Real estate attorney fees may be costly, yet essential in ensuring a smooth sale process and compliance with national, state, and local requirements.
Real estate lawyer costs can depend on both their role in the transaction and the complexity of its terms. Some attorneys charge hourly rates; others have flat fees per transaction or project.
Buying a Home
Real estate attorney fees for a typical residential purchase transaction average around $2,000-$3,000, with your attorney reviewing all contracts, title documents, seller disclosures and negotiation processes to protect your rights and advocate on your behalf for repairs, contingencies or any other favorable terms that arise during negotiations. Your attorney will also attend closing procedures and oversee funds being transferred between parties involved.
Cost of real estate lawyers is often higher for complex transactions such as new construction or condo conversion. When considering their pricing structure, be sure to ask about any hourly or flat fee rates as some can charge an hourly rate while others provide flat fee services such as closing document preparation.
Buying a Condo
Real estate attorney costs can depend on multiple factors, including location and reputation of their firm as well as how complex your transaction is. A Clever Partner Agent can assist in finding an experienced local real estate attorney.
Attorney fees typically range between $500 and $1,500 for general transaction counsel and contract review for purchasing a resale condo, in addition to additional costs like title searches, mortgage recording taxes, ACRIS filing fees and Property Condition Disclosure Statement Waiver Fees (which remove the requirement that sellers provide such statements to buyers).
Attorneys conducting due diligence on condo building association documents will incur additional expenses, which can include reviewing financial statements, board minutes and any potential litigation expenses. Building application fees are another cost often charged by condo buildings to ensure new buyers can comply with its rules and regulations – these costs can often be negotiated between buyer and seller.
Buying a Co-op
Co-ops allow owners to own shares in a housing corporation that owns their building, collecting fees like maintenance and property taxes to cover operating costs as well as creating a reserve fund in case major repairs become necessary. Owners vote on matters that affect them directly and must usually hold at least some capital in their share.
As buyers are purchasing shares of a corporation rather than physical real estate, they must go through an additional rigorous approval process and disclose personal information to the board of directors. Furthermore, it may not be permissible for them to rent out their apartments or sublet them without prior permission of the board.
Co-ops may be more costly to buy than condos when closing costs include NYC and NY State transfer taxes as well as attorney fees for sponsors, as well as higher down payments and an attorney fee from sponsors. Determining market rate value of co-ops is similar to that of condominiums; however, boards must take current conditions into consideration when setting market rate values for market rate values of their co-ops.
Buying a Commercial Property
Attorney fees associated with a typical residential transaction requiring only review or drafting of the real estate purchase contract and general advice typically range between $500 – $1,500. Complex transactions or disputes that arise during closing could incur significantly higher attorney fees if their attorney charges by the hour.
Commercial real estate attorneys usually charge either a flat fee or hourly rate; typically between $3,000 and $10,000 is the cost associated with closing on a commercial property.
Transfer taxes and recording fees based on the sale price, home inspections, appraisals, home warranty plans and any zoning or environmental issues that may arise as part of this process will all incur costs. Attorney fees associated with property disputes vary widely based on nature of dispute as well as length of litigation; geographic location will also play a part.
