Buying Duplex w/o Agent. Should RE Attorney suffice?

Question

The property I'm looking at is off-market, and the seller is willing to sell at $220k, but stated that if there's a buyer's agent, the price would go up.  I'm looking to get this property under contract with an FHA loan.  I've checked out the property, one unit has a tenant with a 1year lease, and I plan to occupy the other side. The property is in great shape, and is move-in ready.

With this transaction being direct buyer to seller, I'm not exactly sure how I should proceed. This is my 1st deal, and I only want to continue the transaction contingent upon the appraisal showing that the house is worth that much, at least, and the home inspection.

Is it cost-effective to have a RE attorney draw up the contract/paperwork to protect my interests, and kinda help me navigate?  Is there an alternative, less expensive way to go about this--maybe a website with RE contract templates and the like?

Daniel Dietz · Answer

In our state there are 'standard offer to purchase forms' that have been reviewed by the Realator's Association attorneys. We used those to buy 3 duplexes and a 4 plex all at once. One of my partners is a Realtor, but not acting in that capacity on this deal. I do believe the buyer had his lawyer look over things but not sure. This seller has bought and sold dozens of rentals over the years so was very familiar with the process. We had the local Title Company take care of the closing paperwork on all of them.

Dan Dietz

Karl B. · Answer

This is what I did when I bought my first multi-family (a four-unit). Having a RE attorney work with the seller's RE attorney is not an issue and as long as the RE attorney is competent and communicative all should go well.

But I'll still give some advice from what I've learned the hard way: if there are any contingencies such as repairs (usually discovered and agreed on after the inspection) make certain all repairs/contingencies are completed prior to closing - and literally go and check to make certain these repairs were actually done.

Also, if current tenant has a security deposit, make certain it's transferred to you.