Is it legal to prepare your own deed for real estate deals?
What are the risks?
Yes, you can prepare your own deed and documents. It’s pretty easy to find a template online, or to use one that’s been executed already and just swap in your information.
I have a mentor who prepares all of his own deeds and documents. It saves him money and time. It’s also easy to record documents. We record online with Simplifile. You can also go to the courthouse in person. Most recordings cost us about $35.
What to watch out for if you prepare your own Deed:
Accuracy– triple check for accuracy, because an error could open you up to claims on your property, or make it difficult to transfer title when you sell.
Charging for services— If you’re not a licensed attorney then you can’t prepare documents for others and charge for them. You could get in trouble for practicing law without a license.
What you can do is prepare documents for a deal where you are a principle– buyer or seller– as long as you don’t charge.
If you have proven templates used by other investors or created by a reputable attorney, it’s a pretty low risk proposition.
I’m not a lawyer and this is not legal advice, just my experience.
I’d still recommend using an attorney for any transactions that require creation of binding legal documents. It’s insurance against future issues, and it costs a few hundred dollars.
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