Paying Mortgage Every Two Weeks Could Save You Tons

Good morning Blogosphere... It's been while since our last post.  We welcomed a new addition to the ChicagoLawSource family, and that has been keeping us VERY busy.  However, now that we are back to work mostly full-time (give or take a dirty diaper day), we thought we'd share with you a new and interesting and possibly hidden secret in mortgage lending that can save you THOUSANDS (yes, thousands).  Curious?  We were too.

Ok, here goes.  You know when you have a mortgage payment and that payment is due every month, say, around the first?  Well, what if you could set up bi-weekly payments (i.e. paying every two weeks), and that would take 5-7 years off of a traditional 30-year mortgage?  If it sounds too good to be true, think again.  Here's some pertinent information and news I found online to share with you:  *

How Bi-Weekly Payments Work

The magic of the bi-weekly payment comes from the fact that there are 52 weeks in a year, thus you’d have 26 payments. If you were to simply make two payments a month that would be just 24 payments in a year, so actually the bi-weekly method has you making two extra payments each year, which is the same as making one extra monthly payment.

Here’s an example. Let’s say your current monthly mortgage payment is $1,000. Over the course of a year you will spend $12,000 on twelve payments. If you decided to make bi-weekly payments you can then make a $500 payment every two weeks. Seems like the same thing, right? Well, if you take $500 and multiply it by 26 payments you have $13,000 in total payments. And guess what? That extra $1,000 was applied directly to your principal, thus reducing how much you’ll spend on interest and will pay your mortgage off faster.

To better understand the true savings, on a $100,000 30-year mortgage at 6.5%, you'll pay $127,544 in interest, plus the $100,000 principal, for a total of $227,544. Paying one-half of your regular monthly mortgage payment every two weeks will result in interest of $97,215, a savings of $30,329. Obviously, the larger your mortgage and higher your interest rate, the greater the savings.

How to Make Bi-Weekly Payments

So, switching to a bi-weekly payment is as simple as splitting your monthly payment in half and making a payment every two weeks, right? Well, not so fast. While that is the general idea, you do want to check with your lender first. For one, you might already have an established automatic payment and you’d want to make sure you could stop that. Otherwise you might find yourself paying even more.

Also, make sure that your lender will accept bi-weekly payments. While most lenders should, there are cases where they will not, or if they do, might not automatically apply the extra to the principal. You must have a lender that will immediately credit each half monthly payment upon receipt. If your lender waits until the second payment has been received before crediting your loan, you'll never see the benefits.

Finally, make sure there isn’t a penalty for prepaying your mortgage. Most mortgages these days do not have a prepayment penalty, but there are still some out there that will penalize you for trying to pay off you mortgage early. It’s sad, but true. So just be sure that you won’t be doing more harm than good by trying to make extra payments.

Things to Watch Out For

Making bi-weekly payments is a very useful tool, but be careful of scams or special programs that claim they can do this for you. I’ve seen some companies offer to convert your monthly mortgage payment into bi-weekly payments for a one-time fee of about $400. Run away from these offers. It shouldn’t cost you anything to make extra payments on your own loan. Even if your lender won’t accept bi-weekly payments you can still achieve the same results by making a single extra monthly payment once each year.

If you have questions about all of this - contact me at www.alisalevin.com, or contact me via email at : alisalevin@yahoo.com and I will do my best to cater to your every question.  Happy payments and it's great to be back!

* Some information used from www.about.com.

Hold Your Horses (and Control Your Client!): Tips for Being the Client

It's the commencement of Fall and nicer weather is upon us.  It's time for the reverse of spring cleaning, where we examine our to-do lists and determine if anything, what can we do to make our lives easier, and stress-free. I've decided to explore an oft-ignored concept in law, which is how to best be a client, so that your attorney can actually help you. I've got some doozies from the trenches, which can hopefully help you, with news you can use.

First, I must acknowledge that without clients, us lawyers don't have much more than our diplomas and student loan bills.  We need you.  But perhaps more importantly, you need us.  That's why, to have a symbiotic relationship, we partners in the law (us attorneys and you clients) need to learn how to co-exist, manage the case and get the results you need.  These are but a few suggestions in this "Round I" for accomplishing those goals, listed in no particular order (as they are all important!).  Be on the lookout for additional tips in later rounds!

1. Be Honest. If you are lying about your case, or that you have a document when you really don't, or whatever it is that you are withholding, I'll find out about it.  It will probably be when I'm supposed to deliver that "thing" to the other side of our dispute, and you'll have to admit you lied, and you don't actually have it.  That's never good.  Or, it can be at trial, when I ask you the all-important question, and you, being struck by the conscience, decide that what you've been saying all along isn't that plausible, so you change your story.  Whatever it is, just tell me up front.  I can't help you if you blindside me.  Plus, if you make me look bad, I make you look bad.  The difference is, I have to go before that judge sometime in the future, and you inadvertently make my future other clients look bad, because I get a reputation for lying.  So.... what can you do?  Save my future clients, and your current case.  Just be honest.  It's easier, and I promise you - cheaper.
2. Do Not Call Other Attorneys to Check My Work.  If you have a problem with me, don't understand something, or think that someone else can do it for less, then you need to come in and see me face to face.  You would not believe what a small community we lawyers live in, and we sometimes (and often times) know each other.  I have found out my clients were shopping around, and the "shopped" attorneys have called me to tell me my client called them.  That's awful, and hurtful to boot.  I don't call your neighbors, boss or friends to see if you are lying to me, so you should not call my competitors to see if they can beat my price.   Maybe they charge less.  But maybe they do a worse job.  If you are concerned about a particular aspect of your case - let's talk about it.  I don't get my legal ideas out of thin air.  Usually there's a legal principle of law that I can show you to support where I'm coming from.  If you don't trust me, there's a reason.  Let's get to the bottom of it - but calling others undermines everything - and I'll quit as your lawyer if I think you are not loyal.  We can work together, but I need your trust.
3. Please Don't Try to Haggle With the Price.  I am not a car dealer.  My rates and those of most attorneys, are not negotiable.  What we can work out, is how those rates are paid, but the rates reflect an attorney's skill, market for the services, and are a function of expenses and costs to represent you as the client.  If you want to pay $75 an hour for legal services, then you will get that quality of work.  This is a hint to you that $75 an hour for an attorney implies that you will NOT get good quality work from an experienced lawyer.  If a few lawyers charge more than $150+ an hour, that's probably the going rate.  As such, you should be asking questions about the lawyer's rate, but be advised that just like at the doctor's office, the price is not something that is up for that much discussion.  
4. Please Don't Try to Limit What I Can Do or Work On.  As your lawyer, I need to be able to do my job.  I have clients who try to restrict my work, telling what I can and cannot look at, and how much time I can spend on something.  This kind of dialogue just interjects stress into the relationship and almost forces me to do a worse job than I could do if just given the reigns to do what I need to.  When a client micromanages the lawyer, resentment builds and ultimately the work gets done anyway, but usually at the last minute.  What can you do to avoid this?  Just speak clearly about what you want up front.  If you as the client need to approve this and that, then you should tell your lawyer up front.  If my client had done that, it would have given me the right to tell him that I cannot work like that, and that maybe another lawyer would be better for that kind of arrangement.  By being honest, as above, you engage in a better starting point for the attorney-client relationship, and the money is better spent on actual legal work, rather than fighting over the legal work.  Good communication helps everyone in the game.

All in all, I always advocate just talking with your lawyer about your concerns.  This works for credit card companies, neighbors, and even family.  When people hold things inside and are not candid, resentments build and things can escalate in sometimes unintended ways. 

For more news you can use, and tips about law and other magical topics, don't forget to check out www.alisalevin.com, or contact Alisa for assistance with your Illinois legal needs.

Condominium Boards and Dynamite: How Being Neighborly Can Result in Disaster on the Homefront

So, you've just closed on that fantastic new loft or condo - and you can't contain your excitement about your new granite countertops and stainless steel appliances.  The summer is just around the corner and the BBQ is going to be ablaze, just ripe for your new friendly neighbors to join in.  As time goes on, you begin to realize a pecking order, and that board membership may have some benefits as far as voicing your opinion, getting much needed repairs done, and being a respected part of your community.  That may be true, and most I've spoken with would agree... in part.

However, and there's a "but" just around the corner.... what most people don't say or talk that much about, is what happens when people don't see eye to eye.  What becomes of your newfound friendships when people take sides on issues, problems or solutions?  People get very emotional, fights can break out, and things can go at any time, from bad to worse.  Take the case of a medium sized condominium building, in say, Chicago.  Great potential for a building and a community, but there are problems with the building.  Finances are more than just "tight" ...they are on a shoe-string.  There is not enough money to repair everything that needs fixing.  How does this building prioritize, when some people want to go in one direction and others desire different outcomes?  What about when the lines get blurry between friendship and finances and the safety of the investment into the real estate?  Is it fair to vote by board majority, or building majority?  How do buildings operate when the board principals feel guilty leaving everyone out, so they give them a vote?  Should boards run everything when the unit-owners as whole can be affected?  How should these things be policed?  What about when some officers refuse to work with others?  Dissention among the ranks can make for lots of problems.

Many people forget to analyze, when buying into common interest communities, that they are opening a Pandora's box of problems - because finances are intertwined, as are emotional and rational positions.  People are very sensitive about their hard-earned green-backs, and when are you supposed do care more about your neighbor's future than you do your own?  Is it fair to say that when another neighbor's roof is leaking, we should always put ourselves in their shoes, if our roof is not?  Should we as unit owners agree to pay a portion of our funds for another's problem?  Is it because we know that when the problem is "ours" that the neighbors will then have a corresponding obligation to pay for "our" problem?  Who knows?  What are the rules - and are they followed at all times?  Sometimes yes and sometimes no.

Being on the condo board has even more implications - as I've written about before - because board members have certain obligations.  That said, does anyone at the closing table ever think about the what-ifs of everyone in the building deciding they don't like you because your dog goes to the bathroom in undesirable places, or because you don't shovel snow as often as you should?  Sometimes board members can't be impartial.  Those situations create problems as well.  What about the scenario when people begin to dislike the treasurer of the condo association because they are too financially conservative, and they refuse to agree to "normal" expenditures?  What about when not everyone in a unit participates and helps with work to be done or decisions to be made?  What about when you have members of the community who don't contribute to building maintenance, cleaning or yardwork?  Resentments can brew out of nowhere (just like mushrooms) and when you purchase a condominium, especially in Illinois, it makes sense to do your homework and speak with condo-owning-know-it-alls, so that you get the best of the best, in terms of information.  Knowledge is power, and I always encourage friends and clients alike, to arm themselves.

So what is the beef today?  The issue today, is minding how your "neighborliness" can be swayed to and fro, based upon issues with board voting, participation in the community and financial matters within condominium associations.  When people buy condos, they usually don't ask their lawyers to find out about who lives there, and what they are like.  We leave these exercises for later - assuming that no matter what, we'll soon learn.  That may be true.  However what is important to remember, is that you must evaluate YOU - and what you desire to tolerate, have known about you, what level of involvement you can handle and what you anticipate will be expected of you. Living in a condominium is a lot more like living in a dormitory than most of us "condo people" ever imagined.  Hall passes excepted, there are mini-pseudo-government controls on how much gets allocated to this or that - and regardless of how many of those neighbors you can get to be your Facebook friend - the very MINUTE that things go awry, which they often do, everyone "de-friends" each other, and what was an open-door policy of community gets bifurcated into something, well, less so.

My reminder for February, while condo prices in Chicago and surrounding areas are still painfully low, before you enter into what you think will be a promising investment, do please think long and hard about living in glorified apartments with shiny granite.... Often you get far more than you bargained for.

For more information on Chicago Condominium and Real Estate issues, contact me at email: alisa@chicagolawsource.net.

News, Reviews and Honors

Announcing!  Chicago Attorney Alisa Levin (yep, that's me!) was just listed in Chicago Lawyer's Magazine - Super Lawyer's Edition, as a 2011 Rising Star in Illinois.  Less than 2.5% of all attorneys under 40 years of age in Illinois are nominated for this honor.  Thanks to all who support the continued existence of the Law Office of Alisa Levin.  I am thankful for your trust.

SO, on to my post..... Today's short piece is about reviews and online information. You may know that there are many options available when you want to complain about, or praise someone you've worked with.  Online sites like Yelp, Avvo, Better Business Bureau, Merchant Circle, Angie's List, and others, exist to allow not only negative feedback about a business, but allow for positive feedback as well.  When you like your tailor, your carwasher-person, or your dog walker, (or yes, even your attorney), you should sing their praises!  We are an online community, and when we help you with your need, your positive ratings online really do wonders to help us attract new businesses.

I am listed on Yelp, Merchant Circle, LinkedIn, Avvo, Rocket Lawyer, and others.  If I have served you or someone you know, and you would take the time to comment, I would appreciate it!  Similarly, other businesses really love feedback.  We need you, our customers and clients.  Without you, we don't exist.  So, be sure to let all of us know how we are doing.

If you need me, just call.  You have the number!

Lawyer as the Client - News You Can Use about Hiring Lawyers

What me? Hire a lawyer? Yes, folks... From time to time, I too need advice and guidance from my fellow club members. After having a very recent and very terrible experience with an attorney - and one who actually was a guest at my wedding - I would like to offer a few good tips for hiring professional legal counsel (other than the obvious, that if you came to my wedding and I later hire you to do something, you can be SURE I will scrutinize every move you make and you had better do your job correctly, if that were not an obvious).

So, here goes! News and Tips you can use to make better relationships and experiences with your lawyer, in no particular order:

• Outline what you want
• Be sure on exactly what the lawyer is or is not going to do. You can really be disappointed when you hear about what all the "other" lawyers do for their clients and yours is lazy, and refuses to do "this or that". I mean, really bummed.
• Be sure to compare and contrast what others are charging. What may be offered as a "discount" or a favor may be high or low, depending on what you need. I don't personally think that less than a few hours of the lawyer's time and one or two hours of the secretary's time justifies a $1000 fee, since there is no way that the secretary costs the lawyer as much as the lawyer costs me. In most cases, if there is a flat fee, it's still based upon the amount of time a task takes, based upon a typical "hourly rate".
• Ask who will be doing most of the work. While there is nothing wrong with having an assistant - I don't hire the secretary or law clerk as my lawyer, and you shouldn't either! If I wanted a law clerk to do all the work, then I refuse to pay the lawyer's rates, so there needs to be some justification when the lawyer is charging me for what his secretary or paralegal did. Ask. Find out!
• Before the document is filed or the paper drafted (or whatever you are working on) be sure that the lawyer has read it and can confirm that it's complete. It's really embarrassing when you are at a hearing before an important official and you are by yourself because your lawyer stupidly told you that it was a bad idea for him to be there (especially when everyone else had their lawyers present) and the hearing officer discovers your lawyer's mistake. Rolling your eyes helps, but just the same, your matter can be seriously screwed up when your "attorney" doesn't do his job correctly. Be sure. Double check. Every thing must be perfect.
• Ask your lawyer if they have malpractice coverage, or look up their status online. You can find information about Illinois attorneys and whether or not they carry malpractice coverage. Mistakes cost money, and you don't really want to use a lawyer that doesn't care enough about himself to have insurance. Would you really want to drive with someone who didn't have car insurance? I don't think so. Check. Be careful.
• Lastly, don't be afraid to get a few consultations. I made the mistake of hiring this "friend" without really shopping around. This yokel came to my wedding, ate the cake and talked with my mother, so I certainly didn't hesitate to hire him. Now, I am reminded that just because someone can dress up and look nice, it doesn't mean that they do a good job at their job. Take the time to meet a few lawyers before selecting one. Anyone who would be offended that you are "shopping around" is no one you want to hire. Now keep in mind that if it's me you are consulting with, I won't let you waste too much of my time before I need to be hired and compensated, but that is not the same thing as being careful about who you hire. Getting 3 consultations (even those you have to pay for) is good investigation into how your situation can and should be addressed, and you will be able to make a much better decision. Time spent learning is not time or money wasted.

All in all - while going with your initial gut is usually a good idea, I remind you that even us lawyers do have to live and learn sometimes. None of us have crystal balls, and we all need some advice from time to time. If you are careful, patient, and do your homework, you are more likely to find a lawyer that is themselves careful, patient and competent.

As always, for additional information, email me at: alisalevin@yahoo.com.

Home Repair and Remodeling Act - New News in Illinois Courts May Impact Lien Cases

As you have seen from my prior posts, I do enjoy a good mechanic's lien case. In my blogging searches, I recently found out about the case of Universal Structures v. Buchman, which may serve to turn some prior law on its head. The gist of the opinion cited below, is that if a lien claimant files a claim under the Mechanic's lien act, even if there is a violation of some other Illinois law or statute, the law of contracts will come in and save the lien claimant from any defenses to payment that the opponent may have. Hmmmm... interesting. Here's more:

On June 30, 2010, the First District Appellate Court of Illinois reversed the decision of the trial court and remanded the case of Universal Structures, Ltd. v. Dr. Alan Buchman, et al. The trial court had dismissed the plaintiff general contractor’s mechanic’s lien foreclosure action claiming that the general contractor had failed to procedurally comply with the Home Repair and Remodeling Act (815 ILCS 513/20) by not obtaining the homeowners’ signatures on work orders and failing to furnish the homeowners with a Consumer Rights brochure. The First District reversed the finding of the trial court finding that the general contractor was not precluded from asserting mechanic’s lien rights upon the homeowners’ property even though it had failed to comply with Sections 20 and 30 of the Act. Relying predominantly on Fandel v. Alan, 398 Ill.App.3d 177, 188-189 (3d Dist. 2010), the First District found that the general contractor’s procedural errors in not securing the homeowners’ signatures on work orders prior to beginning construction and failing to provide the homeowners with the Consumer Rights brochure, even though unlawful violations under the Act, did not invalidate an otherwise enforceable agreement.

The Court held that “Nothing in the Act provides that a contractor who fails to get a signature on a written work order or provide the homeowner with a Consumer Rights brochure cannot collect for his or her work and that the homeowner is entitled to receive a valuable benefit without paying for it. . . . Merely because a contract may violate some law or some regulation does not necessarily make that contract unenforceable. Rather, contracts are unenforceable when the subject matter of the contract where the purpose of the contract violated the law, " citing Federal Land Bank of St. Louis v. Walker, 212 Ill.App.3d 420, 422 (1991). The Appellate Court found that the underlying agreement between the parties was valid and that the general contractor’s procedural violation under the Act did not bar it from asserting a mechanic’s lien or breach of contract claim. This opinion also references the amendment to language in Section 30 of the Act as support for its decision in this case. The First District notes in a footnote that it believes that Artesan Design, Behl and Fandel are better reasoned than the Third District’s opinion in Roberts v. Atkins, 397 Ill.App.3d 858 (3d Dist. 2010). It also distinguishes the Roberts case based on the fact that the plaintiff in that case never provided a written contract or work order to the defendant.

Why is this important to you, the property owner? Because the latest decision Universal Structures strengthens the long line of cases which focus on the law of contracts and a contractor’s right to recover pursuant to contract theories despite the fact that the contractor has failed to comply with procedural aspects of the Home Repair and Remodeling Act, which might have otherwise provided a defense. WHat is our bottom line, then? The Mechanic's Lien Act just got more teeth. Property owners attention please! Get lien waivers, and be sure to closely monitor all construction activity. Get contractor sworn statements, lien releases and everything in writing! Don't pussyfoot around the necessary paperwork! Otherwise, you'll be calling me to chase your money.

Fore more information on Mechanic's Liens, construction or real estate law, as always, call Alisa Levin at 312-720-0082 for your greater Chicago Law Source.

Help! My Landlord is in Foreclosure! Do I Have to Move?

So you say you just found out your landlord is not paying his mortgage? Not good, I say. But do you have to move? Maybe. There are some questions on the street about the Obama law relating to tenants and foreclosures, known as the Protecting Tenants from Foreclosure Act. While it may be viewed as a welcome relief for many people living in apartments, houses and townhomes, just because there is a law meant for your protection, does not mean that tenants whose landlords are in foreclosure are home free. Here are some answers to popular questions about the Act:

Is it true that the fundamental provision of the bill requires that most foreclosure purchasers of properties with active leases must give tenants at least 90 days notice before servicing eviction notices and filing for eviction in rent court?

Yes. The Act provides that any immediate successor in interest (meaning the person who owns it after your landlord – the bank or another buyer) must deliver a notice to vacate to any tenant giving 90 days’ notice. The new owner can terminate a lease, or honor it, but if they terminate the lease then they must provide the 90-day notice.

When the lease agreement is signed before the foreclosing loan was originated, i.e. when the loan is younger than the lease, is it true that the lease survives the foreclosure and the foreclosure purchaser must honor the lease until the end of the term?

Not necessarily. The Act does not differentiate between leases that existed before the loan originated and after. The Act provides that the preexisting tenant’s lease must be honored until the end of the term, UNLESS the new owner plans to occupy the property as his/her primary residence, then in that case, the new owner must provide the 90-day notice and the tenant can be ousted. The catch-point in the Act appears to be whether the next owner is a bank or another party intending to use the property as a primary residence. This implies that a tenant in an eviction proceeding MIGHT have a defense, if it can be proven that the successor-in-interest to the mortgagor (landlord) is not a purchaser occupying the property as a primary residence.

Whether you’re a landlord or a tenant, what key aspects should landlords be aware of?

Landlords should be aware of the main 90-day notice requirement. If the successor owner is not going to use the property as a primary residence, then the tenant’s lease must be honored. If a landlord is in a short-sale or foreclosure situation and their tenant asks them questions, it’s important not to promise that the tenant can definitely live out their lease term. The landlord should decline to answer those questions specifically and should state that there may be a situation where the tenant has to leave, but in no case will the tenant be asked to leave without notice.

Does the new eviction notice requirements under the Act exclude certain rental situations?

Yes, it appears to exclude situations where the landlord/tenant relationship is between family members or relatives or where the rent is substantially lower than market value for the property (which is likely evaluated on a case-by-case basis).

What can you do if this sounds like your situation? Be clear, and talk to your landlord. If you receive a notice from a bank or a party indicating they own your house, try to get clarity on the situation by talking to them or an attorney. For more information, you can always call your trusted Chicago Law Source, Alisa Levin at 312-720-0082.

Law Office of Alisa Levin is Moving

Attention! Attention! Alisa Levin Law is moving offices from Bucktown back to Ukrainian Village! For all your litigation, construction and real estate needs, look no further! Our new office address (effective May 1, 2010) is:

Law Office of Alisa M. Levin
2319 W. Chicago Avenue
Chicago, Illinois 60622
T: 312-720-0082
F: 773-830-1708
Email: alisalevin@yahoo.com
Web: alisalevin@yahoo.com

For a full case listing or evaluation, contact me at the number above.

Your Tenant Put a Meth Lab In Your House? Tenant Screening is a Must-Do!

Looking for that next great tenant for your investment property or home while you are away? Bought that house so someone else can pay your mortgage? Great idea! Now, in order to make the most of your investment, you need to be sure that whomever lives in your place, is really who they say they are. My most interesting case in point just made CBS and WGN News because my client's tenant was running a meth lab and counterfeit money operation out of the house.

You think that is the worst part? Possibly not! My client lived next door to his rental property, so danger was very close by! The tenancy started simply enough, with a man and a woman responding to an ad for a house in Chicago. They paid the rent and the deposit and signed a lease. They provided id and social security numbers. When they stopped paying rent a few months later, some digging around revealed that everything they provided was a lie. In fact, the man had a complete other identity and landed in jail for impersonating a police officer. Later, after securing an order of possession, my client discovered tools for making a meth lab, counterfeit currency, and a very large cache of condoms (suggesting some other kind of activity as well!). Luckily, this individual was apprehended during the actual sheriff's eviction and it all happened here in Chicago yesterday. I was face to face with this person a few times (and the woman later turned out to be a man named Laura). Fantastic story for the books.

How can this be avoided? Tenant screening is a must. I work extensively with NTN Chicago and its principal, Mark Madorin. Their office is in Oak Brook, and for a mere $20-30 per application, you can obtain rental history, criminal background checks, credit reporting and other information. You can determine rental history and prior evictions. You can find alias names and prior addresses to call prior landlords. You can avoid renting to a man named Laura, and you can prevent someone from operating a meth lab out of your house! If you think it can't happen, it can! Spending a few dollars on tenant screening services can save you thousands in Legal fees, court costs, and prevent you from having to evict a convicted felon from your place.

For more interesting stories from real estate law trenches in Chicago, call Alisa Levin at 312-720-0082.

Your Neighbor Did WHAT?? Interesting Notes from the Condo Trenches

Welcome to condominium life. Aren't those hardwood floors nice looking? Think stainless steel appliances are all the rage? Well, you too can get fancy-schmancy looking refrigerators, all for the convenient price of a large single family house in the burbs. However, before you ask for the fine print, remember that living amongst the living involves a bit of patience, when being so close - to those "others" called neighbors. When condo shopping, remembering these tips may save you!

First, you have to remember that condos are JUST like apartments, except with granite countertops and an extra fee called an assessment. This does not get you free HBO, and you really are lucky if it covers heat or snow removal. In a condo, you will hear your neighbors. You will know when they come or go, whether they have a kid or a dog, and you will receive their junk mail. You may know when they water their plants, because your deck may get wet, and you may know when they are in a relationship (read: creaky bed) or when they are in financial distress (read: foreclosure notices on the front door). As an association, the group necessarily becomes acquainted with finances of its individual members, and your privacy may go out the window in a condominium!

Living in a condo means that you are living in a communal space. Not everyone wants to navigate around a bike in the hallway, or to look at someone else's Christmas decorations on their doors. On a different note, what happens if a bird bores a hole into your neighbor's wall and starts a little pigeon family in their closet? Is that YOUR problem? Maybe. Who has to pay for bird removal? That unit owner, or the association? Good question. What about if the parking gate breaks mid-day and someone in your building has to get to a meeting and wants help? Guess who has to field those phone calls to find a bird-rescue or a gate repairman? Possibly you. Not worried about birds or parking gates? Well what about a slime that suddenly forms on your patio because your upstairs neighbor lets their dog urinate on their porch instead of walking it? It could be you staring that that slime - and yes, pee does still smell when it's frozen. Who has to clean it up? Who pays for this? It's not always an association problem.

When thinking about a condo, you must be prepared to figure out who shovels the snow, and who mops the floors in the hallway - and to talk about it with others from time to time. You have to be ok with looking at other people's shoes in the hallway on the way up to your apartment, and you have to stop allowing your neighbor's creaky floors from driving you crazy (after all, they are allowed to walk up there). Someone in the building likes patchouli incense? Be prepared to like it too - because that may not be something the group is prepared to take on as a problem. What if your neighbor paints their windowsill with oil-based paint and you develop a sore throat from it? Is that a community issue or a private one? It's hard to tell, and regardless of the size of the building, these issues are NOT black and white.

All in all, condo living has many advantages. Also though, it's always a good idea to remember the other side of it. There are other things than bad property developers or mortgage brokers to contend with. The more you think of the possibilities, the better you can decide if it's for you. Remember to sound it out, and ask questions. Home ownership is fantastic - but there can be pitfalls. For more information about condo living, the law, and your rights - feel free to email me or call me for assistance.

Who is Craig and what about his lists? Good Classified Tools You Can Use!

Have you heard about Craig or his list? I, like many of you, am always searching for new online tools to use for finding things I need, finding people to connect with, and for advertising purposes. A few years ago, this mysterious Craig guy was a mere unknown, seamlessly training the Internet without detection. Now, he's in every city and country on the map! Lucky for us, this Internet exposure has provided a myriad of opportunities for communication, connections and information. For you, now you can get a list of classified sites to help you market, sell, connect, interact, and even date!

Here is a list of my favorites:

• www.craigslist.com
• www.yelp.com
• www.merchantcircle.com
• www.kijiji.com
• www.backpage.com
• www.blurbpage.com
• www.freeified.com
• www.infozeal.com
• www.oddbark.com
• www.instantfinder.com
• www.dontlookanyfurther.com
• www.workpost.com
• www.chelios.net

While we all know that google is just about King in most web searches, it pays to know about other good sites. This is especially true when you are looking to hire professionals for services such as attorneys, accountants, contractors, etc. I use Craigslist and Yelp and Merchantcircle, and have my information posted on other sites as well. As always, read each site completely, and look for signs of security, including "https" and don't give too much personal information on the web - as you may never know who is on the other end. All in all, you can easily find online classifieds in your city, state, or country, and if Craig and his list is any indication of the popularity of these sites, there will be more additions to my list very soon!

The Contractor Did What?? What you should know about Mechanic's Liens

Have you ever hired a contractor to perform work upon your property, only to find out later that one of their suppliers or another contractor put a lien on your house? Or have you hired a general contractor to do work and learned that although you paid the contractor he didn't pay his downstream contractors or suppliers? You should know that in Illinois (and similarly in other states) that mechanic's liens can be recorded against property in order to protect the contractor or supplier's right to be paid for work or materials incorporated into real estate. What does it mean to be incorporated? It means "attached" or "utilized within" real estate, such that it is or is intended to be a permanent part of the property. If the work is not lienable, then a lien (even if filed) is no good to the party filing it, and it has no impact upon the person's real estate to which it attaches. However if a lien is correctly and timely filed, it can be a vehicle to force a sale of real estate in order to obtain payment on the amount owed. That's right - if you have a lien upon the property, the real estate can be sold to satisfy the amounts owed on the lien. Moreover, in certain circumstances the lien claimant can jump ahead of the mortgage lender and get paid before they do. While certain requirements must be met - it's possible. Each case is different, so you must have your case evaluated by a competent attorney before proceeding.

In Illinois, the mechanic's lien laws give a number of rights to the contractor or supplier and the rules are different depending on the contractor's role in the work being done (i.e. general contractor, subcontractor, supplier, etc.). Even more is that architects, property managers, demolition contractors, landscape companies and hardware suppliers may have lien rights as well. Basically, lien rights arise once work has been done upon the property and it may relate back to the date of the contract. A contractor or supplier has very strict timelines to record a lien, and as an owner, you may have rights if the lien is not timely recorded. Likewise if you are a contractor, you must follow the time limits in order to protect your lien rights. After a lien is recorded, there are certain rules to follow for an owner in order to force the contractor to "call his bluff" on the lien and you can force him to file suit on it for a court to decide the lien. You should work with a trusted attorney to help you on filing a lien, responding to one that has been filed against your property, or to determine what kind of work or materials are lienable - since not everything is.

If you are a contractor or supplier needing a lien or a property owner who needs information, please contact me for a free consultation on Illinois law. I can be reached at 312-720-0082 or via email at: alisalevin@yahoo.com.

Don't Judge the Judgement - What Does it Really Mean?

Have you ever found your own justice, filing an action against someone on your own, or with the help of an attorney, and received a judgment?  Have you ever had a judgment taken against you or your business?  If so, then you should know about collecting on judgments.  If you owe someone money and you are worried about how you will pay or be forced to deal with it, then this article will help!  As usual, I offer tips on the who, what, where and why of the law!

Our starting point is the receipt of a judgment, so that means if you are the creditor, then you won!  And if you are the debtor, then you lost!  Step number two is the collection process.  After all, a judgment is just a piece of paper unless and until the creditor acts on it!  If you are the creditor, your next steps are called "supplementary proceedings" and you can take the debtor into court and make him/her answer questions under oath (and under the threat of contempt) to tell you about his assets, bank accounts, vehicles, personal and real property (called a Citation to Discover Assets).  You can even find out about the Rolex he is wearing!  This way, the creditor can find out about your job, your house, your income, your living expenses and the like - all in order to determine if you can pay the judgment, or if you own something that can be sold to satisfy the judgment.  

If there are insufficient assets, then the creditor can garnish your bank account (often called a non-wage garnishment).  This is how accounts get "frozen".  If the creditor finds out about your bank account by the citation interview (above), then he can send a citation (third-party) to the bank and the bank must freeze one and a half times the amount of the judgment to preserve it for the creditor.  The bank must comply with this by law.  Regardless of whether the creditor finds out about property, money or wages, the creditor can ask the bank or the party holding it to turn it over, or they can apply to the court for a "turnover order."  Like any court order, the party holding the money or property must turn it over to the creditor or risk fines and penalties.  

Another method is to garnish wages (often called a wage-deduction) and take money from your paycheck in order to satisfy the judgment.  While there are limits on this, the employer is required by law to abide by it. Finally, other methods of collecting on judgments include liens and actions against real estate.  Once a judgment is entered in a court, that judgment becomes a lien on real estate, and the creditor can force a sale of the real estate in order to satisfy the debt owed.  While there are certain rules and exemptions, the creditor can get paid after the mortgage and other lienholders are paid, barring some exceptions.  

The bottom line, is that if you have a judgment against an individual or an entity as a creditor, or you are a debtor with a judgment against you or your company, there are various methods that parties can utilize in order to turn the judgment order into dollars and cents.  So that you have the right information in order to proceed as a creditor or debtor, you should always consult with a trusted attorney.  For more information, please email me at: alisalevin@yahoo.com, or see my website at: www.alisalevin.com.

Leasing Space is not for Astronauts! Tips for Leasing Smart

Whether you are apartment hunting or office searching, leasing has plenty of advantages over ownership regardless of whether it's professional digs, or that hot new loft you've been eyeing for yourself. In this article, I offer some insight into the power-play of leasing and crucial items to both scrutinize and negotiate, and methods for getting the most out of your almighty dollar. First things first, you must find this wonderland. Whether it be on Craigslist or the Times, online or a drive-by, however you find your space, you've taken the first step into the future. Next, it's time to document your new find. Hate contracts? Don't think that you want to write it all down because it's a waste of time? Well beware! Your lease outlines your rules and protects you. Like any other contract, a lease (yes even for an apartment!) is negotiable. Here are two lists of items that you should always negotiate, for residential and commercial spaces:

• Price (You can start with offering a hundred dollars less than what they want and go back and forth from there.... You get the idea)
• Amount of Security Deposit (maybe you want to pay it over time; maybe you want some of it back after a certain length of time; maybe it should be in an interest bearing account)
  
• Requirement of a Co-Signer or Guarantor
• Installation of Fans (who wants to buy or install fans?)
  
• Inclusion of Utilities
• Early termination (I like 90 day clauses - they give the landlord a sense that they'll have some income if you want out early, and there should be enough time to find someone else with no money lost)
  
• Signage (important for commercial businesses - make the landlord buy it!)
  
• Move-in/Move-out charges/Elevator Usage (always try to get out of paying to use an elevator - it never hurts to ask)
  
• Insurance Requirements (usually a must for commercial spaces, but try to negotiate lower limits if you are willing to risk it - you'll save some money)
  
• Landlord maintenance (make sure your landlord has to maintain it - it's his property!)
  
• Parking
• Pets
• Jurisdiction and Venue in case of litigation (you want this to be near where you live, not near the other side in cases of out of state transactions)
  
• Attorney's fees in case of litigation (this should always be a prevailing party provision - whoever wins gets their fees paid!)
  
• And...... You name it!
  

If there is something you want, you need to ask for it. Believe me, if you don't ask for it, and it's important to you, then it will still be important to you when you are in a bind and arguing with your landlord over the rent!

Other important items that tenants should consider is asking for an option to renew or right of first refusal. Just think: you secured this fabulous lease, you have the next 12 months to enjoy the space and relax! But wait. When your lease is over, your landlord can raise your rent at the rate HE thinks is reasonable. If you negotiate an option, and you include a restriction on the amount of the increase (now be reasonable here... rents DO go up!), then you may be able to protect yourself from a renegade landlord who decides to be greedy. If you put that handy "Option to Renew at a Maximum 2% escalation" (or some such fancy-pants language), then when your lease is up, you are in the power position because you know that the rent will not be more than what you negotiated. Thus, it's important to think ahead. Consider it a business pre-nup. It's nothing more than outlining your rules ahead of time. What's more, is that if you ignore me, refuse to have a contract and you have an oral lease, you will hardly be able to prove the terms! So yes. It's all "legal" and such, but your contract can be manipulated so that you get some of what you want as well. Moreover, don't ever think the other guy's forms are going to be drafted in your favor. I draft contracts with MY client in mind - not the other side! I'm hoping the other side is lazy and doesn't read. Never EVER assume their lease form is going to favor you.

Next, never EVER give your deposit or first month's rent unless and until you are satisfied with your lease. Hold on to your money while you can! Once your contract is finalized, then you can hand over the checks. But be sure. Also, make sure your lease is legal. Does the building owner need to approve it even if you've been dealing with management? Be sure. Is it a condo? If so, be sure the association is aware of the lease or sub-lease (same rules apply here for subleases) and include a clause whereby the landlord covenants that he/she is in compliance with all rules. That way if the Board President shows up at your door with a frown, you have someone to blame! Again, you can't always plan for everything, but you can at least be thinking ahead. No one wants to run into a frowning neighbor who has the power to kick you out just for being, right? Be sure.

When I draft contracts or review them for clients, I always ask: "what are your goals?" and "what is important to you here?" Don't forget to ask this of yourself! If you do, your residential or commercial leasing experience will be much more pleasant. For more information, contact me at: alisalevin@yahoo.com or visit my website: www.alisalevin.com. Happy leasing!

Condominiums and being on the Board - What you need to know about your risks

Just bought that new condo? Taking advantage of the bubble being burst in the big city in order to snag a low price on a townhouse? While your price might be right, beware of your rights and responsibilities when you purchase a condo and accept (or try to get) a position on the association board. When a condominium association is formed (through the recordation of the Declaration of Condominium in the public records) the incoming purchasers become members of the association. The association is run by the board of managers, according to the rules set out in the Declaration. Each association's declaration is different - so always be sure to read your Declaration and the By-Laws before you purchase so that you know the rules and regulations. After a majority of unit owners is in place, there will (or should be) an election so that the unit owners can elect a board.

The board of managers is generally comprised of a president, treasurer and secretary. In most associations, the board of managers may vote on particular issues regarding the administration of the property, and there must be a majority vote of the board. People run for the board for a variety of reasons - some of them including being involved in decisions on various projects, or to promote personal agendas, maybe because no one else would step up, and sometimes just because they don't feel that others will do a good job. Regardless of the reasons, it is important to remember that the board has a major responsibility to those on the association.

This responsibility is known as a "fiduciary" responsibility. This "fiduciary" relationship means that the board member must be completely loyal, completely honest and act to advance the common interests - and not in furtherance of his or her own interests. This relationship is better explained in the Illinois Condominium Property Act, which is part of the Illinois statutes. What most people don't know when they take on these roles, is that they may subject themselves to personal liability if they make a decision which later results in legal action. While the condominium association usually is required to have insurance, the condominium insurance may not cover certain acts of a board member. Be sure to read your insurance policy for the association (and to make sure that the association has a director's and officer's liability or "errors and omissions" policy). Thus, it is important to research your responsibilities, and to get the advice of a trusted professional.

Some obligations of the board include accounting to all unit owners, quarterly or annual review of capital improvements, review of past-due accounts, review of all vendors (i.e. exterior landscaping, cable, snow removal, etc.), review of any commercial loans or credit lines, file taxes, among others. Also, the board on occasion needs to issue letters for incoming purchasers (i.e. exercising right of first refusal, paid assessment letters, etc.) and outgoing sellers. Also, the board needs to pay attention to common areas and ensure that the common areas are always maintained. Again, while the Declaration and By-Laws will spell this out, it is always advisable to get the right information at the right time: before there is a problem.

The main idea is that being on the board involves far more than just pushing an agenda, or keeping assessments low. Being on the condo association board involves risk and responsibility. Despite being risky at times, it can be a rewarding experience - for you are running your own "mini corporation" and you can be involved in many day-to-day decisions for your property. While not everything is a big deal, it's important to be informed. Every association should have (or know of) an attorney it trusts for questions, legal representation and information.

For more, feel free to email: alisalevin@yahoo.com, or call Alisa Levin at 312-720-0082. Your suggestions are always welcome!

My apartment is falling apart! Ode to the landlords...

Welcome to apartment living.  We all know that landlords are supposed to take care of things when we rent apartments, right?  Well.. yes.  But did you know that landlords aren't responsible for everything?  Did you know that in Chicago, you may have rights that can be enforced in court?  Yes you do!

Under Chicago's Residential Landlord Tenant Ordinance, depending on the size and type of building, your apartment may be covered and your tenancy subject to some important (and beneficial) rules.  Your landlord is obligated to repair the apartment and keep it in good shape.  In order to "maintain" the place, your landlord is obligated to keep the bathroom sink, shower/bath and toilet in good working order.  You may have to clean it, but their job is to make sure it works!  The landlord must provide heat through a furnace, boiler or other heating method, and keep the walls, ceilings and floors in good order.  They must maintain the heating, ventilation, air conditioning (if any) and electrical systems.  They should take care of the appliances and maintain the building as a whole.  No, they don't have to clean your apartment!    They should take care of common areas such as basements, hallways, porches/decks, and to prevent rodents or insect infestation.  You, as the tenant, have some responsibility on the rodent/bug front, but that is just not to add to the problem, cause any infestations, or to fail to report them.  

What if your landlord doesn't do any of these?  Well, you have some work to do.  First, you should document your situation.  Take pictures, make a video, write a letter or an email.  Notify your landlord!  You should be able to "document" the situation, so that you can prove (as in, prove in court) that you did so.  If you mail  a letter, send it certified, so you can prove they received it.  Once you notify your landlord, your lease and the Chicago Landlord Tenant Ordinance (if it applies to you), will govern how much time the landlord has to make the repair. It's usually 14 days.  Then, if they STILL don't do anything, then you may be able to make the repair yourself, and deduct that amount from the rent.  The key word is "may", and you must prove the expenditure.  If the plumber cost $75, you can't deduct more than that.  No cheating!  If it's a common area, you should get the permission in writing from all of the other tenants.  Yes, all of them!

What if you want to go to court, or you are sued by your landlord?  Well, you should consult with an attorney, to determine your legal rights.  If you don't have heat or water, or any other essential service, then you should notify your lawyer, your landlord, and the city in which you live.  Your landlord CANNOT evict you for reporting them, and if they try, you may have a case for retaliation.  Again, if you think you have a situation, contact an attorney you trust to review it for you.  

All in all, while your landlord should maintain the building, you still have to pay your rent.  When you moved in, you did an inspection, right? If so, then document what is damaged or not working so the landlord knows.  If the problem arises after you move in, then again, document it!  You have rights, but it is very hard to enforce them if you do nothing, or if you just stop paying rent.  One thing is for sure - your obligation to pay rent does not stop just because the water is off or the heat doesn't work!  You may ultimately be able to pay less, but you can't stop paying.  If you have a problem, get the help and information you need.

For additional information on this or other topics, feel free to contact me at: alisalevin@yahoo.com, or by calling (312) 720-0082.  

Google yourself smart

Do you ever wish that you knew all the information about a person or company before you did business with them? Lately, you can find a ton of valuable information about those with whom you do business, if you take a few minutes online, and check 'em out. For instance, if you are working with a realtor or developer for real estate needs, I highly recommend that you search them through Google.com, or Yelp.com. It is simply amazing what a quick search can reveal. Next, if you want to know an address, you can do reverse phone lookups online, and obtain information about people. Just enter the phone number and you will see. Also, if you are hiring someone to paint your house, help you move, or purchasing something from them off of Ebay, a little checking online can help, long before you've sent them money, or let them into your house. These days, everyone posts comments online, and you can bet that mom's old saying, "an ounce of prevention is worth a pound of cure" is just downright smart thinking!

So, what are some good sites to check? I recommend the following: Google.com, Yelp.com, Ripoffreport.com, Angieslist.com, insiderpages.com. Not only that, once you google, the results may lead you to sites that contain extremely valuable information. Don't let your daughters get married without a Google!

Not only can you learn from the internet, you can save yourself time, trouble, and lost cash. Be careful, and be smart.

For more information and ideas, contact me at: alisalevin@yahoo.com

Condominium Purchase Tips from a Lawyer in the Trenches

Thinking of buying a house or new condo in this market? You can snag for yourself some excellent "deals" if you are looking in Chicago or other metropolitan markets. What you may end with however, is a bad investment if you are not careful. I offer some tips and tricks to maximize your investment by doing some homework on the front end. I have seen countless examples of problems, when people think that their attorneys have it all handled. Trust, that no one attorney (even someone who does a lot of closings) has seen it all. As the buyer, you must do your own homework!

Here are some things to be on the lookout for:

- Does your seller actually own the property? Many times you can check the online records at the recorder's office to be sure the seller who has contracted with you is the owner.

- Are there any construction issues?

If this is new construction or a "rehab" condominium unit, you should check out the following:

-Is your developer licensed in your city?
-Did the developer get proper permits?
-Is your property zoned correctly for the number of entrances, exits and parking spaces?
-Did someone add a rooftop or garage deck? If so, was that project permitted?
-Are there any outstanding code violations?
-Is there a Certificate of Occupancy?
-Any building court suits outstanding?
-Any Mechanic's Liens for unpaid contractors or material suppliers?
-Any litigation relative to the builder, contractor, seller, realtor or condo association?
-What kind of loan did your developer have to build out or improve the property? It makes a difference if they got a regular mortgage/commercial loan or if they got a construction loan!
-Does your developer have other projects? Are they being completed and are other buyers satisfied?
-Is there any online information about your developer and their principals? A quick "Google.com" or "www.yelp.com" review could mean the world to you if they have bad reviews!
-Are you the first purchaser? Sometimes it's better to wait - as you may not have a frame of reference as to how the developer is treating others. It may be better to be the last buyer than the first in a condo building. NO incentive is good if your developer skips town!
-IS your association properly funded for contingencies? Has the developer paid its proportionate share into the association account?
-When is your inspection? If it's the day before closing in the contract, you should modify the contract to allow your inspector access to the property WAY before closing. If you wait until the day before closing, your mind will not be clear and you will assume the developer will take care of all issues during the "punch list" period. This is a deadly mistake in many instances. Do your inspection within 5-10 days of signing your contract. That way your time and money are not tied up.
-If your inspection reveals problems, be sure to include all of them, including common area issues, in your punch list which the developer/seller must sign at closing. If they are unwilling to sign it, you may not want to close. A developer who refuses to sign such a list and acknowledge the problems may be bad news!
-If your inspection reveals problems, you should consider also a "holdback agreement" whereby the title company or one of the attorneys holds money due the developer pending the developer's completion of the work. They may need some financial incentive to work, and this can help!

While this list is by no means exhaustive, you can save yourself the pain and expense and time lost in a bad investment by watching the signs, being informed and strong. Very few courts would "make" you close on a bad deal. Just because the numbers are right, does NOT mean that the "bricks" are worth buying.

So what can you do? Sometimes it makes sense to slow down! You can look at the available information and remember your attorney is there to help you. For additional information, or to request a "condo-school" presentation, just contact me at: alisalevin@yahoo.com, or call me at (312) 720-0082.

Managing Legal Fees... Keeping Costs Under the Bottom Line

Litigation and Court Fees got you down? Keeping Costs Manageable is a "Can Do" if you know some tried and true tricks of communication with your lawyer or prospective attorney.

Have you ever gotten yourself or your company embroiled in litigation, whether it's defending against an old employee, or filing suit to collect money owed to you? What about evicting a tenant, or suing to protect rights under a contract? If you have been involved in these kinds of cases or any others - then you likely know how quickly costs can rise.

In Chicago (where I practice), the average hourly rate for an attorney is quickly approaching $300-350 per hour. Add to that, the costs for postage, travel time and overhead costs which only increase if you are working with a larger firm, such as those in Chicago or New York, it's easy to see how expensive it can get. However, there are plenty of things a client can do to help keep costs low and legal services need not break the bank. Keeping in mind that clients are really paying for the lawyer's time and their opinions, not all attorneys are trying to pick your pockets! In fact, despite common thoughts on lawyers, clients need to know that legal fees are often based upon market rates, costs for malpractice insurance and the going rate for office space and are not pulled out of thin air just to hurt their clients! Not all attorneys drive BMW's. That being said, it is a business, there are things that every client should know and questions that all clients should be asking if they want to keep their costs manageable.

First, before you call an attorney, gather your papers. For instance, gathering all documents, papers, pictures, invoices, or other "evidence" of your claim or position will save your lawyer time - which translates into lower fees. Do you have pictures? Putting them on a cd-rom is very helpful and allows your lawyer to put the photo files right on their computer. This is good for cropping, editing or preparing for trial.

Second, call an attorney in your city. Hiring an attorney that has an office close to the courthouse or within the city where your dispute lies, will also help. If I or any other lawyer has to travel an hour to get to court, that time generally goes right on the bill, and you will see it there. Most attorneys will outline in their retainer agreement if they charge for travel time. One way to handle travel time for the lawyer is to negotiate a lower travel rate. If, for example, your attorney charges you $250 per hour for legal services, why not ask the attorney to bill at $175.00 an hour for travel? They might negotiate with you and agree to the lower rate. It never hurts to ask, and your lawyer understands why you are asking it.

Third, know what your questions are and ask only those. Limiting correspondence to specific questions, emails, etc., can help you. When clients call to "chat", those conversations add up and directly translate into billable time. It's very hard for an attorney to separate the small talk from business talk in a phone call, and thus most attorneys bill for the entire conversation. Clients must be responsible for the amount of time they take to communicate with their attorney. If it takes an hour to answer your question, you are likely to see that hour on the invoice at the end of the month. While most attorneys aren't going to charge for a 30 second phone call to ask about something very simple, attorneys very typically bill in small increments (such as tenths of an hour), and jotting down a phone call is very normal for us lawyer-types. Thus, most calls are billable, unless otherwise agreed. When in doubt, just ask! Believe me, we don't like the "Am I getting charged for this?", but we understand it, and would rather have the talk on the front end, than after you have received an invoice and want to yell. No one likes yelling, and it's always better to understand each other.

Next, clients should ask questions such as, "How long do you think it will take?", or "What is the process you would use to handle such and such matter?" These questions are not rude. In fact, they really help open the dialogue between the client and attorney and help the attorney to give the client reasonable expectations. Additionally, clients must read their retainer agreement, because this usually spells out the billable tasks, and includes time for phone calls or emails, postage, courier costs or travel time. Attorneys must read everything, and so too must the client!

Finally, if you are extremely cost-conscious, think about creating a budget. Believe it or not, attorneys will respect their clients' budgets if need be. There is nothing wrong with setting up a litigation or case budget to try to manage costs and expectations. If a client only wanted to spend a small amount of money for a trial, I might be forced to decline the representation. So would plenty of attorneys. But, honestly, some would be happy to take them. That is what helps clients and lawyers decide if they should work together. If you want a trial on a $2000 budget, then most attorneys (this one included) are likely to decline. Being honest about your finances will help you.

So what if you can't afford to litigate? What about drafting a demand letter? What about paying for advice on a small claims case that you can handle yourself? That might be a better use of time and money. What if you have already hired your attorney and can no longer afford to pay on time and in full? Talk to your attorney and make a payment plan. What about using a credit card, or offering your services (if you have any) to your lawyer in trade? There are often times options to work out payment arrangements. Just being honest and keeping your word will help your lawyer and give him or her incentive to work with you on it. Just ask!

Overall, clients and attorneys should work together to reach goals, and with good communication, anything is possible! Most importantly, you need to outline your issues, be clear in what you are looking for, and ask questions. Bottom line: you can protect your rights on either side of a dispute, and having the right attorney to guide you is important.

For more information about my litigation practice, or other areas of law that I handle, feel free to email me at: alisalevin@yahoo.com, or call me at: 312-720-0082.