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December 19, 2007
RE Laywer & Building Financials
Buying for the first time and have heard that it's good to have a lawyer go over a building's financials. Since I'm at the very beginning (just started to look), do I hire an RE lawyer now? How did other people go about handling this? Appreciate any advice!
Comments
It's generally a good idea to hire a lawyer to represesnt you through the process of buying. You should have a lawyer represent you prior to the time that you enter into a contract. It makes sense to wait until after you have an accepted offer to hire a lawyer to represent you.
Review of the financials is just one part of the service they should provide to you. They should also review the minutes of the co-op board, handle title-related paperwork, and represent you at closing. You should get references from people who have liked their real estate lawyers. The cost varies, but is generally $1200-$1800 for a co-op purchase.
Posted by: cortnyc at December 19, 2007 10:49 AM
You should definitely find out ahead of time who you would like to use as your RE lawyer, but not really necessary to actually hire one at this stage of the process. When you do find a place that you like and your offer is accepted, then place a call to the lawyer. They should be able to arrange getting the contract and the building's financials for you through the Seller's agent/lawyer. Then your lawyer will review the financials etc.
Posted by: guest at December 19, 2007 10:51 AM
In terms of the financials, I think you should consult the What. He seems to know a lot about that sort of thing.
Posted by: guest at December 19, 2007 11:02 AM
Maybe a hire a certified public accountant. too.
Their specialty is finances.
Posted by: Ysabelle at December 19, 2007 11:12 AM
Isn't it actually required by law in New York (state, or just city?) to have a lawyer represent you in a real estate transaction? Anyway, yes, 10:51 is right--have your lawyer lined up in advance, so that once you have an accepted offer you can get the ball rolling right away. They'll review the financials at the same time as the contract negotiations.
Posted by: guest at December 19, 2007 11:14 AM
I've done about 20 real estate transactions and ALWAYS have a lawyer as both the buyer and seller. Don't use any recommendation from friends or family that doesn't specialize in real estate. My real estate lawyer can run circles around them because they don't know the intracacies of a lot of the process. I recommend David Fainkich
dfainkich@nyc.rr.com
He's in Brooklyn and very competent. Tell him Dave on Stuyvesant Ave recommended him...I paid 1,500 or 1,600 for a closing. You should have a lawyer when you are serious about making an offer and do not wait until you have made an offer to start looking for one.
The financials are only one of the many issues. Pressuring the seller and his lawyer if things are not occurring on a timely manner is another as are issues about any escrow amounts at closing.
Posted by: daveinbedstuy at December 19, 2007 11:16 AM
As someone already mentioned, IT'S THE LAW to have a real estate lawyer represent you once you have an accepted offer. Your lawyer is supposed to do due diligence, which includes checking your co-op/condo's financials, among many other things. Have one ready and waiting once you're ready to submit an offer. It must be a real estate lawyer.
Posted by: guest at December 19, 2007 11:37 AM
I won't comment on whether or not THE LAW requires an attorney to represent you in New York State in real estate transactions. Because, gasp, I don't know. However, if such a law exists (and citation please?) it cannot require a "real estate" lawyer. Attorneys, altho they may specialize in an area, and you would be well advised to seek out qualified representation, actually don't come in different legal flavors. They are either licensed to practice or not. So I guess that makes me curious about the unsupported (but for all I know, non-mendacious) allegation that aforementioned requirement one engage a member of the legal profession prior and/or during the consumation of a transaction of which the subject is real property or shares in a corporation offering residential leases to shareholders and their designees. Hee, hee...
Posted by: Putnamdenizen at December 19, 2007 12:25 PM
Whoa, Brownstoners, thanks for all the quick replies. Always good to hear from people who's lived through this! Will start making calls. (And thanks Dave, for your lawyer's contact info).
Posted by: pospolita at December 19, 2007 12:34 PM
Putnamdenzen, there are advanced law programs that award an LL.M. degree which indicates specialization in a subfield such as tax law, etc. All lawyers are not created equal.
Posted by: guest at December 19, 2007 1:36 PM
Nice try, 1:36, but your typical real estate lawyer is as close to an LLM in anything as I am to a PhD in astrophysics
Posted by: guest at December 19, 2007 2:00 PM
You don't need a CPA
Posted by: guest at December 19, 2007 2:01 PM
Putnamdenizen, etc: Common sense dictates that you'd use a real estate lawyer for a real estate transaction, no? Just like I would not go to an obgyn if I thought I had a brain tumor.
Posted by: guest at December 19, 2007 2:23 PM
Lots of folks try to "save" money by having a friend or relative who is a lawyer, but not specialized in real estate law, do their closings. It is a huge mistake.
Posted by: nosleeptil at December 19, 2007 5:04 PM
Of course you should use a lawyer who specializes in real estate. What I was commenting on was the rather farcical comment that THE LAW requires that you to use a REAL ESTATE lawyer, as though a real estate lawyer is someohow certified by the state as such. Most of us lawyers learn by doing (I am a criminal defense lawyer). I still haven't seen any cite to the legal (as opposed to practical) requirement that you use a lawyer at all. Certainly in other jurisdictions there is no lawyer involved in a real estate transaction (nor that weird "closer" who I was told I had to tip at my last closing). Seems to me about the time we get a real MLS in Brooklyn we might begin to start reducing the complexity of real estate transactions. Maybe if we had buyer's agents we could get rid of lawyers.
Posted by: Putnamdenizen at December 19, 2007 7:41 PM
So it's not a legal requirement to have a lawyer involved in a closing?
Posted by: guest at December 20, 2007 12:20 AM
It would be stupid to not have a real estate lawyer regardless of the law. What planet are you all from? It's not that expensive. If you can afford NY real estate, you can afford a NY lawyer.
Posted by: guest at December 20, 2007 7:53 AM
If I can afford NY real estate I can also afford a manicure, but I don't have one at a closing.
Why is it then that lawyers aren't involved elsewhere in the country? What is it about New York real estate which demands a lawyer, but you don't need one in Philadelphia?
Posted by: Putnamdenizen at December 20, 2007 12:19 PM
Very interesting and excellent question Putnamdenizen.
Posted by: guest at December 20, 2007 3:16 PM
lawyers are involved in NYC because the transaction is more complicated than in other parts of the US.
Posted by: guest at December 21, 2007 11:28 AM
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