By Joe Szabo, Scottsdale Real Estate Team Price-conscious consumers are constantly looking for ways to snag savings. Be it a do-it-yourself bathroom backsplash or self-help legal documents, the current trend in real estate is shying away from enlisting a perceived-as-pricey professional. However, some projects are too complex, valuable, or regulated to take on as a layperson — and the result is often a frantic call to the local plumber or electrician. In the legal realm — particularly the transfer of real estate — there are definitely times when an attorney is not necessary, and the transaction will most certainly process without the assistance of a real estate lawyer. However, certain states mandate attorney involvement (or at least prohibit non-attorney over-involvement), making it unlawful to participate in a real estate settlement without a licensed attorney presiding. And certain transactions are too complicated, costly, or stressful to go it alone. Here are four situations when you should consult a real estate lawyer.

When it’s mandatory

A handful of states unequivocally mandate the involvement of a licensed attorney in a real estate transaction. These states take a dim view of non-attorney staff members preparing and conducting real estate settlements, calling such acts an “unauthorized practice of law.” This phrase actually derives from the rules of professional conduct (i.e., ethics) that govern attorney practice, and can result in sanctions against an attorney-supervisor for allowing this unauthorized practice with minimal oversight. Currently, Delaware, Georgia, New York, North Carolina, and South Carolina require attorney involvement, oversight, and direction in all aspects of a real estate transfer, from title review to signing documents. In Alabama, a non-attorney can perform a title search and issue title insurance, as long as a licensed attorney drafts all legal documents (e.g., deeds, mortgages and promissory notes). In all these states, the buyer has the unequivocal right to choose his or her legal representation; realtors, brokers, and lenders are not generally permitted to force a buyer to work with a certain attorney.

When it’s complex

For buyers in other states, working with a real estate attorney may still be advisable if the situation involves a complex or unique issue, such as:

• Oil and gas rights
• Riparian rights (i.e., access to water)
• Beachfront property
• Any property subject to an easement
• Adverse possession claim
• Historical property
• Preserved property (i.e., farm preservation)
• Zoning and/or land use disputes

When any of these issues arise at the outset of a real estate transaction, working with an attorney will inevitably be more cost-effective than dealing with a major conflict or claim later. In addition, the attorney can help review the title and ancillary documentation to ensure all documents comply with state and federal laws.

When it’s high value

Likewise, working with an attorney in a high-value residential transaction can be extremely important, particularly given the extent of the investment. When making a major real property purchase, buyers should ensure that the property is in prime shape — and demanding afull home inspection is one of the most important aspects of this process. Not only can an attorney work with the home inspector to ensure the property meets the buyers’ expectations, but the attorney can help negotiate with the seller if any issues arise. Also, high-end real estate may be subject to several liens, encumbrances, or judgments. A proper title search by an experienced real estate lawyer is the best way to ensure that these issues do not pass to the buyer on settlement day.

When it’s high stress

Lastly, not all real estate transactions are positive experiences, particularly if the seller is in a financial bind or the property is being sold from the estate of a recently deceased individual. When an air of emotion permeates the process, parties are apt to make rash decisions on price, contingencies, or conditions. And when a residential home sale feels “forced,” tempers may flare at the settlement table. By invoking the help of a legal professional to work through the process, buyers and sellers can participate in the transaction with confidence and a full understanding of what is happening, from the initial contract execution to the final closing. Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.

By Joe Szabo, Scottsdale Real Estate Team Home insurance can be confusing. Policies are customized to fit the needs of each policyholder, so coverage can vary widely. If you’ve never read your policy cover to cover, stop what you’re doing and find the time to do so. Do you know if you’re covered in the event of a meteor hitting your home? What about if heavy rainfall leads to a flood in your basement? If the former occurs, you’re likely protected, as this seemingly random coverage is typically included in standard policies. The latter? You may not be as lucky, as flood insurance often is a completely separate entity. About 32 million households throughout the country do not have appropriate insurance, according to Trusted Choice, an Independent Insurance Agent company. Some have far too much coverage, while others are rolling the dice with holes in their policies that could lead to financial hardships. To know the situations in which you are and aren’t covered, review your policy. The following are some tips for when, with whom and how to comb through your coverage.

How much coverage should you have?

There are three main coverages you need to have in order to protect your home — structure, contents and liability. Structure This coverage is the amount it would cost to rebuild your home if it were completely destroyed by a covered peril. Determining your home’s value can be tricky, because it’s not exactly the same as the amount you purchased your house for. For example, the cost likely includes the plot of land, and if your home was destroyed, you wouldn’t need to rebuy the land. Also, you have to factor in the cost of materials, which can change quite often. It’s important to review your policy regularly to ensure you have the correct amount of coverage to rebuild the home from scratch. Contents Contents coverage is typically set between 50 percent and 70 percent of your home’s value, and can help pay to repair or replace your belongings if they’re damaged or destroyed at the hands of a covered peril. Again, determining the amount of coverage necessary can be tough, as there’s often a cap of $1,000 to $2,500 for high-value items. Meaning that if you have a rare art collection, an extensive number of antiques, or gems aplenty, you may not be adequately covered if your home is the victim of a burglary or fire, for example. The best way to determine the amount of coverage that fits your needs is to create a home inventory — an itemized list of everything you own and the value of each item — and go over it with your insurance agent. You may need to add a floater policy to cover your more expensive possessions. Liability Liability coverage is an absolute must. If someone is injured on your property and racks up costly medical bills, you could be on the hook. To determine the amount of liability coverage that’s right for you, it’s important to be completely transparent with your insurance provider. For example, if you own a dog, your insurance carrier needs to know. Your monthly payments may be a little higher each month, but if your provider doesn’t know that you have a pup and it bites a guest, you likely won’t receive any help with the resulting medical expenses. And dog bites account for about one-third of all home insurance claims, with the average claim costing $32,072, according to theInsurance Information Institute. Speak with a licensed agent to accurately assess the risks in your home so you have exactly the amount of liability coverage you need. There are additional home insurance coverages that you can add to your policy. Said protections include other structures (such as detached garages or sheds on your property) and additional living expenses, such as hotel rooms and meals if you’re displaced due to a covered peril. Discuss additional coverages with a licensed professional to determine if they should be added to your policy.

When to review your policy

When it’s time to renew your coverage with your insurance provider — likely an annual occurrence — walk through your policy with an agent and ask questions. Walking and reading through your policy with a professional will help ensure that you have coverage that’s accurately tailored to your individual needs. Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.