The Difference Between a Real Estate Agent and a Real Estate Lawyer
When buying or selling a property, most people think of real estate agents as the sole source of information and guidance. However, agents are not the only ones who play a critical role in the complex world of real estate transactions. Real estate lawyers also offer valuable services that can protect your interests and ensure a smooth and successful transaction. In this blog, we will explore the difference between a real estate agent and a real estate lawyer.
Role of a Real Estate Agent
A real estate agent is a licensed professional who helps buyers and sellers connect. They act as intermediaries between the two parties, with the goal of defining the buyer’s demands and the seller’s offerings. Agents can help their clients through online promotion, open houses, and advertising through multiple listing systems.
- Typically, a real estate agent will handle the following tasks:
- Property valuation: Agents can analyze the real estate market and provide a comparative market analysis to determine the value of a property.
- Property listing: Agents can help sellers list their properties on various platforms and channels.
- Property search: Agents can provide resources and guidance to buyers looking for properties that align with their needs and budget.
- Negotiation: Agents can negotiate with the other party to achieve a fair and reasonable price that satisfies client requirements.
- Document preparation: Agents can prepare and complete various legal documents, such as purchase agreements, disclosures, transfer ownership documents, etc.
Role of a Real Estate Lawyer
On the other hand, a real estate lawyer is a legal professional specializing in property law. They provide legal support and counselling to clients involved in buying, selling, or leasing properties to ensure their legal rights are protected.
- Here are some of the critical roles of real estate lawyers:
- Contract preparation: Lawyers can draft, review, and negotiate the terms of purchase agreements, sale transactions, and other legal documents to ensure their clients’ interests are protected.
- Title search: Lawyers conduct title searches to ensure the property is free of claims or encumbrances, such as unpaid liens, judgments, and easements.
- Closing process: Lawyers will attend the closing of a property transaction and review various documents, such as the deed of ownership, closing statement, and insurance policies, and complete the transfer of ownership.
- Dispute resolution: Lawyers can act as mediators or represent clients in court in disputes that arise during or after the transaction.
- Due diligence: Lawyers can perform in-depth research to ensure that a property complies with zoning and environmental regulations and identify potential issues that could impact the value or use of the property.
What Makes a Real Estate Lawyer Different from a Real Estate Agent?
One critical difference between a real estate lawyer and a real estate agent is their scope of duties. While an agent focuses solely on facilitating the transaction and promoting the property, a lawyer is responsible for ensuring the transaction is legally compliant and protecting the client’s legal interest. A lawyer’s role extends beyond the transaction’s closing and can be invaluable in dispute resolution and litigation.
Another difference is that real estate agents are regulated by the Real Estate Council of Ontario (RECO), while lawyers are licensed and regulated by the Law Society of Ontario (LSO). The LSO has a more stringent code of ethics and professional standards, and lawyers must carry professional indemnity insurance to protect their clients from malpractice.
Lastly, their fees are different. Agents generally charge a commission-based fee tied to the sale price. Lawyers charge either a flat fee or an hourly rate for their services.
Contact Us
Both real estate agents and lawyers play crucial roles in ensuring successful property transactions. While agents are essential in marketing a property, finding a buyer or seller, and negotiating an agreement, real estate lawyers provide critical legal support, ensuring the transaction satisfies legal requirements and protects clients’ interests. Collaborating with a real estate agent and a lawyer can result in a seamless transaction and provide the best outcome.
The lawyers at Levy Zavet have years of experience in real estate and property law. Contact us today if you have questions about buying or purchasing a property.
Read More: What is the role of a lawyer in a real estate transaction?
