Re: INFURIATED

omg definitely fight it! We paid our friend of the family $600 to do it- and even the regular price would have only been $800

INFURIATED

We paid $1,100 when we bought our house 2 yrs ago. I can't believe this guy is charging you over $5k. That's insane!

Re: INFURIATED

Message edited 11/27/2012 2:06:33 PM.

Re: INFURIATED

That is absurd!!! We paid a flat rate of $800 ( I think) and not a penny more.

He is taking advantage of you.

Re: INFURIATED

You really should fight it! We are paying $675 flat for our attorney

Re: INFURIATED

our lawyer ended up doing a ton of extra work, and still charged us our flat fee of 1250

that included an initial meeting of about 2 hours, hours and hours of time on the phone, and our actual closing itself

Re: INFURIATED

We've closed on 3 properties in the past 5 years and all 3 were with different lawyers who each charged $1,000.

Re: INFURIATED

I am a realtor and an attorney, and I agree that this situation doesn't sound right. To me, the problem isn't necessarily the amount of the fee -- it does seem quite high for a standard real estate transaction. In my experience, the fee for a Long Island closing is in the range of ($700-$2000, with $1000-$1500 being most common). Without knowing all of the facts of the matter, it's hard to comment.

But I think the bigger problem is the lack of disclosure of the fee arrangement and how it was being calculated.

You should review the Client's Statement of Rights which can be found on the NY Courts website. Paragraph 4 relates to fees:

You are entitled to be charged a reasonable fee and to have your lawyer explain at the outset how the fee will be computed and the manner and frequency of billing. You are entitled to request and receive a written itemized bill from your attorney at reasonable intervals. You may refuse to enter into any fee arrangement that you find unsatisfactory. In the event of a fee dispute, you may have the right to seek arbitration; your attorney will provide you with the necessary information regarding arbitration in the event of a fee dispute, or upon your request.


http://www.nycourts.gov/litigants/clientsrights.shtml

Since this is a family friend, I would be upfront about your shock/dismay over the final bill and see what he says. It doesn't sound like the fee arrangement was clearly stated at the outset -- were you given an hourly rate for what would be charged if additional time was needed on the case? Was it explained what circumstances would warrant your attorney charging you more than the initially agreed upon flat fee so you can objectively evaluate the fee? Definitely ask for the itemized bill you are entitled to. Given your history with this person, I would think they would want to work it out and smooth over any misunderstandings or hard feelings!

Re: INFURIATED

I have NEVER charged anyone that type of fee for a residential closing. I have never charged what your base fee was. Granted, I don't do them all the time but many of them have been either family or close friends and I definitely cut them a big break. I don't think anyone should expect to be cut a break because it is tedious and time consuming work; however, you should expect to be charged as an average client. $5700 is not an average closing fee.

Did he do any additional work? Did he have to get any surveys or CO's or anything that he paid for in advance for you? I'm just trying to figure out how he can justify that charge besides saying he charges an hourly rate. That's not the industry standard. I agree with Christine about the real problem being the communication and the expectations. Good luck with that one.

Re: INFURIATED

Re: INFURIATED

He told us that his fee is $300/hr and he gave us a "professional courtesy" of $250/hr he said he capped it at $2500 unless he goes above and beyond an exorbitant amount and if he does he will discuss it with us

Now I knew $2500 was expensive but I truly felt he would fight for us. It was a short sale and I knew it was going to be a long process (as far as waiting for approval) but I really thought he would be helpful.... He, himself was NEVER helpful.

I am an expediter, I do permits/co's land divisions etc so I knew the people I needed to contact. But I have never bought a house so I needed help with the process and I wanted to learn. I ordered the survey, got my own inspections, got my own everything... There were 2 amendments to the original contract.... Nothing crazy. AND the sellers agent was the one who did all the work. UGH!!! He is a real estate attorney he deals with a lot of high end commercial properties. But he did tell me we were his cheapest short sale...

Fast forward to today. He whips out his itemized bill. He charges for every 6 minutes.... He had a $40 charge for faxing documents. When he showed me it my dh didn't pipe up so I did. My voice cracked a little but I was stern and direct and thanks to all of you I had background of what the average closing fee on Long Island is. I told him that we agreed and signed the dotted line on a price which I felt was very high but also felt he was worth it. I told him I was appalled when he told me less than 24 hours before closing that we owe $3700 more and that I have never even heard of something being that expensive. I told him I will give him what I signed for and promised to pay but there is no way I can pay the additional fee. I think he was a little taken back bc he took his bill and put it away. Dh spoke to him after the closing and he will be rereviewing his final bill.

I hope I have clarified some of the questions. Keep your fingers crossed. But in better news WE CLOSED!!!! We are officially homeowners!

Re: INFURIATED

congrats on closing and on standing up for yourself.

Re: INFURIATED

Congratulations on closing!!!! I hope he put away his bill for GOOD!!!! DO NOT pay that, that's absurd! We also closed on a short sale and it was a huge hassle. Our attorney bill was about $1,600. Good for you for standing up for yourself!

Re: INFURIATED

I am so happy to hear that you stood up for yourself. I am looking forward to your update where he eats his bill and walks away with his tail in between his legs like the crook that he is!!! What a disgrace to all lawyers!

Re: INFURIATED

Message edited 11/28/2012 11:34:50 AM.

Re: INFURIATED

Congrats on closing and for standing up for yourself! $40 for faxing? He clearly does not sound like a RE Atty. And for someone who knows you, he's a royal asshat douche for even charging you for FAXING!!

Re: INFURIATED

Wow!!!!!! That is BS!!!
My dad was a court officer and made "friends" with some lawyers. One in particular he was closer with, she did our closing for free! She was primarily a divorce atty. this guy is some jerk! Glad you spoke up and hopefully $500 is all you will pay.

Congrats on being homeowners!