Engagement letter for real estate attorney necessary in NYC?

[ryan_gz]

Just got the below email from the real estate attorney I was introduced to for a potential apartment my cousin is looking to purchase in NYC. He seems to want me to sign an engagement letter and pay half now, and half at closing. Is this normal? I've been told before that some lawyers will only take their fee at closing, and won't even need an engagement letter signed because they'd never go after a client for a couple of thousands dollars. Thoughts appreciated. Thank you!

Hi Shirley,

As to the scope of work, generally the due diligence is limited to the financials of the building, the minutes of the board meetings, and a review of the by-laws to confirm that everything is normal. I am not adverse to a brief review of other documents in the course of this, but in-depth review of litigation papers and worker’s compensation claims would fall outside of the flat fee. I would have to see what we’re discussing to give you a better evaluation of whether it would be within the flat fee or, otherwise, what the cost would be.

For context, my hourly rate is $500, and as you and I had discussed previously, I usually charge $3000 for a transaction, so I have already discounted my usual rate for you. That said, again, it would depend on the actual documents before I could give you a clear picture of what, if any, the additional charge might be.

I hope that’s somewhat helpful. Please let me know how I can be of further assistance.

Warmest regards,
John

Here is what the attached engagement letter from the real estate attorney said:

May 19, 2019

Shirley Lu
111 Fifth Avenue
New York, New York 10202

Dear Ms. Lu,

This letter will serve to confirm that you have retained our office as counsel to represent you for the purchase of the cooperative apartment Unit 3S located at 11 Saint Mark's Place, New York, New York. We agree to bill you at a flat rate of Two Thousand Five Hundred Dollars ($2,500.00) for the following services: negotiation of the contract of sale and any attendant riders; review of the due diligence materials prior to contract signing; advice and counsel regarding all other directly related matters prior to closing, including but not limited to the tax impact of the transaction; and, attendance at the closing. You agree to pay our fee in two (2) equal installments, the first to be paid on or about the time of execution of this engagement letter and the balance to be paid at closing.

Provided our representation of you remains within the limited scope specified above, at or prior to closing you agree to pay the balance of our fee in full plus any and all disbursements, costs or expenses we should expend on your behalf as described below, provided such disbursements, costs or expenses are agreed to in advance. Should it become necessary, you will be responsible for uncollected fees, any collection costs, and attorneys’ fees incurred by this firm in collecting any unpaid and outstanding balances
then owed. We shall have a lien on all of your documents and any of your money in our possession for the payment of all sums due us from you under the terms of this Agreement.

We do not charge for the cost of disbursements we incur on behalf of our clients in the ordinary course, such as postage, telephone, telecopier, photocopying and local transportation; however, other disbursements, costs or expenses we expend on your behalf that are agreed to in advance, such as title searches/reports, filing fees, and similar items, shall be billed to you and you agree to honor such bills directly.

In the event that a dispute arises between us relating to fees, please be advised that you may have the right to arbitrate the dispute pursuant to Part 137 of the Rules of the Chief Administrator of the Courts of the State of New York, a copy of which will be provided upon request. Copies of the Statement of Client’s Rights and the Statement of Client’s Responsibilities are attached hereto.

We both recognize and acknowledge that we may agree to extend our representation of you to include items outside the limited scope described hereinabove; in such instance, we will execute a supplemental engagement letter setting forth the scope of work and the fees to be charged. In the event, however, that you instruct our firm to provide additional services outside of the above scope without a supplemental engagement letter having been signed, you agree to pay our fees on a monthly basis at our regular hourly rate of $500.00 per hour and upon time rendered for attention to these matters in increments of not smaller than 1/10th of an hour. If any additional billing statements are required, you agree to honor our statements for services rendered within thirty (30) days of receipt.

While your primary contact may be a specific lawyer at our firm, you acknowledge that our firm, rather than an individual lawyer, will represent you. In this way, we ensure that someone will always be available to work on your matter. While we prefer to have your primary attorney work on your matter, we reserve the right to assign such Berstein & Ryan LLP personnel (and “of counsel” attorneys) as we determine are appropriate.

We acknowledge that our work for you will likely require you to disclose sensitive information about financial and/or personal/family matters and you agree to provide us with all information needed to perform our services. Applicable ethics rules require us to keep confidential the information you disclose to us and for us not to disclose such information to persons outside our firm without your permission. The lawyer primarily responsible for your work may disclose information to other persons in our firm as needed to do your work, on a “need to know” basis, but we will not make unnecessary disclosures. If you agree to allow persons outside our firm to work with us (such as an accountant, a title company’s attorney, or an insurance agent), you agree that we may disclose to them information that they need to assist us in our representation of you, unless you explicitly instruct otherwise.

You acknowledge that you have read this Agreement in its entirety, have had full opportunity to consider its terms and have had full and satisfactory explanation of same and fully understand its terms and agree to such terms. You acknowledge that there are no additional or different terms or agreements other than those expressly set forth in this written Agreement. This Agreement may be signed and returned by email or fax. An e-mailed or faxed copy of this Agreement shall have the same force and effect as the original
document.

We look forward to working with you.

Berstein & Ryan LLP
John Berstein

Approval of Engagement

I have read the enclosed letter and I agree to its terms, effective on the date on which Berstein & Ryan LLP first provided services. I acknowledge receipt of the Statement of Client’s Rights and Statement of Client’s Responsibilities.

Date: _________ Shirley Lu Signature: ______________

[ryan_gz]

STATEMENT OF CLIENT’S RESPONSIBILITIES
(As adopted by the Administrative Board of the Courts of the State of New York)

Reciprocal trust, courtesy and respect are the hallmarks of the attorney-client relationship. Within that relationship, the client looks to the attorney for expertise, education, sound judgment, protection, advocacy and representation. These expectations can be achieved only if the client fulfills the following responsibilities:

1. The client is expected to treat the lawyer and the lawyer’s staff with courtesy and consideration.
2. The client’s relationship with the lawyer must be one of complete candor and the lawyer must be apprised of all facts or circumstances of the matter being handled by the lawyer even if the client believes that those facts may be detrimental to the client’s cause or unflattering to the client.
3. The client must honor the fee arrangement as agreed to with the lawyer, in accordance with law.
4. All statements for services rendered which are tendered to the client pursuant to the agreed upon fee arrangement should be paid promptly.
5. The client may withdraw from the attorney-client relationship, subject to financial commitments under the agreed-to fee arrangement, and, in certain circumstances, subject to court approval.
6. Although the client should expect that his or her correspondence, telephone calls and other communications will be answered within a reasonable time frame, the client should recognize that the lawyer has other clients equally demanding of the lawyer’s time and attention.
7. The client should maintain contact with the lawyer, promptly notify the lawyer of any change in telephone number or address and respond promptly to a request by the lawyer for information
and cooperation.
8. The client must realize that the lawyer need respect only legitimate objectives of the client and that the lawyer will not advocate or propose positions which are unprofessional or contrary to law or the Lawyer’s Code of Professional Responsibility.
9. The lawyer may be unable to accept a case if the lawyer has previous professional commitments which will result in inadequate time being available for the proper representation of a new
client.
10. A lawyer is under no obligation to accept a client if the lawyer determines that the cause of the client is without merit, a conflict of interest would exist or that a suitable working relationship with the client is not likely.

As your attorney, our responsibilities to you are as follows:

1. You are entitled to be treated with courtesy and consideration at all times by your lawyer and the other lawyers and personnel in your lawyer’s office.
2. You are entitled to an attorney capable of handling your legal matter competently and diligently, in accordance with the highest standards of the profession. If you are not satisfied with how
your matter is being handled, you have the right to withdraw from the attorney-client relationship at any time (court approval may be required in some matters and your attorney may have a claim against you for the value of services rendered to you up to the point of discharge).
3. You are entitled to your lawyer’s independent professional judgment and undivided loyalty uncompromised by conflicts of interest.
4. 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 matter and frequency of billing. You are entitled to request
and receive a written itemized statement 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.
5. You are entitled to have your questions and concerns addressed in a prompt manner and to have your telephone calls returned promptly.
6. You are entitled to be kept informed as to the status of your matter and to request and receive copies of papers. You are entitled to sufficient information to allow you to participate meaningfully in the development of your matter.
7. You are entitled to have your legitimate objectives respected by your attorney, including whether or not to settle your matter (court approval or a settlement is required in some matters).
8. You have the right to privacy in your dealings with your lawyer and to have your secrets and confidences preserved to the extent permitted by law.
9. You are entitled to have your attorney conduct himself of herself ethically in accordance with the Code of Professional Responsibility.
10 You may not be refused representation on the basis of race, creed, color, age, religion, sex, sexual orientation, national origin or disability.

[Perojok]

Looks like you're in the market for a real estate attorney for your cousin's apartment purchase in NYC. That's pretty rad!