Are you curious to know what role contingency fees play in real estate?
If yes, then here’s what you need to read next.
What is a contingency fee?
It is a form of billing that lets an attorney be paid at the end of the case instead of an hourly payment. The amount is a certain percentage of the damages that the client was awarded and it depends on the condition of the client.
The contingency fees range from 5% to 50% of the final award given. Also, an important thing to consider is that the client does not need to pay a fee when they lose a case. Therefore, we can say that the attorney’s payment depends on winning the case.
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When can you use contingency fee agreements?
It aids when a client has a costly and complicated case but is short on funds. They use a defendant’s insurance policy to reach settlements. However, there are cases when the attorney might not accept your case such as when liability is unclear, or if the case is too risky. Lake Charles real estate lawyers have been trusted over the years for the excellent expertise they offer their clients.
Contingency fee agreements are often used in civil cases but there are some exceptions when lawyers might accept the case. Here are some situations that are listed:
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- Sexual Harassment
- Personal Injury
- Bankruptcy
- Debt Collections Cases
What are the conditions when a contingency fee agreement is not allowed?
Contingency fee arrangements might be helpful when it comes to financial assistance. However, there are cases when it is prohibited by law. When the attorney feels that the case can be won and he/she is obvious about how to go about it, the client can be given a reasonable rate. This should be based on the amount of work and time that will be invested in the case.
You must know that there are rules of professional ethics that restrict the lawyers. These include working on contingency in family law or criminal law cases. Since contingency in family and criminal law would excuse or encourage divorce. It might even lead to criminal activity. According to the laws of the state you belong to, contingency fees might be restricted in bankruptcy and immigration cases. Other things such as occurrences of drafting contracts, trusts, wills or other legal documents are also included.
Are there any pros of using contingency fees?
Yes, the contingency fee has several advantages, which are as follows:
- Eliminates up-front fees
If you have low income and need access to legal assistance, Lake Charles real estate lawyers are here to help you. When one uses a contingency fee arrangement, neither do they have to pay up-front nor are they burdened with huge legal bills while the case is ongoing.
- Incentive
Now, this is quite natural and true. It is ensured that the attorney you have hired will try their best to win the case. As you know in case of incentive, it is only when you win the case and get paid that your lawyer will be paid, they will surely do their utmost.
- No Costs for Losses
Another major advantage of using an arrangement consisting of a contingency fee is that even if the case does not go well and the outcome is not pleasant, you are still saved from paying huge fees. Although there might be some administrative charges that you would have to bear. Yet you are on the safe side.
Here is all you should know about contingency fees and how essential it is.
You can look up for Lake Charles real estate lawyers to know more.