Legal Question in Real Estate Law in New York

What is due my lawyer?

I am selling my house to friends who, not having the money for a down payment, wanted to get the deposit from their 401K plan. They needed a contract in order to do that. Knowing it was a risk, we agreed to give them one with the stipulation that if they did not receive their deposit within a certain period of time, they would be responsible for half our lawyer's fees (which we had to pay for the contract). I had to give our lawyer 475 at the signing of the contract. My friends did not get their deposit in time. The contract was cancelled. My lawyer billed them for 475, thus receiving his full payment. Is this right, for him to be paid the full amount even though our business with him was over at the cancelling of the contract and there was no closing?


Asked on 9/22/08, 7:01 am

1 Answer from Attorneys
Michael Markowitz Michael A. Markowitz, PC

Re: What is due my lawyer?

I do not know what your agreement was with the lawyer.

Based on your question, it seems that the agreement with the lawyer was $950 with $475 at contract and $475 at closing. Since there was no closing the lawyer only receives $475 - which was paid.

However, if the agreement was a flat fee of $950, whether or not there was a closing, and only $475 was paid, the lawyer is owed an additional $475.

Mike.

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Answered on 9/22/08, 7:44 am


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