What Is the Average Real Estate Lawyer Fee in NYC?
The typical real estate attorney based in NYC charges anywhere from $2,000 to $3,000 for a normal purchase or sale transaction. We’ll go over everything you need to know about real estate attorney fees in New York City in this article.
Original Article: https://www.hauseit.com/real-estate-lawyer-fees-in-nyc/
Average Real Estate Attorney Fees in NYC
The typical real estate attorney based in NYC will charge anywhere from $2,000 to $3,000 for a normal purchase or sale transaction.
Rates are higher for real estate lawyers based in New York City vs attorneys based in lower cost locations such as Long Island or the Hudson Valley. There are also discount real estate attorneys who charge a flat rate per transaction as low as $750.
Are Real Estate Attorney Fees Charged Hourly?
No. Real estate attorney fees are typically structured as a flat fee per completed transaction. You should be careful of any lawyer asking for hourly pay for a real estate deal as that’s a sure sign that the lawyer does not specialize in real estate transactions.
Lawyers Who Do Everything
This will sometimes occur when buyers or sellers insist on using their family lawyer, someone who has worked with their family on a variety of issues from pre-nuptial agreements to incorporating a business. Such a lawyer who claims to do a bit of everything will usually not have much experience in real estate transactions.
Pro Tip: If you do insist on working with a lawyer who doesn’t specialize in real estate transactions, make sure to read our guide on questions to ask your real estate attorney before you hire them and make sure they can explain to you in detail the NYC closing process.
Do You Pay Real Estate Lawyer Fees Upfront?
Real estate attorney fees are typically taken at closing and will be part of the closing costs mentioned in your lawyer’s closing statement.
Some lawyers may negotiate for half or some other portion of the fee to be paid upfront, with the remainder to be paid at closing. Some lawyers may ask for an engagement letter to be signed outlining the terms of such an agreement as this.
Real Estate Lawyer Fees for Complex Sales
Real estate attorney fees can be higher for more complex transactions that will simply take more of the lawyer’s time. For example, real estate lawyer fees could be higher for a complicated estate sale with heirs that are hard to track down and a power of attorney involved. Or the real estate attorney fees could be higher for a purchase involving a foreign buyer and a convoluted corporate structure.
Real Estate Attorney Fees for New Developments
Real estate lawyer fees can often be doubled when buying a new construction home in NYC. That’s because developers typically expect the buyer to pick up some of their closing costs such as NYC and NY State transfer taxes and the sponsor’s attorney fees. As a result, a buyer of a new construction condo or coop may end up paying for both their own attorney fees plus the seller’s attorney fees!
Unfortunately for buyers of new development condos and coops, the rate charged by the sponsor’s attorney is decided by the sponsor. The rates charged by sponsor’s attorneys have been inflating quite a bit as of late, and it’s not uncommon to see $3,000 to even $5,000 charged by the sponsor’s attorney.
Pro Tip: Fortunately, just like everything else in real estate, the sponsor’s closing costs are negotiable with the assistance of an experienced buyer’s agent. Furthermore, you can save on your buyer closing costs with a discreet closing credit from one of our veteran buyer’s brokers. Not only will you have an experienced guide when buying a home in NYC, you’ll also be able to earn part of the built in commission paid by the seller!
Original Article: https://www.hauseit.com/real-estate-lawyer-fees-in-nyc/
Disclosure: Hauseit and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction. The services marketed on Hauseit.com are provided by licensed real estate brokers and other third party professional service providers. Hauseit LLC is not a licensed real estate broker nor a member of any multiple listing service (MLS).
