How valuable is having an attorney?

Don't need prior to pre-approval, but you should get one as soon as possible. The reason: as soon as you're interested in an apartment and want to make an offer, you need your attorney to work with you quickly.

it's not money u should save ... the potential screw-ups for failing to follow the contract is huge, and "not understand latin" is not a valid excuse in court =p

I've yet to hear anybody on this site say that it is a bad idea to have a good, knowledgeable real estate attorney; now brokers, that's another story...

An attorney is pivotal, and a relatively small expenditure of money. get a good one (ask friends) and get one lined up soon so they will be ready to go when you are.It is not a place to cut corners--they can understand implicatons of thins that you won't think of and protect you in a way you dont have the experience to understand.

OP here: These tips sound good but, for example, #2 why do I need a lawyer to make an offer...can't my real estate agent do that for me? Don't they know what a good offer would be for a particular market, etc?

And, #3, in what ways might I fail to follow the contract? Or, couldn't I wait until I got the closing papers and then just do a read-through with a lawyer (and save thousands)?

And, #4, what kind of implications might I not understand that my mortgage broaker and/or real estate agent wouldn't understand? And how much is a relatively small expenditure? Do you pay by the hour or just after closing?

Not trying to sound like a jerk, but all these things are somewhat obvious to state, but what kind of concrete examples do people have. Again, thanks to everyone!

typical attorney fee $1500-2000.. trust me, you don't want to proceed without one.

You do not need a lawyer to make an offer, but as soon as the offer is accepted you want to move fast. The contract gets sent to your lawyer, your lawyer talks points over with you that he/she wants to discuss or change to better protect you. He/she reads all the docs and makes certain everything is safe and in order. Noonme is going to have the patience to deal with you oing over the contract and asking a bunch of questions. The other side will have have a lawyer and so should you. NY is an attorney state and real estate brokers need to be very careful about anything that could be "practicing law without a license". This is very very different from many other states where brokers actually put toether the contracts and walk you throuh it. You pay an attorney a flat fee, generally 2000--3000 all told for a standard deal

Check out www.bluepearl.com for detailed info about buying in Manhattan:

"Section 11 – You make an offer and the seller accepts….what now? Time to call your Lawyer.
Remember, your real estate agent usually is the one to fax an initial written offer to the seller's agent that states what you are willing to pay for the apartment, the size of your down payment, and typically includes some basic information about you (and your spouse or co-purchasers if applicable), your place of employment, your income, assets and liabilities……and a copy of your mortgage pre-Approval if you are getting a loan.

Note, usually the pre-Approval you are sending at this point is one tailored to the specific property you are buying. Call your mortgage broker, and have her fax an updated version to your real estate agent, with the specific sales price and address information added.

Anyone else making an initial offer is sending the seller the same basic information. We're assuming that after looking over the various offers, the seller chooses yours.

To move forward, now is the time to call your attorney. He or she will immediately get in touch with your agent to confirm the details of the offer, request some information about the apartment building pertinent to the transaction, and contact the seller's attorney.

The seller's attorney draws up the first draft of the contract and sends it to your attorney for an initial review. Even before that first draft arrives, however, your lawyer starts the process of obtaining information needed to protect you and evaluate the basic wisdom of moving ahead with the purchase. She wants to make sure you are not buying into a building with major financial, structural or legal problems……with the probability that you will then inherit your share of the costs required to fix them. Or, we might add, if you do decide to go ahead and buy anyway, at least you were forewarned.

To get the needed information, she requests the following from the management agent for the building: copies of the legal documents that gave birth to the Coop or Condo at its inception (the Offering Plan), the building financial statements, and a couple of years worth of board minutes. This process includes interviewing the building manager to find out if there are any pending lawsuits, environmental code violations, if major maintenance is required in the near future and if special assessments are on the horizon.

All of the above are part of the "due diligence" any competent lawyer must perform quickly and efficiently on your behalf, before you actually sign the contract that binds you to the agreed upon price and terms of the sale. Generally, if you have buyer’s remorse and want to back out after signing, and assuming the seller hasn’t violated the terms of the contract, it will cost you your 10% deposit – maybe more in some cases.

By convention, your lawyer is normally allowed a minimum of 3-4 days to perform the due diligence, and often a seller will allow a week or two for the process to be completed. It is to your advantage, however, to have a lawyer that can complete the needed evaluations quickly, so you can confidently sign the contract without undue delay. Because until it's signed by both parties, the seller can accept another deal and leave you twisting in the wind. And that is a fairly common experience as most Manhattan buyer’s can attest to. Competent counsel without foot dragging is essential in today's market.

A footnote:
Your lawyer will also insure that the contract has language that explicitly states what furnishings – appliances, fixtures, chandeliers, window treatments, cabinets, built-ins, etc – you are purchasing, and that you expect to be left in the apartment when the deal closes and you take possession. Make sure you find the relevant language in the contract and double check it yourself."

Also best to have your attorney email you copies of the TWO years building minutes,
master insurance policy on building and house rules. That makes sure your attorney is doing his due diligence. If recently remodeled ask for copies of building, electrical & plumbing permits (your responsible after closing). Make sure apt is going to appraise at contract value, otherwise you might have to make up difference at closing.

Original OP here: What is this I'm hearing about ME paying if apt appraises at a lower value. Shouldn't the seller have to lower his asking price?

And again, doesn't my mortgage company hire an appraiser? And what the heck does the realator do? It sounds like the attorney is doing all the work. With websites like streeteasy.com, etc. Do I need a real estate agent?

I live in NYC. But a friend of mine wants me to partner with him and buy a property in Atlantic City, NJ. Is it ok if I hire a lawyer from NYC? Thanks.

New York City seems to be a different scene real estate wise, what with co-ops & needing the real estate attorney. I spent years in Los Angeles & you'd never think of hiring an attorney to buy a house but I think the laws governing realtors & their training is much more stringent in California whereas in New York a real estate broker is lower than a meter maid. (Who knew?) I'd say, do your homework & when in Rome .....

We signed contract for a coop, put 10% down, but apt didn't appraise at contract price.
We were locked in, either lose 10% deposit or come up with difference at closing, which we did. We asked seller to lower his price and quess what.......no

OP, in answer to your #11 posting, in NYC chances are nil that the seller would lower the asking price if your property is appraised below price. Check out the postings on the Finance Contingency - a very important clause and one more reason why you'd need a lawyer when buying real estate in NYC. Basically, if your place is appraised below price, you will have to come up with the cash if your contract doesn't have a finance contingency (and many sellers will not agree to one, depending on the demand for that property).

Good question about the realtor! The listing agent works for the seller and markets the property. If you have your own agent, he/she represents you in finding a place and negotiating the price, costs you nothing cause both agents split the commission, but the benefit to you depends on your situation and the broker.

It sounds like you're from out of state...most states don't require an attorney but some, like NY or NJ do. And it's esp important if you're purchasing a coop because the process can get tricky and agents/mortgage brokers aren't always honest.

I knew of a situation where someone purchased a coop where the listing agent lived in the building and was on the coop board...and did some funny things that were not in the best interest of the buyer. Good thing he had a great lawyer to clean up the mess.