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Updated about 11 years ago, 12/04/2013

User Stats

40
Posts
6
Votes
Jacob Chaney
  • Rental Property Investor
  • Washington, Washington D.C.
6
Votes |
40
Posts

$4k for lawyer BEFORE even submitting offer? Commercial RE question

Jacob Chaney
  • Rental Property Investor
  • Washington, Washington D.C.
Posted

My partner and I are looking to purchase our first commercial 13 unit property in the Washington, DC area. His real estate agent (who I've never worked with before) insists we need an attorney even before we have submitted our offer.

This is what his letter to the agent said:

"For this representation I can provide a flat fee of $4,000.00.

This flat fee includes the following:

1. drafting/negotiation of LOI

2. drafting/negotiation of purchase agreement

3. participation in due diligence coordination with settlement/title company, oversight of TOPA compliance by seller

4. review/negotiation of loan documents

5. Formation of Landlord entity

6. Drafting/consultation concerning operating agreement for LL entity

7. drafting/negotiation of closing documents

8. attendance at closing

9. supplemental post-closing issues for three months following closing

Does not include: Title insurance, title report, closing costs of settlement agent, appraisal, survey.

Any out of pocket costs (minimal) would be extra."

I can understand spending this money AFTER our offer is accepted (as we will be competing with a number of offers). I'm just not sure we need him this early in the game.

Seems like the services he is offering is a bit redundant. Can anyone tell me if this is S.O.P. for purchasing commercial real estate?

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