Why Do You Need an Attorney for Real Estate Purchases in NYC?
Many first-time buyers are surprised to find that NYC real estate transactions require an attorney. In New York State it is against the law for real estate agents and brokers to draw up sales contracts or to review them for the purposes of legally advising you. If you don’t hire an attorney for yourself, you will have to settle for a contract devised completely by the seller’s lawyer, which won’t have YOUR best interests in mind and won’t be legally representing you.
What Do Real Estate Attorneys Do?
Services conducted by the real estate attorney can vary depending on the type of transaction, the parties involved, the attorney fee, and the attorney themselves. Typically, your lawyer will offer the following services when hired for a real estate transaction:
- review and/or write the contract
- loan and title commitments
- search for liens
- verify charges are correct and fair
- attend the closing
- handle title and closing documents
- confirm the title company completed its job after closing
- address any of the buyer’s questions and concerns
In addition to these direct services, having an attorney hired for your real estate transaction can help you in other ways too. For example, most banks won’t approve lending your money for a mortgage without confirming you have legal representation. Generally, the price of a property is set and negotiated by the buyer’s and seller’s real estate agents, but an attorney can also investigate the set price and all other charges to be sure they are fair and justified.
Real Estate Attorney Fees: What to Expect
The fees an attorney will charge for real estate transactions are variable from firm to firm, but typically in New York City and the surrounding areas a flat fee is standard for residential transactions. More complex situations may be handled at an hourly rate, but in general you should watch out for any attorney charging an hourly rate for real estate transactions as opposed to a flat fee, as these firms tend to be unexperienced in real estate law and will not be as good as a dedicated real estate attorney.
Although flat rates are standard, there is no “standard” fee amount. On average, buyers and sellers in the New York City area will pay a real estate attorney fee between $2,000 – $4,000 for a residential transaction.
Beware of Discount Real Estate Attorneys with Cheap Rates
Due to the necessity for an attorney in a NYC real estate transaction, there are many firms competing to offer lower & lower flat rates – sometimes as low as $800! Beware of these low costs, and any attorney who claims they can handle your real estate closing for less than $1,500 as they are usually due to a lack of service, extremely poor turnaround time, and a lack of knowledge in NYC real estate law. These attorneys will advertise a “light-touch” approach to offer services at such a low fee, but what this really means is they are skipping important legal services and only doing the bare minimum amount of work to push your transaction out the door.
It’s important to keep in mind that price is not the most important thing when hiring a real estate attorney. These discount lawyers will advertise a set turnaround time, but in reality have long waiting lists and processing times — delaying your transaction and even causing missed deadlines. In the grand scheme of things, you are most likely LOSING money by signing a discounted real estate attorney for your transaction.
Fast Turn Around is a MUST for Hiring a Real Estate Attorney
When it comes to buying or selling real estate, time IS money. Delays in closing can bring a plethora of unplanned expenses that add to your overall closing costs:
- an extra month of rent
- an extra month of utility fees and bills
- late fees
- expediting fees to get back on track
- additional fees from real estate agent or services
When hiring a real estate attorney, it’s important to find one that offers a FAST turn around time rather than a discount lawyer that will simple “add your case to the pile.” Even better is to find an attorney that will GUARANTE their work and turnaround time by a certain date.
How to Find the Best Real Estate Attorney for You
When looking to hire a real estate attorney for your residential real estate transaction, be sure to always ask detailed questions upfront:
- What is the flat fee?
- What services are included?
- What is your expected turnaround time?
- Is your work guaranteed?
- Are there any other costs or fees you should expect?
As with most trends in real estate, it’s also important to start looking early. You should be looking into hiring a real estate attorney at the same time you start looking at homes and hiring an agent. The attorney should be involved in the whole closing process from start to finish to best serve and legally advise you in your contract negotiations, so it’s important to know who you are planning to hire even before you’ve found the specific property you want to buy.
If you’re looking for an experienced real estate attorney with guaranteed turnaround times in New York City, the surrounding areas, or New Jersey, contact Laird Law today! We offer offers appointments both virtually or in person at our offices in Manhattan in NY and in Newark, NJ to best suit your needs. Get legal real estate expertise you can rely on from Laird Law!
