Should I Hire An Attorney?
Should I Hire An Attorney?
Some people just feel better if their attorney reviews the construction contract, and that's okay. If you do this, be sure you hire someone who knows the real estate and construction business and will complement the process.
Monica loved to stop by and watch the construction going on just a few doors down from her home. She was very observant and noticed the quality of workmanship and materials. Monica not only knew the homeowner, she knew a number of my previous homeowners.
As Monica and I got to know each other, we began planning to build her a custom home. We spent many hours and numerous meetings designing the ideal plan for her lot. Finally, two-and-a-half years later, after three re-dos of her design, we were ready to build.
Three days before the closing date on her loan ( signaling the beginning of construction), Monica called me to say her attorney had reviewed my contract and advised that it needed to be completely rewritten. I told Monica I'd been using this contract for many years and had never experienced a request like this. It is a standardized contract from the homebuilders association of my state that is non biased and represents both the builder and the client fairly. I suggested she ask her attorney for specific comments and told her I was confident we could work through the issues. Monica agreed and said she would get back to me.
The day before the scheduled closing, I received an email from Monica stating that (based on her attorney's advice) she would not be building with me. Obviously, I was surprised.
A few days later, I met with Monica, and she affirmed that she would not be building with me. I told her I was disappointed because we'd been working well together for almost three years. I had counseled her through obstacles, given her professional advice, and taken her through three design changes- all successfully. It was very disconcerting now, after all that, to learn that her attorney was counseling her not to proceed without even a willingness to discuss specific points.
Unfortunately, Monica received some bad advice from her attorney. By insisting on an entire rewrite of a contract a few days before closing, without even offering specific concerns, did not serve his client well.
Monica eventually built her home with another builder. It was close to my neighborhood, so every few months I would drive past the project. A good builder can tell without ever speaking to anyone whether the project is going well or not. By seeing the progress over the months, I observed that the project took six or seven months longer than anticipated. It didn't seem to be a good experience for the builder or for Monica.
I'm not bashing attorneys here; some of my best friends are attorneys. In fact, I have a great attorney, but he provides essential advice that complements who I am and what I do. He helps me design win/win agreements, not win/lose, or lose/lose situations.
If you hire an attorney, be sure to hire someone with construction and real estate experience, not a general practice attorney who counsels on personal business, family trusts, estates, etc.
BOTTOM LINE: Hire an attorney to review your contract if it makes you feel better. Just be certain to hire one who helps you and not hinders you. Above is an excerpt from "Building A Quality Custom Home What You Need To Know" by Jon Atwood with Dave Konkol. Now available at www.atwoodconstructiongroup.net
Automotive | Dealership | Income Development
7 年*My 2 cents here. I've sold houses. I've sold cars. I've bought houses. I've bought cars. I always laugh when I get the customer that wants to modify the contract; especially when I would get the engineers and attorneys, AKA the "smartest people in the world". Yes, I get it, there may be amendments but you're not going to cross out a line and write your own verbiage on the contract. Bottom line - you don't need to modify the contract and you don't need to spend money on hiring an attorney. Rather, read it yourself, and if you don't like what you read and/or you fear that you would be buying from a less-than-reputable company, go with your gut and do not buy the product. *Disclaimer - I am not a lawyer. Herewithin should not be constituted as legal exhortation. Hencetherefore, the aforementioned provision, notincludingnotwithstanding, is purely hearsay and conjecture.
Independent Insurance Agent Specialising in Medicare
7 年So true and well stated. Over the years I've seen both non-real-estate-specific attorneys and home inspectors unskilled in construction methods (a few weeks training by the franchisor doesn't cut it) sabotage the transaction and steal the joy of home ownership from homebuyers by raising false red flags and destroying trust between buyers and builders/sellers. Homebuyers need to work with experts; ethical people will say "this is outside my field of expertise but let me recommend ....". Logically, you don't go to a surgeon to have your teeth cleaned. It's the same in real estate. Always consult a qualified expert.
Division President at Drees Homes
7 年Great article. So many standard attorneys just wanting to stiff arm folks. A qualified attorney specializing in real estate is critical.
ALL OR NOTHING
7 年Did you ever find out what fell apart?
Managing Broker at Nashville Home Partners - KW Realty
7 年I think people (attorneys and buyers, alike) fail to remember that when you build a house with a builder who only requires a deposit, the builder is assuming a huge portion of the financial risk. That's why you often see builders contracts that are weighted towards their own protection. The buyer is only taking the full financial burden on after the closing.