Hey, home buyer, before you reach for the dotted line on that sales contract, did you get it reviewed by an attorney?

“It's ironic that with so much money at stake, and after many days of searching for the right home at the right price, a home buyer would sign something without a second glance,” says Richard Roll, president of American Homeowners Association. “Home buyers are well advised to get their contracts reviewed by real estate attorneys prior to signing.” For information, go to http://www.ahahome.com

Standard sales contracts are generally accepted in the real estate industry by buyers and sellers, as well they should be. To a point, the basic contract approved by state and local real estate boards serves everyone well.

The problem is that in a standard real estate transaction, it's not the job of the agent presenting the contract to look out for the buyer's interests — not unless the buyer has hired a buyer's broker specifically for that purpose.

Neither is the settlement attorney looking specifically for loopholes that might hurt the buyer. The settlement attorney handles the final transaction on behalf of all parties. The home buyer needs a separate legal review.

In some cases, home buyers don't realize their risk until it's too late — their financing falls through for whatever reason, so they default on the contract and forfeit thousands of dollars in deposit money. Or a repair problem causes a dispute about the condition of the home. Ironically, just a simple provision in the contract can prevent major problems, if you let a lawyer review it for you.

Another way to protect yourself is to make sure the lender has fully approved your loan, before you sign the sales contract. The lending business is booming, and a busy lender might issue a quick commitment letter after only a cursory review of your financial situation. Later on, if they find something they don't like after reviewing your loan application, they can refuse to close on the loan.