Lawyer to close

[Liz Zack]

We are about to close on a 1m multi family in Minneapolis. We are getting push back from the seller about creating a purchase agreement with our lawyer that they would then need to review with a lawyer. We are OOS investors and it’s unheard of not to use a lawyer to review PAs, especially at this price point. Would love more context here re everyone else’s experiences! 

[Bryon Andrews]

Hey @Liz Zack I will start off by saying that I am not an attorney and this is not legal advice.

I do not know all of the details here, but it sounds like you are going direct to seller on this deal. When I have done that in the past, we had a purchase agreement written up by a lawyer and the seller reviewed. I am not sure if they used an attorney to review. I am not sure what the pushback is other than not wanting to pay attorney fees.  

[Tim Swierczek]

Quote from @Liz Zack:

We are about to close on a 1m multi family in Minneapolis. We are getting push back from the seller about creating a purchase agreement with our lawyer that they would then need to review with a lawyer. We are OOS investors and it’s unheard of not to use a lawyer to review PAs, especially at this price point. Would love more context here re everyone else’s experiences! 

Hey Liz,

As a loan officer who has completed more than 2,200 loans in Minnesota, I can assure you that attorneys are completely unnecessary, and expensive in Residential Real Estate in MN.  That being said, a professional is necessary. I would recommend you contact a Realtor to facilitate the deal. The cost should be less than an attorney and from my expirence you will get a better smoother transaction.  Here's what I see when it comes to using attorneys instead of Realtors in MN.

They bring up issues to increased billable hours. In other words they create problems and cost where they don't exist. Save that money for a good home inspection that includes a sewer scope.

They understand the law but typically do not understand real estate transactions well. This is because MN does not use attorneys to close we use Title companies. They do hundreds of transactions a month and can guide you better than most attorneys when it comes to title issues.

They use a complicated form that creates extra work and confusion with no benefit to the buyer or the seller. 

You can get all the advice and guidance with the forms you need from a local Realtor who has worked on hundreds of Real Estate transactions that have common forms that everyone understands and pay a $250-600. All previous advice notwithstanding I would recommend you use an attorney if you don't use a Realtor to facilitate, which is not the same as using a Realtor as a fiduciary representative. No commission is earned only a fee for their time and expertise.

Typically sellers want to avoid attorneys to save the costs. Offer to pay it. If money is not the issue I would ask them what they are hiding.  PM me if you would like to jump on a zoom and discuss it.