Earlier this year, we discussed how the National Association of Realtors’ $418 million settlement involving 20 brokerage houses upended the commission structure across the United States. The changes went into effect on August 17, 2024.
The seller no longer pays the standard 5-6% commission, which the buyer and seller agents split. Home buyers now find that they also need to sign a written contract with the agent before touring a home (in person or virtually) that indicates how much the buyer will pay the agent if they buy the property. Open houses are exempt.
Things may eventually settle down, but some potential clients opt not to use an agent, thus not paying their fees. If they do use an agent, they may wish to negotiate. While the agents are less necessary than they once were, real estate lawyers’ role in transactions remains the same due to the complexities and legalities involved.
The role of lawyers
Real estate transactions involve complex legal documents, contracts, and compliance with state and local regulations. Lawyers ensure that all legal aspects of the transaction are properly handled, protecting the interests of their clients. Lawyers are responsible for handling several key details:
- They conduct title searches to ensure that the property is free of any liens or encumbrances
- They review and draft contracts, ensuring all terms are fair and legally binding. If any disputes or issues arise during the transaction, a lawyer provides invaluable legal advice and representation.
- Lawyers also play a critical role in the closing process, ensuring that all necessary documents are signed, funds are transferred, and the transaction complies with all legal requirements.
This level of legal oversight is essential to prevent any legal complications that could arise after completing the sale.
Some things change, some don’t
These changes in how people buy and sell homes are seismic, yet more could be coming in the future. Legal experience and protection that lawyers provide will be indispensable in ensuring that property transactions are conducted correctly and without legal issues. With so much money riding on these transactions, finding a reputable New York real estate attorney remains as crucial as ever.