Wiring 10% of Ask price to Attorney... Is it safe?

It seems unusual to me that your buyer's attorney would receive the deposit funds at all -- generally the seller's attorney is the escrow agent unless a different arrangement is negotiated in the contract, and the 10% is sent to the seller attorney's escrow account by personal check or electronic transfer only when the contract is signed.

Note that attorneys also generally don't get paid until closing, although your agreement may specify a fee to be paid if they do substantial work but a closing doesn't occur.

The weekday hours don't surprise me much.

But thinking of the bigger picture, if you are uncomfortable with this attorney go ahead and find another one. There are plenty of them, including plenty of good ones, and you need to be comfortable and trust the person is always working hard in your best interest.

Doesn't seem unusual at all. You can either give a check to your attorney or wire the funds to him/her to pay to the seller.

If you haven't signed the contract, then why the request for 10% down payment?

Also the check should be made out to the seller's attorney, written"as attorneys"

Hi Randomwalk,

It would be in your best interest to interview 2-3 attorneys, ask some of your questions, check pricing for all and then go with whom you're comfortable. It is standard practice for a buyer to deliver their contract deposit to their attorney who then delivers funds and the signed contract to the seller's attorney. As for only being available on weekdays - again, this is something you are going to want to ask when interviewing attorneys. Among some of the questions you might ask:

1) When are you available? Will you answer emails/calls on weekends as well?

2) What is your fee? How is that fee structured?

3) What happens if the purchase does not go through? How much will you charge/what are your procedures?

4) Will you be completing the due diligence personally for my apartment or does someone else in your office do this on your behalf?

5) What are your fees in the event I don't follow through with signing the contract (if one backs out) - or if red flags come up during the due diligence process, and you are advised not to sign?

Take a look at this:

7 Questions Buyers Should Ask Before Hiring An Attorney
http://www.buyingnyc.com/1/post/2012/08/7-questions-buyers-should-ask-before-hiring-an-attorney.html

I hope you found all of this helpful - and good luck!

Best,
Brad Malow
www.BuyingNYC.com
bmalow@crrnyc.com

If you want a great attorney, call me and I will provide his name.

Ellen Silverman
RealEstate Bkr. since 1987
Tel:212-786-9682

You are considering buying. You don't have contract so why would you put your 10% on the table? First thing is to get an attorney you look and don't look on internet for a rating. Do as others say, find one that is convenient for you in terms of location (you will have to go in at some point) and clearly discuss pricing. There are lots of postings on here with different names and recommendations. But you should be looking at a flat fee for what is a pretty basic legal transaction. And yes it is normal for someone to ask not to get bothered on weekends. Again, this is all very basic stuff so find ten minutes to talk to some attorneys. Then find thirty minutes to go over the contract and give your check when that time comes.

I have worked with Jonathan Helfer in the past. I got him through streeteasy. He is the best hands down. We wired him 10% deposit with no problems or concerns.

Jonathan Helfer, Esq.
jonathan@katzmatz.net
T (646) 380-2079

Utterly ridiculous for a buyer's attorney to talk deposit before he really has you as a client, before he has laid out the scope of his duties, before there is any agreement, and when he shouldn't be the one holding the funds.

Using an attorney suggested by your buyers' broker is a bad idea. The attorney is beholden to the broker who wants a deal done. Maybe in this sharply rising market retaining skeptical eyes is unwanted if it leads a buyer to walk away but in most situations it is wise.

manhattan brad and crescent provide good advice.

dont EVER use an attorney rec'd to you by a borker who is a party to your deal. Are you nuts?

in general dont use attorneys "liked" by brokers--that means they tend to rubber stamp deals

but for god's sake dont use one recommended by someone who will make money if your deal goes through, or doesnt if a lawyers red flags it.

duhhhhhh

Jonathan Helfer is the best! Great guy and always available.

Agree w above. Signed contract first and then you give 10% WHEN YOU SIGN. Also, I used a personal check which is nice because it has easy online proof of the check being deposited into the escrow account.

Crescent22 is correct.

In addition, I love the people who ask the brokers for advice with attorneys. You need someone truly independent and not a "yes man."

We wired our 10% "good faith deposit" to our lawyer for the initial contract signing with the sellers.

However, we had been working with our lawyer for some time already, had a signed contract with him, and we had already had drafts of the contract with the seller going for some time.

we sent the 10% to the seller's attorney and it was deposited only after the contract was signed...

Also, I only met my attorney once to review the minutes but other than that, it has been all phone calls. They only work M-F.

C0lumbia C0unty used to pull these confidence scams. Wonder how often he worked with Jim Hores.

how much jonny charges?