Legal Question in Real Estate Law in New Jersey

Attorney fees in case of a rescinded sale

I was attempting to sell property a couple of months back, and entered in to a verbal agreement with the attorney's office. But the sale fell thru in a matter of days since the buyer rescinded the sale.I informed the attorney's office immediatley. Then withdrew the property from market. After a month or so my attorney sent me a letter indicating he's advising me to withdraw from that particular sale, which has been already rescinded by the seller. After 5 months my attorney is contacting me for an attorney fee for contract review they claim to have done when I told them not to. Am I still liable for this fee for a service they claim they provided even when I contacted them and asked them not to do so. I didn't sign any documents with my attorney. We agreed verbally upon a fixed price to be paid after the completion of the contract.I sent a fax agreeing for that amount. Can the attorney still charge me, when I told them not do any work on this? If I still need to pay this is there any possibility that the seller be held liable for this fee?

Thanks


Asked on 9/14/06, 11:09 am

1 Answer from Attorneys
Walter LeVine Walter D. LeVine, Esq.

Re: Attorney fees in case of a rescinded sale

Attorney's fees are not usually contingent on the sale being completed. I am sure some work was involved, although propbably minimal. You did have conversations with him, sent a fax confirming the fee arrangement and probably sent him the contract before the buyer cancelled. You have several options: (A) negotiate some fee for the minimal amount of time spent, (B) work on some arrangement for the same attorney to handle the new sale (if one is going to take place), with some adjustment of the original fee to cover the time spent on the first deal, or (C) go to fee arbitration, which is a procedure you can initiate (no cost) by contacting the local bar association fee committee. This arbitration is before a committee, not a Court, is not binding, and is usually lawyers and lay people. They are fair and try to work things out. This is a response to an Internet question and the reply is not intended to be legal advice or to create an attorney-client relationship.

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Answered on 9/14/06, 11:23 am


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