Legal Question in Real Estate Law in New York

Re: Legal fees

Unless the agreement with the lawyer was that payment was contingent with closing, he or she is entitled to receive compensation for the work performed. Disbursements (like overnight mail, government fees, etc.) are usually paid by the client in addition to legal fees.

Mike.

Re: Legal fees

I concur with Michael's answer, but wish to add a little more to it. I am unaware that any attorney would take a closing on a contingency basis, unlike the real estate brokers who only get paid if the closing actually occurs. The standard reason would be that we work on time, not on a percentage of the transaction involved. I have had a few closings that were aborted, but still got paid my fees and disbursements. You should be aware that there are pre-closing recording fees and other out-of-pocket expenses that a closing attorney usually advances for a client, or takes on the responsibility to pay, even if the transaction does not close. You do not describe the $42 charges, but I presume they covered these types of fees or related charges. I would also add that if the refusal to close was not due a reason specified in your Contract of Sale, but was purely arbitrary by the Buyer, you may have legal recourse against the Buyer for breach of contract or other reasons. In such cases, you could sue to recover your lost costs, including the attorney fees and his/her disbursements you paid. What has happened with any deposits? Have they been returned? If so, why? Without seeing the Contract of Sale and knowing under what circumstances the Buyer could back out, and the reason claimed to back out, I cannot provide more than general information which does not constitute a legal opinion.