SHOULD YOU LAWYER UP?

When Lawyers Are Involved

The moment a lawyer steps into a transaction, things often become more complex. And there’s a reason for that: their job is to protect their client. Having seen their share of horror stories, they’ll want every safeguard in place.

The problem is that risk mitigation can sometimes turn into risk inflation. Lawyers who don’t find any real issues may start hunting for improbable ones — because if something goes wrong, their name is on the line. That’s when requests start to sound impossible.

(Interestingly, when a client offers the lawyer a commission from the sale, the “impossible” problem somehow becomes solvable.)

Case in point: I’ve encountered lawyers who demanded that banks or condo associations modify their standard operating procedures to suit their client. Good luck with those requests.

Why Things Get Tense

Things get even trickier when lawyers review documents drafted by brokers. Imagine their horror: inconsistent formatting, grammatical errors, and clauses that contradict each other — all in a multi-million-peso deal.

And the irony? Knowing that the same brokers who made those templates stand to earn millions doesn’t exactly make them any calmer.

When You Actually Need One

Let’s be clear — I’m not against involving lawyers. In complex transactions, they’re essential.

Examples:

1.⁠ ⁠Raw land purchases

2.⁠ ⁠Multi-step or conditional deals

3.⁠ ⁠Transactions involving corporate or cross-border elements

But for a straightforward condo sale from a reputable developer? You might be over-lawyering it (assuming your broker is competent).

Choosing the Right Kind of Lawyer

If you do get one, make sure it’s a lawyer who actually specializes in real estate and taxation. I usually test this by asking a simple question:

“If a property was previously leased out but has remained untenanted for the past two years, is its sale subject to VAT?”

[ The answer is NO and is specifically addressed under BIR RR 7-2003 (i.e., conditions for properties to revert back to capital assets). ]

If they can’t explain that clearly, keep looking.

Remember: the best lawyers don’t just tell you what not to do — they show you how YOU CAN do it.