IS REAL ESTATE LAW PRACTICE LUCRATIVE?
Real estate is an asset that can be touched, seen and felt, unlike a financial asset, and that has been a great mind motivator for quite some time now.
The practice of real estate law has managed to stay afloat largely because of this obsession. This obsession is here to stay and so are the opportunities in the field, making it quite “lucrative”.
Making your way up the ladder
Now, we’ve learnt that pursuing real estate industry, in general, does hold promise in India, thus creating opportunities for lawyers practicing real estate law.
The practice needs an understanding and willingness to study several laws. For example, in addition to real estate laws, the lawyer also needs to be well versed with the drafting of contracts as well as the complexities of the dispute resolution mechanism involved. The upside of this is the knowledge pool that you are expected to master. Further, it might make it that much easier to switch out of the practice, on the off chance of you not wanting to deal with concrete anymore.
The multiple avenues
As for the variety of paths that can be taken within the industry, here’s a snapshot:
- Even something as primary as notary shops for legal documents can get you Rs. 150 to 200 / document. With a potential of starting with 20 to 30 such documents every day, one can easily earn around Rs. 4,000 per day.
- As for drafting of contracts, lawyers starting their practice could make around Rs. 3,000 for transactions in tier-2 cities and Rs. 5,000 in tier-1 cities. With a better established client base, this is sure to get a good amount of monthly income. A good law firm would easily charge INR 30,000 for the same.
- As mentioned previously, even title searches can pay Rs. 4,000 to Rs. 12,000 per project, for simpler freelancer assignments.
- SWith work experience, one can go up to INR 40-50 lakhs per year as general counsel of a large real estate company.
- For those interested in government jobs, this could be a golden chance for which you’ve been waiting for. The government is the largest owner of real estate in the country, and hence, ends up employing quite a few real estate lawyers. It also needs seasoned professionals for several other sectors which might include recovery or valuation proceedings.
- For those interested in getting out and battling it in courts, tribunal or other forums, real estate is heavily litigated and thus, need litigation lawyers to step in. The disputes involve high-stakes and are usually very offering, monetarily. They usually charge separately from drafting and thereafter, on a per hearing basis. Per hearing charges of an experienced lawyer in Delhi could easily run into Rs. 30,000 to 1 lakh. Famous senior counsels can charge 10-15 lakhs per hearing.
- Several big law firms look for raw talent for their practices.
Not all sunshine
However, there are a number of challenges that a real estate lawyer is expected to solve during the course of any transaction.
The first step in a real estate transaction is clearing the title of a property from any encumbrances. The activity requires examination of documents transferring title for at least the last 35 to 40 years. It is to be noticed that these documents are more often than not, incomplete or even missing at times.
Besides, with the high stakes involved, real estate is heavily litigated. If you’re the plaintiff and you persuade the judge of the existence of a prima facie case. You can triumph in locking down the property in dispute for a good decade. Naturally, you could find yourself in tougher position if you’re the defendant.
However, all this doesn’t need to spell bad news for those looking to enter the field. This only means that not just is there plenty to take up and learn, but also that there’s plenty of space for more real estate lawyers to scoop in.
So, we’ve figured that the real estate practice is lucrative, has the abundance of responsibilities and avenues that you could choose from, and also has tremendous growth prospects.