Buying or selling property can be one of the most significant financial decisions a person makes in their lifetime. While real estate agents are essential for facilitating transactions, only a qualified real estate attorney can provide the legal oversight needed to protect your interests. From contract flaws to zoning complications, these professionals are trained to catch the legal red flags that might otherwise go unnoticed—until it's too late.

This article outlines some of the most critical legal issues that a skilled real estate attorney can detect and resolve before they jeopardize your investment.

real estate attorney

Why Legal Oversight Matters in Real Estate Transactions

Real estate transactions involve binding legal agreements, local regulations, and complex financial arrangements. While many deals close smoothly, even a small oversight can lead to costly disputes or financial loss. A real estate attorney brings a level of due diligence that goes beyond what a real estate agent or title company can offer.

Their role includes:

  • Reviewing and drafting legal documents

  • Identifying contract loopholes

  • Flagging title and ownership issues

  • Advising on zoning and land use laws

  • Representing clients in disputes or litigation

Let's explore some of the specific red flags that only a knowledgeable real estate attorney is trained to catch.

1. Unclear or Incomplete Contracts

Purchase agreements can be lengthy and complex. A real estate attorney knows exactly what language to look for—or look out for. Clauses that are overly vague, missing deadlines, or lacking proper contingencies (such as inspection, appraisal, or financing clauses) can create loopholes that expose the buyer or seller to unnecessary risk.

For example, a missing clause related to required repairs might leave a buyer responsible for expensive fixes that should have been negotiated beforehand.

2. Title Defects and Ownership Disputes

A real estate attorney will perform or oversee a title search to uncover issues such as:

  • Unpaid liens or mortgages

  • Clerical errors in public records

  • Unknown heirs claiming ownership

  • Fraudulent transfers or forged signatures

These problems can delay a closing—or worse, result in litigation after the sale. Unlike a title company that might only issue insurance, a real estate attorney can proactively work to resolve the underlying legal issue.

3. Zoning and Land Use Issues

Zoning regulations can impact everything from property value to intended use. Planning to open a business in a residential zone? Thinking of building a second dwelling unit? A real estate attorney will verify that your plans align with local zoning codes and identify whether variances or permits are needed.

They can also investigate whether there are:

  • Setback requirements

  • Environmental restrictions

  • Future developments nearby that may impact value

4. HOA and Condominium Rules

If you're purchasing in a community governed by a homeowners' association (HOA) or condo board, it's crucial to review all bylaws, covenants, fees, and rules. A real estate attorney will identify red flags such as:

  • Excessive or escalating HOA fees

  • Ongoing litigation within the community

  • Restrictive covenants that may limit your property rights

These factors can affect your decision to move forward and influence resale potential.

5. Boundary and Survey Discrepancies

Disputes over property lines are surprisingly common. A real estate attorney will ensure that the legal description of the property aligns with the survey and that no encroachments or easements exist that could cause future conflicts with neighbors.

This is especially important in rural or older urban areas where boundaries may not be clearly marked or recorded.

6. Illegal Improvements or Unpermitted Work

That shiny new deck or garage might be appealing—but if it wasn't built with proper permits, it could be a legal liability. A real estate attorney can request building permits, inspection records, and compliance documentation to confirm that any additions or renovations were done legally.

Unpermitted work may require you to bring the property up to code—at your own expense—or even remove the improvement altogether.

7. Environmental Hazards or Restrictions

Depending on the location, there may be legal restrictions related to:

  • Wetlands

  • Coastal zones

  • Contaminated soil

  • Protected wildlife habitats

A real estate attorney can conduct due diligence to ensure there are no environmental red flags that could delay construction, limit land use, or result in fines.

8. Complex or Multi-Party Transactions

When a deal involves trusts, LLCs, estates, or joint ownership, the legal complexity increases dramatically. A real estate attorney can guide you through:

  • Structuring ownership agreements

  • Verifying legal authority of signers

  • Handling probate-related sales

  • Coordinating 1031 exchanges or tax strategies

Without legal oversight, these transactions can fall apart due to minor technicalities.

9. Financing Clauses and Legal Risks

Many standard purchase agreements include financing contingencies, but not all protect the buyer equally. A real estate attorney ensures that the contract clearly defines:

  • What happens if financing falls through

  • Timeframes for securing loans

  • The return of earnest money in the event of a failed loan

This can prevent future legal disputes if a deal doesn't close as expected.

10. Closing Document Errors

Even at closing, mistakes can happen. From recording errors to omitted disclosures, a real estate attorney will carefully review the HUD-1 settlement statement, mortgage paperwork, and transfer deeds to ensure everything is correct and legally enforceable.

When You Absolutely Need a Real Estate Attorney

While not all states require an attorney at closing, hiring one is a wise choice in situations such as:

  • FSBO (For Sale By Owner) transactions

  • Commercial real estate deals

  • Foreclosures or short sales

  • Buying property from an estate or trust

  • Investing in multi-family or mixed-use buildings

In these scenarios, the legal risks are amplified, and the guidance of a seasoned real estate attorney becomes invaluable.

Conclusion

The complexities of real estate law can easily be overlooked without the trained eye of a qualified legal professional. From contract pitfalls to title concerns, only a skilled real estate attorney has the expertise to spot and address the red flags that could derail your transaction. Whether you're a first-time buyer or a seasoned investor, legal guidance is not just recommended—it's essential.