Real Estate Representation & Attorney’s Fees
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Former Senior Counsel with VHDA with decades of experience. We can help you start to finish with your real estate matter. Whether its commercial or residential; whether it’s commercial development, financing, leasing or whatever your real estate needs are, we can help. [Please note that the figures below apply only to residential real estate closings (home purchases and sales). Commercial and development transactions (including residential transactions involving more than a single unit) and leasing are priced at our standard hourly rate of $180/hour [unless we agree to different pricing in writing].] Please just ask us. We’re glad to help.
CONTRACT, OFFER DRAFTING AND REVIEW: If you need help drafting a real estate contract to purchase or sell residential real estate. We can do that. The fees that we charge for that service are set forth at the very bottom of this web page.
After the contract is signed by all parties then they proceed to what is called “settlement” or “closing”. Closing requirements are largely dictated by two entities: Mortgage lenders and title insurers. Mortgage lenders and title insurers often issue what are known as “commitments” to make a loan and/or to provide title insurance. These commitments to make the mortgage loan and/or provide title insurance will only be kept however if the buyer and/or seller meet all of the requirements and conditions set forth in the title and loan commitments issued by the mortgage lender and/or title insurer.
Yes, we almost always highly recommend that our clients get title insurance. We recommend that our buyer clients get title insurance specifically naming themselves as an insured AND that our mortgage lender clients also get title insurance as well. As such, if you are a seller and you are agreeing to let the buyer to pay you the purchase price over a period of time in monthly installments or on a balloon payment basis we recommend that you get “lender” title insurance.
COMMERCIAL REAL ESTATE DEVELOPMENT; FINANCING AND LEASING
Commercial development, financing and leasing closings and transactions are individually rated and priced. Absent any written agreement to the contrary our normal standard hourly posted elsewhere apply.
RESIDENTIAL REAL ESTATE CLOSINGS
The fees and costs on this page usually apply (although in some complex or special situations the fees and rates may be different). We will always let you know what our fees are or how they will be calculated in advance.
Closing costs and fees can vary depending on numerous factors many of which are beyond our control. But to give a general idea below is what we normally find to be applicable in the Richmond/ Central Virginia market….
Here are the typical fees of David Lentz:
*Attorney’s Fee (base rate) to represent Buyer ………………$ 320 * This fee includes review of all documents drafted by seller, seller’s lender, and title insurance company and third parties. If the lender provides a standard form deed of trust and deed of trust note (this is what most commercial banks and lenders do) our base rate fee includes review and signing of the deed of trust and deed of trust note. Included in this base rate fee is also the escrow instruction letter we typically send to the settlement agent when we deliver funds and/or documents to it for recordation and disbursements etc. ( But, see below for possible add-ons to this base rate )
*Attorney’s Fee (base rate) to Represent Seller………….. $ 270 * This base rate includes our deed preparation and review of all documents presented by the buyer. It also includes preparation of what is known as the “Owner’s Affidavit” stating that no work has been done on the property in the last 123 days. This is to avoid possible mechanic’s lien issues) Included again in this base rate fee is also the escrow instruction letter we typically send to the settlement agent when we deliver funds and/or documents to it for recordation and disbursements etc. ( But, see below for other possible add-ons to this base rate )
* Add-ons: [Unfortunately these add-ons are necessary because each deal is always somewhat unique simply because all real estate is unique, and thus often calls for special documents]
.1. If our client (whether its the buyer or seller) wants us to prepare a deed of trust (using our form or which we draft) and/or a deed of trust note (using our form or which we draft) then we charge $75 for each document ( but if both are needed then just one fee of $120).
.2. For attorney’s opinions, tax reporting documents, corporate/partnership or LLC resolutions, and/or various other types of affidavits and/or certifications addressed to and/or required by the lender, title insurer (or agent) , a government agency, the opposing party to the transaction or some other third party an additional fee will be charged for each document that has to be signed by our client. It is $50 for each such document. If it doesn’t have to be signed by our client this add-on charge does not apply; provided that we are not the one who drafts the document. If we draft it this add-on applies regardless of whether our client signs it or not.
.3. Time consuming closings. In the rare case that the closing is complex (an example may be a big commercial closing or a complex estate liquidation) or presents unusual challenges then the Attorney’s Fees quoted above are subject to increase or adjustment upward if actual Attorney time takes more than 3.5 hours on any services related to the transaction. On all closings subject to the base rate rules above if we spend more than 3.5 hours of attorney time on the legal matters associated with the closing then the client will be billed at $180/hour for the overage time. [And this bill may be sent to the client subsequent to the signing of the closing/settlement statement.]] [We find that in the typical straight forward closing that do not have a lot of special closing conditions and where no substantive issues arise that no attorney’s fee for overages are necessary or charged to the client. Overages are most likely to take place if for example, there is a lot of negotiation, title problems, drafting of special provisions to various documents like side agreements and escrow agreements and/or escrow closing letters that have issues that need to be resolved.]
.4. We also typically incur a cost of $10 per document signed by our client that needs to be notarized. We add this into our fee as well to pay the firm providing notary services to us.
.5. Not too often ,but it does happen. After all of the documents have been signed and delivered to the settlement agent ( including the settlement statement that states who gets paid and how much etc), a post-closing issue will come up. This is usually a very simple and quickly handled matter. If this issue takes us less 1.0 hour to resolve there is no extra charge. However, if it takes us longer than that, a supplemental fee of $180 per hour will be charged for the overage time.
THIRD PARTY CHARGES, COSTS AND EXPENSES
[The above Attorney’s Fees do not include fees and charges of THIRD PARTIES which, depending on the agreement of the Seller and Buyer, the client may have to pay for. For example, in some situations, especially in gift or quitclaim deed situations between family members or where the Buyer’s settlement agent does not handle the closing, a $75 Notary Public charge and a $25 cover sheet preparation fee may be charged by third parties]
FEES TYPICALLY CHARGED BY TITLE AND ESCROW SETTLEMENT COMPANIES (Note: We have no control over these fees ! We put this here just to give you a general idea of the costs associated with a real estate closing.)
You have an absolute legal right to choose your own title/settlement/escrow company. But, often we use the services of third parties, particularly title, settlement and escrow companies who not only search title but they also handle the recordation of the deed and deed of trust, the preparation of some documents and the disbursement of funds. Often they also perform some function in connection with the issuance of title insurance, which protects the insured against “title” defects and problems should they arise.
The amount of title insurance premiums (costs) charged by the title insurance company depends on the purchase price and/or the mortgage loan amount and the rates thereon charged by the title insurer. Mortgage lenders usually require at least a “lender” policy protecting the lending mortgage company. (“Typical” insurance rates are set forth on the closing costs page of this website.]
IMPORTANT NOTE: It is usually very wise for purchaser’s to ALSO obtain their own “owner’s” title insurance (that is, one in addition to the one that the lender normally requires to cover the lender.) {In those situations where we represent a seller who is taking back a mortgage or deed of trust to secure future payments by the buyer (the typical seller financing situation) we also highly recommend that such sellers get a lender’s policy as well
The fees below are typically charged by the escrow/title/ settlement companies that we use. However, please note that these fees are not controlled by David D. Lentz and therefore may not apply in your case. Who pays for these fees depends on the agreement of the buyer (or borrower) and the seller. (But most “standard” form Realtor agreements provide that they are paid by the Buyer or Borrower. But again this is subject to agreement of the parties).
Based on our experience here’s what we often find the fees to typically be for the third parties might be as follows:
$350……Document prep/settlement fee (by settlement agent) [for various tax, recordation cover sheets affidavits, closing disclosures (HUD-1) etc.[ pertaining to receipt and payment of funds]. This fee also covers recordation of deeds, and payment/disbursement of funds etc]
$250…..Title Search
$ 60….. Courier fee (if needed)
$ 60…..Wire Fee (if needed)
$100……Notary Fee (if a settlement co. is not used)
$25….. Cover Sheet (if settlement co. is not used). Cover sheets (scannable summaries of the transaction) are now required by most cities and counties to record documents. Typically this fee is already included in the fees otherwise quoted by settlement companies in other line items. The $25 is what we charge if we are required to do a cover sheet.
Note: Many of the fees charged by surveyors, appraisers, various inspectors (eg. termite, structural, HVAC) and other third parties are addressed on another page of this website at: Click here for typical other closing costs of other service providers
IMPORTANT: WHAT HAPPENS IF THE TRANSACTION DOES NOT CLOSE?
Generally, speaking all of our fees remain due and payable in full as stated above once we start review of the draft deed and/or the title insurance policy. However, in our discretion we do often gratuitously reduce the fees by 33.33 % percent if the transaction falls through and does not close for whatever reason. But whether we decide to reduce our fees is totally in our discretion.
Moreover, and in any event, no reduction in fees is generally given by us for purchase contract work, namely, for the review, revision and/or drafting of contracts and/or written offers under the provisions found in the section below if a contract is not accepted or the deal falls through for any reason.
ATTORNEY’s FEES TO PREPARE AND/OR REVIEW A CONTRACT PRIOR TO CLIENT SIGNING IT:
A big question here is whether the parties are using a standard REALTOR form that everyone in the real estate business is familiar with. If so, our review process is much less time consuming than if we are asked to draft or review something that is not in a universally recognized standard format.
If you want us to draft a purchase or sales contract from scratch for real estate we can do that. Moreover, if you want us to review a contract before you sign it we can do that as well. Our fee is $150 to do either of these things if the work can be completed within one hour. We find that unless more than two or three special conditions are involved, and/or if significant changes are necessary to a standard legal form that this $150 normally covers it, and if so that’s all you’ would pay; provided you are using either a standard REALTOR form or a form that is widely used by members of the Virginia State Bar. But if there are a lot of special conditions or significant changes to a standard form (such as ones used by Realtors and/or a commonly used legal form) then more attorney time is typically required and any time spent over one hour is billed at $180 per hour. This fee is due in full regardless of whether it’s accepted by the other party or not and/or regardless of whether the transaction closes.
In longer negotiation processes, especially in commercial and/or development type transactions there may be a time gap between submitting various written offers (where one side submits a written contract to the other side for their signature thus evidencing agreement to the contract) and counteroffers. When this happens the attorney will submit monthly bills to the client for services rendered during that billing period. When that happens all such monthly bills are due and payable within 15 days even though the transaction has not yet closed and even if it never closes.
If you are presented by the other party with a written offer to buy or sell and it’s on a Virginia STANDARD FORM “Realtor” association form contract and/or a form commonly used by lawyers (that is, it’s widely used in the real estate business in Virginia) the typical fee most cases is $150 because they do not normally take a lot of time to review.
However if the “review” also involves significant revisions, the drafting of special conditions or other contract provisions or significant negotiations with the other parties then our rate is $180 per hour for all time spent that is in excess of the first hour doing said review, negotiation and/or drafting. However, the fee for all or any portion of the first hour itself is $150. Again these fees are due in full regardless of whether the deal falls through or is not agreed to by the opposing party. Fees for drafting/reviewing contracts are always due and payable in full regardless of whether the deal falls through or is not accepted by the other party.
Please note: that if the contract is not a “standard form” Virginia REALTOR form (or, alternatively, a lawyer form book used by lawyers in Virginia) then more intensive review is often required simply because many/most of the provisions being reviewed are not worded and/or are totally different then in a typical transaction. This requires more careful thought and analysis and hence more time to do. “Standard” forms of Virginia REALTORS and/or Virginia lawyer form book forms are standard because they have been hashed out over many years by a multitude of “pros” and are on the standard forms for a reason. We are not advertising here on behalf of REALTORs and/or legal publication publishers but facts are facts, folks interested in buying and/or selling real estate merely need to know that do-it yourself offers and contracts are sometimes not that “simple” to review.
Although local practices/fees can vary, we find that the information on this page generally applies in the City of Richmond, Virginia and in surrounding areas such as Henrico, Hanover, Chesterfield, Powhatan, New Kent, Goochland, Colonial Heights, Virginia and Central Virginia.
Please see other pages on this website for more information on closing fees and costs in real estate transactions.