For most people, the answer to this question, is "yes, but I can't afford it." While it is true that it may not be cheap to have an attorney thoroughly review a document before you sign it, it will most likely cost much more if you sign something that is not in your best interest.
Real estate transactions vary widely in their complexity. Even if the parties understand what they are getting into, they may be fine print that is not carefully read. Typically the document is drafted by the person who has the stronger bargaining position and the document is designed to protect their interests. For example, in a simple landlord tenant arrangement, the leases are almost always drafted by the landlord (or its attorney) and are given to the tenant on a take it or leave it basis. The tenant doesn't get to negotiate the terms at all. A failure of the tenant to undestand, say an acceleration clause on past due rent may wind up paying alot of money if the tenant breaches the lease. Also, the landlord by waive liability for certain repairs (when allowable). This could creat a tough situation for a tenant.
On the purchase of a home, the buyer and seller put their trust in their realtors. Most realtors do a good job protecting their clients interests. However, they get paid if the sales closes and only if the sale closes. This creates an inherent conflict. An attorney can provide unemotional advice because he is not being paid only if the deal goes through. Most of the other parties to the transaction; title company, bank, and realtors don't make money unless the deal is closed. Also, while some attorneys get their real estate license to receive proceeds at closing as their attorney fee, keep in mind this too creates a conflict of interest as they only get paid to close, not to advise.
If you are thinking of selling your home by yourself, an attorney can be a valuable resource in both explaining the necessary documents you will need, drafting them, and making sure the closing goes smoothly. Don't assume boilerplate documents found online are good enough. Your attorney can draft them to the specifications you need to protect your interest to the maximum extent allowed by law.
Don't sign or have some one else sign something that turns out to be an unenforceable contract later on because you fear the cost of having a professional look at the documents. The few hundred dollars of an attorney's time can help you recognize pitfuls and avoid problems later on. Being cheap here can cost thousands later.
I once had clients who had signed a land contract that required them to pay the remaining amount of the contract in one balloon payment at the end of 2 years. That is not an unusual provision. What was unusual was that the contract required them to pay 150% of the then fair market value of the house. Unless that house appreciates dramatically in two years (which wouldn't have happened), they were never going to get a loan for enough to cover the contract, meaning they would lose their entire investment because they would have breached the contract. Fortunately, I was able to negotiate them out of the contract without having to pay a further dime to the seller, but they would have been wiser to call me before signing the document.
For more informatin, see my website at www.maesenlawfirm.com
Ryan Maesen, Real Estate Attorney, Grand Rapids, Michigan
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