How much real estate attorneys charge in New York (2025)
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Buying a property in New York involves a series of expenses. The property remains the most significant chunk, but you must also consider the costs of obtaining a mortgage, paying the mortgage broker, broker’s fees, inspection costs, and the services of a real estate attorney. We will discuss the salaries of real estate closing attorneys in New York. As a helpful tool, use our closing costs calculator to estimate itemized expenses. Our friends on Brick Underground explain: “A good rule of thumb is that you should set aside roughly 2 to 3 percent of the purchase price or 3 to 4 percent if the apartment is over $1 million.” One closing cost often overlooked is your legal fees. How much do real estate attorneys charge in New York?
Do You Need a Lawyer to Close on a House in NY?
According to New York State law, a licensed attorney is required to conduct the closing. Real estate lawyers must negotiate the contract and ensure that the ownership transfer is accurate. Many states don’t need an attorney to handle the closing, but we suggest it.
Buying a home is one of the most significant purchases most people will make in their entire lives. So, you want to ensure the purchase agreement is executed correctly and the ownership is transferred correctly.
If something goes wrong and the transaction is not handled correctly, it may cost you far more to undo the damage. Plus, lawyers can provide advice and help you negotiate the contract terms. This helps save you money in the long term.
Real estate attorneys represent a crucial asset to your “team.”
Buying an apartment in New York is expensive and involves many parties. Often, buyers and sellers overlook the role of attorneys. For reasons foreign to this discussion, lawyers have a bad reputation and remain the target of bad jokes.
Whether you love or hate them, you need attorneys for real estate in the city. Transactions in New York were particularly complex and required a high degree of expertise. Hire a specialized attorney who deals with real estate transactions daily to guarantee a proper review.
Flat fee or hourly charge: how much do attorneys charge in New York?
The costs of real estate closing attorneys vary as much as those for apartments. Typically, prices get set as a flat fee per transaction instead of an hourly rate.
Various factors determine the amount, including the type of building, anticipated title issues (such as title search and title examination), and the number of parties involved. Since there is a long list of variables, it became impossible to have a “standard fee.”
Real estate attorneys typically charge by the transaction to oversee the closing process. They may charge you hourly if you require legal advice on another matter or if the deal is very complex. However, when it comes to a straightforward home purchase, the fee is typically a one-time payment made at the sale’s closing. You usually won’t have to pay the legal fee if the deal does not close.
If a lawyer charges you an hourly fee, it is a sign that they may not be experienced with real estate transactions. Just because someone is a licensed attorney does not mean they have the requisite knowledge to handle the sale of a property. Find an attorney specializing in real estate – otherwise, you may have issues. For example, the legal due diligence and analysis of the Board minutes are not straightforward.
How Much Will You Pay in Legal Fees When Buying a Home in New York?
The range in the city is $1,000 to $3,500 per transaction. However, fees depend on the attorney, the deal’s complexity, and the location of the property in New York.
Each attorney has different rates, and there is no set amount that every homeowner must pay. Prices can range from as little as $1,200 for a flat-fee lawyer to $5,000 per transaction, depending on the complexity of the deal. If you’re purchasing a luxury property or have a complex transaction that requires more time and attention, you should expect a higher legal bill. However, in general, you should set aside a few thousand dollars in your overall budget to cover legal fees.
As a result, a senior real estate attorney’s average salary ranges between $150,000 and $300,000 in a city that never sleeps.
When Are Legal Fees Paid?
Legal fees are typically paid at closing. Your attorney will generally prepare a closing statement, which lists all the costs due upon signing the contract, including their price.
Depending on the attorney, they may ask you to pay a specific portion upfront. This could be as much as half the fee, with the remainder paid at closing. But it’s rare for an attorney to require full payment before signing the contract.
Conclusion on New York Real Estate Attorney Fees
Referral remains the best way to hire a real estate agent. Find someone with a good reputation. Shop around, ask your real estate agent, and compare options before agreeing to work with any particular lawyer.
No one enjoys paying extra costs when closing on a home. However, hiring an experienced attorney is very important. This is especially true if you buy a condo or co-op in NYC. Real estate attorney fees in New York are pretty reasonable.
They will protect you from many issues that can arise during the closing process. This helps make the process as smooth as possible.
Georges has been working in Wall Street for the last 16 years trading derivatives with hedge funds. He has been an active real estate investor for over a decade. Georges graduated from HEC Business School in Paris and holds a master in Finance from ESADE Barcelona.
