If you want to manage and limit your Attorneys’ Fees and Legal Expenses, you should follow some, or all, of the following TIPS:

HOURLY  RATE

If your Retainer Agreement is on an “Hourly” Basis, meaning that your attorney will charge you a certain amount for each hour that he or she devotes to your case, here are some useful “TIPS.” 

“Hourly” Retainer Agreement for Los Angeles Real Estate Lawyer.  First of all, a good example of when you would enter into such an “Hourly” Basis arrangement, is when you hire a Los Angeles Real Estate Lawyer in order to review the Loan and Financing Agreements for a Real Estate transaction.  Let’s say you’re a Construction Contractor, you’ve bought a “Fixer-Upper” house in Bel Air, and you need financing for the renovations you have planned, in order to sell the property a year or so later, hopefully at a substantial profit. 

What, you’re wondering if you really do need an attorney at all?  Well, let’s say that you’re dealing with a group of “Hard Money” Lenders – sometimes referred to as “Loan Sharks” – and they provide you with the following list of Documents to review and sign, among others:

1- Escrow Instructions and General Provisions;

2- Additional Escrow Conditions and Instructions;

3- Exhibit “A” – Legal Description;

4- Counter Offer No. “1”;

5- California Residential Purchase Agreement;

6- Buyer’s Inspection Advisory;

7- Uniform Residential Loan Application;

8- Truth-In-Lending Disclosure Statement;

9- Borrower Signature Authorization;

10- Borrowers’ Certification and Authorization;

11- Disclosure Notices;

12- Equal Credit Opportunity Act;

13- Patriot Act Information Disclosure ;

14- Customer Identification Documentation Patriot Act;

15- Fair Lending Notice;

16- Real Estate Agency Disclosure;

17- Itemization of Amount Financed;

18- Fees Worksheet;

19- Fair Lending Notice;

20- Los Angeles County Recording Form;

21- Construction Shared Appreciation Deed of Trust and Assignment of Rents;

22- Protection of Lender’s Security Rider;

23- Rider to Deed of Trust – Assignment of Rents and Profits and Security Agreement;

24- Construction Addendum to the Deed of Trust;

25- LeadSheet – Recorder’s Office, Los Angeles County;

26- Grant Deed;

27- Statement Of Tax Due and Request That Tax;

28- Declaration Not Be Made A Part Of The Permanent Record in the Office of the County Recorder;

29- Deed of Trust;

30- LeadSheet – Recorder’s Office, Los Angeles County;

31- Deed of Trust – See Rider Attached;

32- Lender Identification;

33- Hazardous Substance Rider to Deed of Trust;

34- Seller’s Affidavit of Non-Foreign Status;

35- Assignment, Acceptance, Notice and Direction to Convey [Forward 1031 Exchange—Relinquished Property];

36- First / Final Payment Letter ;

37- Organization or Entity Identification;

38- Documentation Patriot Act;

39- Terms of the Loan;

40- Assignment of Architect’s / Engineer’s Contracts;

41- Assignment of Construction Contracts;

42- Commercial Security Agreement;

43- Construction Loan Agreement;

44- Financing Statement – UCC-1;

45- Continuing Guaranty;

46- Borrower / Broker Agreement;

47- Agreement to Procure a Loan & Lender-Borrower Escrow Instructions;

48- Notice to Co-Signor (Personal Guarantee of Debt);

49- Lender-Borrower Escrow Instructions;

50- Lender Identification Addendum;

51- Correction Agreement – Limited Power of Attorney;

52- Demand Loan Payoff;

53- Seller’s Settlement Statement – Estimated;

54- Refi – Construction-Shared Appreciation (SA) Loan;

55- Construction Loan Agreement;

56- Sale – Profit Analysis;

57- Revised Pro-Forma (Cost/Profit Spread Sheet)

58- Updated Pro-Forma Spread Sheet

59- Lender Servicing and Equity Interest Agreement

60- Construction Shared Appreciation Deed of Trust And Assignment of Rents (This Deed of Trust Contains an Acceleration Clause).

So, we have at least SIXTY (60) separate Documents, the review and analysis of which is made all the more important, because at stake are hundreds of thousands of dollars.

TIP #1 – “HOURLY”  RATE

First, you should ask your attorney, what his or her standard HOURLY RATE is.

Second, you should ask for a DISCOUNT from that Hourly Rate, because you don’t have much money.

Third, after your attorney offers a Discount, you should NEGOTIATE, and be persistent.

Fourth, after the two of you have agreed (tentatively) on what the Hourly Rate will be, you ask how much of an Up-Front Retainer Payment Amount will be required.

Fifth, you should ask for a DISCOUNT from that Up-Front Retainer Payment Amount.

Sixth – yes, you’re getting the idea – you should NEGOTIATE again, and be persistent again.

Seventh – and this is the key – you then propose that you DOUBLE that Negotiated Up-Front Retainer Payment Amount, but instead of just an initial payment, this will be a FLAT FEE, for the entire transaction, and all of the attorney’s work, from start to finish, with NO further payments.  If, for example, you and your attorney have agreed to a $2,500 Up-Front Retainer Payment Amount, and you then propose a $5,000 FLAT FEE, that would be a fantastic deal for you, and it will also be very tempting for your attorney … unbelievable, but true … trust me.

CONTINGENCY FEE

If your Retainer Agreement is on an “Contingency Fee” Basis, meaning that your attorney will not charge you anything Up-Front, or even during the handling of your case, but instead, your attorney will be entitled to a certain percentage of the final recovery in your case, here are some useful “TIPS.”

“Contingency Fee” Retainer Agreement for Los Angeles Personal Injury Lawyer.  First of all, a good example of when you would enter into such a “Contingency Fee” arrangement, is when you hire a Los Angeles Personal Injury Lawyers in order to, for example, file a lawsuit against the other Driver in an automobile accident.  Typically, you would not pay your Personal Injury Attorney anything, until, at the end of the case, your attorney would receive a percentage of your recovery.

TIP #2 – “CONTINGENCY  FEE”  ARRANGEMENT

First, you should ask your attorney, what his or her Standard CONTINGENCY FEE PERCENTAGE is.

Second, you should ask for a DISCOUNT from that Contingency Fee Percentage, because you don’t have much money, and really are depending on a decent monetary recovery.

Third, after your attorney offers a Discount, you should NEGOTIATE, and be persistent.

Fourth, after the two of you have agreed (tentatively) on what the Contingency Fee Percentage will be, you ask whether the Costs and Expenses of Litigation will be deducted “off the top” of the Recovery, or specifically from your share.

Fifth, you should insist that the Costs and Expenses of Litigation be deducted “off the top” of the Recovery, before the Net Proceeds are divided between the attorney and you.

Sixth, you should ask for a DISCOUNT from the attorney’s CONTINGENCY FEE Percentage.  Typically, the attorney will insist on 40 – 50% of the Proceeds.  You should insist on limiting your attorney to 35 – 40% of the Net Proceeds, meaning that the Costs and Expenses of Litigation will be deducted “off the top.”

Seventh – yes, you’re getting the idea – you should NEGOTIATE again, and be persistent again.