Real Estate Agent vs. Real Estate Attorney

[Stephanie Knox]

Hey everyone! I'm looking to get  my first investment property - so far I sat down with a few credit unions and 1 corporate bank just to see what each one has to offer and just get pre-qualified; based on my 3 credit reports that were looked at, they're saying that I'm a sure approval (for how much I'm not sure yet.) But I was thinking it would be a good idea to get a team together so that when I get an official approval I already know who I want to work with and not waste any time. 

My question: is it necessary to hire a real estate attorney during the buying process to look over documents or should I just go to them after buying and it's time to draw up leases? and what are some things that a attorney will be able to do during the buying process that a real estate agent can't? Thanks for any help.

[John Knisely]

For PA transactions there is no requirement to involve a real estate attorney. This is not true for every state...Delaware state, for example, requires a closing attorney.

For a standard single family or small multi-unit generally there is not a major need for legal counsel but depending on the complexity of the transaction it may be advisable to consult an attorney. Most agents in our area use standard PA Association of Realtors contracts and forms, which are pretty thorough and encompassing. Similar story on leasing. Most of the small portfolio investors I know and work with get by with these forms and create addendums for specific rules and regulations.

It definitely doesn't hurt to identify several potential options to work with for when you might need them (evictions, lease disputes etc). It is way easier to have that tool in the toolbox before you need it than trying to scramble for it. An attorney could help based on their experience to explain loopholes of your lease terms or things that might be unenforceable or potentially violating local housing laws. Most of the information on maximum security deposits and other general requirements can easily be found online.

Feel free to message me if you want any more info.