1. INITIAL CONSULTATIONS

Consultation Recommended. Unless you are absolutely certain that a particular document is what is needed, and you are absolutely certain of its legality in the circumstances, a paid consultation is recommended so we can review your case and determine the correct legal solution. We may at our discretion require an initial paid consultation or deposit before proceeding with any particular case.

Acceptance of Cases. We accept or decline cases (including requests for a consultation) in our discretion. We are a small and specialized law firm and cannot accept every case.
Introductory Consultation. Our legal counsel begins with an initial paid consultation. Note please that there is no pre-consultation consultation, i.e., a prior stage where the lawyer answers questions about what advice might be given in the consultation.

Introductory Consultation Fees. The introductory consult fee of $250 (discounted from our usual $450 hourly rate) is available at our discretion to new clients only, for the first hour only, and is limited to individuals only (not corporations or LLCs). Time past the first intro hour is billed at the hourly rate. The introductory consult fee is not available to existing or returning clients.

CONSULTATION PROCESS

Consultations for New Clients are Handled Exclusively Online. All initial consultations are now efficiently handled online, not in the office. Office visits are not included in the initial consult fee. In-office services, to the extent available, incur higher fees.

Established Process. We have an established process for online consults based on working with over a thousand online clients. No variation is permitted. We have received excellent feedback on our consultation process over the years. We ask inquirers who are not 100% comfortable with our consultation process to please seek counsel from another firm.

Duration: One Hour, Three Business Days. An online consultation is intended to substitute for the same time one would spend with an attorney if the client physically visited a law office for an hour. The consultation may last up to the prescribed time limit (1 hour) over a period not to exceed 3 consecutive business days, when it automatically concludes. It is NOT a three-day consultation. It is a one-hour consult that may be spread over three business days. We will of course extend the three-day limit if our responses are delayed on our end for some reason (by an unusually heavy workload, for example). This can occasionally happen. Reasonableness applies.

Extending Time. Time past the first introductory consultation hour is billed at our $450 hourly rate. An advance deposit for extension time may be required before proceeding.

Pre-Conditions on the Consultation Not Permitted. Some inquirers want to place conditions on the consultation, e.g., they will only proceed if we promise that our attorney will be able to resolve their legal issue. Other than stating that the matter is within our area of practice, we do not agree to any pre-conditions on the consultation or offer any assurances as to the outcome. If you require certain preconditions or assurances prior to the initial consultation, please seek counsel from another firm.

Initial Four Steps. After submitting the client inquiry form on the Contact page:

(1) be sure that we have told you that we are available to consult on the legal matter you wish to discuss (we may have already made this clear in our response);

(2) read, sign, and return our consultation engagement letter;

(3) make advance payment of the quoted fee on the payment page of the website;

(4) supply background and context by email, copies of relevant documents, and a list of any questions you have.

Summary of Facts of the Client’s Situation. We ask for a concise summary. What is your case about, briefly? Who is involved? Where do events occur? In Texas? Which city or county? When? What is the timeline? Why are you seeking legal assistance? If you are a real estate investor or business person, what is your business model? What type of transactions do you do? What is your entity structure? Your plans for the future? Note that the time it takes for the attorney to read client messages and background documents is included in the hour allotted to the consultation.

Initial Email Exchange. Our goal is to first gain a basic understanding of the facts of the case (and documentation) before answering questions. We always begin with an email exchange/discussion so we can gather basic facts and documents. Q & A follows.

Optional Phone Call. An optional call is available so long as time remains within the allotted hour. We do not jump straight to a phone call without first gathering basic facts and documents.

Our Response Time. No scheduling or fixed appointment time is required to begin the process. We respond promptly although this can vary somewhat due to our backlog and the complexity of your inquiry. We try to be flexible and ask that you be flexible as well.

Automatic Conclusion. The consultation (document analysis, email exchange and optional call) automatically concludes (without notice or consent) after 1 hour or 3 business days of payment whichever occurs first.

Reasonable Scope of Work. The quantity and scope of the client’s inquiry must be such that it can reasonably and realistically be addressed within a one-hour time frame for a consultation. This is common sense. The consultation hour should include time for the attorney to: (1) read and analyze your documentation (this is part of the allotted time); (2) answer your questions; and (3) give legal advice as to your best course of action. We may decline to proceed with a consultation that is so large in scope or so document-heavy that it cannot possibly be addressed in a one-hour timeframe.

Complex or Document-Heavy Cases. It is important to be realistic and reasonable about the quantity and scope of material that will be discussed in the introductory hour. Not every legal problem can be analyzed and solved in a one-hour consultation. In fact, few can. In complex cases, we may decline to proceed with an introductory consult and instead: (1) ask the client to please narrow the scope of the inquiry so the consultation can reasonably fit within an hour; (2) offer to proceed at our $450 hourly rate with a one-hour minimum; or (3) issue a refund, but only so long as the legal advisory process has not yet begun.

DOCUMENT TRANSMISSION

Supporting Documents. Please provide legible and relevant copies of supporting documents in easily downloadable form Note that the time it takes for us to read and analyze your supporting documents is included in the time allotted to your consultation.

Email Attachments. Email attachments should be in pdf, Word, WordPerfect, Excel, or other common software. Please do not send documents in the physical mail. Avoid Dropbox or any method that requires us to get a password and enter a third-party site in order to gain access to your documents. Do NOT apply any form of encryption. If we have to spend 20 minutes figuring out how to open an encrypted file or gain access to a third-party site, that time will be docked against your allotted hour.

Transmission of Documents. Please scan/email in the usual manner, each as a single document and a separate attachment, and NOT as multiple individual pages or separate jpegs. This makes the project difficult for us, and the extra time is docked against your allotted hour. Alternatively, you may fax us at (832) 201-5321.

Avoid JPEG. JPEG may be suitable for photos but is not used for legal documents. We require that supporting documents be legible and easy to read.

Data Dumps. Send us only the information or documentation that we request. Dozens or hundreds of extra and unnecessary pages make your file much more cumbersome and time-consuming for us to download, read, and manage. We rely on you to screen out irrelevant material. The time it takes to sort through large data dumps of irrelevant material is docked against your allotted hour.

Client Support after Consultation. We are occasionally asked if we offer ongoing support to clients after a consultation. This concept has been compared to tech support. Giving ongoing legal advice is part of our core business and fees apply. Ongoing support involves additional attorney time and is not free.

2. CONSULTATION FEES

Introductory Consultation Fees. Introductory consult fees (discounted from our usual $450 hourly rate) are available at our discretion to new clients only, for the first hour only, and is limited to individuals only (not corporations or LLCs). Time past the first intro hour is billed at the hourly rate and will require an advance deposit. The introductory consult fee is NOT available to existing or returning clients.

Advance Payment is Required. We do not bill after the fact for initial consultations. Payment options are located on the payment page of the website. Checks are not accepted.

Acceptance of the Consultation. Please do not make payment until we have clearly confirmed that we are able to provide a consultation on your case. This may already be self-evident based on our preliminary communications. If in doubt, inquire. Providing an initial consultation does not obligate our firm to continue handling the matter going forward.

Fees for Initial General Consultations. Fees are $250 for matters up to $1M; $350 for matters from $1M to $1.5M; and $450 (which is our usual hourly rate) for matters involving more than $1.5M. The initial consultation fee is a flat fee for the hour and is not subject to partial-hour accounting or partial-hour refunds.

Fees for Real Estate Contract Review. A review/comment consultation is available for earnest money contracts so long as they are unsigned and already completed on a TREC or TXR form (custom contracts excluded). Fees are $250 for a sales price of up to $1M; $350 for contracts from $1M to $1.5M; and $450 (our usual hourly rate) over that.

Time to Review Documents. The time the attorney spends reading your documents is included in the allotted hour. Realistically, one hour may not be sufficient to analyze and discuss every document. Note that our review of documents and then providing written comments may use up most if not all of the allotted hour. If the contract is complex, or extensive questions are anticipated, extension time may need to be booked at the hourly rate.

Higher-Dollar Transactions. For reasons of complexity and professional liability, one should expect that legal fees will increase as monetary amounts involved increase. Our fee schedule reflects this.

Refunds. Nearly all of our fees are non-refundable flat fees. However, if it is determined very early in the process (before substantial attorney time is expended) that your legal matter is not within our area of practice, we will promptly provide a full refund by means of: (1) an immediate Paypal refund or (2) a law firm check sent by U.S. Mail. However, there is no refund once the attorney expends time and effort examining a file and discussing it with the client. Reading client documents and answering questions consumes time. Once this occurs, a consultation has occurred (value has been provided to the client), and payment for the consultation is non-refundable.

Unfavorable Legal Advice. There is no refund if the legal advice we provide is unfavorable to the client or we (at our discretion) decline to handle the case after the consultation is completed. A consultation is not an advance commitment on our part to handle the case going forward.

Consultations Not Credited to Future Services. Consultations are stand-alone value-added services. Attorney time has been expended and benefit has been provided to the client, so fees paid have been fully earned. Accordingly, consult fees are not applied as credits toward future legal services.

3. LIMITATIONS ON THE CONSULTATION

No Review of DIY, Internet, or Junk Documents. We offer review/comment on documents (including TREC and TXR real estate contracts so long as they are unsigned and filled in) or on legal documents that have been prepared a lawyer or real estate broker. We do not review homegrown documents, forms from the Internet, or real estate guru seminar junk. These cannot be fixed by a “review.” To meet professional legal standards, they must be replaced, thus fees will be higher than for an intro consultation.

Complex or Document-Heavy Matters. These types of cases are usually unsuitable for an introductory one-hour consult. They cannot reasonably be handled in that format. Legal advice and services for complex cases will, at our discretion, incur our usual $450 hourly rate from the outset.

Real Estate Contracts That are Already Signed. The contract controls the transaction, the rights and remedies of the parties, any special requirements, the conditions of closing, and the content of the closing documents. If the contract is already signed, the opportunity to affect these issues or to add beneficial provisions has likely been lost. Accordingly, if we review such a contract, our comments are (by necessity) limited to explaining what the client has already signed rather than focusing on changes or negotiating points. We may decline to offer a consultation or other service in cases where the contract is already signed.

Review/Comment Versus a Total Re-Write. The flat-fee review and comment process offers only that: review and comment. An introductory consultation fee is not a flat fee for the total re-write of a legal document. If a document is so flawed, deficient, or incomplete that it must be re-written or replaced, then clearly more than one hour of attorney time will be involved. In so doing, we move out of the review/comment category and into the category of creating a custom document, which can be expected to incur higher fees (probably hourly at our discretion).

Limited Liability in Real Estate Consultations. In the case of limited services (e.g., a consultation that does not include full representation in the entire transaction) the client agrees that our law firm shall have NO professional liability whatsoever for portions of the transaction not handled or advised upon by us. We do not stand behind any part of the transaction that a client handles DIY. We are not liable for a client’s DIY mistakes.

No Texting Please. We do not offer consultations or any other legal services by text. While texting may be suitable for casual communications, texting of sentence fragments and one-liners is not suitable for a nuanced legal case. Please use a keyboard device and take your time.

No Group Consults Please. We do not offer group consultations with multiple persons at different email addresses. Group discussions may work in a law office conference room but they quickly become chaotic and unproductive by email. We work with one client (or married couple) at one email address.

No Consults on Behalf of Third Parties. We occasionally receive inquiries from persons who are asking about the legal situation of another. For liability/confidentiality reasons, our policy is to deal directly with the actual client and not through an intermediary.

No Guarantees. We cannot guarantee that a consultation will offer a remedy for your legal issue, nor can we guarantee that our guidance will be what you want to hear. Occasionally, we have to deliver difficult legal advice. We sometimes have to tell clients that there is no easy remedy. Also, consultations are offered with the understanding that our firm is not obligated to accept or handle the case going forward.

No Other Services Included in Flat Fees. A consultation is a stand-alone value-added legal service rendered for a flat fee. It does not include other services such as document preparation, nor does a document request include a free consultation. All are separate items in a flat-fee system. Multiple diverse topics may not be bundled under one consultation fee.

Our Attorney Also has a Real Estate Broker’s License. Our attorney is a licensed Texas real estate broker. However, this office is primarily a law firm and the advice and services we provide are legal in nature. In consulting with us, we are not acting as your real estate broker. Any brokerage representation by us requires a signed written agreement in advance. Consulting a real estate attorney does NOT substitute for obtaining the broader services of an agent or broker.

Client ID. The requirement of government-issued photo ID is now common at law firms, medical offices, and other professional firms everywhere. Fraud is rampant. We do not work with anyone who declines to provide ID.
Business Hours, Weekends, and Holidays. We take business hours seriously. We are not Amazon. Traditional business hours apply (Monday through Friday, 8-5 CST) subject to our posted vacation schedule. By special request, it is possible that certain services may be available during off hours for an additional fee of 20%.

After-Hours Emails. After-hours, weekend, and holiday communications are discouraged and we have absolutely no obligation to respond to same during off hours. Such emails are viewed by us as being received on the next regular traditional business day.

Terms of Service. All of our firm’s terms of service (transparently posted on the website) apply without exception to all persons receiving legal services from this firm.

4. FLAT-FEE POLICIES

Flat Fees. As an accommodation to clients, many documents are individually priced in the form of flat fees. A flat-system itemizes legal services into different, separately billable events. In a flat-fee system, payment of a single fee does not “include” any other services. Multiple diverse tasks incur separate flat fees.

Fees Quoted Refer to Online Services. Fees quoted herein are for services provided online, supplemented if necessary by phone and fax. To the extent that in-office fees may be available, they can be expected to incur significantly higher fees than the corresponding online fee.

Fee Quotes Are Estimates. Flat-fee quotes are estimates only until we have complete information about the case or transaction. In other words, a flat-fee system works only if tasks and fees are transparent and there is mutual agreement as to the nature and scope of the legal service to be performed. The consultation process is not a game of “gotcha.” Rules of reasonableness and good faith apply.

Flat Fees in Specific Cases May Occasionally Vary from Posted Fees. We reserve the right to adjust fee quotes to suit the specific circumstances of an individual client or case. Although we sincerely strive for certainty and transparency in setting our flat fees, they may be subject to some variability, at our discretion, since no two clients or cases are ever alike. Reasonableness and situational appropriateness apply.

Changed Circumstances. Circumstances may change after our initial quote and thus a higher fee will, at our discretion, be quoted. Example: an attorney unexpectedly appears representing the other side in a transaction. This event will substantially increase the quantity of legal work significantly beyond what was anticipated. A higher fee quote will be appropriate as a result.

Flat-Fee quotes are Good for 3 Business Days. Then then automatically expire without necessity for notice to anyone. This includes statements sent as estimates for legal services. After the three-day period, quoted fees may change.

Accounting for Flat Fees. No hourly accounting is ever kept or made in flat-fee matters and the client has no right to demand one.

Costs in a Flat-Fee System. Flat fees are always quoted as “plus costs.” Costs include clerk’s filing fees, the cost of an LLC company book ordered from the printer, etc. For example, document preparation does not “include” the task of recording a document and paying recording fees. Costs such as recording and filing fees are always in addition to a quoted flat fee.

No Shoehorning. “Shoehorning” (slipping in additional items on top of a flat fee) is not allowed.

Switching from Flat Fees to Hourly Billing. In some cases, as a case develops, it may become apparent that hourly billing is more appropriate than a flat fee, and a switch from one to the other will be warranted. After discussions with the client, we may request such a switch. This firm will not be held to a flat fee if the volume or scope of work substantially or unexpectedly exceeds what was reasonably anticipated or what is ordinary and customary for the task. This is part of our overall reasonableness policy. If the client does not agree to switch to hourly billing, we may choose to end our employment on terms which this firm, in our sole discretion, deems equitable.

Means of Payment. Payment options (including Visa, Paypal, direct deposit, and wire) are as listed on the payment page of the website. We reserve the right to determine which manner of payment is acceptable and which is not in any given case. Neither personal nor business checks are accepted because of the epidemic of bad checks. E-checks are not accepted because of the time (3 to 5 days) required for them to clear. Chase Quick Pay is not accepted. Pre-paid legal insurance plans are not accepted.

No Contingency Fees. We do not accept contingency cases in any form. Flat fees are due regardless of the outcome of the legal matter. There is no refund if the outcome is not to the client’s liking.

Refunds. We reserve the right to terminate our representation at any time if we consider it appropriate to do so and, if equitable, issue a refund in an appropriate amount. If time and effort have been expended, a consultation fee (at minimum) will be deducted from the amount refunded. Refund is exclusively by law firm check mailed by first-class U.S. Mail to a domestic (i.e., United States) address.

Expiration of Flat Fees. Payment of a flat fee does not result in this law firm being obligated to deliver services indefinitely into the future. For example, online consultations automatically end after three business days; documents we provide are also automatically considered final three business days after delivery to the client. All payments, retainers, overpayments, or credits to a client´s account must be used within six months or they automatically expire in their entirety, without exception and without exception.

Fees and Retainers are Not Held in Trust or Escrow. All fee and retainer payments belong to the attorney immediately upon payment, without condition or exception. There is no requirement whatsoever that such funds be held “in trust” or “in escrow” or deposited in a separate or segregated account for any purpose or for any period of time. There is no requirement that interest on such funds be paid to the client.

Hourly Billing as an Alternative to Flat Fees. Our hourly rate is $450 with a one-hour minimum. Business Hours, Weekends, and Holidays. We take business hours seriously. We are not Amazon. Traditional business hours apply (Monday through Friday, 8-5 CST) subject to our posted vacation schedule. By special request, it is possible that certain services may be available during off hours for an additional fee of 20%.

After-Hours Emails. After-hours, weekend, and holiday communications are discouraged and we have absolutely no obligation to respond to same during off hours. Such emails are viewed by us as being received on the next regular traditional business day.

Terms of Service. All of our firm’s terms of service (transparently posted on the website) apply without exception to all persons receiving legal services from this firm.

5. DOCUMENT PREPARATION GENERALLY

Initial Consultation or Deposit May be Required. At our discretion, we may require a paid consultation or a deposit before commencing any document preparation work. The time it takes for a lawyer to understand and evaluate a client’s situation can be substantial and is not free.

Document Orders Do Not Include a Free Consultation. A document order does not also include a consultation on how to use the document in a particular transaction. In a flat-fee system, a document order and a consultation are separate items. Note that if billing is on an hourly basis, or there is a retainer in place, then this is likely not an issue.

Document Preparation for New Clients is Handled Exclusively Online. All real estate documents are now efficiently handled online, not in the office. Documents are delivered by email in pdf format. Note please that a document order does not also include a consultation on the transaction. In a flat-fee system, a document order and a consultation are separate items.

Document Preparation Fees are Not a Long-Term Retainer. Legal advice over time is called a retainer. That is an extra level of service which is available but is not included in a document preparation fee.

Document Preparation is Not Full Representation. Document preparation is a limited, closed-end service that does not include ongoing legal advice and counsel. Engaging us to prepare a document is NOT the same as retaining us to represent you in a transaction.

Document Preparation Excludes Negotiations. A flat fee for a contract or addendum preparation is a one-time stand-alone item in a flat-fee system. It does not include negotiations, future revisions of the document, or other ongoing services. These may be handled on an hourly basis.

Documents are Proprietary and Supplied in PDF Format. Deeds are supplied in pdf format only. These are proprietary documents subject to copyright and are licensed (not sold) to the client for single use in a specific transaction. They may not be copied, disseminated, or re-used.

Incorrect Document Orders. An order for document preparation (without an initial consultation) presumes the client knows the correct document that he or she needs. . If you need advice before you can order documents, then you should begin the process with a paid consultation. If we invest time and work, and it turns out that the document you ordered was not the correct solution for the situation, and a refund is requested, then an appropriate fee for our time and efforts (not less than a consult fee) will be deducted from any fees paid. In other words, we do not bear responsibility or loss because a client ordered the wrong document.

Documents Containing a Description of Real Property. It is the client’s responsibility to provide us with a clear and legible legal description (lot and block or metes and bounds) in connection with preparation of real estate documents. The client may have to enlarge or darken their copy, re-transmit to us, obtain a clearer copy from the clerk’s office or title company, or take whatever other steps are necessary for us to have an accurate and legible description to work from. At times, it may even be necessary to obtain a new survey of the property.

Client Review of Documents. We may send drafts of documents to the client to review. It is the client´s responsibility to read these drafts carefully and promptly (within three business days) make us aware of specific changes or corrections that need to be made. Documents are automatically considered final after that time. This is necessary in order to assure an endpoint to the document preparation process. A file does not remain open indefinitely. A flat fee for document preparation is not a lifetime retainer for an indefinite number of changes forever. Requesting changes weeks, months, or years later (yes, this happens) will incur additional charges.

Major Rewrites by the Client. Our documents are appropriately customized but nonetheless follow a certain pattern and format. This is true in all law firms. Our format is taken into account in our flat-fee pricing. If the client desires a significant rewrite of a document that departs from our usual format, or requires alterations that amount to more than a few minor changes, then a significantly higher custom document preparation fee would apply. Alternatively, we may offer a switch to our hourly billing rate. Custom drafting services are available but not at a flat-fee.

Document Preparation Fees are Not Contingent on Closing. Payment must be received prior to preparation and delivery of real estate documents. Payment of fees is not contingent upon a successful closing. Our office does not take that risk. There is no refund if a transaction does not close. Our fees always exclude recording of documents with the local county clerk.

Review/Comment on Documents is Not a Total Re-Write. The flat-fee review and comment process offers only that: review and comment. It is not a flat fee for a total re-write. If a document is so flawed, deficient, or incomplete that it must be re-written or replaced, then clearly more than one hour of attorney time will be involved. In so doing, we move out of the review/comment category and into the category of creating a custom document, which can be expected to incur higher fees, probably hourly at our discretion.

Business Hours, Weekends, and Holidays. We take business hours seriously. We are not Amazon. Traditional business hours apply (Monday through Friday, 8-5 CST) subject to our posted vacation schedule. By special request, it is possible that certain services may be available during off hours for an additional fee of 20%.

After-Hours Emails. After-hours, weekend, and holiday communications are discouraged and we have absolutely no obligation to respond to same during off hours. Such emails are viewed by us as being received on the next regular traditional business day.

Terms of Service. All of our firm’s terms of service (transparently posted on the website) apply without exception to all persons receiving legal services from this firm.

6. OPTIONS FOR REAL ESTATE REPRESENTATION

Consultation May be Required. Until we have the opportunity to thoroughly understand and evaluate a real estate transaction by means of a paid consultation, and expressly accept the representation, we may decline to become involved on any basis other than our $450 hourly rate. At our discretion, we may require an initial consultation (and payment of a non-refundable consult fee) before committing to any legal service.

Client Expectations. Clients vary widely when it comes to the type and scope of legal services being sought in a real estate transaction. Is the client seeking review/comment on a contract and nothing more? Or comprehensive representation in the entire transaction? Every client and every transaction is different.

Available Representation Options. We offer several options and approaches to real estate representation. Quotes are given on a custom basis and may require an initial paid consultation before we can provide one.

Review/Comment on a TREC Contract or other document. Fees begin at $250.

Contract Preparation. Fees begin at $350.

Special Provisions Addendum to the TREC or TAR contract with custom provisions.. Begins at $350 (general template available for $250).

Closing Document Preparation (e.g., the warranty deed, the note, and deed of trust).

Representation in the entire transaction. Custom quote available after consultation.

Hourly Rate ($450 per hour), two-hour non-refundable minimum to commence.

Initial General Consultation. This is the best way to discuss an overview of a real estate transaction and to plan strategy and documentation. We may require that the process commence with a paid consultation in order to discuss the transaction before a quote for further legal services can be given.

Lawyers are Not Brokers. Consulting a real estate attorney is NOT a substitute for engaging the services of a licensed real estate agent or broker.

Residential Transactions Only. Any fees quoted in this section relate to residential transactions only. Commercial transactions are entirely case-by-case, so an initial consultation is required.

Representing “Both Sides.” We can only advise one side in a real estate transaction. Our office must be designated as representing either buyer or seller. The other party must be advised to seek its own legal counsel.

Hiring a Lawyer instead of a Broker. There is a new idea that hiring a real estate attorney instead of a real estate broker is a way to get the same services by paying only a low flat fee instead of a brokerage commission. This is false for at least two reasons: (1) legal and brokerage services are not the same; and (2) if many hours of hard work need to be done then someone must be paid for that time, whether that person is a broker or a lawyer. There is no free lunch in life or business. Hiring a lawyer is NOT a way to obtain full brokerage services without paying a real estate commission. One cannot get these same services by paying a low flat fee to a real estate lawyer.

Our Attorney Also has a Real Estate Broker’s License. Our attorney is a licensed Texas real estate broker. However, this office is primarily a law firm and the services we provide are legal in nature. Any brokerage representation by us requires a signed written agreement in advance. We entirely disclaim any suggestion that our attorney is acting as a real estate broker for anyone unless that person has a signed written agreement with us to that effect.

Information on Brokerage Services (IABS). TREC rules require us to direct you to TREC’s Information about Brokerage Services at https://lonestarlandlaw.com/wp-content/uploads/2020/04/IABS-1-0.pdf.

Brokers’ Commissions. Compensating the buyer’s representative is now an optional and negotiable choice on the part of the seller. A seller is no longer required to pay the buyer’s agent’s commission. It is a matter of agreement and contract between the parties.

Possible Commission Rebate. Because our attorney has a broker’s license, a partial commission rebate (net after taxes) may be available to buyers at closing but only if you use our firm for the entire transaction and you are not already represented by an agent or broker. In such cases, our fee guideline is 1/3 of the total subject to a 1% minimum. A post-closing check is written to the client (net after taxes). The gross commission is assumed to be the customary 3% per side. These are guidelines and may be varied at our discretion. Make no assumptions in this area. We will need to discuss, review, and approve the specifics before committing to any particular arrangement.

7. REAL ESTATE CONTRACTS

Review/Comment Consultation. Review/comment on a specific document is available for unsigned residential TREC and TXR contracts and addenda as well as title commitments, surveys, closing documents, and other items. Our method is to go through the document and make comments and recommendations item-by-item. Note that review/comment on a contract is not full representation in the entire transaction. After one hour of attorney time or after three business days (whichever comes first), the review/comment process automatically concludes and services cease.

Consult Us BEFORE Both Parties Sign the Contract. In Texas, the earnest money contract substantially controls a real estate transaction, the rights and remedies of the parties, special requirements for closing, and the content of closing documents. After the contract has been signed, the opportunity to affect these factors and modify the contract to the client’s advantage may have been lost. We may at our discretion decline to accept cases where the contract has already been signed.

Review/Comment on Contracts Not a Total Re-Write. The flat-fee review and attorney comment process offers exactly that. If a contract is so flawed, deficient, or incomplete that it must be entirely re-written or replaced, then clearly more attorney time will be involved. In so doing, we move out of the review/comment category and into the category of creating a custom contract, which can be expected to incur higher fees.

Legal Provisions Versus Business Terms. Review/comment on a real estate contract is limited to legal terms and not business terms (e.g., sales price) since we do not have knowledge of specific areas, markets, pricing, and prevailing local trends. Consult your agent or broker on these items.

Limited Liability in Real Estate Consultations. In the case of limited services (e.g., a consultation but not full representation in the entire transaction) the client agrees that our law firm shall have NO professional liability whatsoever for portions of the transaction that were not handled or advised upon by us. We do not stand behind any part of the transaction that a client handles DIY.

No Review of DIY, Internet, or Junk Documents. We offer review/comment only on TREC and TXR real estate contracts and addenda so long as they are unsigned and complete. As to other legal documents, review/comment services are available so long as the document was prepared by an attorney or real estate broker.

Existing Homes Only. We do not review new construction contracts. These are usually non-negotiable by the builders except for price and other deal points. Attempting to negotiate legal terms is usually futile. We may, however, be available for a commission rebate arrangement.
Format of Contracts We Prepare. Format of any residential contract we prepare for a client is the TREC 1-4 contract reproduced (keyed in) in Word so that the client can easily modify it if needed. Our version is the same contract (same provisions), just not on the standard printed form. Use of any other format requires prior agreement.

Adding a Special Provisions Addendum. Standard contracts, whether TREC or TAR, are good contracts but are very limited in the way they can be customized to the client’s advantage. Adding a custom Special Provisions Addendum can significantly improve the client’s legal position beyond the TREC or TXR form (e.g., “as is” clauses for sellers, property condition disclosure clauses for buyers).

Using a Letter of Intent. If you have not yet reached full agreement on the transaction terms, a non-binding letter of intent (LOI) is a good start. These are more often used in commercial transactions, but they can also be a useful in residential transactions, particularly if a creative approach is being used (e.g., a wraparound, owner finance, subject to, etc.).

Fees are Per Transaction. Unless otherwise expressly agreed in writing, our fees for real estate services are flat fees per property and per transaction (i.e., payment of a single fee does not carry over to cover multiple offers, properties, or transactions into the future).

Limited Liability in Real Estate Matters. In the case of limited services (e.g., a consultation but not full representation in the entire transaction) the client agrees that our law firm shall have NO professional liability whatsoever for portions of the transaction that were not handled or advised upon by us. We do not stand behind any part of the transaction that a client handles DIY. We are not responsible for correcting a client’s DIY mistakes.

Fees for Earnest Money Contract Preparation:

Sales Price up to $600,000 – $550

Sales Price of $601,000 to $1,100,000 – $525

Sales Price of $1,100,000 to $5,000,000 – $750

Special Fees for Special Provisions Addendum Modifying TREC or TAR Contract:

For sales price up to $600,000 – $350; sales price of $601,000 to $1,100,000 – $375; sales price of $1,100,000 to $2,999,999 – $450; sales price of $3,000,000 to $4,999,999 – $525. These fees apply in 90% of cases; however, a very heavily customized or negotiated addendum would be handled at our discretion on an hourly basis ($375, two-hour minimum).

Business Hours, Weekends, and Holidays.We take business hours seriously. We are not Amazon. Traditional business hours apply (Monday through Friday, 8-5 CST) subject to our posted vacation schedule. By special request, it is possible that certain services may be available during off hours for an additional fee of 20%.

After-Hours Emails. After-hours, weekend, and holiday emails are discouraged and we have absolutely no obligation to respond to same during off hours. Such emails are viewed by us as being received on the next regular traditional business day.

Terms of Service. All of our firm’s terms of service (transparently posted on the website) apply without exception to all persons receiving legal services from this firm.

8. LEGAL VERSUS BROKERAGE SERVICES

Are you represented by an agent or broker? In advising on a real estate transaction, we assume the client has secured or will secure the services of a qualified real estate agent or broker who will be performing the usual duties of preparing, submitting, and negotiating offers and counter-offers; engaging in back-and-forth with the other party; arranging for the structural and mechanical inspections, the appraisal, environmental testing, the survey, and other specialized third-party services; assisting with loan application and qualification questions; and so forth. The functions and services of brokers and agents are NOT included in our legal services unless specifically provided otherwise in advance by means of a signed written agreement.

A Lawyer Does NOT Replace a Realtor. Although this law firm offers real estate contract and document-related legal services, it is important to understand that we do not substitute for a real estate agent or broker and all the various services and ongoing support that these persons typically provide. Requesting a contract review from a lawyer does NOT substitute for the broader services of a real estate agent or broker.

Hiring a Lawyer instead of a Broker. There is a new idea that hiring a real estate attorney instead of a real estate broker is a way to get the same services by paying only a low flat fee instead of a brokerage commission. This is false for at least two reasons: (1) legal and brokerage services are not the same; and (2) if many hours of hard work need to be done then someone must be paid for that time, whether that person is a broker or a lawyer. There is no free lunch in life or business. Hiring a lawyer is NOT a way to obtain full brokerage services without paying a real estate commission. One cannot get these same services by paying a low flat fee to a real estate lawyer.

Our Attorney Also has a Real Estate Broker’s License. Our attorney is a licensed Texas real estate broker. However, this office is primarily a law firm and the services we provide are legal in nature. Any brokerage representation by us requires a signed written agreement in advance. We entirely disclaim any suggestion that our attorney is acting as a real estate broker for anyone unless that person has a signed written agreement with us to that effect.

Information on Brokerage Services (IABS). TREC rules require us to direct you to TREC’s Information about Brokerage Services at https://lonestarlandlaw.com/wp-content/uploads/2020/04/IABS-1-0.pdf.

Brokers’ Commissions. Compensating the buyer’s representative is now an optional and negotiable choice on the part of the seller. A seller is no longer required to pay the buyer’s agent’s commission. It is a matter of agreement and contract between the parties.

Possible Commission Rebate. Because our attorney has a broker’s license, a partial commission rebate (net after taxes) may be available to buyers at closing but only if you use our firm for the entire transaction and you are not already represented by an agent or broker. In such cases, our fee guideline is 1/3 of the total subject to a 1% minimum. A post-closing check is written to the client (net after taxes). The gross commission is assumed to be the customary 3% per side. These are guidelines and may be varied at our discretion. Make no assumptions in this area. We will need to discuss, review, and approve the specifics before committing to any particular arrangement.

9. RETAINERS

This Explanation Covers:

Hourly Retainers
Retainers in General Legal Matters
Retainers in Real Estate Transactions
Attorney Letter Retainers
Additional Retainer Policies

What is a retainer? Although most of our fees fall into the category of flat fees per item, individual flat fees per service are not suitable for every situation or every client, particularly those with more complex legal issues anticipated to persist over a period of weeks or months. Retainers are intended to be a longer-term option.

Retainers Distinguished from Consultation Fees. Consultations and document preparation tasks are designed to be short-term. Legal services begin and promptly end in such matters. By contrast, retainers are intended to be a longer-term option.

When in a retainer appropriate? Retainers are appropriate in: (1) complicated transactions, entity structuring, business disputes, or other situations where it may be difficult to establish exact fees and costs in advance; (2) where the need for legal services is anticipated to extend significantly beyond the time allotted for a consultation; (3) when a client wishes to have us available as their law firm – if, as, and when needed.

Consultation May Be Required. At our discretion, an initial paid consultation may be required before a retainer is accepted.

HOURLY RETAINERS

Hourly Billing. In hourly billing, the client agrees to pay for the accrued time it takes a qualified lawyer to do what the client has asked him to do. Our hourly rate is $450. There is no partial-hour accounting for the first hour. The first hour is entirely non-refundable. Billing is in quarter-hour increments thereafter.

Additional Retainer Deposits. Additional retainer installments may be required in advance moving forward since we do not send bills (hourly or otherwise) after the fact. Retainers must be kept current with sufficient money in reserve, the amount at our discretion. Retainer balances may not reach zero unless the matter is concluding. If a client’s retainer balance reaches zero or goes negative, legal services automatically cease.

FLAT-FEE RETAINERS – GENERAL LEGAL MATTERS

Flat-Fee Retainers – General Legal Matters. Guidelines for flat-fee retainers in general legal matters are as follows: 30 days, $2,500; 60 days, $3,500; and 90 days, $5,000. Flat-fee retainers are up-front fees that are paid in advance. Please do not ask us to finance the retainer. After the specified term, the retainer automatically expires and must be renewed (if at all) by express agreement in writing between the parties. There is no automatic renewal. There is no assumed or implied renewal. This section does not apply to retainers in real estate transactions.

Flat-Fee Retainers are Non-Refundable. Flat-fee retainers are paid in advance and are non-refundable. As mentioned above, flat fees that are not subject to hourly accounting. Further, flat-fees are not contingent upon the outcome of a legal matter or transaction (for instance, whether or not a transaction successfully closes). Flat fees are entirely independent of the outcome of the legal matter or transaction. There are no refunds.

FLAT-FEE RETAINERS – REAL ESTATE TRANSACTIONS

Flat-Fee Retainers – Real Estate Transactions. Flat-fee retainers in real estate transactions are limited to 40 days or final closing of the transaction, whichever occurs first. Retainers apply to one property or transaction only and may not be carried over to other transactions. Guidelines for flat-fee retainers in real estate transactions are as follows: sales price up to $1M: $2,500; sales price $1M to $2M: $3,500; sales price over $2M: Inquire.

Legal Services Only – Brokerage Functions Not Included. Our attorney is a licensed Texas real estate broker. However, this office is primarily a law firm and the services we provide are always legal in nature unless otherwise agreed in writing in advance. Retaining this firm for a real estate transaction does NOT include the traditional non-legal functions of a real estate broker. We do not offer full brokerage services at all. We are not available to provide full brokerage services for a low flat fee as a means of not paying a real estate commission. Consulting a real estate attorney is NOT a substitute for engaging the services of a licensed real estate broker.

A Lawyer Does NOT Replace a Realtor. Although this law firm offers real estate contract and document-related legal services, it is important to understand that we do not substitute for a real estate agent or broker and all the various services and ongoing support that these persons typically provide. Requesting advice from a lawyer does NOT substitute for the broader services of a real estate agent or broker.

Real Estate Retainers are Per Transaction. Flat fees quoted are per property and per transaction (i.e., a single retainer does not cover or carry over to multiple offers, properties, or transactions).
Legal Provisions Versus Business Terms. Advice on a real estate matters is limited to legal terms and not business terms (e.g., sales price) since we do not have knowledge of specific areas, markets, pricing, and prevailing local trends. Consult your agent or broker on these items.

Representing “Both Sides.” We can only advise one side in a real estate transaction. Our office must be designated as representing either buyer or seller. The other party must be advised to seek its own legal counsel.

Possible Commission Rebate. Because our attorney has a broker’s license, a partial commission rebate (net after taxes) may be available to buyers at closing but only if you use our firm for the entire transaction and you are not already represented by an agent or broker. In such cases, our fee guideline is 1/3 of the total subject to a 1% minimum. A post-closing check is written to the client (net after taxes). The gross commission is assumed to be the customary 3% per side. These are guidelines and may be varied at our discretion. Make no assumptions in this area. We will need to discuss, review, and approve the specifics before committing to any particular arrangement.

Limited Liability in Real Estate Matters. In the case of limited services in a real estate transaction i.e., something less than full representation in the entire transaction) the client agrees that our law firm shall have NO professional liability whatsoever for portions of the transaction that were not handled or advised upon by us. We do not stand behind any part of the transaction that a client handles DIY or without our assistance.

Our Attorney Also has a Real Estate Broker’s License. Our attorney is a licensed Texas real estate broker. However, this office is primarily a law firm and the services we provide are legal in nature. Any brokerage representation by us requires a signed written agreement in advance. We entirely disclaim any suggestion that our attorney is acting as a real estate broker for anyone unless that person has a signed written agreement with us to that effect.

Information on Brokerage Services (IABS). TREC rules require us to direct you to TREC’s Information about Brokerage Services located on the TREC webpage at https://lonestarlandlaw.com/wp-content/uploads/2020/04/IABS-1-0.pdf.

ATTORNEY-LETTER RETAINERS

Attorney Letter Retainers – Demand Letters or Response Letters. This is a limited sub-category of flat-fee retainer. Usually, the client says that he or she needs a demand letter or a response to such a letter.

“Consulted By” Attorney Letters. For our purposes, these attorney letters fall into two categories. The first is a letter in which the attorney states that he has been consulted by a certain client. This is a limited form of counsel that consists of the one attorney letter and stops there. These retainers usually range from $750 to $2,500. Quote is offered after initial consultation.

“Retained By” Attorney Letters. A second type of attorney letter states that that the attorney has been retained by and represents a certain client. This second type is a greater level of commitment by the attorney since it suggests to the opposing party that representation is ongoing rather than a one-time event. “Retained by” attorney letters usually include a statement of facts, applicable law, the client’s legal position, and may also include a demand for action. These retainers begin at $1,500.

Duration of Attorney-Letter Retainers. Attorney-letter retainers automatically expire after 30 days unless there is an express written agreement to extend legal services on some basis (either additional flat fee or hourly) beyond the 30 days. Legal services automatically cease upon without notice to the client upon the pre-set expiration of a flat-fee retainer.

ADDITIONAL POLICIES ON RETAINERS

Flat-Fee Retainers are Not Subject to Hourly Billing or Accounting. Retainers are stipulated to be current payment for legal services rendered or to be rendered. No exceptions. Flat-fee retainers are NOT subject to hourly billing or accounting. Accordingly, there is no refund of any alleged “unused” portion of a flat-fee retainer. No exceptions.

Flat-Fee Retainers are Earned when Paid. The entire flat-fee retainer is stipulated to be a current non-refundable payment for legal services rendered or to be rendered. Funds belong to the attorney as soon as they are paid and may be immediately deposited directly into this firm’s operating account. No trust account is required to be used. No exceptions. Please do not ask us to finance the retainer.

Retainer Term. Retainers are not open-ended. After the specified retainer term, the retainer automatically expires and must be renewed (if at all) by express agreement in writing between the parties. There is no automatic renewal of a retainer. There is no assumed or implied renewal. At the end of the retainer term, the retainer automatically expires without notice to the client and legal services automatically cease. The term or duration of the retainer is made clear at the outset. Expiration is automatic. No additional notice to the client is required to confirm that a retainer term is about to expire or has expired; nor is client consent required. Renewal of a retainer (if at all) is only by express written agreement and additional payment of fees.

Retainers Do Not Include Litigation. Unless expressly agreed in writing, our retainers do NOT include our participation in any pending or threatened litigation. It is contemplated that the client will have his or her own litigation attorney. Our task is to separately advise on real estate, asset protection, and/or entity-structuring matters during the term of the retainer without being directly involved in pending or threatened litigation. Thus we do not file pleadings, appear at hearings, communicate with opposing counsel, or respond to discovery. All of these functions are among the duties of the client’s litigation attorney. In all matters in which we are advising a client who is in litigation, it is assumed (and required) that the client will have a litigation attorney of record.

Responsiveness to Our Retainer Clients. Although we may be on an active retainer, our obligation to our retainer clients does not extend to after hours, weekends, holidays, or our attorney’s personal vacation time. We take business hours seriously (M-F 8 to 5 CST).

After-Hours Communications. After-hours, weekend, and holiday calls and emails are discouraged and we have absolutely no obligation to respond to same during off hours. Such emails are viewed by us as being received on the next regular traditional business day.

No Guarantees. No guarantees are ever made as to the outcome of any matter on which this firm is retained.
Our Other Terms of Service Also Apply to Retainer Clients. Please read our firm’s complete policies at the Fees & Policies page of our website. All of these terms of service apply without exception to all clients. By proceeding with a retainer arrangement you agree to all of our fees and policies.

Our Other Terms of Service Also Apply to Retainer Clients. Please read our firm’s complete policies at the Fees & Policies page of our website. All of these terms of service apply without exception to all clients. By proceeding with a retainer arrangement you agree to all of our fees and policies.

10. DEEDS, NOTES, AND DEEDS OF TRUST (RESIDENTIAL)

Skipping the Initial Consultation. A client can do this and go straight to ordering docume                   nts, but there may be adverse consequences. We do NOT assume the risk of having to re-do documentation because the client mis-diagnosed the situation and ordered the wrong document. Additional fees will be required for a re-do. For this reason, an initial consultation is recommended.

Deed Preparation. We will need a copy of the existing warranty deed to the property. Alternatively, if you have a copy of a recent title commitment, we can work from that instead. Please do not mail us your original documents. We will also need the full street address of the property. If we are preparing multiple deeds, we ask that you write the full street address of the property at the top of the deed that you are sending. This enables us to match the property with the deed copy you send.

LLC as Buyer or Seller of Property. If an LLC is seller or buyer (grantor or grantee) we will need a copy of the Secretary of State’s approval document for the LLC (the Certificate of Filing).

Recording Excluded. Fees quoted always exclude recording of documents with the county clerk and any other costs or actions that may be required. (In a flat fee system, each item and action is separate.) Our clients generally record their own documents since they have the original in hand, and only originals can be recorded.

If We Agree to Record. Nearly all clients record the original document in their home county. In unusual circumstances, if we agree to record documents, add $100 for handling plus the amount of the recording fee, since the signed and notarized original must be sent back to us for filing, then it is sent to the clerk, then back to us, then forwarded to the client – all of which is a cumbersome and time-consuming process.

Keying in Metes and Bounds. If there is a metes and bounds legal description (rather than the usual lot and block) that needs to be re-keyed by us, an additional fee of $75 per document applies. However, we must reserve some flexibility on this since some custom descriptions are extremely lengthy and will incur a higher fee. Inquire if you have one of those.

We Represent One Side Only. We are often asked to “represent both sides” in preparing documents. This is impossible in our professional opinion, and we don’t do it. In a real estate transaction (or any other matter), our advice and documents are designed to favor our client specifically. If the other side needs legal advice, they should engage their own counsel. We will give them no legal advice whatsoever.

Legal Descriptions of Real Property. It is the client’s responsibility to provide us with a clear and legible legal description (lot and block or metes and bounds) in connection with preparation of real estate documents. The client may have to enlarge or darken their copy, re-transmit to us, obtain a clearer copy from the clerk’s office or title company, or take whatever other steps are necessary for us to have an accurate and legible description to work from. At times, it may even be necessary to obtain a new survey of the property.

Add-On Fees. Add $25 if we are named as trustee in any Deed of Trust. Add $75 if metes and bounds (rather than lot and block) must be keyed in by us. “Metes and bounds” descriptions (or survey descriptions) are usually found in an Exhibit A attached to the existing deed. We will need that Exhibit A, if there is one.

Completion and Finality of Documents. Document preparation fees are for document drafting/review/correction only in the immediate time frame. Usually, three business days after delivery of documents to the client, all documents provided are automatically considered final. The document preparation process is time bound. A document preparation fee is not a lifetime retainer for an indefinite number of changes forever, at least not in a flat-fee system. If billing is hourly, this is not usually a concern.

Fees for Deeds:

simpler deeds: $450. Fee drops to $350 for 3 or more at the same time

complex or creative deeds: $550 and up

deed into a traditional LLC or other entity: $450

deed into separate series of a series LLC: $450

deed of homestead into living trust or land trust: $550
transfer on death deed (TODD): $550

deed in lieu of foreclosure (unilateral DIL): $550

deed in lieu of foreclosure (bilateral, including lien release): $650

deed conveying life estate: $550

deed utilizing/referring to power of attorney: $475 (does not include POA)

deed without warranties: $450

wraparound deed (wrapping one note): $550

wraparound deed (wrapping two notes): $575

“subject to” deed (simpler, general clause): $450

“subject to” deed (detailed reference to existing note): $550

divorce special warranty deed: $550. Add deed of trust to secure assumption for a total of $650. Does not include divorce representation.

deed containing survivorship agreement (JTWROS): $550

deed containing community property partition agreement: $550

deed containing a brief JV agreement for investors: $575

deed – correction instrument: $550

deed – cancelation of deed: $450

Note: The above-quoted fees are guidelines. If the legal description is metes and bounds rather than simple lot and block, add $75. Complex circumstances and/or the inclusion of custom or creative provisions also increases the fee.

11. THIRD-PARTY FINANCING DOCUMENTS

Core Documents. Our fees include the three core documents: one Real Estate Lien Note, one General Warranty Deed with Vendor’s Lien, and one first-lien Deed of Trust. An optional stand-alone Loan Agreement is available at an extra charge. Note that all our legal fees are transparently posted at “Fees and Policies” on the website. An itemized statement is available upon request.

Fees for Assumption Documents. For sales price up to 1,000,000 – $750; sales price $1M to $2M – $950; sales price over $2M – inquire. If a title company will be preparing the warranty deed from Seller to Buyer, deduct $200. Very complex transactions may, at our discretion, incur higher fees or may be offered at our $450 hourly rate.

Recording of Documents. Our document preparation fees always exclude recording with the county clerk. Clients (or a title company) usually do the recording of documents in the county clerk’s real property records. Typically only the warranty deed and the deed of trust (not the note) is recorded.

Add-Ons. Add $25 if we are named as trustee in any Deed of Trust. Add $75 if metes and bounds (rather than lot and block) must be keyed in by us. “Metes and bounds” descriptions (or survey descriptions) are usually found in an Exhibit A attached to the existing deed. We will need that Exhibit A, if there is one.

12. ASSUMPTION DOCUMENTS

Read our Article. Read our web article on this subject before proceeding.

Assumption Transactions (Secured). Includes a General Warranty Deed with Vendor’s Lien; a Deed of Trust to Secure Assumption; and an Assumption Agreement (but only if the terms of sale warrant one). For sales price up to $600,000 – $750; sales price $601,000 to 1,000,000 – $850; sales price $1M to $3M – $950; sales price over $3M – inquire. All excluding recording of documents. Add $25 if we are named as trustee in the Deed of Trust.

Recording of Documents. Our document preparation fees always exclude recording with the county clerk. Clients (or a title company) usually do the recording of documents in the county clerk’s real property records. Typically only the warranty deed and the deed of trust (not the note) is recorded.

Add-Ons. Add $25 if we are named as trustee in any Deed of Trust. Add $75 if metes and bounds (rather than lot and block) must be keyed in by us. “Metes and bounds” descriptions (or survey descriptions) are usually found in an Exhibit A attached to the existing deed. We will need that Exhibit A, if there is one.

13. SELLER FINANCING DOCUMENTS

Read our Article. Read our web article on this subject before proceeding.

Owner-Financed Transactions (for paid-for properties). Fees are: for sales price up to $600,000 – $950; sales price $601,000 to 1,000,000 – $1,150; sales price $1M to $3M – $1,550; sales price over $3M – inquire. All excluding recording of documents with the county clerk. Add $25 if we are named as trustee in the Deed of Trust. Add $75 if metes and bounds (rather than lot and block) must be keyed in by us. Includes one Real Estate Lien Note, one General Warranty Deed with Vendor’s Lien, and one first-lien Deed of Trust.

Recording of Documents. Our document preparation fees always exclude recording with the county clerk. Clients (or a title company) usually do the recording of documents in the county clerk’s real property records. Typically only the warranty deed and the deed of trust (not the note) is recorded.

Add-On Fees. Add $25 if we are named as trustee in any Deed of Trust. Add $75 if metes and bounds (rather than lot and block) must be keyed in by us. “Metes and bounds” descriptions (or survey descriptions) are usually found in an Exhibit A attached to the existing deed. We will need that Exhibit A, if there is one.

14. WRAPAROUND TRANSACTIONS

Available Options. We offer custom wrap documents as well as wrap templates for experienced investors. Read our web article on this subject before proceeding.

Explanation of Wraps. In a wraparound transaction, the buyer takes title “subject to” the existing indebtedness on the Property (the “Wrapped Indebtedness”), meaning that the buyer gets a deed but makes no promise to pay the original loan. Under a wraparound arrangement the buyer instead makes payments to the seller on a separate Wraparound Note; the seller in turn makes payments to the existing lender. The buyer does not formally assume the Wrapped Indebtedness. The seller continues to be obligated to pay the Wrapped Indebtedness every month and promises to continue to do so. This wraparound arrangement continues until the maturity date of the Wraparound Note.

Legal Changes to Wraps in 2022. Statutes governing wraparounds (the Finance Code and Property Code) were significantly amended in 2022 and there are more requirements than existed previously. Extensive new requirements make the process much more challenging. This increased government regulation has resulted in a fee increase for wraps.

Letter of Intent: Beginning with a letter of intent is an excellent idea for wraparounds. It is an easy way to make sure you actually have an agreement on the main terms of the wrap. We offer a template for this.

Custom Wraparound Addendum for the TREC Contract. One of the best ways to assure success of your wrap transaction is to use our custom wraparound addendum to the TREC 1-4 contract. Why? Because neither TREC nor TR promulgate a standard contract addendum that is sufficient to do a wrap properly. (There is a Seller Financing Addendum, but this falls far short of describing all wrap provisions.) There are many, many wrap details that the TREC contract and addenda leave out. Our long experience has shown that failure to get early agreement on the specific details of a wrap causes the transaction to fail at closing, with lots of wasted time on everyone’s part.

We Can Represent Only ONE Party. Because the newly-amended wraparound laws (amended in 2022) are different and more complex for buyer and seller, we cannot “represent both sides” in a wrap transaction. Our office must be designated as representing either buyer or seller. The other party must be advised to seek its own legal counsel.

Wrap Negotiations. We prepare wrap documents for either buyer or seller. If we are asked to participate in negotiations about the wrap with the other party then the other party is required to have an attorney. We will not attempt to negotiate complex wraparound documents with a non-attorney. The legal technicalities involved are just too significant.

Wrap Closings. New legal requirements make it necessary to close a wrap either at a title company or a law office.

You Will Need a Title Company. We prepare documents and offer advice only. We do not do in-office closings, so it would likely be necessary to start the process in the traditional way – i.e., with an earnest money contract and opening title with a title company in anticipation of a formal closing. This will require the seller to purchase an owners policy of title insurance for the buyer.

Attorney Closers. Alternatively, one can look for a lawyer who is willing to close a wrap transaction in his or her office. At present, we do not know of one. Many attorneys now decline to handle wraps at all. For a summary of the new law regarding wraparounds, see our current web article on this subject.

Document Preparation Fees are Not Contingent on Closing. Payment must be received prior to preparation and delivery of real estate documents. Payment of fees is not contingent upon a successful closing. Our office does not take that risk. There is no refund if a transaction does not close.

Recording of Documents. Our document preparation fees always exclude recording with the county clerk. Clients (or a title company) usually do the recording of documents in the county clerk’s real property records. Typically only the warranty deed and the deed of trust (not the note) is recorded.
Add-On Fees. Add $25 if we are named as trustee in any Deed of Trust. Add $75 if metes and bounds (rather than lot and block) must be keyed in by us. “Metes and bounds” descriptions (or survey descriptions) are usually found in an Exhibit A attached to the existing deed. We will need that Exhibit A, if there is one.

WRAPAROUND TEMPLATES IN WORD

Wrap Templates. The list of wrap-related templates we offer (excluding the TREC 1-4 contract) is as follows:

1. Wrap Letter of Intent
2. Custom Wrap Addendum to TREC 1-4 Contract
3. 7 Day Notice to Purchaser (Existence of Prior Liens) pursuant to Prop. Code Sec. 5.016 (not applicable where a policy of title insurance will be issued to the purchaser);
4. 7 Day Notice to Lienholder of proposed sale of security property pursuant to Prop. Code Sec. 5.016;
5. 7 Day Notice to the Buyer pursuant to Finance Code Sec. 159.101 as to potential property insurance coverage issues (must be given at least 7 days before closing);
6. General Warranty Deed with Vendor’s Lien (containing specific wrap language)
7. Wraparound Agreement covering miscellaneous details of the wrap;
8. Wraparound Note (new note payable to the seller which is subordinate to the existing wrapped note);
9. Wrap Deed of Trust securing payment of the wraparound note;
10. Wrap Agreement
11. Special Power of Attorney for Borrower to Contact Lender
12. Dodd-Frank Compliance Sheet – Seller’s Compliance with the Ability-to-Pay Rule for the seller’s file;

Fees for Templates. Templates may be purchased for $250 each or $950 for all. Note that some transactions may not involve all the documents on this list. This list does not include the two releases of note and liens that will be required at the end of the wrap note term. (Both the wrap note and the wrapped note must be eventually released in the real property records.)

Customization Required. Although the templates are largely self-guiding, with choices offered between different provisions depending (for example) on whether the client is the buyer or seller, all of our templates require a certain measure of customization. No template can ever anticipate all contingencies.

Templates Require Expertise. Our templates are not simplistic fill-in-the-blank forms. If you do not have at least a basic level of expertise and experience in real estate, business, and word processing, these templates are NOT for you. Request custom documents prepared by an attorney instead.

What Templates Do Not Include. When purchasing a template, you are acquiring a legal template for your own use. Purchasing a template does NOT include a consultation on how to use it. In a flat-fee system, a document order is a separate item from a consultation. Clients can choose either or both. Also, purchase of a template is NOT a retainer for ongoing legal advice or services. You are NOT hiring our attorney to represent you or advise you or negotiate on your behalf. These services are certainly available but not at the low flat-fee cost of a template. Please ask any questions you may have on the scope of legal services before proceeding.

Liability Limitation Regarding Templates. Our firm disclaims any liability whatsoever, and the client unconditionally indemnifies and holds us absolutely harmless, from the final form, content, and/or manner in which these templates are customized by the client and used in any transaction in which we are not actively and directly involved as the client’s attorney.
Templates are Intellectual Property. Purchase of a template involves acquisition of unique and valuable intellectual property. Once it has been transmitted to the client, there is no return and refund. All templates we offer are licensed to the purchaser (only) for unlimited personal use but not intended for publication or dissemination to others, which is absolutely prohibited.

CUSTOM WRAPAROUND DOCUMENTS

Custom Attorney-Prepared Wrap Documentation. We are also available to prepare custom wrap documents. Assuming no complications, legal fees for wrap document preparation are $1,250 if we represent the buyer (no statutory notices provided) and $1,550 if we represent the seller (format of notices are provided by us to be sent by client-seller).

Seven-Day Wrap Notices. As to the 7-day notices, we supply the seller with simple blank templates for the required notices to the buyer and the lender. We do not fill them in. It is up to the seller to fill those templates in and see that they are properly sent or delivered.

Add-On Fees. Add $75 if a metes and bounds legal description (rather than lot and block) must be keyed in by us. Add $250 if a down payment note is also needed.

Document Preparation Only. Fees quoted in the above paragraph are for document preparation only, not full representation in the entire transaction (which is $450 per hour).

Fees for Complex or High-Dollar Wraps. Not all wrap transactions are straightforward. They can get complex and full of special provisions. More customized, complex, or high-dollar wrap transactions are in a different category. They cannot be handled for the flat-fees quoted above. Inquire for a custom quote. In such cases, we may require an initial consultation (rather just accepting an order for wrap docs) so we can ascertain clearly what exactly is going on – and if it is possible to do the transaction the way the client intends.

Multiple Wrapped Notes. If two notes are being wrapped, add $750. For a down payment note, add $350. Note that very complex custom wrap transactions are in a different category. They cannot be handled for the flat-fees quoted above.

Commercial Wraps. The above fees are for residential transactions. For commercial wraps, inquire. An initial consultation is required for commercial wraparounds.

Our Doc Prep Fees are Not Contingent on Closing. Payment must be received prior to preparation and delivery of real estate documents. Payment of fees is not contingent upon a successful closing. In other words, our office does not take that. Fees exclude recording of documents with the local county clerk.

15. “SUBJECT TO” TRANSACTIONS

Read our Article. Read our web article on this subject before proceeding.

“Subject To” Transactions – Custom Document Preparation. Includes review/comment on the client-prepared TREC 1-4 contract plus our custom Sub2 Addendum (necessary to adapt the TREC contract for a Sub2); plus legal closing documents including a Sub2 General Warranty Deed (either with or without a vendor’s lien), a Sub2 Agreement (if needed), and such additional miscellaneous Sub2-specific documents as may be advisable. For sales price up to $600,000 – $950; sales price $601,000 to 1,000,000 – $1,150; sales price $1M to $3M – $1,550; sales price over $3M – inquire. Documents supplied in pdf format. We also offer a Word template package for subject to transactions (see section 14 below).

Recording of Documents. Our document preparation fees always exclude recording with the county clerk. Clients (or a title company) usually do the recording of documents in the county clerk’s real property records. Typically only the warranty deed and the deed of trust (not the note) is recorded.

Add-Ons. Add $25 if we are named as trustee in any Deed of Trust. Add $75 if metes and bounds (rather than lot and block) must be keyed in by us. “Metes and bounds” descriptions (or survey descriptions) are usually found in an Exhibit A attached to the existing deed. We will need that Exhibit A, if there is one.

16. ADDITIONAL REAL ESTATE DOCUMENTS AVAILABLE

Assignments:

assignment of residential earnest money contract: $550 simple, $750 complex

assignment of note and lien: $550 simpler, $750 more complex

assignment of lease: $425 template, $550 custom

assignment of option: $425 template, $550 custom

assignment of trust beneficial interest: $550 simpler, $750 more complex

Releases:

release of note and lien: $450

release of lis pendens: $450

release of judgment lien: $450

Leases, Lease-Options, and Lease-Purchases:

landlord-oriented residential lease: $295 template, $550 custom

modification to lease agreement: $295 template, $550 custom

special provisions addendum to lease agreement: $450

cancellation and termination of lease agreement: $450

lease-option agreement: $575 (subject to limitations – read Lease-Options in Texas)

lease-purchase: $450 template, $750 custom (subject to limitations – read Lease-Purchases in Texas)

Options to Purchase:

option to purchase addendum for attachment to client’s lease: $550

residential option agreement – stand alone, not attached to lease: $650

Creative Closing Documents:

Residential owner financing documents (warranty deed, note, and deed of trust): see Section 13 below (custom docs prepared by us) and Section 14 below (investor templates)

Residential “subject to” documents: see Section 13 below (custom docs prepared by us) and Section 14 below (investor templates)

Residential wraparound documents: see Section 13 below (custom docs prepared by us) and Section 14 below (investor templates)

Land trusts: see section 29 below (custom docs prepared by us) and Section 14 below (investor templates)

Affidavits:

affidavit of heirship: see section 27 below

affidavit of adverse possession: see section 32 below

affidavit – misc. minor affidavits (e.g., homestead, marital status, etc.): $350

Powers of Attorney:

special power of attorney (limited to single asset): $450 simpler, $550 complex

general power of attorney (all assets): $450 simpler, $550 complex

Foreclosures and Evictions:

See below.

Miscellaneous Residential Documents:

company resolution approving loan app or purchase/sale of property: $350

partition agreements dividing community property: $1,250

notice of lis pendens: $450 (presumes a valid lawsuit on file)

boundary agreement: $750 (simpler) to $1,500 (more complex)

17. NON-PURCHASE MONEY LOAN DOCUMENTS

Our fees include one Real Estate Lien Note and one first-lien Deed of Trust. A Loan Agreement is available at an extra charge. Note that all our legal fees are transparently posted at “Fees and Policies” on the website. An itemized statement is available upon request.

For loan amounts up from $600,000 to $999,999 – $550; loan amounts from $1M to $2M – $750; for loan amounts over $3M – inquire. Very complex transactions may, at our discretion, incur higher fees or may be offered at our $450 hourly rate.

Recording of Documents. Our document preparation fees exclude recording with the county clerk. Clients (or a title company) usually do the recording of documents in the county clerk’s real property records. Typically only the deed of trust (not the note) is recorded.

Add-Ons. Add $25 if we are named as trustee in the Deed of Trust. Add $75 if metes and bounds (rather than lot and block) must be keyed in by us.

Keying in Metes and Bounds. If there is a metes and bounds legal description (rather than the usual lot and block) that needs to be re-keyed by us, the usual add-on fee is $75 per document. “Metes and bounds” descriptions (or survey descriptions) are usually found in an Exhibit A attached to the existing deed. We will need that Exhibit A, if there is one.

Scope of Services. Unless we are retained on an hourly basis, our document preparation fees do NOT include negotiations, multiple back-and-forth revisions, or active representation of either party in the transaction unless we have been expressly retained for that purpose. Negotiations are not within the scope of the legal services we are providing. For example, if another of the parties engages an attorney, and there are negotiations about the content of the documents, then fees can be expected increase substantially. In such cases, fees will convert to our $450 hourly rate. This is the nature of a flat-fee system. It includes what it includes and nothing more. If a client’s needs are open-ended, then an hourly arrangement should be chosen instead. Please ask any questions you may have about the scope of our legal services before proceeding.

18. LIVING TRUSTS: HOMESTEAD AND INVESTOR TRUSTS

Initial Consultation Required. In any trust inquiry, an initial consultation is required. Trusts are a complex area. There are many different kinds of trusts and many different purposes for which they are used. A paid consultation is required so we can review your situation and determine the correct approach to your trust. Fees are $250 and are credited toward total fees is you choose to proceed.

Fees for Living Trusts (Non-Anonymity). Fee guidelines for (non-anonymity) living trust agreements are $1,500. Add $450 for the warranty deed into trust (excluding recording with the county clerk). Credit is given for the $250 initial consult. After the consult and upon request, we will provide an itemized statement of fees and costs before proceeding. More trust-related legal fees are shown below.

Attorney as Trustee. For professional liability reasons, we never serve as trustee for our clients’ land trusts or living trusts. Trusts have no liability barrier. If the trust is sued, it is the trustee who is named (personally) as the defendant.

DIY Trust Documents. At our discretion, and for professional liability reasons, we may decline to work with DIY trust documents. Even touching these can get us sued.

TYPES OF TRUSTS

Living Trusts for the Homestead. These are probate-avoiding trusts usually categorized as “revocable inter vivos trusts,” although they can be made irrevocable as well. Living trusts are excellent probate-avoidance device for the homestead, and our firm is a big advocate of these. Note that this type of trust is usually set up as a conventional living trust that does not include anonymity techniques since the homestead is already fully protected in Texas. Living trusts are often prepared in conjunction with a pour-over will. Suggest reading our web article Living Trusts in Texas.

Living Trusts for Non-Homestead Investment Properties (Non-Anonymity). These trusts are also categorized as revocable inter vivos trusts. Living trusts can be used not only for the homestead but for investment properties as well, particularly in conjunction with assignments of beneficial interest.

Testamentary Trusts. Unlike living trusts, testamentary trusts take effect upon death of the trustor/settlor/grantor. The two types of trust are otherwise similar. Testamentary trusts can be prepared for both homestead and non-homestead properties. This is an area where real estate law overlaps with estate planning.

Trust-Related Deeds. Deeds in connection with an anonymity trust have to be prepared carefully. County clerks accept such deeds for filing, but one has to be prepared to cure objections from a future title company. So the process involves a trust agreement and preparation of two warranty deeds to go along with it. One deed is recorded (not showing the name of the trustee) and another deed, which does show the name of the trustee, is held in reserve (a “deed in the drawer” technique) in the event a future title company requires it, which is almost certain.

Trust Used in LLC Formation. It is possible to form a living trust that acts as sole member of a newly-formed LLC, usually as a means to achieve a relative degree of anonymity. This approach requires careful drafting as the trust must be integrated across all core LLC documentation.

Trusts with an LLC as Beneficiary. This is a specialized structure that has pros and cons and is highly dependent on context. Inquire.

Entry Trusts for Investors. This is a specific type if investor trust (not for the homestead) used as a means to convey property to a buyer/end user. The basic process involves three documents: an assignment of earnest money contract, a trust agreement, and a general warranty deed into the trust.

Exit Trusts for Investors. This is a less common type of investor trust, not for the homestead. Inquire.

Other Types of Trusts. There are many types of trusts, as well as variations on the trusts discussed above, and we deal with some but not all of these. Inquire during the initial consultation.

ANONYMITY TRUSTS

Limitations of State and Federal Law. Texas is not Switzerland or the Cayman Islands. There is nothing easy or automatic about achieving anonymity in Texas or any other U.S. state. One cannot simply check a box that says “I want my entity to be anonymous” or “I want to be anonymous in this transaction.” The established system of recording and disclosure in the U.S. pushes back against this.
Layering of Entities. Considerable effort and expense may be involved in achieving even a relative level of anonymity. Note also that anonymity, if desired, must be built into an asset protection structure from the beginning. Anonymity is not an add-on.

One-Step Anonymity Measures are Limited. Our reference to “anonymity” means single-entity, single-layer anonymity unless clearly specified otherwise. However, layering of persons or entities is often advantageous in maximizing anonymity; it is very difficult (if not impossible) to achieve full anonymity in just one step. The high-net-worth international players who use anonymity techniques in offshore jurisdictions work with multiple layers of entities, trust, and trustees. This involves considerable expense (tens of thousands in fees). Unless one is willing to incur this expense, the degree of anonymity achieved will be always be relative and NOT absolute.

Anonymity Trusts are an Advanced Technique with Two Deeds. Trusts utilizing anonymity techniques are most often revocable living trusts that are used in the case of non-homestead investment property in order to conceal the true party in interest behind record title. In the anonymity system our firm uses, an anonymity trust is established to hold title; however, the name of the trustee is not disclosed in the deed which is public record.

Anonymity Techniques in Real Estate Transactions. Many clients request a trust in the hope of achieving anonymity in titling real estate. However, even in the case of trusts, anonymity is not a natural or normal feature of the American legal system, which tends to be focused on disclosure.

Anonymity Trusts for the Homestead. Achieving anonymity with the homestead is always a challenge because, on the one hand, you’re asking the appraisal district to grant you reduced taxation (which they dislike doing and may oppose) and, at the same time, keep your personal name(s) anonymous. The appraisal district may contest this arrangement, arguing that the trust is not a “qualifying trust.” Considerable discussion with them may be required. There are over 240 appraisal districts in Texas and they all have separate policies and separate personnel evaluating documents. Results vary, although our results over time have been generally positive. The point is this: We do what we can with the legal trust tools available, but success in achieving anonymity is never guaranteed to a client. Our current legal system is set up to limit anonymity, not favor it. o

Appraisal District Discussions. Our legal fees are solely for establishing the trust and conveying property into it. They do not include any subsequent discussions or negotiations with any appraisal district or their attorneys.

Fees for Anonymity Trusts. These are a special case. In the case of anonymity trusts, our package includes the trust agreement plus two warranty deeds (one which names the trustee to hold in reserve and one which does not to record). Fees for the living trust agreement and a single warranty deed into trust are as follows:

Anonymity Trust – Property Value up to $999,000 – $1,750

Anonymity Trust – Property Value of $1.5M to $2.9M – $1,050

Anonymity Trust – Property Value of to $3M and up – inquire

Anonymity Trust – Two Deeds Necessary for the Process – $650 excluding recording

TRUST-RELATED DOCUMENTS

Living Trust Agreement for the Homestead

Trust Agreements for Investors

Trust as sole Member/Manager of LLC

Warranty Deeds into Trust

Amendments and Modifications to Trust

Certification of Trust

Terminations of Trust

Assignments of Trust Beneficial Interest

Testamentary Trusts

Pour-Over Last Will and Testament

Fees for Amendments to Trust: Fee guidelines are $550 (simpler) to $950 (more complex) depending on the case, at our discretion. Note that if the original trust agreement is defective, it may need to be entirely replaced rather than merely amended. Initial consultation required with credit given to total fees if the client proceeds.

Assignment of Trust Beneficial Interest: Fee guidelines are $550 (simpler) to $950 (more complex). An initial paid consultation may be required before we agree to begin work on any assignment of this type. Circumstances vary widely. Initial consultation required with credit given to total fees if the client proceeds.

Certification of Trust. Fee guidelines for Certification of Trust (sometimes called a “memorandum of trust”) are $350 (simpler) to $550 (more complex). Note that we cannot guarantee that trusts prepared by others will meet the requirements of the trust certification statute or be satisfactory to a title company. We see lots of trusts prepared by others that are full of flaws. Sometimes an existing trust agreement simply needs to be replaced entirely. We will advise accordingly.

Termination of Trust: Fee guidelines for Certification of Trust (sometimes called a “memorandum of trust”) are $350 (simpler) to $550 (more complex).

Add-on Costs. Deeds of additional properties into trust are at the posted rate. Recording of deeds with the county clerk is not included (Note: trust agreements are not publicly recorded). The client does his or her own recording of the original executed deed with the local county clerk. Recording fees can be expected to be around $30 for a warranty deed, depending on the county.

Trust Templates for Client Use. To the extent these are available, templates begin at $450.

Trust Fees are Guidelines. All of our posted fees are guidelines only, subject to variation due to complexity, at our discretion, since no two legal cases are alike.

Terms of Service. By proceeding you indicate your unconditional agreement with our posted fees and policies.

POUR-OVER WILLS

Pour-Over Will. It is generally a good idea to accompany a living trust with a pour-over will. This type of will “pours” assets over into one’s living trust at death. Fees are $450 (simpler) to $750 (more complex). Very complex wills should be taken to an attorney who is board certified in estate planning or tax.

Witness Requirement. Note that Texas wills require at least two witnesses. A notary be present for proper execution. Clearly, this is not something we are able to provide if we are working together online, so the client would need to make arrangements to have witnesses present at the execution of the will. UPS stores will often do this if you are requesting their notary services.

19. TEMPLATES FOR INVESTORS – MISCELLANEOUS

Certain Expertise Required. These templates are NOT simplistic fill-in-the-blank forms. If you do not have at least a basic level of expertise and experience in real estate, business, and word processing, these templates are NOT for you. Request custom documents prepared by an attorney instead.

Customization Required. Although our templates are largely self-guiding, with choices offered between different provisions depending (for example) on whether the client is the buyer or seller, all of our templates require a certain measure of customization. No template can ever anticipate all contingencies.

What Templates Do Not Include. When purchasing a template, you are acquiring a legal template for your own use. Purchasing a template does NOT include a consultation on how to use it. In a flat-fee system, a document order is a separate item from a consultation. Clients can choose either or both. Also, purchase of a template is NOT a retainer for ongoing legal advice or services. You are NOT hiring our attorney to represent you or advise you or negotiate on your behalf. These services are certainly available but not at the low flat-fee cost of a template. Please ask any questions you may have on the scope of legal services before proceeding.

Liability Limitation. Our firm disclaims any liability whatsoever, and the client unconditionally indemnifies and holds us absolutely harmless, from the final form, content, and/or manner in which these templates are customized by the client and used in any transaction in which we are not actively and directly involved as the client’s attorney.

Intellectual Property. Purchase of a template involves acquisition of unique and valuable intellectual property. Once it has been transmitted to the client, there is no return and refund. All templates we offer are licensed to the purchaser (only) for unlimited personal use but not for publication or dissemination to others, which is absolutely prohibited.

Terms of Service. Our terms of service (https://lonestarlandlaw.com/fees-and-policies) apply to all purchasers of templates. By purchasing a template, the client unconditionally agrees to these terms.

Templates for Use with TREC Residential Earnest Money Contracts:

Special Provisions Addendum for Buyers of residential property: $250

Special Provisions Addendum for Sellers of residential property: $250

Templates for Wholesaling (Assignment) of Earnest Money Contracts:

Letter of intent regarding contract assignment (non-binding)
Wholesaling Addendum to TREC 1-4 Contract (investor-buyer-oriented)
Agreement to Assign Contract (interim agreement, investor-buyer-oriented)
Agreement to Assign Contract (interim agreement, investor-seller-oriented)
Final Sale & Assignment of Contract (investor-buyer-oriented)
Final Sale & Assignment of Contract (investor-seller-oriented)

These wholesaling templates may be purchased for $250 each or all for $950.

Templates for Promissory Notes:

Real Estate Lien Note: $250. Please specify which payment terms will apply (i.e., fully amortizing, balloon, etc.)
Unsecured Promissory Note: $250

Secured Promissory Note (Non-Realty): $250

Assignment of Note and Lien: $250

Templates for “Subject To” Transactions:

Sub2 Addendum to the TREC 1-4 Contract

Sub2 7-Day Notice by Seller to Lienholder (Prop. Code Sec. 5.016)

Sub2 – Power of Attorney Granted to Buyer to Contact Lender

Sub2 Agreement (addressing additional transactional details)

Sub2 Warranty Deed – With Vendor’s Lien in Favor of Seller

Sub2 Warranty Deed – No Vendor’s Lien

These Sub2 templates are available individually for $250 each or $950 for all. Note that templates do not include a free consultation on their use. In a flat-fee system, a document order is a separate item from a consultation. Clients can choose either or both. Also, our templates require a measure of sophistication and knowledge of real estate. They are lawyer-level templates and not just fill-in-the-blank forms. If you do not have a basic level of expertise, custom documents prepared by our attorney are suggested.

Templates for Wraparound Transactions:

Wrap Letter of Intent
Wrap Addendum to TREC Contract – Buyer-Oriented Version
Wrap Addendum to TREC Contract – Neutral Version
Wrap Addendum to TREC Contract – Seller-Oriented Version
7 Day Notice to Lienholder – Pending Title Transfer
7 Day Notice to Purchaser (Existence of Prior Liens)
7 Day Notice to Purchaser (Regarding Property Insurance)
Wraparound Note
General Warranty Deed with Vendor’s Lien
Wraparound Agreement
Wrap Deed of Trust – Borrower-Oriented
Wrap Deed of Trust – Seller-Oriented
Wrap Seller’s Statement of Dodd-Frank Compliance with ATR Rule
Special Power of Attorney to Obtain Payoff Information

These may be purchased for $950 for all or individually for $250 each. Note that these templates apply to the one-time wrapping of a single note. (These are not “double wrap” or “mirror wrap” documents.)

Wraparound Templates Require Knowledge of Real Estate and Business. Wraparounds are complex non-standard transactions subject to extensive legal regulation. They are the most difficult of all residential transactions. If you do not have a significant level of expertise and experience in real estate, these wraparound templates are not for you. We suggest that you request custom documents prepared by our attorney instead. Templates are never a substitute for consulting an attorney.

Templates for Owner-Financed Transactions:

Refers to a “classic” owner finance scenario where the property has no current liens or indebtedness. Owner-financing template package includes one Real Estate Lien Note (first lien), General Warranty Deed with Vendor’s Lien, and Deed of Trust. Also included is a template for a deed in lieu (conveying property back to the seller in the event the buyer defaults): $850 for all. Each of these owner financing templates is available individually for $350 each. Please specify if needing buyer or seller-oriented documents.

Templates for Hard-Money Lending:

Letter of Intent for Hard-Money Loan
Real Estate Lien Note for Hard-Money Lenders
Deed of Trust and Security Agreement
Loan Agreement
Affirmation Document for Signature by Borrower
Joint Venture Agreement

Hard-Money templates are $250 each or $950 for all.

Templates for Warranty Deeds

General Warranty Deed (Subject To): $375
General Warranty Deed (Owner Finance): $375
General Warranty Deed (Wraparound): $375
General Warranty Deed into investors with language creating a joint venture: $550
Correction Deed (“correction instrument” under the statute): $350
Cancelation of Deed: $350
Deed in Lieu of Foreclosure (favors the lender/grantee): $375

Templates for Residential Leasing:

Residential Lease Agreement (Fair and Balanced – in Word): $175

Modification/Amendment to residential lease agreement: $250

Assignment of Residential Lease: $250

Templates for Asset Protection:

Equity Stripping Documents (Secured Line of Credit Note for 1M; Deed of Trust and Security Agreement; Company Resolution; Line of Credit Agreement; Release of Lien). $750

Option Templates for Residential Transactions:

Pure Option to Purchase: $250
Option to Purchase to be Attached to Lease (179 days) $250
Residential Lease Template plus Option to Purchase Template (179 Days): $450

Templates for Trusts:

Entry land trust documents (includes four documents): an assignment of earnest money contract, a trust agreement, a general warranty deed into the trust; and an assignment of beneficial interest to an end user. $950
Certification of Trust: $275
Assignment of Trust Beneficial Interest: $350

Affidavit Templates:

Marital Status Affidavit: $250
Same Name Affidavit: $250
Homestead Affidavit: $250
Adverse Possession Affidavit: $550

Partnerships and Joint Venture Templates

Joint Venture Agreement (for rehab and flip): $550

Templates for Legal Notice & Demand Letters

First required foreclosure letter – Notice of Default & Intent to Accelerate: $350
DTPA 60-day notice and demand letter: $350

Miscellaneous Templates:

Property Management Agreement: $250
Confidentiality & Non-Compete Agreement: $350
Release of Lien(s): $250

20. COMMERCIAL PROPERTY TRANSACTIONS

Review of TREC and TAR Standard Contracts. Flat fees quoted for review/comment on existing contracts apply only to standard TREC, TAR, and/or MLS forms, contracts, and addenda.

Review of Custom (Non-Standard) Contracts. We are occasionally asked to review entirely custom commercial contracts. These vary so widely that it is not feasible for us to do this for the flat fees quoted below. The hourly rate applies.

Already-Signed Contracts. Much of what a real estate lawyer can do for a client is forfeited when the lawyer is not engaged at the beginning of the process, before the contract is signed. This creates problems for the client as well as potential professional liability for the attorney (since the client often expects attorney to fix mistakes made in the contract, even though it is probably too late to do so). So we no longer offer total representation that commences in the middle of a transaction. Only specific, limited review/comment services are available after that.

Scope and Extent of Representation. Clients vary widely in what they want and expect from a lawyer in a real estate transaction. It is important for us to know what a client’s expectations are prior to quoting a fee. Some want only a contract and title commitment review with comments and suggestions (partial representation). Others want more comprehensive representation and counsel through closing – from A to Z – so it is important for an inquirer to specify the level of service being requested. Fees can be expected to increase as the proposed sales price increases.

Full Representation. Full representation from contract through closing is the traditional, classic way to engage a lawyer in a real estate transaction. Full representation is appropriate if one needs ongoing advice or documentation, or comments on multiple drafts of a contract as it goes back and forth; or if the client wishes broader representation vs. the other party or the attorney representing the other party; discussions with the client’s broker or the broker for the other party; explanation or cure of exceptions on the title commitment; and so forth, then the client should definitely request representation in the entire transaction. Full representation is available only if the contract is as yet unsigned.

Limited or Partial Legal Services. An example of this is when we are asked only to provide review/comment on a contract and nothing more. Whenever we are asked to provide less than full representation in the entire transaction, we may at our discretion require that the client sign a Limited Representation and Indemnity Agreement in order to expressly release us from liability for any parts of the transaction in which we are not involved. Under no circumstances will we agree to be responsible for portions of the transaction that the client conducts DIY.

REVIEW/COMMENT ON A COMMERCIAL CONTRACT

What is review/comment? Review/comment by a lawyer on a contract is a systematic number-by-number review and comment on the contents of individual paragraphs in the contract. We may recommend strike-outs, insertions, and deletions at various locations in the contract. We may have comments about the advisability of this clause or that. However, we do not-re-write the contract. Review/comment on a contract or a title commitment (or similar specific and limited service) is a one-time event which concludes after the attorney provides comments and answers to client questions during the allowed time. Such services incur a one-time fee and then conclude. They do not go beyond the specific service or encompass other aspects of the transaction or continue forward in time.

Review/Comment on a Contract Does Not Include Negotiation of the Contract. Review/comment is a specific limited service. It does not include discussions or negotiations with the other party, their broker, or their attorney. Review/comment on the contract is not a broad or open-ended retainer for representation in the transaction generally. Full representation is certainly available, but not at the review/comment fee level.

Exclusions from Review/Comment. An order for review/comment (only) is a limited service and does not include review/comment on the title commitment or review or preparation of closing documents such as the warranty deed. Unless we are retained for the entire transaction, these are separate billable services. Also, in the case of review/comment only, you are not entitled to use our name in the contract as your attorney, since review/comment only does not involve any on-going legal advice or dealings with the other party.

Fees for Commercial Earnest Money Contract Review/Comment

Sales Price up to $600,000 – $595

Sales Price of $601,000 to $1,100,000 – $695

Sales Price of $1,100,000 to $2,999,999 – $995

Sales Price of $3,000,000 to $4,999,999 – $1,495

Sales Price of $5,000,000 or more – Inquire

Standard Forms. For purposes of the above quotes, it is assumed that you have an earnest money contract that is already prepared and ready to present to us for review and comment on a standard TXR or TREC form. Examples include: TXR form No. 1801 (commercial improved property); TAR form no. 1802 (commercial unimproved property); and TREC form no. 9-13 (unimproved property) with addenda.

COMMERCIAL TRANSACTION DOCUMENTS

Consultation Recommended Prior to Ordering Commercial Documents. This is a complex area. We require a paid consultation so we can understand and evaluate your case and determine the correct legal solution.

Fees for Preparation of Commercial Earnest Money Contracts

Sales Price up to $600,000 – $895

Sales Price of $601,000 to $1,100,000 – $1,195

Sales Price of $1,100,000 to $2,999,999 – $1,495

Sales Price of $3,000,000 to $4,999,999 – $1,695

Sales Price of $5,000,000 or more – Inquire

The fees quoted above assume our use of the TXR 1801 or 1802 contract (either the form itself or a word-processed version of it), as appropriate, with a Special Provisions Addendum added to protect the interests of the client.

Special Provisions Addendum to the Contract. A Special Provisions Addendum is an all-around excellent idea as a means of customizing a standard form. Standard contracts, whether TREC or TXR, are good contracts but are limited when it comes to including special clauses and provisions. Adding a Special Provisions Addendum solves this problem. Doing so leaves the standard form intact and clearly shows what custom variations are being contemplated.

Fees for Special Provisions Addendum. Fees (which are in addition to the above review/comment fee) are: for a sales price up to $600,000 – $525; sales price of $601,000 to $1,100,000 – $575; sales price of $1,100,000 to $2,999,999 – $775; sales price of $3,000,000 to $4,999,999 – $975. These fees apply in 90% of cases; however, a very heavily customized or negotiated addendum would be handled on an hourly basis ($375, two-hour minimum).

Review of Custom (Non-Standard) Contracts. We are occasionally asked to review entirely custom contracts, out-of-state forms, investment seminar forms, or documents obtained from the internet in order to determine whether they would be valid in Texas. These vary widely in length and quality. For these custom contracts, it is not possible for us to offer the flat fees quoted below. However, we may be available on an hourly or flat-fee retainer basis for such tasks – inquire. We will need to see the contract you are working with in order to see what we are up against.

Review/Comment is Not a Total Re-Write. A review/comment involves exactly that. If a contract is so flawed, deficient, or incomplete that it must be entirely re-written or replaced, then clearly more attorney time will be involved. In so doing, we move out of the review/comment category and into the category of creating a custom contract, which can be expected to incur higher fees.

Review/Comment on a Contract Does Not Include Negotiation of the Contract. Review/comment is a limited service rendered for a flat fee. It is not a broad or open-ended retainer for any other services in the transaction. It is a service that begins and ends. It is not ongoing representation in the entire transaction.

Legal Provisions vs. Business Terms. Review/comment on a real estate contract is limited to legal terms and not business terms (e.g., sales price) since we do not have knowledge of specific areas, markets, pricing, and prevailing local trends. Consult your agent or broker on these items.

Commercial Title Commitment Review/Comment:

Sales Price up to $600,000 – $395
Sales Price of $601,000 to $1,100,000 – $525
Sales Price of $1,100,000 to $2,999,999 – $750
Sales Price of $3,000,000 to $4,999,999 – $1,250
Sales Price of $5,000,000 or more – Inquire

Commercial Closing Document Review/Comment:

Sales Price up to $600,000 – $595
Sales Price of $601,000 to $1,100,000 – $695
Sales Price of $1,100,000 to $2,999,999 – $995
Sales Price of $3,000,000 to $4,999,999 – $1,495
Sales Price of $5,000,000 or more – Inquire

Representation in the Entire Transaction:

This is the best and most comprehensive option, since it includes all of the various individual services that are itemized above. However, representation in the entire transaction is available only if the earnest money contract has not yet been signed. It is the best option for some clients, Fees are a flat fee based on the sales price and type of transaction.

Please let us know now if you are seeking representation in the entire transaction and we will quote a fee (a non-refundable advance retainer against 1% payable at closing). Inquire. Before quoting, we will need to know if you are the buyer or the seller; whether you are represented by an agent or broker; and the anticipated purchase or sales price. Note that this option assumes that the client is also represented by an agent or broker. We do our best to offer first-rate legal services and documents. However, consulting a real estate attorney, even for the whole transaction, is not a substitute for having the services of a qualified agent or broker who knows the market and offers other services that are not strictly legal in nature. As a law firm, we do not take on any duties customarily associated with agents and brokers.

Fee Guidelines for Representation in the Entire Commercial Transaction

Sales Price up to $600,000 – $895 retainer credited against 1% payable by the seller at closing

Sales Price of $601,000 to $1,100,000 – $1,195 retainer credited against 1% payable by the seller at closing

Sales Price of $1,100,000 to $2,999,999 – $1,495 retainer credited against 1% payable by the seller at closing

Sales Price of $3,000,000 to $4,999,999 – $1,695 retainer credited against 1% payable by the seller at closing

Sales Price of $5,000,000 or more – $1,895 retainer credited against 1% payable by the seller at closing

Total commercial real estate commissions are usually 4% to 6%. Assuming 6%, we may, depending on the case, be available to sign on to the transaction for the usual buyer’s broker’s 3% and then rebate 2% of that amount to client if the transaction closes (net after taxes). Expenses, if any, will be deducted from the client’s portion. Inquire for a specific quote.

Initial retainers listed in this section are due in advance and are non-refundable and non-contingent upon closing. They are, however, credited to any commission we may receive at closing. Only the percentage fees to be paid at closing are contingent upon the outcome.

Documents Available:

Commercial earnest money contracts: for sales price up to $250,000 – $575; $251,000 to $499,999 – $675; $500,000 to $999,999 – $750; $1,000,000 to $3,000,000 – $950; over $3,000,000 – inquire.

Commercial Special Provisions Addendum to earnest money contract: for sales price up to $250,000 – $450; $251,000 to $499,999 – $475; $500,000 to $999,999 – $575; $1,000,000 to $3,000,000 – $750; over $3,000,000 – inquire.

Commercial Special Warranty Deed: $395 (simpler) to $450 (more complex)

Commercial Real Estate Lien Note: for note amount up to $599,000 – $350; $600,000 to $999,999 – $450; $1,000,000 to $3,000,000 – $550; over $3,000,000 – inquire.

Commercial – Modification of Note & Lien (stand-alone): $450 simple, $550 complex; or with replacement note $550 simple, $650 complex

Commercial Deed of Trust & Security Agreement: $395 to $575 (add $50 additional if the attorney is named as trustee or if keying in of metes and bounds is required)

Commercial Assignment of Note & Lien: $375 for valuations up to $600,000; $575 to 1.1M; $950 over 1.1M. Client to supply relevant exhibits.

Commercial Joint Venture and General Partnership Agreements: see “Commercial Business Documents” below

Commercial letters of intent: $375 for valuations up to $600,000; $575 to 1.1M; $775 over 1.1M.

Commercial seller-financing documents (for paid-for properties). Includes one Real Estate Lien Note, one Special Warranty Deed with Vendor’s Lien, and one Deed of Trust & Security Agreement: for sales price up to $600,000 – $950; $601,000 to $999,999 – $1,250; $1,000,000 to $3,000,000 – $1,550; over $3,000,000 – inquire. All excluding filing.

Commercial third-party financing documents: Includes one Real Estate Lien Note, one Special Warranty Deed with Vendor’s Lien, and one Deed of Trust & Security Agreement: for sales price up to $600,000 – $950; $601,000 to $999,999 – $1,250; $1,000,000 to $3,000,000 – $1,550; over $3,000,000 – inquire. All excluding filing.

Commercial wraparound documents (for properties with an existing lien). Includes one Wraparound Note, a Special Warranty Deed with Vendor’s Lien, one Wraparound Deed of Trust & Security Agreement, and a Wraparound Agreement: for sales price up to $600,000 – $1,550; $601,000 to $999,999 – $1,850; $1,000,000 to $3,000,000 – $2,550; over $3,000,000 – inquire. All excluding filing.

Commercial hard-money loan documents: a warranty deed (if a title transfer is involved), one note, one deed of trust, and a hard-money loan agreement: for loan amount or valuation up to $250,000 – $950; $251,000 to 500,000 – $1,150; $501,000 to 1,000,000 – $1,350; $1M to $3M – $1,950, all excluding filing. Add $25 if we are named as trustee in the DOT.

Commercial contract for deed: includes extensive recordable executory contract plus a special warranty deed to be delivered when the contract is paid. For sales price up to $250,000 – $1,250; $251,000 to 500,000 – $1,500; $501,000 to 1,000,000 – $1,750; $1M to $3M – $2,500, all excluding filing. Add $25 if we are named as trustee in the DOT.

Commercial lease newly drawn up (does not include representation in the transaction): $750 – $1,250

Commercial lease modification: $425 (simpler) – $525 (more extensive)

Commercial deed in lieu (unilateral DIL): for property value up to $600,000 – $425; from $601,000 to $999,999 – $550; over 1M – inquire.

Commercial Option Agreement: $525

Commercial Special Power of Attorney: $350 excluding filing

Miscellaneous brief commercial documents (affidavits, certificates, etc.): $325 – $425

Commercial foreclosure: $2,750 in two installments

Guidelines Only. The above fees are guidelines only since law is not an exact science and the services required by individual clients can differ. There may be some variation in fees since no two cases are alike.

Certain Add-Ons. Add $25 if we are named as trustee in a deed of trust. Clients do their own filing. Add $50 handling per document (plus the applicable filing fee) if we are asked to perform the task of filing documents with the county clerk. Note that only original notarized documents can be filed.

Keying in Metes and Bounds. If there is a metes and bounds legal description (rather than the usual lot and block) that needs to be re-keyed by us, the usual add-on fee is $75 per document. However, we must reserve some flexibility on this since some custom descriptions are extremely lengthy and will incur a higher fee. Inquire if you have one of those.

Fees are for Document Preparation Only. Fees for document preparation are for document preparation only and do not include other additional items such as in-office closings, the filing of original documents in the county clerk’s real property records, payment of clerk’s filing fees, ongoing retainer-style advice in a transaction, advice on how to use a particular document, negotiations with opposing parties or their counsel, extensive explanations of the law, or other additional services unless we are specifically retained and paid to perform these additional services. Such services are certainly available, but in a flat-fee system they are not included in stand-alone document preparation fees. There is difference between broader representation in the transaction versus the narrower task of document preparation only, and our quoted fees reflect this. The biggest source of misunderstanding between attorney and client in a real estate transaction occurs when the client pays only for document preparation but then expects full representation in the transaction from the attorney.

No Extras are Included. Document preparation is a limited, closed-end service that does not include ongoing legal counsel or any other “extras.” In other words, a flat-fee for document preparation is not the same as a retainer or an open-ended hourly fee arrangement into the indefinite future. If the matter is open-ended, and it is expressly agreed that the attorney will provide open-ended ongoing services, then an advance retainer or hourly billing is more appropriate than a document preparation fee.

Minimum Retainer for High-Dollar or Complex Transactions. The above quotes are guidelines. Notwithstanding the above flat-fee quotes, in the case of substantial involvement in high-dollar, complex, or non-standard transactions, we may instead offer our services for a flat-fee retainer (usually between $1,500 and $5,000 at our discretion).

Documents are Proprietary and Supplied PDF Format. All documents in this section are supplied in pdf format only. These are proprietary documents subject to copyright and are licensed (not sold) to the client for single use in a specific transaction. They may not be copied, disseminated, or re-used. We do not supply templates in Word unless they are expressly offered as such in section 14.

Recording of Executed Documents. If this office is asked to file documents with the county clerk, add the estimated filing fees plus $50 per document for handling. Note that this necessitates sending the executed and notarized originals back to us. It is usually more efficient for the client to record documents directly with the local county clerk.

21. REAL PROPERTY RECORDING

Recording of Real Estate Documents. We do not usually record real estate documents for clients. The reason is that only originals can be recorded, and the client has the original in hand (we have only an unsigned copy on our end, and copies cannot be recorded).

Execution of Documents. When we email real estate documents to a client, the client should execute the original document before a notary, make copies for all concerned, and then (if the document is intended to be filed) record the original executed and notarized document in the county clerk´s real property records (there is a modest per-page recording fee that varies by county – check their website). Only original documents may be filed.

Client Does the Recording. Unless this office is specifically instructed and paid to handle the filing of documents in the county clerk’s real property records, the prompt filing of original real estate documents is entirely the responsibility of the client. This firm sends real estate documents all over Texas, and it is usually more efficient for the client to do his or her own filing locally, without all the back and forth and related delay, which is the reason for this policy. Note that we assume absolutely no liability for the correct recording (or non-recording) of documents that a client files on a do-it-yourself basis.

If We are Asked to Record Documents. If we are asked to handle filing, the original document(s) will need to be executed before a notary and returned to us (since only originals can be filed with the county clerk). Add $100 to our fees plus the clerk´s filing fee (usually about $28 – $32 for a deed, more for longer documents). We send documents for recording by first-class mail in the usual course of business unless other prior arrangements are made for expedited delivery.

Minor Clerical Errors. We take reasonable precautions to avoid errors and will of course act to correct major errors, defined as errors that have substantive legal effect. However, it is not our policy to re-file documents with clerks or otherwise incur expenses to correct minor clerical errors (e.g., a missing comma or the like) that have no substantive legal effect. “Substantive legal effect” is defined at our sole discretion.

Errors in Document Processing by Clerks. Clerks vary widely in processing time and occasionally make mistakes. These public offices are underfunded and understaffed. We cannot be responsible for delays, omissions, or errors caused by a county clerk, district clerk, or a secretary of state, and we can never be precise as to the time it will take for a document to be processed in a clerk´s office and the original filed or returned.

22. NON-REAL ESTATE BUSINESS DOCUMENTS

Consultation Recommended Prior to Ordering Documents. This is a complex area. Unless you are absolutely certain that a particular type of document is what is needed, and you are absolutely certain of its legality and suitability in the circumstances, a paid consultation is recommended so we can review your case and determine the correct legal solution. If we invest time and work, and it turns out that the document you ordered was not the correct solution for the situation, and a change of documentation or refund is requested, then an appropriate fee for our time and efforts (not less than a consult fee) will apply. In other words, we do not assume the risk of loss if the client makes an incorrect diagnosis or decision about the strategy or document that was needed. Proceeding without an initial consultation has its risks.

Document Preparation for New Clients is Handled Exclusively Online. All of the below-listed commercial document preparation services for new clients are now efficiently handled online, by means of email Q & A, not in the office. Documents are delivered to the client by email in pdf format.

Consultation Not included in Document Request. Note that a document order does not also include a consultation on how to use the document in a particular transaction. In a flat-fee system, a document order and a consultation are separate items. A period of three business days is allowed for Q&A or changes and corrections to any documents we may prepare, after which any documents we may have prepared are automatically considered to be final.

Documents available:

Sale & Assignment of LLC Membership Interest (or Corporate Stock) – Unsecured: $550 for valuations up to $600,000; $750 for valuations from $601,000 to 1.1M; $950 for valuations from $1.1M up to $5M; in excess of $5M, inquire. Client to supply relevant exhibits. Include an agreement protecting proprietary and confidential information, add $250. Include a non-compete agreement, add $250. Add Special Meeting of Members to ratify the transfer, add $250.

Sale & Assignment of LLC Membership Interest (or Corporate Stock) – Secured: $750 for valuations up to $600,000; $950 for valuations from $601,000 to 1.1M; $1,250 for valuations over $1.1M up to $5M; in excess of $5M, inquire. Includes note and security agreement. Include an agreement protecting proprietary and confidential information, add $250. Include a non-compete agreement, add $250. Add Special Meeting of Members to ratify the transfer, add $250.

Purchase and Sale Agreement for transfer of business – unsecured: $1,950 for valuations up to $600,000; $2,550 to 1.1M; $3,550 for up to 5M; in excess of $5M, inquire. Client to supply relevant exhibits and schedules. Additional charges apply for a note and security agreement if the transaction is seller-financed.

Purchase and Sale Agreement for transfer of business – secured: $2,550 for valuations up to $600,000; $2,950 to 1.1M; $3,750 for up to 5M; in excess of $5M, inquire. Client to supply relevant exhibits and schedules. Additional charges apply for a note and security agreement if the transaction is seller-financed.

Joint Venture Agreements and Partnerships: This area is highly variable as to complexity so we retain the flexibility to customize quotes to the specific circumstances. Most of the agreements we prepare range from $1,550 to $2,500. We can provide a specific quote when the client completes the appropriate checklist. The client must supply relevant exhibits and schedules, if any are to be attached. Fees do not include the transfer of property into the joint venture or partnership.

Confidentiality and Non-Compete Agreement: $575
Independent Contractor Agreement: $575
Property Management Agreement: $295
License Agreement: $575
Bill of Sale (cash): $250. Client to supply relevant exhibits.
Entity formation – see below.

A variety of additional custom documents is available. Inquire.

Guidelines only. The above are guidelines. There may be some variation in fees since no two cases are alike.

Fees are for Document Preparation Only. Fees for document preparation are for document preparation only and do not include other additional items such as in-office closings, the filing of original documents in the county clerk’s real property records, payment of clerk’s filing fees, ongoing retainer-style advice in a transaction, advice on how to use a particular document, negotiations with opposing parties or their counsel, extensive explanations of the law, or other additional services unless we are specifically retained and paid to perform these additional services. Such services are certainly available, but in a flat-fee system they are not included in stand-alone document preparation fees. There is difference between broader representation in the transaction versus the narrower task of document preparation only, and our quoted fees reflect this. The biggest source of misunderstanding between attorney and client in a real estate transaction occurs when the client pays only for document preparation but then expects full representation in the transaction from the attorney.

Document preparation is a limited, closed-end service that does not include ongoing legal counsel or any other “extras.” In other words, a flat-fee for document preparation is not the same as a retainer or an open-ended hourly fee arrangement into the indefinite future. If the matter is open-ended, and it is expressly agreed that the attorney will provide open-ended ongoing services, then an advance retainer or hourly billing is more appropriate than a document preparation fee.

Finality of Documents. Document preparation fees are for document drafting/review/correction in the immediate time frame. Three business days after delivery of documents to the client, all documents provided are automatically considered final. A document preparation fee is not a lifetime retainer for an indefinite number of changes forever, at least not in a flat-fee system. Requesting changes weeks, months, or years later (yes, this happens) will incur additional charges.

Documents are Proprietary and Supplied PDF Format. All documents we prepare (excluding a limited number of Word templates) are supplied in pdf format. These are proprietary documents subject to copyright and are licensed (not sold) to the client for single use in a specific transaction. They may not be copied, disseminated, or re-used.

23. LLC FORMATION

Texas and Nevada LLCs. We are available to form both Texas and Nevada limited liability companies, both traditional LLCs and series LLCs. Series limited liability companies are a focus of ours. Many of the new companies we form for investors are series LLCs because of simplicity, economy, and flexibility, as well as the ability to hold assets in separate series. In most cases, traditional LLCs are suitable for use as a management company (to deal directly with the public) or SPE (single purpose entity).

BASIC LLC FEES

• LLC (TX or NV) – Traditional LLC – $1,250 plus $325 ff plus costs
• LLC (TX or NV) – Series LLC – $2,150 plus $325 ff plus costs
  Optional Inclusion of Cert. of Registered Series – $350 plus $300 ff
• LLC (TX or NV) – with Anonymity $3,500 Traditional – $4,500 Series
• Limited Partnership (Texas) – $2,500 to $3,500 plus ff and costs
• “Hub-Sub Structure” (with Anonymity) – $7,995 plus filing fees and costs
• Re-Doc of Existing Traditional LLC
  (Assumes No Amendment Filing Required)

Less than 3 years old – $750 excluding $175 ff plus costs
3 to 5 years old – $850 excluding $175 ff plus costs
More than 5 years old – $950 excluding $175 ff plus costs

• Re-Doc AND Amendment of Traditional LLC
  (Filing Required without Conversion to Series)
  (Example: Conversion to Manager-Managed)

Less than 3 years old – $850 excluding $175 ff plus costs
3 to 5 years old – $950 excluding $175 ff plus costs
More than 5 years old – $1,050 excluding $175 ff plus costs

• Re-Doc AND Amendment Converting
  Traditional LLC to Series LLC

  Less than 3 years old – $2,150 excluding $175 ff plus costs
  3 to 5 years old – $2,250 excluding $175 ff plus costs
  More than 5 years old – $2,350 excluding $175 ff plus costs

• Re-Doc of Existing Series LLC
  (Assumes No Amendment Filing Required)

  Less than 3 years old – $1,450 excluding $175 ff plus costs
  3 to 5 years old – $1,550 excluding $175 ff plus costs
  More than 5 years old – $1,650 excluding $175 ff plus costs

• Re-Doc AND Amendment of Existing Series LLC
  (Amendment Filing Required. Example: Conversion to Manager-Managed)

  Less than 3 years old – $1,550 excluding $175 ff plus costs
  3 to 5 years old – $1,650 excluding $175 ff plus costs
  More than 5 years old  – $1,750 excluding $175 ff plus costs

• Existing Series LLC – Addition of Certificate of Registered
  Series plus New Company Agreement (No COF Amendment
  and No Other Re-Doc) – $1,250 excluding $300 ff

Note: Conversion of an LLC from Member-Managed to Manager-Managed requires the filing of an amendment. Filing a Certificate of Registered Series does not require an amendment to the Certificate of Formation.

List of Miscellaneous Costs and Filing Fees:

Texas Secretary of State Filing Fee – New LLC
(with Expedited Handling) – $325.00

Series LLCs – Certificate of Registered Series – $300.00

Texas Secretary of State Filing Fee – Amendment
to LLC (with Expedited Handling) – 17$5.00

Nevada Secretary of State Filing Fee – New LLC
(includes business license first year) – $425.00

Company Book (red/burgundy hardbound)
Seal, and Membership Certificates – Our Cost – $155.00
(Note: Company book is required)

Upgraded Company Book (leather)
Seal, and Membership Certificates – Our Cost – $255.00

Shipping of Company Book with
LLC Documents (UPS/FedEx Ground) – $30.00

Subject to Change. Fees and costs are subject to change without notice. The final dollar amount is contained in the itemized statement we will generate in response to the client’s completed LLC Checklist.

Layering of Entities. Our reference to “anonymity” means single-entity, single-layer anonymity unless clearly specified otherwise. Layering of entities may be necessary to maximize anonymity.
Company Books, Seal, and Membership Certificates. Company books with seal and membership certificates are part of the package that we pass along to you at our approximate cost. We insert our own sophisticated documentation into these books (instructions, minutes, company agreement, etc.) designed to maximize asset protection. We are confident you will be pleased with the end product. As a matter of professionalism we do not deliver LLC documents without a company book. This may not be deleted.

IRS EIN. This is not included but is easily obtained by the client at irs.gov.

Re-Do of Documents upon Rejection. If the client asks us to proceed with ordering the company book and preparing LLC documents before approval is obtained, that’s fine. We’re ready to do it, but this is at the client’s risk in the event the initial filing is rejected for some reason by the Secretary of State (although this rarely happens). A replacement LLC book and membership certificates will have to be ordered from the printing company ($155 for the burgundy hardbound version plus $30 shipping). Our fees are $250 to re-do all of the LLC documents in order to prepare a second filing.

ANONYMITY COMPANIES

Anonymity Companies in Texas and Nevada. We offer anonymity company formation in Texas and Nevada utilizing our own proprietary system of an “anonymity trust” (our term) in order to pursue anonymity in the Certificate of Formation. This choice is clearly not for everyone, but many clients find anonymity useful.

Organizer and Registered Agent. Our anonymity method includes naming this firm as organizer and registered agent; a trust is formed to act as sole manager with a POB address. Both the Texas and Nevada Secretaries of State accept filings in this form. Legal fees are as stated above. Registered agent services are included for the first year for Texas entities in this category. EIN not included but is easily obtained by the client at irs.gov. Bank account not included. Trust Agreement is included. Deeds of properties into the Trust are not included.

We do not accept trust agreements or other relevant documents that were prepared by others for incorporation into our anonymity structure. No exceptions.

Anonymity Generally. Our reference to “anonymity” means single-entity, single-layer anonymity unless clearly specified otherwise. Note that anonymity with single layering by a single entity may not be fully achievable as was previously the case before new transparency laws.

Layering. Layering with other entities will likely now be necessary to get the most out of any anonymity structure, which will add considerably to the expense. Anonymity on a modest budget is no longer realistic. You can thank government regulation for this.

24. RE-DOCUMENTING OR CONVERTING AN EXISTING LLC

Re-doc” of Existing or Traditional LLCs. There are two pathways here: one that involves the amending of the original Certificate of Formation and one that does not. If the previously filed Certificate of Formation needs to be amended (we will advise on that), then fees higher Note: a proper company book with issued membership certificates is a required part of this, as a matter of professionalism, We do not send out loose company documents. The book is offered at our cost.

Conversion of a Traditional LLC to a Series LLC. The conversion process involves filing a Certificate of Amendment and replacing ALL documentation including the company agreement. Other steps may need to be taken depending on the individual case, including (for example) bringing the company up to date with annual meetings from the past through the current year. Note that these conversions are more work than forming a new series LLC, not less. Expect fees to reflect this. Fees for conversion do not include deeds of property into individual series. This is a necessary second step.

Documents We Need for an Amendment or LLC Re-Doc. If you choose any of the above re-doc or conversion options, we will need copies of your Certificate of Formation (the document you filed to establish the LLC) as well as the Certificate of Filing (the approval issued by the Secretary of State) which contains the filing date and file number.

Limitations – No Assistance with DIY. Note please that we do not get involved with DIY LLC formation or amendment projects. We are committed to professionally handling the entire project. We do not handle only parts of it, nor do we supply individual documents on a separate basis.

Total Entity Structural Reorganization. Clients occasionally request that we take their existing complicated structure (often consisting of numerous LLCs, corporations, and limited partnerships) and overhaul it to create a simplified but effective asset protection program. This is usually a major creative project and it is difficult to quote an accurate fee in advance. Fees for this are in the $2,500 to $5,000 range and are deposited as an initial non-refundable retainer. Supplemental retainer deposits may be required as the situation progresses. Note that all our retainers expire in six months if not otherwise specified.

Annual Document Review. This is especially useful for our entity formation clients since our documents are continually evolving and innovating. The ADR is offered for clients who have asked us to prepare documents in the prior year. Its purpose is to (1) make sure that the client has the latest version of each document in the client’s package; and (2) in the case of LLCs, to prepare minutes for the annual meeting. Fees are $250.

ADDITIONAL POLICES RELATING TO COMPANY FORMATION

Deeding Properties into an LLC or Trust. Specially crafted deeds for this purpose are $450 excluding recording fees so long as there are no additional complex or custom provisions included. More complex deeds are $550 and up. If three or more properties are involved at the same time, the fee drops to $350 each. Add $75 per document if the legal description is by metes and bounds (rather than simple lot and block) which will need to be keyed in by us, since this is quite time consuming.

Clients usually do their own recording or signed and notarized original deeds in the county clerk’s real property records. Note that we usually transfer deeds into a new LLC as a separate second step, after LLC formation.

Management and Consulting Contracts. These facilitate capital flow between a client’s companies by providing a convenient label for inter-company transfers (consulting fees in one direction, management fees in the other). Strongly recommended for the two-company structure. Add $175 per agreement for a total of $250.

Assumed Name Certificates (DBAs). Signing and filing of Assumed Name Certificates under our firm name is not included, since this may expose us to additional liability (we then may be named as a defendant in any lawsuit against the entity) but may be available for an additional fee. For the most part, however, our clients file their own DBAs with their local county clerk. This is not difficult. It is really clerical and not legal work. See our web article on Assumed Names in Texas.

Company Books. The company books we supply are heavy-duty commercial grade minute books that include a company seal and printed membership certificates. The usual company book is red/black hardbound, purchased from a Houston vendor, and very nice – much nicer than the low-cost vinyl versions one often sees. We offer no inexpensive vinyl books. The alternative is a premium company book that is burgundy/black leather and is extremely nice (display quality) but obviously more expensive (We order it out of New York).

Note that our vendors may occasionally run out of stock on any particular type of company book, or color of leather, and there are a number of styles and variations out there, so we reserve the right to substitute another type of equal or greater value. Books are passed along to the client at our approximate cost. Sorry, for reasons of professionalism, we do not supply company documents without a proper company book to contain them. No exceptions.

Custom Drafting of LLC Documents. LLC documents are appropriately customized to suit the client and the situation but nonetheless follow a certain pattern and format. Asking us to prepare a company agreement, for example, is not an opportunity for the client to redesign or reinvent the way we generally draw up such documents. If the client desires a significant re-write that significantly departs from our usual format, then a higher custom document preparation fee would apply. Custom drafting services are most definitely available, but not at the shelf price. Custom company agreements begin at $1,500.

No Tax, Accounting, or Book Keeping Advice. Our firm does not give tax, book keeping, or accounting advice at all. We require all of our clients to have a qualified CPA as part of their professional team. Our focus is on legal liability and keeping the client out of the courthouse; the CPA focuses on keeping the client out of trouble with the IRS. These two approaches function in a complementary fashion.

LLC Bank Accounts and Series LLCs. Banks have differing policies and levels of familiarity with respect to series LLCs. We make no guarantees about what your bank’s policies may be on the subject of series LLCs or about the willingness of your bank either to open an account or make a loan to the LLC or any of its series. We are absolutely not in the business of guaranteeing what banks will do.

Note on the Availability of Loans to Real Estate Investors. This firm does not make any assurances that you or your entity will be able to get a loan from any particular lender. It is occasionally necessary for an investor to “shop” lenders (just as he or she might need to shop title companies, insurers, and other providers) in order to determine which of these is most friendly to the investor’s structure and business model.

We make no representations or warranties as to a client’s ability to borrow money, get a loan, or obtain a line of credit, whether individually or in the name of an LLC or a series of an LLC. Lawyers never make any such assurances or guarantees.

Proprietary LLC Documents. All our LLC documents are proprietary and licensed to the client for specific permitted use. They are never distributed for resale or reuse. We reserve the right to decline to do business or file formation paperwork that lists a competing asset protection law firm as registered agent or otherwise threatens the proprietary nature of our documents.

No Returns. Our LLC documents are not returnable or exchangeable because of the unique and valuable intellectual property involved in our documentation. We are serious about this. Our firm has done this work for many years and developed extensive asset protection devices and provisions that are simply not available anywhere else at any price. No exceptions.

Client Illegality. We do not condone nor will we assist any illegal, unethical, or wrongful activity by a client. This seldom occurs, but if it does, then we may immediately cease delivering all services without refund and resign as both the client’s attorney and registered agent. We will not risk being charged as an accessory or co-conspirator in a client’s wrongdoing.

25. REGISTERED AGENT SERVICES

Registered Agent Services. Clients may act as their own registered agent, or their CPA can do so, or our firm can act in this capacity for an annual fee of $250 for the 12-month period to come. Annual meeting minutes, along with updates to the company agreement as they may occur, are available to our registered agent clients annually upon request.

Limitations. Our firm does not accept clients who wish to use another law firm or a commercial business as their registered agent. If this is your intention, please use another law firm for your LLC formation.

General Terms of Our R/A Service. Registered agent services are limited in scope to (1) accepting service of process if the Company is sued; (2) forwarding official mail (not mass or junk mailings) from the Secretary of State and Texas Comptroller; and (3) formal notice and demand letters from attorneys or claimants. Items outside of these categories are not forwarded. Items are forwarded to the client by email (primarily) or by U.S. first class mail unless advance arrangements and fees are paid for delivery by UPS, Fed Ex, or overseas delivery.

Client Must Maintain an Office Address or Postal Box for General Business Mail. A registered agent address is NOT your business mailing address, nor is a registered agent a general mail forwarder. Do NOT rely on the registered agent for routine business correspondence – only the three items mentioned above.

Examples of Items Not Forwarded. Items not forwarded include bank statements, personal correspondence, HOA correspondence, utility bills, credit card correspondence, magazines, and junk mail. All of these senders should be given your LLC’s business mailing address. Also: mass-mailed reminders to pay franchise taxes are not forwarded even though they come from the Comptroller (We all know that we need to file a tax return, even if no taxes are due).

Titling of Real Property. Our registered agent services do NOT include acting as titleholder (grantee) for any real property. Do NOT deed property into our name as registered agent. We will repudiate any such property title. Doing this is a form of fraud and grounds for client termination.

Assumed Name Certificates. Our registered agent services do NOT include signing county or state-level assumed name certificates for the client. This is an extra level of service for which an additional fee may be negotiated.
The IRS. Do NOT list our law firm’s address as your company’s official address with the IRS. We do not interface with the IRS for such purposes. Consult a CPA or tax lawyer.

Opening Some Correspondence. Our firm is granted permission, if we consider it to be necessary, to open correspondence to determine its nature (It is sometimes it difficult or impossible to tell from the envelope). Attorney-client confidentiality applies.

Litigation Involving the Client. In the event a client is sued, our duty as registered agent is to forward a copy of the lawsuit to the client. That ends our registered agent duty. It is then the client’s duty to promptly obtain representation in the case and timely file an original answer. If the client does not do this, we do not then become the client’s attorney and forwarder by default. There are potentially dozens of events in a lawsuit that involve sending notices. Unless we are also retained as attorney of record in the case, we do not have a duty to continue forwarding these supplemental lawsuit notices. Our obligations as registered agent cease when we forward the original petition in the lawsuit.

The R/A Service Fee is Not a Retainer for Legal Services. The registered agent fee is not a retainer for any kind of legal services beyond the strict R/A services listed above. For example, a certified demand letter arrives from a law firm. The client asks us to open it and we do. We explain that it is a Deceptive Trade Practices Act notice letter that makes allegations of fraud or misrepresentation – and that the client needs to respond within 60 days or risk a lawsuit potentially involving treble damages plus attorney’s fees. That is the extent of our obligation. Beyond that, the client is free to hire this firm or any other firm to represent them in that case.

R/A Services Do Not Include Signing Annual Reports or Filing Tax Returns. A registered agent is not authorized to act on behalf of the company in the execution of documents. This usually requires a manager. So signing annual LLC filings or tax returns or any other document is not included. We do not file annual state tax forms as part serving as registered agent. Please engage a competent CPA to handle your tax matters.

R/A Services Are for State-Level Services Only. Registered agent services are Texas state-level only (i.e., there is no such thing as a registered agent at the federal level). While we will forward any official notice and demand letters, including certified IRS mail, our legal services do NOT include interfacing with the IRS or any other federal agencies.

Keep Contact Information Current. If we are acting as registered agent, it is essential that the client keep us up-to-date concerning contact information, especially email. If mail to the Company or client is returned by the U.S. Post Office “not deliverable as addressed,” and the file does not reflect any other way to get in touch with the client, we are permitted to resign as registered agent.

Change of Registered Agent. The registered agent may be changed with the Secretary of State’s office at any time by filing form 401 and paying a $15 fee. This is a clerical task and does not require a lawyer’s assistance.

26. SHELF COMPANIES

Limited Availability. From time to time, we may have an inventory of existing, established companies that are ready for immediate shipment. These are popular because of the prolonged delays currently being experienced for new LLC filings at the Texas Secretary of State. Inquire as to current pricing.

Shelf Company Fees:

SHELF COMPANIES (LIMITED AVAILABILITY)

Shelf Company – Traditional LLC Without Anonymity
(Conveyance by Sale & Assignment of Membership Interest – Requires
Certificate of Amendment and $175 filing fee to Change Address)

< than 1 yr. old: $1,750 + $175ff
1 to 2 years old: $1,850 + $175ff
2 to 3 years old: $1,950 + $175ff

Shelf Company – Series LLC Without Anonymity
(Conveyance by Sale & Assignment of Membership Interest – Requires
Certificate of Amendment and $175 filing fee to Change Address)

< than 1 yr. old: $2,350 + $175ff
1 to 2 years old: $2,550 + $175ff
2 to 3 years old: $2,850 + $175ff

For Certificate of Registered Series, add $350 plus $300 filing fee.

Shelf Company – Traditional LLC With Anonymity
(Conveyance by Assignment of Trust Beneficial Interest – Requires
Certificate of Amendment and $175 filing fee to Change Address)

< than 1 yr. old: $3,250 + $175ff
1 to 2 years old: $3,450 + $175ff
2 to 3 years old: $3,750 + $175ff

Shelf Company – Series LLC With Anonymity
(Conveyance by Assignment of Trust Beneficial Interest – Requires
Certificate of Amendment and $175 filing fee to Change Address)

< than 1 yr. old: $4,250 + $175ff
1 to 2 years old: $4,450 + $175ff
2 to 3 years old: $4,750 + $175ff

Subject to Change. Inventory and prices are subject to change without notice. Fees can be expected to increase with the age of the shelf company. Also, pricing may vary slightly from the fee schedule if a particular entity has extra or special features (e.g., assumed names).

Additional Shelf Company Policies:

Payment for shelf companies is by such method as we direct (We may require wire or transfer to our Wells Fargo operating account).

Shelf companies may not be reserved or placed on hold without payment. Inquiring about a shelf company does not reserve it. Until full payment is made, any particular shelf company remains on the market.

Shelf companies do not include EINs, bank accounts, a D&B rating, or other features not expressly listed.

For Texas companies, one year of registered agent services by our attorney is included. Registered agent fees are $250 annually thereafter and include annual meetings upon request.
Certain of our shelf company offerings may be in the form of LLC combinations (a two-company structure or a hub-sub structure) that are available only as a combined unit and may not be split.
We will need certain basic client information in order to complete the shelf company documentation. This may take a day or two to collect and insert into existing documents before shipment.

All clients are required to supply a mailing address that will become public record (we suggest a box at a UPS or FedEx store) before the shelf company will be transferred to the client. An amendment will be promptly filed reflecting the new address.

Sales Final. Sales of shelf companies are final since they involve unique and proprietary intellectual content. No exceptions.

27. EQUITY STRIPPING

Equity stripping may be a useful asset protection technique if a client’s LLC has a substantial investment in a single property and legal action involving that property is a good possibility. Equity stripping reduces the (apparent) worth of a company in the public records. The objective is to deter creditors and lawsuits by giving the appearance of no equity in the property.

The equity-stripping process involves preparing a Secured Line of Credit Note for $1M payable to a creditor of your choice. The Note is secured by a Deed of Trust which is filed in the public records. Included are a Secured Line of Credit Note; Deed of Trust & Security Agreement; Line of Credit Agreement; Company Resolution; and Release of Note and Lien (to be held and filed later). Available as a template set for $750. Alternatively, we can complete the document package for $1,250. Note that equity stripping occurs county by county (since that is the way real estate and lien documents are filed) and Texas has 254 counties. Properties can be stripped individually or in a group that is within the same county.

28. AFFIDAVITS OF HEIRSHIP AND CURATIVE DEEDS TO HEIRS

Generally. The remedy in many simpler heirship cases is to either consult a probate lawyer and file an estate proceeding in county court or, as an alternative, use a real estate law firm like ours to file an affidavit of heirship. The first is preferable if you have the time and money, since you wind up with a court-ordered result, which is always better.

By contrast, an affidavit of heirship just states for the record who passed away, who the lawful heirs are, and provides a presumption that title to the house is passing correctly to the person named in the affidavit. It acquires validity over time as title companies recognize it. This can meet the needs of many clients. Note that an affidavit like this is not the same as getting a new deed to the property.

Consultation Recommended Prior to Ordering Documents. This is a complex area. Unless you are absolutely certain that a particular type of document is what is needed, and you are absolutely certain of its legality and suitability in the circumstances, a paid consultation is recommended so we can review your case and determine the correct legal solution. If we invest time and work, and it turns out that the document you ordered was not the correct solution for the situation, and a change of documentation or refund is requested, then an appropriate fee for our time and efforts (not less than a consult fee) will apply. In other words, we do not assume the risk of loss if the client makes an incorrect diagnosis or decision about the strategy or document that was needed. Proceeding without an initial consultation has its risks. Depending on the case and the circumstances, at our option, we may require an initial paid consultation so that we can fully understand the facts of the case before proceeding.

Affidavit Method vs. Formal Probate. We are often asked to prepare affidavits of heirship as an alternative to the more expensive formal in-court probate process. The affidavit must be signed under oath by a person familiar with the decedent’s family history (usually but not always a family member), witnessed by disinterested persons (i.e., persons who have no personal or financial stake in the outcome), and the original with all signatures notarized must be recorded in the county clerk’s real property records.

Our requirements for an affidavit of heirship case are: (1) the decedent must have died at least six months prior to the execution of the affidavit; (2) a death certificate must be available; (3) the affiant must be someone with personal knowledge of the family history of the decedent and having personally known the decedent for at least ten years; (4) the affidavit must be witnessed by at least two disinterested parties (three is better); and (5) if there is a will that has not been probated, it must be available to attach to the affidavit and must support the facts asserted in the affidavit.

Real Estate Law vs. Probate Law. This is a real estate law firm and that is our emphasis – preparing documents affecting title to real estate and transfers of real estate. Certain heirship and property situations are so complex and messy that a court judgment will be necessary or advisable. In such cases, we will suggest that the client engage a board-certified probate specialist who will file litigation to resolve the case. As a real estate law firm, we do not litigate probate cases. If you are uncertain as to the best course of action, a paid consultation would be your best first step.

No Guarantees. This firm obviously can make no guarantees that all heirs will cooperate or sign off in clearing title. Our document preparation fees are not refundable if heirs decline to do so. Also, and just as important, even though the affidavits we draft are legally effective, we make no guarantee that an affidavit we prepare will be “approved” by any particular lender or “accepted” by any particular future title company, since title companies are individually owned and underwritten and have different procedures and policies which change over time, so this may not be a matter of the legality of our document but may instead reflect the company policy of the lender or title company at that point in time.

The bottom line is this: the affidavit of heirship is an inexpensive creative tool designed to avoid the greater cost of a formal probate proceeding in court which can easily cost up to $10,000 (more if contested). The affidavit method we use has a good rate of real world practical success. If the client requires immediate and absolute certainty in his or her situation, then the client should seek a judicial determination of heirship (a court judgment), not an affidavit of heirship. There is simply no substitute for a final court judgment in complex and messy cases. For this the client will need an attorney who is a probate specialist (not us). For more detail, we suggest you read our web article entitled Affidavits of Heirship in Texas before proceeding.

Recording Executed Documents in the Real Property Records. If this office is asked to file documents with the county clerk, add the estimated filing fees plus $50 per document for handling. Note that this necessitates sending the executed and notarized originals back to us. It is usually more efficient and quicker for the client to record original documents directly with the local county clerk, and so this is how we suggest that the recording of documents be handled.

Finality of Documents. Document preparation fees are for document drafting/review/correction in the immediate time frame. Three business days after delivery of documents to the client, all documents provided are automatically considered final. A document preparation fee is not a lifetime retainer for an indefinite number of changes forever, at least not in a flat-fee system. Requesting changes weeks, months, or years later (yes, this happens) will incur additional charges.

Minimum Legal Fees for Certain Heirship Cases. The fees quoted above are guidelines. Notwithstanding any quotes found below or elsewhere on our fee schedule, there is a minimum fee level below which we will not agree to offer services in an heirship case, regardless of the task. The primary reason is that we incur significant professional liability for even limited involvement, both as an attorney and a real estate broker. Below a certain fee level, it is not cost-effective for us to become involved at all. Accordingly, all fee quotes offered elsewhere are subject to the following absolute minimums:

Simpler Heirship Cases: $750 for estates of up to $999,999; $1,500 for estates between $1M and $1,499,999; $750 for estates between 1.5M and $2.0M; for estates in excess of $2.0M, inquire

More Complex Heirship Cases: $1,500 for estates up to $499,999; $1,750 for estates from $500,000 to $999,999; $2,500 for estates from $1M to $1,499,999; $3,500 for estates from $1.5M to $2.0M; for estates in excess of $2.0M, inquire

Fees below these levels do not cover our potential professional liability relative to the size of the transaction and will not be considered.

29. LIEN RELEASE AND REMOVAL

Lien Release Process Generally. This area can be complex and somewhat unpredictable, often depending on whether a judgment lien was abstracted before 9/1/07 or after. Results vary but are generally positive. Lien removal is handled exclusively online and fees are $1,950 per lien (i.e., per abstract of judgment). No lien cases under $7,500 are accepted. Since this is usually a mechanical process of working through statutory requirements, personal meetings between attorney and client are unnecessary so long as we are provided with the information we need. Tax liens are generally not removable and must be paid from closing proceeds.

Certain Limitations Exist. Be aware of the limitations on this process: (1) in the case of pre-2007 abstracts of judgment, there is no guarantee that litigation will not be required; (2) in the case of post-2007 A/Js, there is no guarantee that a title company will cooperate and honor the statutory affidavit. These conditions do not reflect on our work but indicate gaps and flaws in this statute that the legislature may someday remedy. In other words, the statute is far from perfect and that is not our fault. We nonetheless have broad success in this area. It is just not guaranteed to produce results with any particular title company since title companies vary widely in their individual policies. Please read our web article Lien Removal in Texas before engaging us order to get the full picture.

Information Required to Procced. The client must supply a number of items: (1) a copy the abstract of judgment (if a copy of the judgment itself is available, supply that as well); (2) a copy of the warranty deed to the homestead; (3) a print-out from the local appraisal district indicating that the property is classified as homestead (sometimes there is a notation that it is “HS”); (4) the name and address of each judgment creditor and/or its attorneys; and (5) correspondence between the judgment creditor and the client.

Address of Creditor. Please note item (4) above. Clients often expect a lawyer to be able to locate their creditors as part of the lien removal process. This may not be a reasonable assumption, since lawyers are not usually also private investigators. Demand letters may be returned labeled “no such address” or the like. If an investigator is needed in order to locate the creditor, the client should be prepared to bear that additional expense.

30. FORECLOSURES AND EVICTIONS

Non-Judicial Foreclosure Fees (excludes filing fees/costs of $100)

Residential foreclosure: $1,750, payable in two equal installments, balance due 10 days prior to the foreclosure sale.

Residential default letter only: $375. Covers “notice of default” letter only, full stop. Unlike the above, this is not a retainer for the foreclosure. After sending, we do not handle any follow-up communications or counsel to client. Cost of this letter is not credited to foreclosure retainer if foreclosure is eventually needed.

Commercial foreclosure: $2,750, payable in two equal installments, balance due 10 days prior to the foreclosure sale.

Commercial default letter only: $425. Covers “notice of default” letter only, full stop. Unlike the above, this is not a retainer for the foreclosure. After sending, we do not handle any follow-up communications or counsel to client. Cost of this letter is not credited to foreclosure retainer if foreclosure is eventually needed.

We are currently doing foreclosures in the Houston metropolitan area only. We suggest reading our web article Foreclosures in Texas before proceeding.

Evaluation of Loan Documents not Prepared by Us. We do not commit to proceeding with a foreclosure on loan documents that we did not prepare unless and until we can evaluate those documents in advance, by means of a paid consultation (i.e., before proceeding with the foreclosure), in order to make sure the documents were properly done. Clients who used this firm to prepare their loan documents can bypass this step. Otherwise, we would need to begin with a paid consultation to review the loan documents in order to determine if they are legally valid and enforceable by means of a non-judicial foreclosure. If there are problems with the loan documents, the foreclosure might have to be accomplished judicially, which is essentially an expensive lawsuit.

If the Borrower Cures the Default. If the Borrower cures the default after we send one or more foreclosure notices but before the foreclosure sale is conducted, there is no refund of the initial fee installment paid.

If the Borrower Files Bankruptcy. Note that last-minute bankruptcy filings can occur, which forces the foreclosure process to stop. In such event, this firm will refund only any filing fees that may have been collected (if any) plus $250 as a result of not having to conduct the sale and prepare and file a trustee’s deed with the county clerk. Our activities in relation to the foreclosure must then cease as a matter of law since state-level legal action is “stayed” (stopped) by federal order. We do not handle bankruptcy (a federal matter for specialists) so the client will then be advised to retain a bankruptcy lawyer for creditor representation going forward. If the foreclosure process commences again at a later date, after dismissal of the bankruptcy, there is no refund of or credit for prior fees paid.

Title Report Prior to Foreclosure. Obtaining a title report is not included in the flat foreclosure fee but is recommended if there is any possibility whatsoever that there is an IRS lien. Note that it is not our standard practice to give notice to the IRS unless the client suspects that there may be an IRS lien and specifically asks us to give such notice. Otherwise, if an IRS lien is present, the IRS will have 120 days following the foreclosure sale to redeem the property. IRS liens represent a challenge that can involve additional legal efforts. It is the client’s responsibility to inform us if an IRS lien is suspected. If the client is uncertain of this, then a title report should be obtained.

Recission of the Foreclosure. If the foreclosure must be rescinded by the lender for any reason, our additional fees are $575 excluding filing.

We Assume the Client has Valid Documents. In quoting the above fees, we make the assumption that a foreclosure client has valid, attorney-prepared legal documents (a note, a recorded deed of trust, and a recorded deed into the borrower) upon which to base the foreclosure. If these documents were not professionally prepared, or some other defect or deficiency exists, then the fees quoted in this section do not include our remedying any such defects. Additional fees would apply.

Evictions. Residential eviction fees are $1,850 (non-jury) and $2,950 (jury); commercial evictions are $2,750 (non-jury) and $3,750 (jury). Excludes filing fees and costs (these begin at around $150). Read our web article entitled Evictions in Texas for details on the process. Eviction appeals to county court are $3,750 (non-jury) and $5,750 (jury) plus costs. Currently available in the Houston area only.

31. DISPUTED MATTERS INVOLVING NO LITIGATION

Minimum Amount in Controversy. We regret that we are unable to accept litigation matters that involve less than $50,000 excluding attorney’s fees.

Demand, Notice, or Response Letter Only. Clients occasionally ask that a legal demand or notice letter be written on their behalf – but only the one letter. They are not requesting on-going representation. In such cases, we will agree to write a formal demand (or response letter, as the case may be) citing applicable law. Fees for straightforward cases are $750 for amounts under $50,000, $1,500 for amounts over $50,000. The response (if any) from the opposing party will be forwarded to the client, but we are not retained for additional representation or action of any kind, whether in the form of meetings, letters, emails, or phone calls. This is a highly limited form of representation. The letter, including counsel given to the client, is a one-time event and there is no retainer arrangement or time period during which we are obligated to provide additional services. Note that there is no guarantee that a letter from us will produce any particular result in a dispute.

Flat-Fee Retainers. Fees and retainers for representation in disputed, non-litigation matters are determined with reference to the complexity and likely duration of the case. It is very difficult to fix a universal flat fee for such cases, so for purposes of these Fees & Policies we supply only a likely monetary range. Included are a reasonable number of client conferences, letters, faxes, phone calls, emails, and document preparation (e.g., demand or response letters and follow-up) involved in a diligent attempt to complete the task or settle the dispute with an opposing party or their attorney. A release, settlement agreement, or other document may be needed and is included.

We offer flat- retainers as follows: 30 days, $2,500; 60 days, $3,500; and 90 days, $5,000. Flat-fee retainers are one-time up-front flat fees that are paid in advance. Please do not ask us to finance the retainer. Flat-fee retainers are NOT subject to hourly billing or accounting. We do NOT bill against them at an hourly rate. Funds belong to the attorney as soon as they are paid and may be immediately deposited directly into this firm’s operating account. After the specified term, the retainer automatically expires and must be renewed (if at all) by express agreement in writing between the parties. There is no automatic renewal. There is no assumed or implied renewal. No guarantees are ever made as to the outcome of any legal matter for which we are retained. There are no exceptions to these policies.

Retainer Accounting and Duration. The retainers described in the preceding paragraph are flat-fee non-refundable retainers for which no hourly billing or accounting is made. There is no refund for any alleged “unused” portion. The retainer and our obligation to the client automatically end at the conclusion of the specified time period or when we, in our discretion, declare an impasse. There is a reason for these time limitations. As a general rule, based on our experience, disputes not settled in 60 to 90 days should either be escalated to the level of litigation or abandoned.

Credibility Policy on Demand Letters. As a matter of ethics and professional credibility, we always do exactly what we tell the opposition we will do . . . so we will not write a letter threatening a lawsuit or other action unless the client has pledged to us in advance that he or she is actually willing to back it up. A substantial advance retainer deposit may be required as evidence of the client’s ability and willingness to follow through. Otherwise, no threat of litigation will be made.

Mediation. Our fees are $900 in advance for attending a half-day mediation or $1,700 for a full day (most mediations are half-day). This does not include fees due the mediator (usually around $500). While expensive, mediation is far less costly than continued litigation and, according to studies, results in a settlement about 80% of the time.

The client is obligated to negotiate with an open mind or we will not accept the case. Our fees are due one week in advance and are not contingent upon the outcome. Absolutely no guarantees are made. Either Mr. Willis or an experienced board-certified colleague may attend.

Disputes and Lawsuits among Family Members. If you are involved in a dispute, lawsuit, or a potential lawsuit against a family member, we understand that legitimate grievances may exist. However, as a matter of firm policy, we simply do not handle these sorts of cases.

33. FILING AND RECORDING OF DOCUMENTS

Execution and Recording of Real Estate Documents. When we email real estate documents to a client, the client should execute the original document before a notary, make copies for all concerned, and then (if the document is intended to be filed) record the original executed and notarized document in the county clerk´s real property records (there is a modest per-page recording fee that varies by county – check their website). Only original documents may be filed.

Duty to File Documents such as Warranty Deeds and Deeds of Trust. Unless this office is specifically instructed and paid to handle the filing of documents in the county clerk’s real property records, the prompt filing of original real estate documents is entirely the responsibility of the client. This firm sends real estate documents all over Texas, and it is usually more efficient for the client to do his or her own filing locally, without all the back and forth and related delay, which is the reason for this policy. Note that we assume absolutely no liability for the correct recording (or non-recording) of documents that a client files on a do-it-yourself basis.

If We are Asked to Record Documents. If we are asked to handle filing, the original document(s) will need to be executed before a notary and returned to us (since only originals can be filed with the county clerk). Add $50 to our fees plus the clerk´s filing fee (usually about $28 – $32 for a deed, more for longer documents). We send documents for recording by first-class mail in the usual course of business unless other prior arrangements are made for expedited delivery.

Minor Clerical Errors on Documents we have Filed or Documents Received from the Printing Company. We take reasonable precautions to avoid errors and will of course act to correct major errors, defined as errors that have substantive legal effect. However, it is not our policy to re-file documents with clerks or otherwise incur expenses to correct minor clerical errors (e.g., a missing comma or the like) that have no substantive legal effect. “Substantive legal effect” is defined at our sole discretion.

Errors in Document Processing by Clerks. Clerks vary widely in processing time and occasionally make mistakes. These public offices are underfunded and understaffed. We cannot be responsible for delays, omissions, or errors caused by a county clerk, district clerk, or a secretary of state, and we can never be precise as to the time it will take for a document to be processed in a clerk´s office and the original filed or returned.

If it is necessary to take action to correct a clerk’s error or omission, or if a document must be re-filed due to a clerk’s oversight or error, then additional legal fees and costs may apply, and these are the sole responsibility of the client. This firm does not ever absorb such fees and costs.

34. INVOICES TO CLIENTS

Advance Payment Required. Advance payment is generally required for all our legal services. However, this section covers policies that apply if a statement or invoice is sent to the client.

Timely Payment by Client. Invoices are immediately due upon delivery of the invoice to the client. Payment is officially late ten days after delivery of the invoice or statement. Late payment or non-payment within ten days may result in termination of the attorney-client relationship. In particular, after a legal services bill is more than 10 days late, we are automatically relieved of any obligation to continue delivering legal services, without notice to or consent from the client. Depending on the circumstances, clients in default may be considered adverse parties subject to legal action.

Receipts. Receipt of payment may always take the form of an email acknowledgment that payment has been received. Such an email is an official receipt from this firm. If the client needs a physical receipt, this email should be printed out for the client’s records. Occasionally a client requests a detailed statement in a specified form that satisfies that client’s own internal accounting requirements. We will provide one for a $50 charge.

Fees are Non-Refundable. Fees, once paid, are entirely non-refundable in nearly all cases. If a partial retainer refund is due, it will be calculated at our firm’s sole discretion based on our flat fees, our hourly rate, or a combination of both. Refund is exclusively by law firm check mailed by first-class U.S. Mail to a domestic (i.e., United States) address.

Forcing Us to Request Payment. We send statements and invoices and expect them to be promptly and discreetly paid, without fuss or delay. It is both uncomfortable and unprofessional for a client to put us in the position of asking for payment of an outstanding invoice. Please do not do this if you wish us to continue to act as your counsel, as it is grounds for our withdrawal.

Disbursements to Clients and Third Parties. In the event there is disbursement due a client or third party, payment will be by law firm check and this office shall have thirty days in which to make that payment. There is no requirement that such payment be made by cashiers check or certified funds.

Client Refunds. In the event this firm elects at its discretion to make a full or partial refund of funds to a client, payment will be by law firm check and this office will have thirty days in which to make that payment. The check will be sent by first-class U.S. mail to a domestic (U.S.) address. If the original payment was received by credit, debit, or wire, the refund or disbursement shall be net after deduction of transaction charges such as fees charged by credit/debit card processors.

Attorney Time Expended. If substantial attorney time has been expended or legal advice given (as determined in our sole discretion) the net refund will be made less the appropriate consultation fee. We may, at our discretion, require that the client sign a full and complete release prior to issuance of a refund. The client agrees to do so.

35. POLICIES RELATING TO TITLE COMPANIES AND LENDERS

Title Insurance and Title Reports. This office is not affiliated with a title company and does not offer title reports, title insurance, or title company-style closings. A title search or title policy may be obtained but is not included in the fee for preparing a warranty deed or other document. Such a fee is paid directly to the title company or title researcher. All buyers of real estate are advised to perform thorough due diligence which includes checking the status of title, property taxes, the existence of liens, and the like prior to closing. Similarly, all clients foreclosing on real property are encouraged to obtain a title report to determine if there is an IRS lien (we do not automatically do this).

No Responsibility for Title Company Policies or Actions. Although regulated by the State Board of Insurance, title companies are independently owned and underwritten. They can be demanding, arbitrary, and even whimsical about what they require or approve. Our documents are always legally effective, but we make no guarantees concerning any particular title company´s preferences, demands, or underwriting approval. Complying with such demands, or negotiating with title company closers or attorneys, will incur additional fees beyond the document preparation fee. Note that for certain creative transactions, it is occasionally necessary to “shop” title companies to find one that is amenable to the transaction at hand.

No Responsibility for Lender Actions or Loan Approval. Nearly all lenders have become more difficult to deal with since the real estate crash of 2008. They can be demanding, arbitrary, and even whimsical about what they require or approve. Our documents are always legally effective, but we make no assurances or guarantees concerning any particular lender’s requirements or underwriting. These are not matters of law but instead pertain to a lender’s internal rules and policies, over which we have no control.

In particular, we do not guarantee that a client will be able to open a depository account or get loan approval from any particular lender in the case of any particular person or entity. Note that it is occasionally necessary to “shop” lenders in order to find one that is friendly to a client’s business structure and strategy. This is part of a client’s professional due diligence obligation with respect to his or her own business. It is not a legal matter and it is not our law firm’s responsibility.

36. NO GUARANTEES

Outcome Guarantees. This office never issues guarantees of any kind at any time concerning the outcome of proposed transactions, entity formation, legal disputes, or litigation. Ever. We certainly do our part, but the rest is out of our hands. The client´s obligation to pay fees is never contingent upon the outcome.

Guarantees Relating to Filing and Recording of Documents. No guarantee is ever made that a government office will accept any particular document for filing or recording. In particular, Texas has 254 county clerks as well as a Secretary of State and Comptroller, all of whom are free to accept or reject the filing of a document for reasons of their own.

Closing Guarantees. We prepare closing documents, we do not guarantee that any particular transaction will close and fund. No refunds for document preparation fees are made if a transaction fails to close for any reason.

Guarantees of Title Company Approval for Creative Documents. Although we prepare such documents as affidavits of heirship, affidavits of adverse possession, and the like, these are creative approaches utilized in lieu of more expensive and certain court remedies. Title companies are individually owned and underwritten and have different policies and procedures that change over time, so we are unable to make guarantees that any particular title company will “accept” a creative document that we have prepared. Additional curative work may be required and if so, it will be at the client’s expense.

Bank Account Guarantees. No guarantee is ever made that a client or a client’s entity will be permitted to establish a depository or investment account at any particular bank. Ever. Bank policies regarding new accounts vary widely and we are not responsible for these. Any alleged representations and warranties as to a client’s ability to open a bank account are expressly disclaimed.

Loan Guarantees. This firm does not make any assurances that a client or a client’s entity will be able to get a loan from any particular lender. Ever. Bank underwriting policies vary widely and we are not responsible for these. Any alleged representations and warranties as to a client’s ability to get a loan are expressly disclaimed.

Insurability Guarantees. This firm does not guarantee that any real property owned or acquired by a client will be insurable against loss or damage.

Cooperation by Appraisal Districts. There are around 254 appraisal districts in Texas, all with their own independent policies and procedures. We make no guarantees or assurances whatsoever that an appraisal district will (for example) grant a homestead exemption or take any other action in any particular case or circumstance. We may prepare documents in support of a client’s efforts in this area, but the outcome is never guaranteed. Internal action within the appraisal district (e.g., an appeal) may be required in certain cases. Appeals are not included in our fees.

37. INTELLECTUAL PROPERTY

The Documents We Prepare are our Copyrighted Intellectual Property. Our firm retains sole and exclusive intellectual property rights to the creative and unique documents we produce. Accordingly, all documents produced by this office are proprietary and licensed to the client for use in a particular circumstance or transaction only. They are not sold. The client does not purchase ownership of our documents or the right to use them in other circumstances or transactions. Our documents may not be reproduced, re-used in any manner, or disseminated without our prior written permission.

Editable Versions of Documents. Quality custom documents tailored to the transaction is our main focus. With the exception of a limited number of “investor templates” listed above, our documents are supplied to the client only in PDF format, not in Word or other editable format. This is for intellectual property reasons and also to reduce our professional liability as a consequence of unintended re-use. Please do not ask for editable forms or templates.

Policies Regarding Copying, Reproduction, and Re-Publishing any Portion of This Website. This website is owned by David J. Willis Attorney. All content including text, articles, blogs, videos, and other elements comprising this website are copyrighted works and are the sole intellectual property of David J. Willis Attorney. You may not copy, reproduce, distribute, publish, display, modify, or in any way exploit any content contained in this website unless said copied content: (1) is reproduced without alteration; (2) contains or is followed by “© David J. Willis Attorney;” and (3) the complete original title, author credit, and date of publication are included. No changes or edits to title, content, text, hyperlinks, or images are permissible without prior written permission from David J. Willis Attorney.

No “Returns.” Because the content of our documentation is creative and proprietary, there is no “return” once our documents are delivered. No exceptions.

Penalties. Violation of this section on intellectual property automatically terminates the attorney-client relationship and our duty of loyalty to the client, who then becomes an adverse party. This firm will take every reasonable and necessary step to prevent theft of its intellectual property, including filing suit. It is agreed that in such cases this firm is entitled to injunctive relief and liquidated damages in the amount of $1,000 per day.

38. OUR FILES AND RECORD KEEPING

File Retention Policy. We disclaim any responsibility for keeping any files (hard copy or electronic) for any minimum or specific period. In accordance with the Identity Theft Enforcement and Protection Act, hard-copy client files are shredded before disposal.

The Client’s File. Clients receive copies of all documents and correspondence pertaining to their case as the case progresses. This is the client´s file. Keeping these copies and maintaining them in an orderly manner is the client´s responsibility. Our file (both hard copy and electronic) remains the property of this office and may be disposed of or deleted at any time without consent of or notice to the client. Reproduction of our file, if we still have it, will incur a $150 fee.

Original Documents. We never retain original documents. Ever. Our files contain only electronic copies of (mostly) unexecuted documents. The client agrees and stipulates that this is the total extent of our record keeping obligation and that nothing further or more extensive on our part is expected or required. It is not necessary to send us copies of your fully executed documents.

Holding Documents or Company Books for Pick-Up at Some Later Time. It is not our policy to act as a storage facility for original documents or items. Accordingly, it is our policy to promptly prepare documents and company books and then promptly email or ship them out.

Data Loss or Breach. The retention and protection of electronic records remains an imperfect science, and with a public website there is always both risk of data loss and breach of information. We are mindful of this and take reasonable precautions to prevent data loss and hacking; however, we make no guarantees that such events will not occur. We are not a technology company and do not have the resources or ability to maintain ultra-secure systems. Clients expressly accept the risks and realities involved in online communications. All clients hold us entirely harmless in the event of data loss or breach.

39. CLIENT MISREPRESENTATION, DEFAULT, OR ILLEGALITY

Client Misrepresentation of a Case. It is rare but occasionally a prospective client will misrepresent the facts and complexities of a case in order to seek and “lock in” a low flat fee – and then later attempt to hold this firm to the quoted fee when undisclosed issues come to light. If intentional, this is bad-faith conduct and cause for immediate attorney withdrawal. In the event of withdrawal, the attorney may in his sole discretion unilaterally determine an equitable accounting and issue an appropriate refund if warranted.

When a Client Breaks His or Her Word. This firm strives to uphold traditional Texas values including the idea that one’s word is one’s bond. When a client breaks his or her word to us with regard to payment of fees or costs or performance of the client’s obligations, this is not only a contractual breach it may also be a criminal offense (e.g., theft of services). If this occurs, we may immediately terminate the attorney-client relationship and cease providing services. If there is a positive balance in the client’s account, the attorney may in his sole discretion unilaterally determine an equitable accounting and issue an appropriate refund if warranted. In cases where there is a negative balance, the former client then becomes an adverse party and it is our policy to rigorously pursue all legal remedies to recover funds that are owed to us.

Attorney Withdrawal. The attorney may immediately withdraw from a case and close the file if fees are not timely paid; if the client materially fails to follow this firm’s published policies; if the attorney and client have a substantive disagreement concerning case strategy or methods; if the attorney determines that the client’s conduct or proposed conduct is unlawful; if the client engages in material misrepresentation or fraudulent conduct; or if a client is rude, unprofessional, unreasonably demanding, belligerent, abusive, or uncooperative. In the event of withdrawal, the attorney may in his discretion determine the value of services rendered to date and, if appropriate (as determined in our sole discretion), issue a partial refund to the client.

Exception to Attorney-Client Confidentiality. This firm is under no obligation to maintain client loyalty or confidentiality in the event a client commits an illegal, unethical, or wrongful act against this firm (e.g., writing us a bad check or committing chargeback fraud). This is an exception to our usual strict policy in such matters. The attorney-client relationship will automatically terminate if this occurs. In such cases, the former client becomes an adverse party and it is our policy to rigorously pursue all legal remedies.

NSF Checks, Declined Payments, and Chargebacks. This office has zero tolerance for theft of legal services (a criminal offense) which will result in immediate termination of representation. If this occurs, our firm is entirely relieved of any obligation to maintain client loyalty or confidentiality. The former client becomes an adverse party, and it is our policy to rigorously pursue all legal remedies and recourse.

Chargeback Fraud. This is the credit card equivalent of wrongfully stopping payment on a check and will result in immediate termination of representation. It is a criminal offense when used to avoid payment for goods or services delivered. If this occurs, our firm is entirely relieved of any obligation to maintain client loyalty or confidentiality. The former client becomes an adverse party, and it is our policy to rigorously pursue all legal remedies and recourse.

Client Defamation. The attorney-client relationship will automatically terminate if this occurs. Our firm is under no obligation to maintain client loyalty or confidentiality in the event a client states or publishes a falsehood regarding our professional abilities or services (libel or slander), whether on the internet or otherwise. The former client becomes an adverse party, and it is our policy to rigorously pursue all legal remedies and recourse.

Payment Failure in the Case of Entity Formation. If a client’s payment for LLC formation is not fully made or fails for any reason, then the client’s entitlement to or ownership of the entity formed will, at our election and sole discretion, be entirely forfeited to us, and this firm may either (1) dissolve the new entity; (2) take possession, control, and ownership of the entity and either sell or retain same for our own purposes; and/or (3) unilaterally amend the entity’s Certificate of Formation (TX) or Articles of Organization (NV) in any manner we see fit, all without notice to or consent from the client whose payment failed or was not made or completed. The former client becomes an adverse party, and it is our policy to rigorously pursue all legal remedies and recourse.

Accounting in the Case of Defaulting Clients. If a client defaults on a fee/services agreement, and if an accounting is to be rendered as to funds paid vs. services rendered and any costs incurred, then the attorney may use his judgment and sole discretion in allocating whatever payment(s) have been made, first to costs incurred on behalf of the client, and then to the services that this firm has rendered.

Our Right of Offset. Our right of offset is absolute and unlimited. If a client is delinquent on an unpaid invoice, then our firm may, using our sole judgment and discretion, offset the amount of the unpaid invoice against fees previously paid by that client (even if those fees were paid in connection with a separate file or case) in order to arrive at a net amount due either the client or this firm.

Client Fraud, Illegality, or Tax Evasion. This office advises clients on legitimate real estate transactions and asset protection. If it is determined (in our sole discretion) that a client is engaging in unlawful activities, representation will be immediately terminated without refund. We will not participate or assist in illegal, unethical, negligent, or wrongful conduct by a client, nor will we subject ourselves to potential liability for a client´s illegal, unethical, negligent, or wrongful acts. In particular, we will not tolerate the authorities alleging that we are a co-conspirator with the client in such acts.

40. CLAIMS AGAINST THIS FIRM

Obligation to Mediate Claims in Good Faith. If a client presents a claim, grievance, dispute, or cause of action against this law firm or any person associated with it, then, prior to resorting to litigation or the filing of a complaint with any governmental or administrative agency: (a) the parties agree to negotiate in good faith in an effort to resolve the dispute; (b) if the dispute is not settled through negotiation, then the parties agree to mediate in good faith as follows: (1) mediation shall be for one-half day in Harris County, Texas; (2) each party shall each bear that party’s own fees, costs and expenses through the mediation and any follow-up work that may be required. If suit is filed without having first submitted the dispute to mediation, the parties agree that said suit shall be abated pending completion of mediation. Texas law applies. Notwithstanding the foregoing, there shall be no requirement that a claim made by this firm against a client be mediated prior to filing of suit.

Suits Against this Firm. Venue for any suit by a client against this firm or any person associated with it is exclusively in the county in which this firm is currently headquartered. Trial by jury is waived in favor of trial before the court. Recoverable damages are limited to actual, tangible damages. Damages for mental anguish and exemplary damages are entirely and unconditionally waived. Judgments obtained shall bear zero percent interest.

Suits Against a Client. In any litigation brought by this firm against a client, we may present a claim for any and all relief and causes of action permitted by law and equity, including but not limited to a claim for all net unpaid legal fees; unreimbursed costs incurred on the client’s behalf; general and special damages of any kind of which the client was a producing cause; exemplary damages to the extent allowed by law or these terms of service; and a request for equitable (injunctive) relief, both temporary and permanent. Any such claim may be presented as a sworn account. It is expressly agreed that venue for any legal action by this firm against a client may be in the county of the client’s domicile; the county in which the client’s principal business office is located; or in Harris County, Texas. Choice of venue among these alternatives shall be entirely and solely at our discretion. A judgment obtained against a client shall bear 10.00% percent interest. The foregoing are material provisions of our terms of service without which this firm would decline to represent any client.

DISCLAIMER

ALL FEES QUOTED ON THIS SITE ARE GENERAL GUIDELINES ONLY AND ARE SUBJECT TO CHANGE AT ANY TIME WITHOUT NOTICE AND WITHOUT REQUIREMENT THAT SUCH CHANGE BE FIRST POSTED ON THE WEBSITE. FEES MAY ALSO VARY DUE TO UNUSUAL COMPLEXITIES OR RISKS INVOLVED IN PARTICULAR CASES. THIS OFFICE DOES NOT REPRESENT YOU UNLESS WE EXPRESSLY AGREE TO DO SO IN WRITING AND WE HAVE RECEIVED AND ACCEPTED PAYMENT. UNTIL THEN, WE WILL RESPECT YOUR CONFIDENTIALITY BUT NO FORMAL ATTORNEY-CLIENT RELATIONSHIP IS CREATED AND WE HAVE NO OBLIGATIONS TO YOU OR YOUR CASE.