How to Choose a Business/Real Estate Attorney: A Comprehensive Guide
Every day, individuals and businesses are faced with legal issues that require the assistance of a competent attorney. Finding an attorney who can give you legal interpretations you can trust is crucial. You may even need to choose more than one attorney to help you manage your personal, business, or estate issues. The challenge lies in finding the right attorney, one that is competent and affordable. In this article, we will discuss the criteria for choosing a competent real estate attorney.
Competence: The First Criterion
When seeking an attorney, competence is the first criterion to consider. As you arrive with issues to sort, you are usually faced with a timeline. Working with an attorney that recognizes timeliness often makes for a better resolution of your issues. Some issues have a certain complexity involved that needs research and documentation. Most importantly, an estate attorney may not be a good syndication attorney, a divorce attorney cannot handle your criminal cases, and an insurance attorney may not be the best one to advise you on your real estate issues.
Therefore, finding a business attorney who can help refer you to other attorneys as different issues arise is one strategy that may be successful. Another strategy is to ask your friends for referrals as you cope with the different issues we face every day. Watching lawyers in action is also a good way to sort the skilled from the not-so-skilled. If you use this approach, you must remember that if a business associate refers you to an attorney they use, there might be a conflict issue in the future if you or your friend become unfriendly.
Other Issues That Drive the Decision-Making Process
Many of us ask friends and business acquaintances for references. Maybe we see an attorney in action and are impressed. Having worked with many attorneys in my business, I have a list of things I look for:
Experience
Thoughtfulness
Gravitas
Depth of knowledge in specific legal issues we are trying to resolve
Timeliness
Ease of communications
Reasonableness
Willingness to understand your specific concerns
Problem solving
Willingness to explain nuances you may not understand
If their ego might get in the way of a successful transaction
Cost Structure, Billing Rates, and Practices
Of course, I also look at the cost structure and the billing practices. Cost is important. Can you negotiate a fixed price on the formation of an LLC? Are the hourly rates competitive? Will the cost of using your attorney outstrip your benefits? When does your Errors and Omissions Insurance, or Liability Insurance kick in if you have a loss? Will the insurance companies want to choose a different attorney? They often do.
Remember that for very specialized topics like syndication law, the cost structure might be higher because it may be hard to find an attorney with the requisite experience. Your business attorney may not be the right person to use for Landlord Tenant Law, but there are many Landlord Tenant attorneys which keeps the pricing more competitive.
The size of the company may also drive billing practices. A one- or two-person company typically has lower overhead than a twenty-five-person company and may not bill for all of the copying and mailing expenses. Some attorneys bill for just keeping a monthly account open every month. The price of the attorney may include administrative assistant help. Paralegals and associate attorneys are often priced out at a lower rate. Typically, the more senior the attorney, the higher the cost will be on an hourly basis. Remember also, attorneys get evaluated by the number of billable hours they bill. They definitely track every phone call and email and bill for every minute of their time. If you are not happy with a bill, take the time to review it with your attorney.
Conclusion
Finding an attorney that matches your specific needs, personality, and budget takes time. Once you find an attorney, treat them like a precious gem, and consider sourcing a second attorney in case your primary attorney has a conflict in the future. Understanding your attorney's billing practices is crucial to avoid any unexpected bills. Finally, it's important to never refer your attorney to someone who might potentially sue you.
Clifford A. Hockley, CPM, CCIM, MBA
Cliff is a Certified Property Manager® (CPM) and a Certified Commercial Investment Member (CCIM). Cliff joined Bluestone and Hockley Real Estate Services 1986 and successfully merged that company with Criteria Properties in 2021.
He has extensive experience representing property owners in the sale and purchase of warehouse, office, and retail properties, as well as mobile home parks and residential properties. Cliff’s clients include financial institutions, government agencies, private investors and nonprofit organizations. He is a Senior Advisor for SVN | Bluestone.
Cliff holds an MBA from Willamette University and a BS in Political Science from Claremont McKenna College. He is a frequent contributor to industry newsletters and served as adjunct professor at Portland State University, where he taught real estate-related topics. Cliff is the author of two books, 21 Fables and Successful Real Estate Investing; Invest Wisely Avoid Costly Mistakes and Make Money, books that helps investors navigate the rough shoals of real estate ownership. He is the managing member of a real estate consulting practice, Cliff Hockley Consulting, LLC., designed to help investors and commercial brokerage owners successfully navigate their businesses. He can be reached at 503-267-1909 , Cliffhockley@gmail.com or Cliff.Hockley@SVN.com.
