Lawyers and Brokers

This post is not necessarily about closing costs but I think it is important - and maybe obvious.

Brokers are a great source of referrals for lawyers. Personally, I very much appreciate brokers who refer clients to my office because (although it goes without saying) there are many lawyers out there and therefore, the referral must mean that the broker has had clients who were happy with my representation in the past.

After an offer is made, or accepted, a reputable broker will always advise his client that they should retain a lawyer who specializes in real estate. When referring a lawyer, a reputable broker should do nothing more than provide the lawyer's contact information to the client with a recommendation. I have seen some brokers actually drive their client to a lawyer and sit in on the meeting between the lawyer and client. Many buyers or sellers, especially first time buyers, go with the flow and probably do not think anything of it. Unless the broker is a friend or family, this is a sure sign that you should not be working with that broker (and probably not with that lawyer).

As mentioned in past entries, the attorney client relationship should be one where the client feels absolutely comfortable and that the communications are confidential. The broker's role is to put a deal together and once there is a deal, to expedite certain matters (such as helping with purchase applications in the case of a condo, coordinating home inspections and appointments). The lawyer's role is to protect the client. Sometimes, the interest of the broker may be different than the interest of the client such as when the deal could potentially fall through (and a commission is lost). A reputable broker will recognize when to step back and allow the client and the attorney to do what is in the best interest of the client regardless of the broker's commission.

Neither the lawyer or the client (buyer or seller) should ever be pressured by a broker. If you feel that a lawyer is more concerned with the broker rather than your interest, get another lawyer. There are plenty who would be happy to have your business.