Preparing all legal documentation to be signed at closing, including the deed, the Closing Disclosure and the mortgage agreement. They may arrange the title insurance policy, too.
• Drawing up the settlement statement, which includes a summary of the borrower’s and the seller’s transactions
• Calculating other costs, like real estate commissions and final closing costs, and disbursing the funds to the appropriate parties after closing
• Resolving disputes, such as issues with the title or lot lines

» MORE: How to buy a house

Do you need a real estate attorney?

You may find it beneficial to have a real estate attorney for any real estate transaction or dispute.

Not only do they work with purchasing or selling real estate, but they can also draft or review contracts, deal with complex property issues, handle zoning and land use matters, address title disputes, negotiate lease agreements and navigate foreclosure proceedings — all of which can be extremely complicated and stressful without the guidance of a professional.

“Both buyers and sellers can benefit from hiring a real estate attorney, whether the transaction is related to a home for personal use or an investment property,” said Mestayer. “Investment properties, in particular, may involve tax implications that many buyers and sellers aren’t aware of or prepared to address on their own.”

Keep in mind that some states require a real estate attorney for closing. These states are:

• Connecticut
• Delaware
• Georgia
• Massachusetts
• North Carolina
• Rhode Island
• South Carolina
• West Virginia

These states only require a real estate attorney to certify the title:

• Alabama
• Louisiana
• Mississippi
• North Dakota
• Oklahoma
• South Dakota
• Wyoming

If you don’t live in one of these states, then you can choose whether or not to use a real estate attorney. But it’s worth considering if you’re involved in a complex or precarious transaction.

On the other hand, you might not need a real estate attorney for straightforward residential property transactions, such as buying or selling a standard single-family home, where both parties agree on the terms and the local regulations are clear. And a real estate attorney may not be necessary when renting or leasing a property under standard circumstances, especially if both parties are in agreement.

How much does a real estate attorney cost?

A real estate attorney usually charges either a flat or hourly fee, which will vary based on the services the attorney provides and the area you live in. Hourly fees usually range from $150 to $500; flat fees can range from $800 to $1,500.

The attorney’s fees are often wrapped into the closing costs, which are outlined in the Loan Estimate you receive after you apply with the lender. You’ll also see the finalized closing costs in the Closing Disclosure, which you should receive at least three business days prior to closing.

» MORE: Closing costs: average cost + how to calculate

Bottom line

Not all states require an attorney for closing, but many do for at least some steps in the process. If you live in an “attorney closing state” (to facilitate the closing and prepare legal documents) or an “attorney title opinion state” (to certify the title), then you’re required to use an attorney for the transaction.

Even if your state doesn’t have an attorney requirement, it's often a good idea to hire one to protect yourself. Purchasing a home is one of the most important transactions of your life. A lawyer can look out for your best interests and answer any questions you have about the documents you’ll sign.