Do You Need a Lawyer to Buy a House in PA?
Written by Charles Rausch
Do you need a lawyer to buy a house in Pennsylvania?
The short answer is no, there aren’t any laws that require you to have a lawyer to buy a house in PA. The better question is why would you not want to have an attorney by your side when you are buying a house?
How Can an Attorney Assist Me in Buying a House?
These are some of the ways a real estate lawyer helps a buyer when buying a house.
Document Review Assistance
A typical real estate purchase starts with an Agreement of Sale. An attorney for the buyer can review the agreement of sale with the buyer to make sure the terms are in line with the buyer’s expectations. In addition to the agreement of sale, there are many other documents that need to be reviewed: seller’s disclosure, homeowner or condominium association documents, mortgage documents, deeds, title policies and closing documents. Your attorney is there to review these documents with you to interpret the legal jargon for you and to make sure that you understand your rights and obligations.
Title Insurance
The majority of buyers will need to obtain a mortgage to purchase a house. The purpose of title insurance is to check for any existing taxes, liens or judgments on the property and to insure that the seller’s title is “marketable” – meaning that there are no defects in the title that could affect the seller’s ability to give good title. All lenders require title insurance to insure that the mortgage has a first lien position against the property. The buyer pays for this insurance. In Pennsylvania, the rates for title insurance are set by the state and are based on the amount of the purchase price. So, it does not cost any more to use an attorney to issue title insurance. While you do not need to be a lawyer to be a title agent, by using a lawyer who is a title agent you get a “twofer” – a title agent to insure good title and a lawyer to look after your interests.
Settlement Agent
Settlement is typically held at the settlement agent’s office selected by the buyer. The settlement agent typically is also the title agent. Some real estate companies provide title and settlement services. While there is nothing wrong with that, keep in mind that there is no attorney at the table whose only responsibility is to look out for the buyer’s interests. Remember, there is no additional cost when you use an attorney as your title agent.
Dispute Resolution
If there is a problem with the seller’s title or if there is a dispute over the terms of the agreement of sale, your attorney can step in to resolve an issue that could threaten settlement or to make sure that your legal rights are protected.
Peace of Mind
This may be the most important reason of all for a buyer to use a lawyer when buying a home. A lawyer can give you peace of mind that there is someone in your corner looking out for your best interests.
Contact MPL Law Today
The experienced real estate attorneys at MPL Law Firm are here to help you when buying residential real estate. All you have to do is contact us.