Involving Lawyers

Is involving lawyers in RE transactions ideal?

This is a touchy issue I've avoided, but this past week I've heard way too many stories, so I decided to give my thoughts about it. But before anything, contrary to what some people think, I am NOT a lawyer. I'm just a curious person who reads the fine print. 😂

Anyway, here's my take on this topic.

More often than not, when lawyers are involved in a transaction, they become more sophisticated. And there's a reason for that: lawyers would try to protect their clients, so they take extra steps. Having seen many horror stories, I think taking additional precautionary measures is only fitting.

One problem is that lawyers are hired to mitigate risks. If they don't find any and something goes wrong, their names are on the line. Thus, some lawyers tend to nitpick on risks with a highly improbable chance of happening. Then they begin asking for the impossible. For example, a lawyer I've dealt with demanded that a bank change the form they used for his client. Good luck with that.

Matters are exacerbated when lawyers review the contracts prepared by brokers. They cringe at these contracts that are filled with grammatical errors, varying fonts and font sizes, and conflicting information (i.e., something that looks like they were prepared 15 minutes ago). Knowing these brokers will be earning millions doesn't help the situation either.

Don't get me wrong; I believe lawyers should be involved in complex transactions. Examples include purchasing raw land, transactions involving multiple/conditional steps, etc. But if it's a straight purchase of a condo unit managed/governed by a reputable developer, I don't think you need one.

But don't just hire any lawyer; get someone who specializes in RE and taxation. Typically, I ask lawyers questions about when a property is classified as an ordinary asset to assess their expertise in RE. Get someone who doesn't only tell you what you shouldn't do but will tell you how to do it.