Hello All,
Seeking average attorney fees for a basic closing on two commercial properties in NJ, totaling 1 million COMBINED, and including setup of an LLC to do so. Also, your input on financing (with collateral) vs. cash, although from what I am reading here it sounds like payment form will influence the attorney fees. Thanks very much.
Hi,
Your looking at roughly 2.5% seller and 2% buyer! On a million dollars that's $25k to $20k.
Then an Attorney formed LLC could cost $1,500 to $4k to $5k depending on agreements, etc.
GR
Hi,
The fees will vary from attorney to attorney because each attorney has a right to set his/her own rates.
Thanks!!
Hello Caroline,
I totally agree with you, each attorney has a right to set their own rates, so the attorney fees will vary.
Thanks!!
I am in NJ as well…it will range…depending on complexity, time, etc. – but I think a very generic, albeit broad range for a buy/sell transaction will be between 1% and 2%, perhaps 2.5% if the deal gets a bit complex, takes more time, etc. I just had a closing on a buy/sell, under $1mm, and the sale went fine, and the buy had a few slight hiccups. I used an excellent, Bergen County firm, tremendous experience, etc. – and it was under 1.5%. While every attorney and/or firm sets their own rates, they each have experience vis a vis time, so they know their business well. I’ve used this firm numerous times, and I also use a much smaller, “boutique” type firm, virtually a solo with an associate or two, a para, etc.
As far as the LLC – that too depends. Are you using a NJ LLC? I don’t, but many people do, so for me there is always going to be an additional state filing fee and another fee or two. I couldn’t even tell you how much it is because I don’t even think about it and deem it to be negligible, but others do look at this. I don’t count pennies here. I do it, and do it the way I am comfortable with, have been advised, have learned, etc. Time (billable) is another factor, as well as what else you are going to get aside from the simple LLC formation – operating agreement, perhaps covering other terms and conditions as well, buy/sell agreement, etc. I’ve seen ranges from $1000 to $2500 for the basic.
Good luck.