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Do I need an Attorney to Buy a House

By
Real Estate Agent with HomeStarr Realty RS143922A

In Pennsylvania, we do not use attorneys in Real Estate transactions. We use forms that attorneys prepare and fill in the blanks. There are times when there are situations when we find it is time for our clients to seek legal advice. We as agents should never give legal advice we are not attorneys.

Here is a situation I ran into -  entry March Challenge Patricia Feager, MBA, CRS, GRI,MRP  and Kathleen Daniels, Probate & Trust Specialist 

I had a beautiful listing under contract. The owner was looking for a small condo to purchase she was a divorced woman and I was very fond of her. We had been looking and there were a few she liked we had not pinpointed the exact location yet.  One morning I received a call from her. She was going to be a grandmother. I congratulated her and she thanked me and then said everything was going to change.

 

helpfulhannah

 

 She was going to move in with her son and his wife. She saw a vacant house for sale, please check and see how much it was listed for she wanted to purchase it.  She would put it in her son's name it had four bedrooms it was big enough for all of them. I asked her why she wanted to do that and she scolded me and said not to worry, she had the money and wanted her grandchild to have a home.  I said that was wonderful and very thoughtful but I thought she should speak with an attorney and have the proper documents drawn up after all there was a great deal of money involved.  People do these things and an attorney will just make sure the paperwork is done correctly. 

 

She bellowed at me to make the appointment. There was no use talking to her it was her wish. They loved the house. We settled on one and purchased the other in her son's name. I could talk until I was blue in the face she was not listening. I did my due diligence in trying to persuade her to seek legal counsel or to also put herself on the title and so did the title company to no avail. 

 

Eight months later I received a call from this sweet lady hysterical crying. She was now staying in a hotel. It seemed this wonderful son had changed the locks on her. She did not have much money left but we found her somewhere to live in her new price range 

 

There are times in Real Estate transactions you need a Real Estate attorney to draw up an agreement/contract when you have a special interest in a property that spells out exactly what your interest is and the legal terms of this agreement so you can defend it in a court of law if necessary. Seriously you cannot predict what the future holds or what will happen.  

 

Posted by

Hannah Williams is known throughout Philadelphia as HelpfulHannah – and if you’ve spent more than five minutes with her, you know exactly why. She’s an expert at anticipating people’s needs, she has a real feel for real estate, and she’s an accomplished problem-solver.

Hannah has been helping people buy and sell homes all over Philadelphia since 1984. Many of her clients purchased their first, second and even third homes with her expert help, and Hannah wouldn’t have it any other way.

HelpfulHannah.com

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Anna "Banana" Kruchten
HomeSmart Real Estate - Phoenix, AZ
602-380-4886

Featured in BananaTude

 

Mar 10, 2023 03:49 PM
Hannah Williams

Thank Anna Banana Kruchten Phoenix Broker 

Mar 11, 2023 09:34 AM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Hannah another similar mistake I see made is parents being co-borrowers on mortgage loans thinking the child will make all the payments, only to find themselves later making the payments because the child is not making them.

Mar 10, 2023 04:27 PM
Hannah Williams

George Souto This is so true I have seen this also. I ran into a similar problem with buyers a few years ago when an unmarred couple wanted to purchase a condo.  The difference was the woman had co-signed a car loan for her son and they had to pay the car off. He was not very happy, to say the least. 

Mar 11, 2023 09:45 AM
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

Hannah Williams - Absolutely heartbreaking. Her heart was in the right place but her head was somewhere else when the house went into her son's name. Sadly, she paid the price. It was through no fault of yours and you gave her plenty of consultation and advice about consulting with an Attorney. She made the decision on her own. But I know, it still hurt because you tried. She did not listen. 

TX is like PA. Buyers have a right to hire an Attorney but TX is not an Attorney State either. Oh boy, this was a very hard lesson. Thank you for sharing this entry that truly is very educational.

Mar 10, 2023 05:16 PM
Hannah Williams

Patricia Feager, MBA, CRS, GRI,MRP  Sad story indeed, and unfortunately there are several more I could share. 

Mar 11, 2023 09:48 AM
Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

Hannah Williams I always make it a practice to offer the names of real estate attorneys, even though it isn't require in our state. We have form for that, wouldn't you know it 😀

Mar 10, 2023 11:06 PM
Hannah Williams

Paul S. Henderson, REALTOR®, CRS  This happened around  15 years ago and I did give her a name of several attorneys but she did not want to listen. I do believe she did sign a form at closing.

Mar 11, 2023 09:52 AM
Brian England
Ambrose Realty Management LLC - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

We don't use attorneys in Arizona either but for some things, we will definitely refer to real estate attorneys.

Mar 11, 2023 05:18 AM
Hannah Williams

Brian England Exactly, there are situations where attorneys are needed and as agents, we will do our due diligence to advise when it is necessary to seek counsel in a transaction. 

Mar 11, 2023 09:56 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Oh my goodness, Hannah... what a terrible situation. Such a shame your client didn't listen to you right from the start.

Mar 11, 2023 05:57 AM
Hannah Williams

Nina Hollander, Broker I felt so terrible for her. I tried to make her listen and did everything I could. I even called an attorney who said there was nothing I could do.

Mar 11, 2023 10:00 AM
Ray Henson
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

Wow, I can't even imagine  being betrayed by your own son.  Kudos to you for trying to get her to do it the correct way. 

Mar 11, 2023 07:06 AM
Hannah Williams

Ray Henson, You would be surprised how often these situations arise!  

Mar 11, 2023 10:01 AM
Myrl Jeffcoat
Sacramento, CA
Greater Sacramento Realtor - Retired

California is also a state that uses title companies instead of settlement attorneys.  But, when there are concerns and questions about how to hold title, it is best that an attorney be consulted.  

Mar 11, 2023 09:03 AM
Hannah Williams

Myrl Jeffcoat You hit the nail on the head - as always 

Mar 11, 2023 10:02 AM
Myrl Jeffcoat
Sacramento, CA
Greater Sacramento Realtor - Retired

CONGRATULATIONS Hannah, on having this blog FEATURED in the Old Farts Club group!  

Mar 11, 2023 09:04 AM
Hannah Williams

Myrl Jeffcoat These situations as sad as they happen more often than people imagine - that is why we advise people to seek legal counsel 

Thank you, Myrl for the Feature 

Mar 11, 2023 10:04 AM
Kathy Streib
Cypress, TX
Home Stager/Redesign

Hannah-this is such a sad story...to think that a son could do that to his own mother. You did everything you could to advise the woman abut ultimately it was her choice. 

Mar 11, 2023 01:44 PM
Kathy Streib
Cypress, TX
Home Stager/Redesign

Mar 11, 2023 06:33 PM
Hannah Williams

Kathy Streib  Oh thank you I was hesitant to write this not to hurt anyone. Hopefully,  someone thinking of putting themselves in the same situation will read this and consult legal counsel 

Mar 12, 2023 02:32 PM
Leanne Smith
Dirt Road Real Estate - Golden Valley, AZ
The Grit and Gratitude Agent

What a very sad story and good to read you were able to help her out.  As they say Karma is a you know what and that will come back to bite the ungrateful son.

Mar 12, 2023 07:58 AM
Hannah Williams

Leanne Smith It is a sad story unfortunately I think they knew all along they could not live with mom 

Mar 12, 2023 02:37 PM
Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC
The RIGHT CHARLOTTE REALTOR!

Oh, Hannah, how I wish she had listened to you. It's so sad that she didn't put the property in a trust to be given to her children after her death. To know her own son did that to her - well, that's unbelievable. I'm so sad for her but, thank goodness she has you in her corner, Hannah.

Mar 12, 2023 01:52 PM
Hannah Williams

Debe Maxwell, CRS  There was no talking to her. She was going to do what she wanted or shall we say what they wanted her to do.  She knew she made a big mistake. Every time someone comes to me with a similar situation I tell them this story.  There is another story I will write that I walked away from.   

Mar 12, 2023 02:44 PM
Debe Maxwell, CRS

Good for you for telling this story to others - let it be a VALUABLE lesson to them, Hannah Williams!

Mar 12, 2023 02:51 PM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Hannah:

Such a sad story that could have possibly had a different outcome if she had only taken your advice to consult an attorney. And rather appalling what her son did to her!

Jeff

Mar 12, 2023 02:48 PM
Hannah Williams

Jeff Dowler, CRS  You would be shocked how many similar stories like this happen. One right before Covid I walked away from 

Mar 12, 2023 03:09 PM
Kat Palmiotti
eXp Commercial, Referral Divison - Kalispell, MT
Helping your Montana dreams take root

Montana is not an attorney state either and typically attorneys are not used in the purchase/sale of a home. That being said, there are times when they should be as your post points out. That poor lady must have been distraught and I bet "I should have listened to Hannah" ran through her mind from time to time!

Mar 13, 2023 05:59 AM
Hannah Williams

Kat Palmiotti  As you said there are times when an attorney needs to be consulted and we need to do our due diligence to recommend this. Unfortunately, emotions sometimes interfere with people making decisions 

Mar 14, 2023 10:04 AM
Roy Kelley
Retired - Gaithersburg, MD

Thank you very much, Hannah, for sharing this story. Many parents have made poor decisions relating to home purchases.

Have a productive week.

Mar 13, 2023 11:12 AM
Hannah Williams

Roy Kelley This is very true parents love their children and want what is best for them and often put them first.

Hope all is well - Have a wonderful week  

Mar 14, 2023 10:06 AM
Sharon Tara
Sharon Tara Transformations - Portsmouth, NH
Retired New Hampshire Home Stager

What a nightmare and how frustrating for you to see the possible train wreck in the future and not be able to prevent it. You did your best. Sad.

Mar 13, 2023 07:45 PM
Hannah Williams

Sharon Tara   I was hoping I was going to be mistaken.  Like the way you analyzed it. 

Mar 14, 2023 10:09 AM
Ed Silva, 203-206-0754
Mapleridge Realty, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

That is so sad that they poor mother would be outed like that by her son. We agents see all manner of things and trying to help our clients is not always looked at as a good thing.

Mar 14, 2023 10:54 AM
Hannah Williams

Ed Silva  All we can do is try 

Mar 14, 2023 12:20 PM
Sheri Sperry - MCNE®
Coldwell Banker Realty - Sedona, AZ
(928) 274-7355 ~ YOUR Solutions REALTOR®

Hi Hannah Williams - As Brian England stated, we don't use attorneys in AZ.  However, we have water rights issues, short-term rental issues, as well as property line issues.  Each of those situations may need a real estate attorney's expertise.  I have a number who specialize in different areas.  Get the experts involved when necessary.  Don't take any chances. 

Mar 17, 2023 09:20 AM
Hannah Williams

Sheri Sperry - MCNE® I gave her a name of an attorney she did not want to use. I myself called one to see if I was liable and I was not. I did however feel terrible for her.

Mar 21, 2023 04:08 PM
Roy Kelley
Retired - Gaithersburg, MD

Good Tuesday afternoon, Hannah.

Have a great day and a productive week.

Mar 21, 2023 12:49 PM
Hannah Williams

Roy Kelley Hope your day is going well 

Mar 21, 2023 04:05 PM