LLC Formation and Amendment

Explanation and Engagement Letter

ONLINE PROCESS

Read our web articles LLC Formation in Texas, The Two-Company Structure, and Series LLCs in Texas.

Initial Consultation Recommended. An initial paid consultation ($250) is the best way to discuss an overview of an asset protection plan. In complex situations, we may, at our discretion, require a paid initial consultation in order for us to gather facts and documents before proceeding.

Proceeding without an Initial Consultation. Proceeding with LLC formation without an initial consultation is at your own risk. We will follow your instructions; however, if you have chosen the wrong legal approach, the wrong documentation, or selected the wrong type of entity, we do not absorb the loss of re-doing the project. Additional fees and costs will apply.

Online Process. All LLC formation and amendments are now handled online by email, not in the office. Office visits are not included in quoted fees. We have an established online process:

(1) be sure that we have accepted your case (we are a small and specialized law firm and cannot accept every case);

(2) complete the LLC Formation Checklist;

(3) read, sign, and return this engagement letter; and

(4) make advance payment of the amount due as indicated on the itemized statement we will provide.

Traditional and Series LLC Formation. We form traditional LLCs ($995 plus $300 filing fees plus cost of company book) and series LLCs ($1,995 plus $300 filing fees plus cost of LLC book). Includes Certificate of Formation; company agreement (operating agreement); organizational meeting of members; membership certificates; consent by registered agent; and the Certificate of Filing (Secretary of State approval). IRS EIN not included. Assumed name(s) certificates (county or state) are not included. Deeds into the LLC not included. Filing for registered (Certificate of Registered Series) a series is not included.

Final Fee Quote for LLC Formation. The final fee for the client’s LLC work will be quoted after we have had a chance to review the client’s responses to the LLC Checklist since the Checklist includes optional additional items. Any quote prior to that point is merely an estimate. We provide an itemized statement of fees and costs for your review before proceeding. Items not expressly shown on the itemized statement are not included.

LLC Formation Checklist. As a first step, you will be asked to complete our LLC Formation Checklist. The checklist offers certain choices (e.g., traditional LLC versus series LLC) plus additional add-on options (available at additional cost) that the client can select. These will be reflected on the itemized statement.

Available States. At present, we only form LLCs in Texas and Nevada. Future states such as Wyoming may be added.

LLC DOCUMENTATION AVAILABLE

The following individual LLC documents are available:

Operating Agreement for Traditional LLC ($450)

Operating Agreement for Series LLC ($650)

First Meeting of Members for Traditional LLC ($250)

First Meeting of Members for Series LLC ($350)

Warranty Deeds into the LLC ($350 for simpler, $450 for more complex)

Promissory Note funding LLC formation ($250)

Confidentiality (NDA) and Non-Compete Agreement ($250)

Assignment of Financial Assets to LLC ($350)

Bill of Sale of Asset Transferred into LLC ($250)

Property Management Agreement ($250)

Residential Lease Template in Word ($175)

Special Power of Attorney ($250)

Equity stripping documents ($550 and up)

Management and Consulting Agreement between LLCs ($250)

Certificate of Registered Series ($250plus $300 filing fee)

All of the foregoing exclude filing, recording, and FinCEN reporting.

STATEMENT OF FEES AND COSTS

Advance Payment is Required. We do send bills after the fact for online services.

Itemized Statement. We provide an itemized statement of fees and costs for your review before proceeding. Items not expressly shown on the itemized statement are not included in LLC formation fees. In other words, a flat-fee for LLC formation is not the same as a retainer or an open-ended arrangement for continuing legal services into the indefinite future. In a flat-fee system, services end when the items on the itemized statement are delivered. The client’s alternative is hourly billing.

Filing Fees and Costs Not Included in Legal Fees. Texas LLC filing fees are $300 for a new LLC and $175 for an amendment. In Nevada, filing fees are $425 which includes their business license for the first year. Legal fees quoted always exclude filing fees and other costs. Shipping the LLC book is around $40.

Company Book. The company book with index tabs for LLC documents, seal, and printed membership certificates is an additional cost of around $200 depending on supply chain availability which varies. Books are passed along to the client at our approximate cost. We insert our custom LLC documents into the company book and ship the package to you by UPS. You then sign the documents where flagged and issue the membership certificates.

Warranty Deeds are a Separate Billing Event. We handle warranty deeds of properties into the LLC as a separate second step and a second billing event, so deeds are not included in the initial itemized statement. Fees are $350 (simpler deeds) and $450 (more complex deeds) excluding recording. FinCEN reporting is excluded (details below).

Hourly Rate. In complex cases, we reserve the right to quote our $350 hourly rate instead of a flat fee. In hourly arrangements, there is no partial-hour accounting for the first hour, which is entirely non-refundable. Billing is in quarter-hour increments thereafter.

Legal Fees Shown are Guidelines. Legal fees are subject to change without notice. Also, we reserve the right to vary quoted fees based on circumstances and to decline any case at our sole discretion.

Our Goal is Maximum Transparency on Fees. Our website posts an extensive flat-fee schedule at the “Fees & Policies” tab. We offer as many flat fees as we reasonably can. If a flat fee does not apply, then our regular $350 hourly rate will apply.

LLC AMENDMENTS AND CONVERSIONS

Amendment and Re-Doc of an Existing LLC. An example of this is the conversion of an LLC from member-managed to manager-managed. This also involves bringing the LLC current with annual meetings to date. Fees are: Less than 3 years old $850 plus $175 filing fee plus costs if any; 3 to 5 years old $950 plus $175 filing fee plus costs; more than 5 years old $1,050 plus $175 filing fee plus costs.

Conversion of a Traditional LLC to a Series LLC. This conversion process is more work than doing an initial series LLC formation, not less. It 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. Fees for LLCs less than 3 years old: $2,150 plus $175 ff plus costs; 3 to 5 years old $2,250 plus $175 ff plus costs; and more than 5 years old $2,350 plus $175 ff plus costs.

ASSET PROTECTION

Two-Company Structure. When forming our recommended two-company structure for real estate investors, a traditional LLC is used as a management company (to deal directly with the public) and a series LLC is used as a holding company (to own properties and other hard assets). This proven classic approach is ideal for investors with multiple properties.

Assumed Names (DBAs). Assumed names are not included in our fees. This task is more clerical than legal and is usually handled directly by the client. We suggest that you read our web article on this subject for details.

Anonymity and Layering. Some clients seek anonymity and we do our best to accommodate them, although increasing government regulation is making this harder and harder to achieve. Layering with other entities will likely be necessary to get the most out of an anonymity structure, which will add considerably to the expense. Anonymity on a modest budget is no longer realistic in today’s increasingly regulated world.

FILING THE LLC

Electronic Filing. The LLC Certificate of Formation is filed electronically with the Secretary of State, then it is out of our hands until they approve or disapprove the filing. Takes usually about 3 days although this can vary.

Secretary of State Rejection. Rarely, the Secretary of State will reject a filing, usually because the proposed LLC name is too close an existing LLC name. The client is advised not to incur costs until the LLC name is properly approved by means of a Certificate of Filing. Incurring any such costs before formal approval is at the client’s own risk. We usually re-file at no cost to the client; however, if a filing needs to be extensively re-done for some reason then a $250 re-do fee will apply.

Registered Series. Registered series for series LLCs are optional and not commonly selected by our clients. There is an in-depth article on registered series on our website for your information. If this additional feature is desired, we will handle filing for a registered series as a separate step and billing event, after the LLC is initially formed. Accordingly, a registered series filing is not included in the first itemized statement. Fees and costs for registered series are $250 plus $300 filing fee = $550. Inquire.

Finality of LLC Documents. LLC 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 flat document preparation fee is not a lifetime retainer for an indefinite number of document changes forever – at least not in a flat-fee system. Requesting changes weeks, months, or years later (yes, this happens) will incur additional charges. An alternative is to choose hourly services.

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.

No Return of Documents. All our LLC documents are proprietary intellectual property. Once delivered, LLC documents are not returnable or exchangeable because of the unique and valuable intellectual property involved in our documentation.

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.

REGISTERED AGENT SERVICES

Registered Agent Services. Registered agents are persons officially designated to receive service of process (lawsuits) involving the LLC. Unless otherwise expressly agreed in advance, that is the extent of a registered agent’s duties. Registered agents are not attorneys-in-fact for the LLC. They are not legal or business representatives of the LLC. They are not general mail forwarders.

Choice of Registered Agent. 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. 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.

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. A registered agent does NOT forward 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).

Signing or Filing Annual Reports or Filing of Tax Returns NOT Included. Signing or filing 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. CPAs are much better set up to do this. Please engage a competent CPA to handle your tax matters. We expect all of our LLC clients to have a professional tax advisor. 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 Registered Agent Annual Fee is Not a Retainer for Legal Services. The registered agent fee is not a retainer for any kind of legal services beyond the receipt of service of process. Legal advice and services are not included.

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.

LLC TAXES, ACCOUNTING, AND BANKING

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. A CPA focuses on keeping the client out of trouble with the IRS and the state comptroller.

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

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 LLC will be able to get a loan from any particular lender. Lawyers never make any such assurances or guarantees. 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.

CONSULTATIONS GENERALLY

Online Consultations for New Clients. All initial consultations with new clients are now handled online, not in the office. An online consultation consists of an hour of attorney time and is intended to substitute for the same time one would spend with an attorney in his or her physical law office. It is a discussion and case evaluation. Office visits are not included in quoted fees. Production of new legal documents is not included.

Legal Fees for the Initial Consultation. The fee for an introductory consult for new clients is $250 for matters up to $750,000 and $350 (our usual hourly rate) for matters exceeding that amount. The consultation is conducted online and lasts for up to one hour or three days, whichever occurs earlier, when it automatically concludes.

Initial Consultation for Document Preparation. An initial consultation is not normally needed in the preparation of individual documents, at least so long as we are given clear and concise instructions.

Consultation May Be Required. In complex, creative, or document-heavy cases and at our option, we may require that the process begin with a paid consultation in order to gather facts and discuss details.

Steps in the Consultation Process. We have an established process for online consults based on working with over a thousand online clients:

(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 to your inquiry);

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

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

(4) supply background and context, copies of relevant documents (Note that the time it takes for the attorney to read client messages and background documents is included in the hour);

(5) provide a list of any specific questions and goals you have.

Initial Exchange by Email. We always begin with an email exchange/discussion so we can gather basic facts and documents before we begin answering questions.

Phone Call. An optional call is available so long as time remains within the allotted hour. Some clients find this useful, others do not. In any case, we do not jump straight to a phone call without first gathering basic facts and documents. We need a good grasp of your circumstances before starting Q&A.

Texting. We do not offer consultations by text.

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

Automatic Conclusion. Just as with in-office meetings, an online consultation begins and ends. The consultation automatically concludes (without notice, agreement, or consent) after 1 hour or 3 business days after payment have passed, whichever occurs first.

Complex Matters in an Intro Consult. If the matter is complex, document-heavy, or if the client has extensive questions, then the client should be prepared for hourly fees beyond the initial consultation hour. Not every legal problem can be analyzed and solved in a one-hour consultation.

Legal Advice Unfavorable to the Client. There is no refund if the legal advice we provide is unfavorable to the client or not what the client wanted or expected to hear.

Consultations Are Not an Assurance of Future Services. We are a small and specialized firm that cannot accept every case. A consultation is not an advance commitment on our part to accept or handle the case going forward from the initial consult.

DURATION AND SCOPE OF CONSULTATION

Duration of Consultation. The introductory consultation may last up to one hour spread over a period not to exceed 3 consecutive business days (business hours apply) at which time the consultation automatically concludes. Note please that this is not an unlimited three-day consultation. One hour is the limit unless additional time is booked at the hourly rate.

Scope of Consultation. 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. Additional paid attorney time may be required.

CONSULTATION LIMITATIONS

No Conditional Consultations. Beyond stating that a matter is within our expertise, we do not accept client-imposed conditions on the consultation (e.g., “only if your advice is helpful”).

No Bundling of Consultation Topics. Bundling multiple diverse legal topics or questions about multiple properties or transactions into a one-hour consultation is not permitted. This never works because it is too scattered. If multiple properties or topics need to be discussed, an hourly arrangement will apply instead.

No Shoehorning. Shoehorning (slipping in additional items on top of an agreed flat-fee service) is not permitted. Additional tasks incur additional fees.

No Tax Advice. We are not tax advisors and do not give tax, accounting, or bookkeeping advice. Please consult your CPA in conjunction with our legal advice.

No Coaching. We are a law firm that provides advice and prepares real estate and business documents. We are not a real estate school or an investment advisor and do not offer mentoring on real estate investing.

No Texting. We do not offer consultations by text.

No Total Document Re-Write During a Consult. The fee for a consultation or review/comment is not a flat fee for the total re-write of an existing legal document. Re-writing a legal document inevitably takes longer than a one-hour consultation, so either our posted flat fee for doc prep or the hourly rate applies.

LEGAL FEES GENERALLY

Legal Fees – Ongoing. Beyond the initial consultation, either our extensive flat-fee schedule will apply or our $350 hourly rate would apply (one-hour minimum, billed in quarter-hour increments). If in doubt, inquire. We strive for total transparency as to legal fees.

Costs and Recording Fees Excluded. Legal fees quoted always exclude any costs and recording fees that may be associated with or arise. These are separate and additional and must be paid by the client.

Fees Quoted are for Services Online. Office visits are not included in posted flat fees.

No Carry-Over of Fees. Documents and fees relating to one transaction do not “carry over” to other transactions or properties. Our fees are per transaction and per property. Each transaction bears its own stand-alone legal fees and costs.

Client Default. If a client defaults on payment of legal fees then we may immediately terminate the attorney-client relationship and cease providing services.

FLAT-FEE SYSTEM

Flat Fees are Guidelines. Posted fees are subject to change without notice. Fees quoted are guidelines only and may be adjusted if a matter or transaction is unusually complex, creative, or document heavy. We reserve the flexibility to vary our usual fees based on specific circumstances.

Flat Fees Stand Alone. In a flat-fee system, all fees stand alone. Payment of one flat fee (including a consultation fee) does not include any other services or result in a credit toward future legal services. Multiple diverse tasks incur separate flat fees. The alternative is our hourly rate.

Flat Fees Earned When Paid. There is no requirement that flat fees or flat-fee retainers be held in trust or in escrow or deposited in a separate account. There is no requirement that interest be paid on such funds.

Switch to Hourly Billing. As a case develops, it may become apparent that hourly billing is more appropriate than a flat fee. We reserve the right to switch the case to $350 hourly billing if work substantially or unexpectedly exceeds what was reasonably anticipated or what is ordinary and customary for the task.

Expiration of Flat Fees Paid. We do not carry long-term positive balances. All payments, retainers, overpayments, or credits to a client´s account must be used within six months or they automatically expire in their entirety. No exceptions.

Flat Fees Distinguished from Retainers. Consultations and document preparation tasks are designed to be short-term. They begin and end. By contrast, retainers are intended to be a longer-term commitment to your case. Retainers may be flat-fee (for a specific period) or hourly. Inquire.

PAYMENT POLICIES

Advance Payment is Required. We do not send bills after the fact for online services. We do not offer free consultations or any free attorney time. Payment options are as listed on the payment page of the website. Checks are not accepted.

No Conditional or Contingent Fees. Payment of fees is never conditional or contingent upon a successful closing, loan approval, appraisal, title policy, or any other event. There is no refund if such events do not occur as anticipated.

Itemized Statement. We customarily provide statements in larger matters. If you require an itemized statement of fees and costs before proceeding with a smaller matter, please let us know.

No Hourly Accounting for Flat Fees. Flat fees quoted above are not held in trust or escrow. They are earned when paid. No hourly accounting is ever kept or made in flat-fee matters and the client has no right to demand one.

Refunds. If it is determined very early in the process to terminate engagement (before substantial attorney time is expended) 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 attorney time and is a service to the client. Once this happens, legal services have occurred and the client’s payment becomes entirely non-refundable. Also, there are no refunds if legal advice provided is not what the client expected or wanted to hear.

DOCUMENT PREPARATION POLICIES

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 document preparation is a one-time stand-alone item that begins and ends. It does not include negotiations, future or later revisions of the document, or any other ongoing services. Additional attorney time is handled on an hourly basis.

Extensive Customization of Documents. Our flat fees contemplate our usual and established professional format. If the client wants significant special provisions or customization beyond what we typically provide then fees will increase. In such cases, an initial consultation will be required and specific fees will be determined at that time. Alternatively, our hourly rate may apply.

Finality of Documents We Prepare. The document process is not indefinite or open-ended. Documents we prepare or review are considered final 3 business days after delivery to you. Please get back to us with any needed corrections or changes before then. Afterwards, a revision fee will apply.

Documents are Proprietary and Supplied in PDF Format. Except for templates, documents are supplied in pdf format only. All our documents are proprietary, subject to copyright, and licensed (not sold) to the client. Our documents may not be copied or disseminated to third parties.

Document Preparation – Additional Fees. Add $75 if metes and bounds (rather than the usual lot and block) must be keyed in by us. Add $25 if we are named as trustee in the Deed of Trust.

RECORDING AND FinCEN REPORTING

Recording with County Clerk Excluded from Legal Fees. Our legal fees exclude both recording fees and the act of recording a document with the county clerk unless there is a prior express (not assumed) agreement otherwise. Online clients generally record their own documents since they have the original in hand (we do not) and only executed and notarized originals can be recorded in the county clerk’s real property records. We do not collect for recording fees, only document preparation.

Recording of Executed Originals with County Clerk. Recording of the executed and notarized original warranty deed or deed of trust is easily done by the client by U.S. Mail. All 254 Texas counties post their per-page recording fees on their websites. Recording fees for deeds average $30.The longer the document, the larger the fee. Upon request, we can provide a blank cover letter to the clerk for you to use.

If We Do County Clerk Recording. If we agree to this (express agreement required in advance) add $50 handling per document plus the applicable filing fee if we are asked to perform the task of recording documents with the county clerk. Note that only original notarized documents can be filed, so the executed original will have to be mailed to us. We then have to write a check and send it on to the county clerk.

Federal FinCEN Reporting Not Included in Legal Fee. Federal reports disclosing beneficial ownership (FinCEN Residential Rule) are now required (not optional) for non-financed (cash or no consideration) deed transfers to LLCs and trusts. These reports can be made online but are time consuming. They are effectively a tax on all of us imposed by federal regulation. Reporting a required deed transfer to FinCEN is the client’s obligation since the client is recording the deed. Add $150 to our legal fees if we are asked to do the FinCEN report.

TRANSACTIONAL REPRESENTATION

Representation in the Full Transaction. Preparation of documents or providing a consultation is a limited, closed-end service that begins and ends in a specific timeframe. These services do not include or encompass ongoing legal advice or representation in the broader transaction. We have no obligations to the client beyond the consultation or document preparation. Engaging our firm for a limited purpose does not mean that we become your attorney for the whole transaction unless we expressly agree to do so in writing.

No Representation of Both Sides. We only ever advise and represent one side of a case or transaction. We never attempt to “represent both sides.” Absent instructions to the contrary, we strive to give legal counsel and prepare documents that are aggressively in the best interests of our client.

LIMITATIONS ON LEGAL SERVICES

No Escrow Available. We do not offer escrow or trust account services. We do not receive, hold, or disburse client funds, ever. We suggest a title company for this purpose.

No In-Office Closings. We do not offer free in-office closings. This firm gives advice and prepares documents only. We recommend a title company for closing and funding.

No Guarantees. Lawyers never make guarantees as to the outcome of any transaction, case, or other matter. This includes real estate closings.

No DIYers. We do not assist DIYers in handling legal projects on their own.

No Amateur, Internet, or Seminar Document Review. We do not advise upon or get involved with homegrown or amateur documents, forms from the Internet, documents prepared by non-attorneys or non-brokers, or guru forms from real estate investment seminars. These do not meet our professional standards and must be replaced with correct Texas documentation prepared by an attorney.

No Liability Beyond Specific Task. Our firm has no liability whatsoever for any part of any case or transaction that we do not directly handle, directly advise upon, or directly prepare documents for. The client’s DIY activities are entirely at the client’s own risk.

No Client Fraud or Illegality. If it is determined that a client is engaging in unlawful activities, representation will be immediately terminated without refund.

No Litigation or Disputed Matters at this Time. Our legal services are limited to real estate representation, business transactions, and asset protection including LLC formation. Our schedule for litigation and disputed matters is currently full.

TITLE COMPANIES AND APPRAISAL DISTRICTS

Title Policy or Title Report. If our client is the buyer or lender, you are advised to obtain a title policy or at least a title report on the property prior to closing in order to determine if the seller has good title and/or if there are existing liens, judgments, easements, or restrictions affecting the property. This is not our responsibility. We are not a title company and do not check title, nor do we offer in-office closings.

Title Company Policies or Actions. Our documents are always legally effective, but we make no guarantees concerning any particular title company´s preferences, demands, or underwriting criteria, since these can vary. Negotiating with title companies, addressing their objections or requirements, and dealing with title company attorneys is not included in flat fees. The hourly rate applies.

Appraisal Districts. There are around 254 appraisal districts in Texas, all with their own independent policies and procedures. We make no guarantees or assurances that an appraisal district will (for example) grant a homestead exemption or take any other action in any particular case or circumstance. Negotiating with appraisal districts or addressing their objections or requirements incurs our hourly rate.

LEGAL VERSUS BROKERAGE SERVICES

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 primarily legal in nature. Engaging this firm in a legal capacity does not also engage us in a brokerage capacity. Any brokerage representation by us requires a signed written brokerage agreement, not just a legal services agreement. We are not currently offering full brokerage services.

A Lawyer Does NOT Replace a Realtor. Although this law firm offers consultations, document preparation, contract review, and other legal services, it is important to understand that a lawyer does not substitute for an agent or broker and all the various services and ongoing support that Realtors provide. Requesting advice from a lawyer does not substitute for the broader services of a real estate agent or broker.

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.

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. Inquire.

COMMUNICATIONS

Business Hours, Weekends, and Holidays. We take business hours seriously. Traditional business hours apply (Monday through Friday, 8-5 CST) subject to our posted vacation schedule. After-hours communications are viewed as being received on the next regular traditional business day. We are not available on weekends or traditional holidays.

Sending Us Supporting Documents. Please provide us with legible copies of relevant supporting documents (if any) in easily downloadable form. Email attachments should be in pdf, Word, WordPerfect, Excel, or other common software. Do not send original documents in the physical mail. We do not handle originals.

No Encryption or Passwords. Please do NOT apply any form of encryption to emails or attachments. Avoid Dropbox or any method that requires us to get a password and enter a third-party site in order to view your documents. If you require that level of security, please consult another law firm.

Data Dumps. Please 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 omit irrelevant material. The time it takes to sort through large data dumps is part of paid attorney time and will be charged accordingly.

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.

MISCELLANEOUS

The Client’s File. Clients receive copies of relevant documents as the legal matter progresses. This is the client´s file. Keeping these copies and maintaining them in an orderly manner is the client´s responsibility. We have no obligation to provide any additional documents or information.

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 and any identifying information that we may (at our discretion) request.

AI Agents. If your intention is to do business with us through an AI agent, please contact another law firm. We interact with humans only, no exceptions.

Terms of Service. All of our firm’s general terms of service (found at the “Fees & Policies” tab on the website) apply without exception to all persons receiving legal services in addition tothe specific terms of service set forth in this engagement letter. No exceptions.

Engagement Letter. This document is our engagement letter setting out the terms and conditions of this particular engagement for legal services. If you wish to proceed, please sign and date below.

AGREED:

______________________________________ _______________
SIGNATURE DATE

______________________________________ _______________
SIGNATURE DATE