How to Effectively Work with a Lawyer and Lender to Buy Income Properties
Dealing with lawyers and lenders probably sounds like one of the most daunting parts of the process when purchasing income properties. The truth is, it isn’t that challenging at all. When you do it once, you’ll realize how many sources on the internet overcomplicate this process.
In reality, all you need is a good lawyer and they’ll guide you through the entire process without scaring you with daunting legal terms. With that said, let’s look into how you can effectively work with a lawyer and a lender to secure that first income property whether on your own or through a joint venture.
The Responsibilities of a Real Estate Lawyer
Real estate lawyers oversee the legal aspects of real estate transactions. Their main role is to prepare and review legal documents relating to real estate, negotiate the terms and conditions of real estate transactions, and facilitate the transfer of titles once the deal is reached.
Here’s a brief overview of the lawyer’s responsibilities when it comes to a property transaction:
Monitor legal risk in real estate documentation and advise clients accordingly.
Interpret laws, rulings and regulations for real estate transactions.
Draft and negotiate real estate transactions.
Draft routine leases and amendments.
Ensure that appropriate approvals are in place before real estate transactions are executed.
Manage regulatory and compliance-related services.
Represent the company in purchases and sales of properties.
Defend the municipal code litigation.
Support legal and general advisory needs associated with a large-scale real estate portfolio.
A lawyer will help you draft contracts and legal documents in a way that protects your interests and ensures the best possible outcome of the transaction. The legal documents I’m mentioning include:
Your sales contract/purchase agreement.
Leases.
Eviction notices.
Title documents.
Mortgage contracts and documents.
Title and deed transfer documents.
Even if you already have these documents drawn up, a lawyer can help you better understand the clauses and conditions, as well as your liabilities, obligations, and any other terms of the contract.
Lawyers and Lenders
While the lawyer is the key-point of contact between you and the seller, they are also in charge of communicating with banks and lenders. In doing so, their goal is to ensure you’ve met all the requirements for your mortgage pre-approval and eventually the closing of the transaction.
The lawyer must give certain assurances to lenders before they will advance money to complete the transaction. On top of that, any deposits you make will be held in trust by the lawyer.
In addition, you will work with your lawyer on the following:
Negotiations.
Reviews and due diligence.
Assistance with building and development projects.
General litigation.
Foreclosure proceedings.
Closings.
Title and lien searches.
Deed transfers.
Resolution of zoning issues.
Coordination with lenders, title agents, surveyors, and other parties in the transaction.