Legit or no? Law firms that promise to lower property taxes

Photo: kakisky/morguefile.com

 Q. What is your opinion about law firms that solicit customers offering to lower their real estate taxes? I was contacted by one such firm many years ago. I agreed to their terms — half the first year tax savings. It was several years before I heard from them that I was to have my tax bill lowered, By that time I had sold the property. It took many letters and a couple of more years before they stopped billing me for the “reduction” of a tax I did not owe.

A. Many law firms that specialize in handling real estate tax appeals do mail solicitations.

For the most part, these are legitimate solicitations, said Walter Le Vine, a Florham Park attorney who volunteers as the director of the Livingston Office of Consumer Affairs.

“Most attorneys only bill after the reduction occurred, and only if a reduction was actually received,” Le Vine said. “Most charge a fee of one-third to one-half of the first year’s savings.”

Le Vine said getting a property tax reduction can be tough, so many homeowners use an attorney for help.

For such hearings, the mandatory filing date is prior to April 1 of any year, he said, and hearings are usually scheduled within a few months of the filing date and a determination is generally made shortly thereafter.

For that reason, Le Vine said he’s not sure why your appeal took several years, unless there were complications you haven’t mentioned.

“Usually complicated cases involve commercial property, not residential ones, and possibly several years are involved,” he said. “In complicated cases, several hearings may be required, but the person appealing would be kept constantly informed of what was taking place and why.”

Le Vine said if there’s a home sale prior to the final determination from the appeal, this would usually be considered as part of the agreement for the home sale.

“This usually becomes the subject of sales negotiations and fee responsibility,” he said. “If the buyer received the benefit, the buyer paid the fee, even though the appeal was initiated by the seller.”

Before you agree to working with any firm for this kind of transaction, do a little research.

Check out the law form and its attorneys with the New Jersey Bar Association, and do a quick Google search to see if any complaints come up.

Email your questions to .

This story was first posted in December 2014.

NJMoneyHelp.com presents certain general financial planning principles and advice, but should never be viewed as a substitute for obtaining advice from a personal professional advisor who understands your unique individual circumstances.