Real Estate Law FAQs: What Buyers, Sellers, and Investors Should Know

By Mandi Hunter

Whether you’re a first-time homebuyer, a seasoned commercial investor, or somewhere in between, real estate transactions come with legal complexities that may be overlooked until something goes wrong. A real estate attorney plays a critical role in helping clients avoid costly mistakes and ensuring deals go smoothly. Below are some of the most frequently asked questions we hear in real estate law—and the answers every property owner or investor should know.

1. What does a real estate attorney do?

Real estate attorneys handle the legal side of property transactions, ensuring compliance with state and local laws and protecting their clients’ interests at every step. This may include:

  • Reviewing and drafting purchase agreements and leases

  • Conducting title searches and resolving title defects

  • Guiding due diligence during commercial property acquisitions

  • Advising on zoning and land use compliance

  • Representing clients at closing

  • Litigating disputes over boundary lines, easements, landlord-tenant issues, or breaches of contract

Attorneys bring a layer of legal protection to what is often the biggest financial transaction in a person’s life.

2. Do I need a real estate attorney to buy or sell property?

In some states (like New York, Massachusetts, and Georgia), attorneys are required to be involved in real estate closings. In others, including Kansas and Missouri, hiring an attorney is optional but often recommended.

Even when not required, having an attorney can be invaluable. Real estate agents typically use standard forms that may not address the nuances of your situation. An attorney can revise those documents to ensure they reflect your best interests, especially when contingencies, title issues, or non-traditional arrangements are involved.

3. What is the difference between real property and personal property?

The distinction is important in both residential and commercial transactions:

  • Real property includes land and anything permanently attached to it—such as buildings, driveways, and fences.

  • Personal property refers to movable items that are not permanently affixed, like furniture, appliances (in some cases), or equipment.

Disputes can arise when parties disagree about what stays with the property. Clear language in the purchase contract helps avoid surprises.

4. What is a title search and why is it important?

A title search reviews public records to verify the legal ownership of a property and to identify issues like:

  • Unpaid liens (e.g., tax liens, contractor liens)

  • Encumbrances (such as easements or rights of way)

  • Restrictions (such as HOA covenants or zoning limitations)

  • Errors in public records or missing heirs

Title searches are essential for avoiding legal trouble after closing. Many buyers also purchase title insurance to protect against future claims that weren’t uncovered during the search.

5. What are some common legal issues in residential real estate transactions?

Residential buyers and sellers often encounter legal pitfalls such as:

  • Undisclosed property defects

  • Disputes over earnest money deposits

  • Failure to meet contract deadlines

  • Breach of contract after inspection results

  • Survey disputes (e.g., fences or structures over property lines)

An attorney can help navigate these issues or prevent them altogether through proactive contract drafting and due diligence.

6. What is the role of a real estate attorney in commercial transactions?

Commercial real estate deals are typically more complex than residential ones. A commercial real estate attorney may:

  • Review or negotiate lease agreements (often long-term and highly detailed)

  • Analyze zoning regulations and environmental risks

  • Help structure the deal for tax efficiency

  • Conduct due diligence on existing tenants, service contracts, and building code compliance

  • Assist in financing and lender negotiations

Investors, developers, and business owners often involve attorneys early to avoid regulatory headaches or financial surprises later.

7. How do zoning and land use laws affect property rights?

Zoning laws control how property can be used (e.g., residential, commercial, industrial). They can also regulate:

  • Minimum lot sizes

  • Building height and density

  • Signage and parking requirements

Violating zoning laws can halt development or lead to fines. Real estate attorneys help clients obtain variances or navigate local boards when seeking approval for a non-conforming use.

8. What happens if there’s a problem after closing?

Issues like undisclosed defects, boundary disputes, or surprise liens may arise even after the deal closes. Your options typically include:

  • Suing for breach of contract or misrepresentation

  • Filing a claim under your title insurance

  • Seeking mediation or arbitration if required under your contract

An attorney can advise you on the strength of your claim and how to proceed, whether it’s through negotiation or litigation.

9. What should I know about earnest money disputes?

Earnest money, which is typically 1–3% of the purchase price, is meant to show the buyer’s seriousness. If the deal falls through, who keeps the earnest money depends on:

  • The reason for the termination

  • Whether contingencies (like financing or inspection) were properly invoked

  • Contractual notice and timing requirements

An attorney can help recover your earnest money or defend your right to retain it if you’re the seller.

10. When should I bring in a real estate attorney?

The earlier, the better. Ideally, you should consult a real estate attorney:

  • Before signing a listing agreement or letter of intent

  • Before entering a purchase or lease agreement

  • During due diligence on a property

  • If a dispute arises mid-transaction

Even a quick consultation can provide peace of mind and potentially save thousands in the long run.

Final Thoughts

Real estate law is about more than just paperwork — it’s about protecting your rights, avoiding disputes and ensuring a smooth transfer of property. Whether you’re buying your first home or managing a portfolio of commercial properties, legal guidance can be the difference between a sound investment and a costly mistake.

Contact Hunter Law Group today for Efficient. Compliant. Effective. Real Estate Counsel You Can Trust.