Dan's Papers - April 24, 2009 - Estate of Mind: City Lawyer/Country Lawyer

You put in an offer and have an acceptance (O&A) on a house you want to buy. You had a home inspection and nothing about it made you run screaming from the property. You've been to a lender, and got a pre-approval.

From the beginning, you've probably (hopefully) also been in contact with a real estate attorney to take you from meeting of the minds to a move in date. Like everyone else involved, awyers can expedite, drag out or kill a deal. So choosing the "right" lawyer is critical.

"There's a house, there's buyer who wants to buy and a seller who wants to sell. It's everyone else's job to make that happen."

While this statement from Bridgehampton attorney Theresa Quigley may sound simple and even altruistic, there's more to it than meets the eye. Local industry insiders say lawyers are integral when it comes to knowledge of local codes and quirks, and timing.

A recent transaction through Town & Country Real Estate was a perfect example. An owner of a piece of land needed to sell it. T&C got a buyer, had an O&A, and all were ready and willing to move forward.

The seller chose an out of town attorney. The buyer had engaged a local attorney, John McGowan in East Hampton. A few weeks later, the deal fell apart when the buyer pulled out.

"In my opinion, the buyer had gotten enough flack from the seller's attorney that he became disinterested," said T&C President/CEO Judi Desiderio. "The buyer and seller wasted two weeks in contract negations - that's DEATH in this year's time frame. The sticking points on the deal were things that a local attorney would've known were non-issues.

"There are many nuances involved in buying and selling on the East End," she added, "particularly when it comes to land.

This story has a happy ending. A new buyer came to the table and T&C made a strong suggestion to the seller: Use a local attorney. Learning from a mistake, the seller took the suggestion and engaged East Hampton attorney John Tarbett (from a generations-old East Hampton family, and the son of a buildero. "The deal was signed and executed in a week," said Desiderio, "set to close in 30 days."

While Desiderio, brokers and local attorneys stop well short of dishing the power industry of New York attorneys, they all seem to agree that a reputable local attorney familiar with zoning regulations and other intricacies of East End real estate is the way to go. "Luckily for all of us out here, we have a good array of solid local attorneys to work with," said Desiderio. "Timing is everything right now. Local attorneys are here on weekends, they'll walk the contract across the street. They can make things happen."

For those doubting the advantage of shopping local, think of it this way: Even if you had a highly experienced Hamptons attorney who successfully executed a deal for you on a home or land out East, would you pit that person against co-op boards in New York?

"New York attorneys specializing in coops and condos may not know about Certificates of Occupancy," said Quigley. "It's important to find a person who knows the loopholes, understands local issues and works well with others so they don't kill the deal. Once the buyer and seller agree on price, the deal is 95% done. My job is to council the client on what the deal is."

"What the deal is" is defined by negotiating and interpreting a lot of information. Quigley sees her role as three fold: First, to ensure that what the buyer is buying is the same as the terms worked out in the contract. Second, to interpret the information. "Maybe the surveyor miscalculated clearing of the property - didn't take aquifer overlay in consideration," she said. "I'd have to make sure that information jibes with local codes." (Now there's a litmus test for out-of-area attorneys: try dropping the phrase "aquifer overlay" on them.)

"The contract negotiations are the hardest part," said Quigley - a statement proven by the earlier anecdote. "Muscling by the buyer or seller on contract terms might kill a deal. I had a deal that fell apart over a sink drain stopper. But it wasn't that - the stopper was simply last straw for the buyer faced with a seller who made too many demands."

The third and final step for the attorney is the closing. By then, the majority of his or her work has (or should have) been done, and laid out in the fully executed contract: the lawyer's moment in the sun that represents successful negotiation and due diligence. Then, if all the i's were dotted and t's crossed, you just may have a deal.