Rescision

[ivanl3]

What is the name of your state (only U.S. law)? NV

If one sues a condo developer and wins and is granted rescision as the remedy (you get your money back and lose the condo), how does lawyer working on contingency typcially get compensated? I know it depends on the contract signed with the lawyer, but how is it inormally handled?

 

[Rexlan]

% of the value you received. That will probably be what you got back; however, it may actually revert to a negotiated or hourly fee.

 

[ivanl3]

Would it be typical to net out the current appriased value of the unit that I lose in the case of rescision. For example, if I paid $500K for the unit when I purchased it from the developer and it is currently worth $400K and I lose the unit as part of the settlelment, but get $400K, wouldn't the lawters % tpyically be based on x% of $100K (the difference), not the $500K?

 

[Rexlan]

Probably not because that would be a percentage of a loss which is Zero. Additionally, as you posted, you should get all of your money back and current market value is not a factor. The value of the contract your bargained for is the amount you receive back from the developer.

Wait and see what is billed and if it seems unreasonable challenge it and get an accounting which you are entitled to. It is odd that you found an attorney to take this on an unspecified contingency for this type of case so there should be an answer in your contract. If there is no contract that in itself is a new problem and a serious one at that.

 

[ivanl3]

Probably not because that would be a percentage of a loss which is Zero. Additionally, as you posted, you should get all of your money back and current market value is not a factor. The value of the contract your bargained for is the amount you receive back from the developer.

Wait and see what is billed and if it seems unreasonable challenge it and get an accounting which you are entitled to. It is odd that you found an attorney to take this on an unspecified contingency for this type of case so there should be an answer in your contract. If there is no contract that in itself is a new problem and a serious one at that.

I have not even hired an attorney yet. I have had 3 contact me wanting to take my case. I have asked all of them how their contingency % would be calculated in the case of recsission. I am awating their answer. B/c of I have mutplie lawyers courting me, I feel I will be able to negotiate. I came to this board for insight on how it is usally done.

I can tell you for sure if the usual contingency fee of 33% in case of settlement or 40% in case of trial where to be what they were offering and it was caculated against the orginal sale price, I would be a fool to agree to those terms. It has to be on the difference between purchase price and current market value, a set fee or some other way that I cannot currently conceive.

 

[ivanl3]

% of the value you received.

This answered prove to be incorrect. I spoke w/ 5 different attorneys about the case and all indicated that in the case of 'rescision', the norm is for the contingency % to be based on the diference between the oirginal pruchase price (what the developer pays) and appriased value of the property. This only make sense since you are losing your condo as part of the deal.

And of course, everything is negotiable, so different terms could be agreed upon. But the 'norm', as asked in my original question, is for the % to be based on the difference between what is received and appraised value.

Thanks anyway for trying to answer.