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Date Posted: 08:19:53 01/18/06 Wed
Author: Lawshark
Subject: Ok...I'll try to summarize...
In reply to: BFIH 's message, "Best of luck" on 22:33:17 01/17/06 Tue

I'm leaving my law firm to work directly for a title company...H&D Title and Closing.

Right now, my practice focuses primarily on real estate...which for me means two things: (1) residential closings and (2) billable hour legal work.

So...what does that mean? Our firm has a large component of residential title work...we're hired by the bank...the closing attorney does NOT represent the buyer/borrower despite common perception (be quiet Bud...NY is fucked up and does things goofy!) As the closing attorney we have the title searched, prepare the closing documents, do the closing, get the documents of record at the Courthouse and issue the title insurance. I'm basically in charge of overseeing that side of things (by "basically" I mean that my boss is still in charge but has me doing most of the in charge things without getting paid accordingly). I review all the title examinations that come in the door for the upcoming transactions and mark them up to indicate what mortgages need to be paid, liens to be paid, easements, covenants and restrictions that must noted on the title insurance commitment. I also get to deal with any problems that are revealed on the title exam...undischarged prior owner mortgages, defects in prior instruments, etc. I also get to field the calls/questions from the lenders regarding the files when they want to deal with someone other than the processor...which is fairly often...when they need a private note/mortgage drafted, favors, etc. Plus, I close some of the loans.

I also do the billable hour thing...and that entails representing businesses and individuals in real estate matters. That covers just about anything under the sun dealing with real estate...we represent some builders, so it may entail everything from drafting the contract to acquire the property, dealing with zoning issues/zoning changes, subdivision approval, reviewing surveys, drafting the declaration of covenants for the neighborhood, access easements, dedication of roads to the town, sewer easements, etc., creation of the condominium documents, bylaws, formation of the condominium association, deeds, etc. It could also mean dealing with disputes relating to the property...boundary issues, title defects, etc. I also do some landlord/tenant work that feeds off of the real estate side...drafting of the leases...evicting people. This stuff gets billed at an hourly basis.

With my NEW job I'm going to basically eliminate the second part...the billable work...to focus on the title side of things. I've found that I tend to enjoy the title work more and that the clients and work I typically dread dealing with are on the billable hour side. People tend to be more (unnecessarily) demanding and bitch more about costs. They may want us to draft an easement for them...and do it right...which involves searching the title for both properties, getting the lenders to sign off and drafting the agreement. That usually adds up quick at $175 per hour. Then you have to bill them...and wait for your money.

On the title side you put your fee right there on the settlement statement...and get paid right then and there out of the big pile of money sitting at the table. No fuss no muss. Plus, even if you have a pain in the ass individual(s) you're dealing with...they're going to be out of your life in 30 to 60 days when the transaction closes. Typical fees are $600 or so in attorney's fees (title and closing) plus the title insurance for the lender and owner...which probably averages to about $800 to $1,000 premium per closing. As the "agent" issuing the policy we get to keep 80% of the premium. Sooo...assuming the buyer gets the owner's policy you're looking at a gross of roughly $1250 to $1,400 per closing on a purchase, or $900 to $1000 on a refinance.

With my new job we'll be looking at a minimum of 65 closings per month right now as we get started...with the ability to almost instantly jump to 100 plus closings if we're geared up to handle the volume. Even at the low end we should be looking at gross revenues approaching $1 million...so a lot of it is going to come down to just how much the overhead is!

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