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  • Lawyer problems

    Hello,

    Contents of our complaint:

    We were just in the process of setting up a family trust when we bought an IP under my own name. The intention was to hold it until the trust was setup and then transfer it. Ideally we should have bought it after the trusts was running, but it was one of those deals that had to be done quickly... such is the climate in New Plymouth. This was done after consulting with our accountant. It was agreed that if the transfer costs were too high, then the property would remain in my name.

    So we talked to our lawyer and explained the situation. Emphasing that if the costs were too high we didn't want the deal to go ahead (we stated a maximum of $400). He tells us no problems, that he'll talk to the bank etc and we go on holiday confident everything will be sorted when we get back.

    Now comes the part where our naivety and inexperience with this situation comes in. We sign the relevant documents and he doesn't commit to what the final cost is. He has been a good lawyer for us in the past so we saw no reason to question this. A month later we get the bill for a little under $1000.

    Question:

    Anyone been in this situation before??? Any advice would be appreciated.

    We are very disappointed about the whole thing. We believe there isn't much we can do as we willingly signed the relevant documents. Our lawyer isn't too interested about our complaint. The wife wants to pay the bill and leave it as one of those lessons in the investment game.

    Wada

  • #2
    hey,

    Everyone I took your advice (oops no one gave me any ) and negotiated with a flinch with a few gasps along the way.

    Lawyer agreed to gives us a 50% discount... still wasn't happy but that's life... may have influenced his decision by placing a contract in his lap on our next buy (let's hoping anyway).

    Wada

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    • #3
      Wada - have been away or I would have replied quicker.

      Always get a written quote from your lawyer before proceeding.
      Formations of trusts are generally a lot more than $400 and even the $1000 was pretty good.

      Great news that he/she has reduced their fees - but 50% tells me that they may have been trying to pull the wool over your eyes.

      I always call 1 or 2 lawyers to get an idea of fees before proceeding with my own (whom I trust works in my interests) - and almost always the account comes out at the same average figure quoted (I don't let on that I do this)

      Good to see your negotiation skills are up-to-scratch.

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      • #4
        Inzvestor,

        Yep another one to put in the lesson book. I think it was ego that hurt the most, as it showed we are far too trusting.

        Time to move on and find the next investment.

        Wada

        Comment


        • #5
          Hi Wada

          Thanks for sharing your story with us.

          It just goes to show that we must do our due diligence in ALL aspects of property investing.

          Most of us presume that all lawyers are trustworthy all the time.

          Also as the experts say it pays to build up a team of people who will work to your best advantage.

          Merry Xmas
          "There's one way to find out if a man is honest-ask him. If he says 'yes,' you know he is a crook." Groucho Marx

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