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5 signs it’s time to fire your lawyer
All property investors need a lawyer, but what happens if your relationship with your lawyer feels like it’s on the rocks?
It might be time for a change, and you’re probably not alone. Many property investors start by using a family lawyer, or a recommendation from a friend.
And for the first property that might be great, but after a while you might not be getting the same service you started with.
So, in this article you’ll learn the top 5 signs that it’s time to fire your lawyer and get a new one.
#1 – If your lawyer isn’t a property specialist
Any diligent lawyer can do the admin jobs needed to buy a property, but property investors need more than the basics.
Contracts are specific and lengthy. Lawyers bill by the hour, so if they spend too long reviewing a contract, it can cost you more.
I once worked with an investor who used the family lawyer, but the lawyer wasn’t used to working in property and because of that the lawyer would ask for unrealistic things.
He wanted to allow the investor (his client) to cancel a contract with a developer right up until the property was built. The lawyer worried the developer might change things midway through the build.
When the investor checked this with another property specialist lawyer, the reply was: “This is a standard contract from the Auckland District Law Society. It’s been like that for 20 years. There’s no point wasting time negotiating it.”
Ultimately, the lawyer (and therefore the investor) was spending time and money trying to rewrite an established contract. That just leads to confusion and wasted money.
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#2 – If your lawyer takes too long to respond
You need a lawyer who acts fast and meets deadlines.
If they don’t do their checks on time, you could miss out on the property you want.
Right now, the market is changing. Sellers are less likely to wait around for buyers who drag the chain.
I recently worked with an investor whose lawyer had 10 working days to make checks. After the 10 days the lawyer hadn’t done what they needed to do, so 30 minutes before the deadline they requested an extension. They wanted more time.
The reason was “insufficient time to review the contract”. Ten working days after that, they asked for another one. The lawyer had dropped the ball here, and the seller was getting antsy. They were wondering whether they should cancel the contract and find another buyer.
So if your lawyer is too slow it could be time to look for a new one.
#3 – If your lawyer gives you a flat ‘no’
A good lawyer will discuss things with you. They shouldn’t shut you down willy-nilly.
I’ll give you a good example. Jeremy, another financial adviser here at Opes Partners, was working with an investor and they found a property, a New Build bought off the plans.
The investor emailed the contract to their lawyer. Now, did the lawyer read the contract? Did they investigate the property, or ask any questions?
No, no and no.
They simply said: “Cancel it, I don’t think it’s a good investment.”
All without doing any research on the property. Now, could the lawyer have been right? Could it have been the wrong investment for their client?
Yes, they could have been right, but lawyers should discuss and talk to clients rather than simply thinking they know best.
If your lawyer is giving you “I’m always right” energy, that could be a sign to move on.
#4 – If your lawyer talks over you
Similarly, a good lawyer should listen to what you want. You’re the client. You’re the one paying the bills, and they should address your concerns and explain their reasoning.
If this is your first time buying a property, the contract can be overwhelming.
You might not yet know what an ‘encumbrance’ is, or what the LIM report or title is. That’s OK, but your lawyer should walk you through this (if you want to know).
If your lawyer talks over you; if they say, “Nah, you don’t need to worry about that”; or worse, makes you feel ignorant for raising concerns … it’s time to find a new one.
#5 – If your lawyer doesn’t get back to you
Finally, if your lawyer never gets back to your emails or phone calls, or if they provide vague, unhelpful answers … that’s a red flag.
Your lawyer might have the degree and a nice office, but you’re the client. You’re the one in charge.
Let’s say you’ve asked for a few more details about a clause in your contract; you shouldn’t wait weeks for a response. That could mean you lose a property you want to buy because the seller doesn’t want to wait for weeks on end.
If you find your lawyer too hard to get hold of in the early days, or they don’t respond, it might be time to move on.
How do I switch lawyers?
If these 5 signs sound familiar, it may be time to switch lawyers. But you don’t want the relationship to go sour before you’ve transferred to another one (particularly if your lawyer is on your trust).
First, you should look at any agreement you currently have with your lawyer. See if you have a notice period, or if you owe them money.
Then, before you switch, find a new lawyer that specialises in property law. That way you have someone to switch to. Then it’s as easy as sending an email. Let them know, in writing, that you’re switching to another lawyer and will use their services going forward.
You’ll then pay any fees that are left over, and they’ll transfer your files to your new lawyer.
If you’re looking for a new property lawyer, check out this list of top lawyers we recommend.
Ben King
Ben brings a wealth of experience to the table with his 14 years as a mortgage advisor and background as an investment adviser. His dedication to helping clients reach their financial goals is central to his work.
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