Legal Question in Real Estate Law in Iowa

Re: retaining an attorney for r.e. transaction

Be careful with the seller financing arrangement. Make sure you have your own real estate attorney assist you with this. Do not rely on "sharing" the seller's attorney. You will need to make sure the seller has good title to the property, with no liens. If the seller has a mortgage on the property, the mortgage likely has a "due on sale" clause, which means he cannot sell you the property unless his mortgage is paid off either before or at closing.

Regarding payinf for the attorney's services: The attorney fee for representation in a real estate transaction will only be around $300-$500, depending on the location and the attorney. Bartering for an equity stake is probably not an economically feasible alternative to just paying for the services, since there would a lot of work involved in working out the ownership transfer and accompanying agreements. Most ethical attorneys would shy aware from this arrangement anyway, since on the one hand they have a duty to represent you, and on the other, they may be at odds with you in protecting or maximizing their investment. So, bottom line advice: hire a real estate attorney and pay for his or her services.