A real estate attorney is a virtual necessity for anyone buying or selling land. The lawyer needs to be hired immediately following the signing of an offer to purchase real estate at the latest. Many times, though, an attorney’s advice is needed before signing on the dotted line to buy real property. There are many considerations that go into hiring a real estate attorney. Many of them depend upon the type of real estate purchase. Where someone starts depends upon where they are going. It is similar to the process used to hire a Phoenix REALTOR. You need to determine the who based on the project.
Let’s look at the different types of real estate transactions to determine how to hire an attorney in each one.
COMMERCIAL REAL ESTATE
Commercial real estate is different from residential real estate. Check with your State Bar. Normally there is a separate specialization for commercial real estate. Many residential real estate attorneys will not handle a commercial closing. There are far more residential closings so there is less opportunity to gain experience in the commercial area.
A realtor who handles exclusively commercial sales will be a good source of a recommendation. Fees are going to be more so finding out fee structures is very important. Also find out what services the attorney is providing. Is there going to be any tax advice or is the client responsible for retaining an accountant or tax attorney? If you are purchasing a business that includes land and buildings, will one lawyer provide all the representation? You may find a law firm where one attorney handles the real estate while another handles the business part of the deal.
Again, take the recommendation of the realtor along with list of certified commercial real estate attorneys from the State Bar. If you know anyone who has purchased commercial property ask for names. Be prepared with questions. What about zoning? This is crucial in a business setting. Do not always rely on what you have been told. Ask if the attorney has experience with zoning, and with petitions to change the zoning. If you are seeking a zoning change, make sure the contract to purchase is contingent upon the zoning change being approved.
The fee in a commercial real estate transaction will probably be based upon a hourly charge with possibly a minimum fee. Find out the details of the fee agreement. In particular, will you be periodically notified of the fee. If you pay the fee as part of the closing costs, when you find out the total cost. Get the fee agreement in writing, and ask for an estimate. A lawyer who has handled many commercial real estate closings will have a good idea of the costs from prior closings. They cannot provide a guarantee but they should have a price range to quote. You also need to know the total closing costs
For most people purchasing real estate commercial property one of the largest single money transactions in their life. It is therefore very important to be totally informed about the fee, costs, money to be brought to closing, and what the lawyer will or will not be doing for the client. Care needs to be taken when hiring a real estate attorney. Do not rely solely on a realtor, friend, or State Bar list. Ask for a free consultation. If an attorney will not give you a free consultation, you might consider taking him or her off your list. Go with a set of questions like the following:
- How is the fee determined?
- Tell me about your experience.
- Who will be the contact person?
- Are you certified with the State Bar?
- What percentage of your practice involves real estate?
- Will I get a written fee agreement?
- Why should I hire you?
- Any other question you have.
You should have follow up questions based upon the answers to the above questions. Use the information provided herein to formulate your additional questions. Do not be intimidated. You are the client. You need to know everything that is going to happen.
It is a skill to know how to hire a good real estate attorney. Like any other skill, it takes practice. Go over all the questions. Be prepared when you talk to the attorney. Many attorneys will just want to explain real estate transactions in general. Do not let that happen. Make the most of your opportunity to get the best real estate attorney you can. Act like your large investment of money matters because it does.
When you are ready to hire a real estate broker, consider Carl Chapman at West USA Realty. We will work with your legal team to assure a successful transaction.