RE Lawyer Upfront Charge
I received an agreement letter from the RE lawyer I chose to represent me in a purchase of a one-bedroom coop stating that half of the flat fee is due 10 days from the agreement, balance at closing. And it also says that I’m liable for this lawyer’s and her paralegal’s time even if the…
I received an agreement letter from the RE lawyer I chose to represent me in a purchase of a one-bedroom coop stating that half of the flat fee is due 10 days from the agreement, balance at closing.
And it also says that I’m liable for this lawyer’s and her paralegal’s time even if the purchase terminates. I assumes that includes sellers changing their mind.
It doesn’t sound completely unfair to me, but I don’t remember having to sign an agreement like that in my previous apt. purchase (many years ago) definitely not in my recent apt. sale.
Is this common? Is there anything I can do to protect myself against the sellers changing their mind before contract?
Thanks in advance!
on the plus side a lawyer who asks for stuff up front and is very assertive is probably exactly who you want on your side as the deal moves forward.
I did half upfront.
Thank you all for your responses.
Like I said I don’t think it’s unfair for the lawyer to want to get paid for the work done. However, I do wish she mentioned this on the phone or in email when I was interviewing her and asking for a quote. I have a bit of an uneasy feeling that this might set up a distrustful relationship between us. But on the other hand, as a cash buyer I particularly want her to do a thorough review before contract is signed. I’m probably going to stay with this lawyer.
My lawyer’s contract stated 1/2 of the fee upfront, balance at closing. I had to pull out of one contract, the lawyer kept the upfront deposit. The deposit is fair, it is for work done. A deal falling through does not negate work thas has been done.
Interesting to me that so many Brooklyn lawyers still do flat fee for closing. No so in Manhattan. And especially if you want your lawyer to do the “due diligence” for you in a coop or condo purchase, I wonder if the Brooklyn lawyers are giving you the same time and review of documents that you would get (and pay by the hour for) in Manhattan. Either way, as a buyer the sale can not go through for any number of reasons, including you deciding not to sign the contract after your inspection or you lawyer’s review of the building’s financials, or the coop board’s failure to approve you, or your bank refusing to lend you money. A lawyer who doesn’t get any money up front has little incentive to do the hard work required before there is a done deal…
I also just paid the full fee at closing. I knew that if the deal didn’t go through for whatever reason I would still have to pay my lawyer.
Usually, when you retain a lawyer for a closing, some portion is paid up-front. Fees for time are deducted from that initial retainer for any work done even if the seller backs out or the purchase is otherwise terminated.
Most of the time the attorney will draw up a very brief, one-page contract for you. Also, if you so agree, a power-of-attorney may also be issued to your lawyer to expedite items.
Me too. Doesn’t strike me as being outrageous – seems to me this lawyer wants to be paid for her work. But you are free to decline and seek other representation.
Hmm, never signed anything like that. Paid flat fee at closing in full.