If my lawyers are in a different state than my property, do I need a local attorney?
Well, you know what the lawyer’s answer will be, right?
“It depends, but probably yes.”
Just kidding. I didn’t ask a lawyer for a legal opinion – and I’m not a lawyer, so don’t mistake this for legal advice.
Rule: the worst time to find a lawyer is when you need one.
Ideally, you’ll play it safe and hire a good attorney to help you close your real estate investments. No doubt, sometimes it can seem like a waste of money to pay high fees.
But when your attorney catches someone else’s “mistake” that would have cost you tens of thousands of dollars, all of a sudden that invoice seems like a cheap way to lower the risks of real estate investment.
In all seriousness, there are at least a few reasons why you might want to get a lawyer nearby to stay on top of transactional matters for you.
- The lawyer you typically use works with a small firm. If your counsel doesn’t have the resources of a major firm with attorneys in multiple jurisdictions, it’s really hard for one person to know the law in a state where he/she doesn’t practice.
- Local customs are weird. If you’re investing in a property, location matters most. Most places have odd quirks and customs that take place with every transaction.
- You get a [tax bill/zoning change/government notice] that you want to challenge. Having a trustworthy advisor to navigate local politics and smooth the wheels can really pay off. A lot of small towns are wary of outsiders, so it can also help to establish a relationship with a seasoned veteran who knows all the right people.
- You don’t have time to read and understand every word. Seriously, are you expecting that closing documents are easy? It’s great to have an advocate who knows just how to catch and fix any mistakes.
- In the grand scheme of things, it’s pretty cheap. Most real estate attorneys charge a flat fee per transaction to close a purchase or sale, and often it’s under a thousand dollars. That’s a drop in the bucket compared to the total value of your investment!
Then again, so is the REIbrain.
