When selling a home privately, one of the most common mistakes a seller can make is assuming that they are protected because “there is already an attorney involved.”
That sounds reassuring.
It should not be.
If the attorney represents the buyer, then the attorney’s job is to protect the buyer. Not the seller.
This does not mean the buyer’s attorney is doing anything wrong. Quite the opposite. A good buyer’s attorney should be looking out for the buyer’s interests. That is the purpose of representation.
But sellers, especially FSBO sellers, need to understand the difference between an attorney being involved in the transaction and an attorney representing them.
Those are not the same thing.
The Buyer’s Attorney Represents the Buyer
In a typical real estate transaction, each side may have its own attorney. The buyer’s attorney reviews the deal from the buyer’s perspective. The seller’s attorney reviews the deal from the seller’s perspective.
That distinction matters.
The buyer’s attorney may review the contract, negotiate inspection issues, request credits, object to title issues, push for closing extensions, and advise the buyer about whether to move forward.
All of that work is being done for the buyer.
The buyer’s attorney is not there to explain to the seller whether the contract is fair, whether a proposed change is risky, or whether the seller should agree to a certain term.
Why This Comes Up in FSBO and Private Sales
This issue comes up often in private sales and FSBO transactions.
A seller finds a buyer without listing the property. Maybe the buyer is a neighbor, tenant, relative, friend, investor, or someone who approached the seller directly. Everyone wants the transaction to be simple. Nobody wants to overcomplicate things.
Then the buyer says something like:
“My attorney can send over the contract.”
That may be convenient. It may even be a perfectly reasonable place to start.
But the seller should understand what is happening. The contract or proposed terms are likely being prepared or reviewed from the buyer’s perspective.
That does not automatically make the contract unfair. But it does mean the seller should not treat it as neutral.
What the Buyer’s Attorney Is Not There to Do
The buyer’s attorney is not there to advise the seller on seller-side risk.
For example, the buyer’s attorney is not responsible for telling the seller:
- whether the inspection language gives the buyer too much leverage;
- whether the seller should agree to repairs or offer a closing credit instead;
- whether the purchase price, credits, and costs make sense from a net-proceeds standpoint;
- whether the closing date is realistic;
- whether possession terms protect the seller;
- whether tax prorations are being handled properly;
- whether municipal requirements apply before closing;
- whether seller disclosures are complete;
- whether the seller is giving up rights without realizing it.
Those are seller-side issues.
The buyer’s attorney may be polite. They may answer basic process questions. They may help move the file toward closing.
But they do not represent the seller.
“Keeping It Simple” Can Still Create Problems
Many private sellers want to keep the deal simple. That is understandable.
But real estate transactions are legal transactions. A simple deal still involves a contract, title, disclosures, inspections, financing, tax prorations, payoff issues, closing documents, and local requirements.
The fact that the buyer has an attorney does not eliminate those issues for the seller.
In some cases, the seller may not realize there is a problem until much later in the transaction. By then, the seller may have already agreed to terms that are difficult to unwind.
That can happen with inspection provisions, repair credits, closing extensions, possession issues, and financing contingencies.
One Attorney in the Deal Does Not Mean Both Sides Are Protected
This is the key point:
An attorney being involved in the deal does not mean both sides are represented.
The buyer’s attorney represents the buyer.
The seller should have someone reviewing the deal from the seller’s side.
That does not mean every transaction needs to become hostile or complicated. In many cases, a seller-side attorney can help the deal stay organized, focused, and fair. The goal is not to create problems. The goal is to spot problems before they become expensive.
Private Sales Can Work Well When the Seller Is Protected
Private sales and FSBO transactions can be a good option for sellers. They can reduce costs, avoid unnecessary listing friction, and create a more direct path to closing.
But private should not mean unprotected.
If you are selling a home without a broker, be careful about relying on the buyer’s attorney as if they are a neutral guide. They are not.
That is not their role.
Their client is the buyer.
Before signing a contract or agreeing to major terms, sellers should make sure someone is reviewing the deal from their side of the table.
Bottom Line
The buyer’s attorney may be professional, competent, and easy to work with.
But the buyer’s attorney is not your attorney.
If you are selling your property privately or as a FSBO seller, make sure you understand who is actually protecting your interests before you sign.
Not legal advice. Just hard-earned experience.
The post FSBO Sellers: The Buyer’s Attorney Is Not There to Protect You appeared first on Real estate attorney in Chicago, Illinois.