How Much Do Real Estate Lawyers Charge for Closing a Home Sale?

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A real estate attorney can assist with closing on a house, ensuring that the intricate legal work is done correctly. Before you decide on a lawyer and begin the closing process, though, you’ll want to know how much you’re likely to spend. Attorney costs vary widely by location, but you can expect to pay anywhere between $500 and $3,000 for a real estate lawyer to assist you with your closing.

Real estate attorneys cost money, but they can review contracts, conduct a title search, and help handle any disputes that might arise during a home transaction, as well as manage more complicated matters. Some states require a real estate attorney to represent one or both parties in a home sale; in others, hiring one is optional (but potentially a good idea, especially for a complex transaction).

Real estate lawyer fees: How do attorneys get paid?

Real estate attorneys either charge a flat fee for a closing or bill by the hour. For a straightforward home sale, most attorneys charge a flat fee, making it easier to budget for legal costs. However, if your sale involves complicated issues, like easements, zoning questions, or title disputes, then a lawyer may charge an hourly rate.

The cost will depend on exactly what you need and where you’re located, as well as the experience level and area of expertise of the attorney. Generally speaking, here’s what you can expect to spend on a lawyer for a real estate transaction.

• Typical flat fee: $500-1,500 for a straightforward home sale
• Complex issues: $1,500-3,000+, depending on the complexity of the situation
• Closing services only: $750-1,250 if hired exclusively for closing^[1]

The average retainer for a real estate lawyer in 2024 was $2,860, and the top three expense categories include postage fees, filing fees, and recording fees.^[2]

A retainer is typically used in cases where attorneys charge hourly. Here’s how it would work for a monthly retainer:

• The client pays the full retainer amount upfront.
• The lawyer’s hourly rate is deducted from the retainer every month.
• The client continues to pay monthly to maintain the starting balance.
• When the case is concluded and all the final hours deducted from the retainer, the client receives the remaining balance.

How much does a lawyer cost for real estate litigation?

If you need to hire a lawyer to help you with a real estate litigation issue, you can expect to pay an hourly rate instead of a flat fee. That hourly rate can range from $150 up to more than $500 per hour, depending on where you’re located and the complexity of the case.

What can affect real estate lawyer fees?

Several factors impact the fees you’ll pay.

• Location: Fees (both hourly and flat rate) tend to be higher in larger metropolitan areas.
• Experience and specialization: Lawyers specializing in real estate (such as title experts) may charge more.
• Property complications: Issues like zoning, property lines, easements, and unauthorized tenants can increase the rate you’ll pay a lawyer.
• Type of sale: Bank-owned properties, foreclosures, and title issues can all increase fees.

Can you negotiate real estate lawyer fees?

Yes, real estate lawyer fees can sometimes be negotiable, especially if:

• You’re only hiring for closing services. Lawyers might offer a flat rate if their time commitment is predictable.
• You’re facing financial strain. Some lawyers might lower their fees in foreclosure or bankruptcy situations.
• You bundle services. If you need multiple services, lawyers might offer a package rate.

What do real estate lawyers do?

Real estate lawyers typically provide services including:

• Title research: Verifies the property’s legal ownership and whether there are existing claims.
• Contract review: Reviews sales contracts to ensure they meet legal requirements.
• Closing services: Manages funds, title transfers, and prepares closing documents.
• Foreclosures: Represents clients in foreclosure proceedings, helping with lender negotiations.
• Landlord-tenant disputes: Assists landlords and tenants with lease disagreements, eviction, or contract violations.
• Commercial transactions: Real estate attorneys assist with leases, property sales, and other complex transactions for businesses.

Real estate attorney vs. Realtor

Real estate attorneys and realtors play different roles in the buying and selling process. Here’s a quick comparison of real estate attorneys vs realtors:

"The advantage of having an attorney from the beginning to the end is that a lot of title companies do not have an attorney to consult with," noted Rahysa Vargas, founder and managing partner at Vargas Law. "Having someone who's an attorney make sure you're in compliance and that you're getting all the correct terms in your contract – that's extremely important."

Buying or selling a house with both an agent and an attorney in your corner can be a smart move to make. If you’re concerned about the cost, consider using an agent who offers a discounted commission rate; Clever can connect you with a low-commission real estate agent who will list your house for a 1.5% commission (prenegotiated!).

When should I hire a real estate lawyer?

In some states, a real estate attorney is legally required for closing: Alabama, Connecticut, Delaware, District of Columbia, Florida, Georgia, Kansas, Kentucky, Maine, Maryland, Massachusetts, Mississippi, New Hampshire, New Jersey, New York, North Dakota, Pennsylvania, Rhode Island, South Carolina, Vermont, Virginia and West Virginia.

In the other states, it’s optional to hire an attorney (but still might be a good idea). Consider hiring a real estate lawyer if you:

• Are selling FSBO: If you’re selling “For Sale by Owner,” a lawyer can help with legal documentation and paperwork for selling a house.
• Are selling to a cash home buyer: A lawyer can help protect your best interests, review contracts, and ensure the transaction is legally compliant.
• Have a lender requirement: Some mortgage lenders require an attorney to oversee the transaction.
• Are buying or selling in foreclosure or as a short sale: These complex situations benefit from legal assistance.
• Want to buy or sell a property with potential legal issues? Specialized knowledge may be needed regarding title disputes, contract problems, unauthorized tenants, or structural issues.
• Are getting a divorce: A real estate lawyer can help with dividing property assets and handling legal documentation.

"We're seeing some sellers who are FSBO or buyers buying without representation," Vargas said. "Those are key moments when you want to have an attorney."

Mercedes Diego, a partner at Cohn Lifland Pearlman Herrmann & Knopf, explained that surveys can help protect homeowners from enormous future headaches. "You want to know the dimensions of the land you’re purchasing and if there are any encroachments," she noted.

"There have been situations where someone buys property, five years down the road their neighbor sells their home, and the new owner says, 'Your pool is on my property, and I want you to move it.' That’s something you want to know upfront so you can potentially reach an easement agreement when you buy that would bind future owners of the neighboring home."

How to find a real estate lawyer

Finding the right real estate attorney involves some research. Here are a few ways to find one:

1. State bar association: Check your local bar association’s website for licensed real estate lawyers.
2. Referrals from agents: Many real estate agents work with trusted attorneys and can make a recommendation. Learn how to find a realtor to get the best attorney referrals.
3. Ask family and friends: If someone close to you recently bought or sold a property, they may recommend their lawyer.
4. Online search: Google and review sites like Avvo or Martindale-Hubbell can help you assess lawyers’ qualifications.

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