In-house teams can think more critically and creatively about how to navigate legal challenges and seize opportunities that might otherwise be missed. This extends beyond financial considerations as they can help improve relationships with external law firms and extract more value from relationships by offering fresh perspectives and new solutions.
It’s important to note that in-house legal expertise does not replace the need for external legal partnerships; Whilst having an in-house team is critical for day-to-day operations and strategic thinking, partnering with a law firm remains essential as they bring specialised knowledge, handle complex legal matters, and provide additional support.
Having this function in-house should be seen as a strategy to enhance and leverage the relationship with external lawyers, maximising their value and expertise. It is not a cost-cutting exercise but rather a method to optimise operations and enable more sophisticated, risk-assured business decisions.
The Role of Real Estate Legal Counsel
A legal counsel provides comprehensive legal support and strategic advice across different parts of the business. Due to the factors mentioned earlier (inflation rates, labour shortages, etc) this role has become increasingly key, as now more than ever, companies are relying on legal advice.
Employing an in-house legal counsel is incredibly beneficial because they challenge existing decisions to maximise business potential. They might suggest exploring different types of funders or pursuing more secure deals based on their experience, finding that these approaches yield better ROI and improve relationships. By asking, “Have you considered doing this?” they bring fresh perspectives and strategic insights to the table.
Essentially, their role leads to more sophisticated and forward-thinking decisions, making the business less reactionary and more proactive.
When hiring real estate legal counsel, their experience and expertise will differ depending on the type of company they’re moving from so it’s important to understand what skills you’re looking for in your own business.
For example, someone who is used to working in-house is very different to an individual moving from a private practice law firm. That’s because those working for a law firm usually deep-dive into one specific specialism
In contrast, working in-house involves liaising with several different departments meaning in-house professionals often have a generalist understanding.
Consequently, in-house professionals are often more generalist and have an understanding of the business’s overall operations and how its various components work together. They can then work closely with your external law firms where more niche and in-depth advice is required at any particular time.
The role of a legal counsel also varies depending on whether they’re working for a developer, investor, or consultancy. We’re exploring these differences below to help you determine the type of real estate legal counsel you need to identify those candidates who will bring the most value.
![woman holding a stack of paper and mobile phone](https://www.macdonaldandcompany.com/wp-content/uploads/2024/07/hiring-legal-counsel-in-house-300x157.jpg)
Real Estate Legal Counsel in Different Types of Companies
The following sections provide an overview of the role and responsibilities of a real estate legal counsel across different types of organisations.
Developers
A legal counsel for a development company will often need to have a background in construction as they’ll need to navigate legal issues associated with building projects such as understanding construction contracts and ensuring compliance with local building codes.
Additionally, the developer will need them to handle the transactional side of things, as they may be required at the very start of a project to help secure funding.
As they will be working closely with investors, the legal counsel will need to be able to structure deals that satisfy both regulatory requirements and the financial interests of the investors. They must also ensure that all agreements are legally sound and protect the company’s interests.
Depending on the type of developer, they might be required to help with disposals, ensuring that property sales are completed efficiently and in line with legal requirements. This involves drafting and reviewing sale agreements, negotiating terms, and managing any legal issues that arise during the disposal process to ensure a smooth transaction.
Overall, a legal counsel in a development company typically holds a more generalist role, requiring a wide range of legal expertise across multiple disciplines.
Investors
When working for an investment company, a legal counsel’s role is predominantly focused on the financial and transactional aspects of real estate deals.
Their responsibilities centre on structuring and negotiating deals, ensuring compliance with financial regulations, and managing the legal intricacies of investments.
Typically, these individuals have backgrounds in private practice, often coming from real estate finance teams or mergers and acquisitions (M&A) teams.
Their experience in these areas equips them with the skills necessary to handle complex transactional relationships, assess investment risks, and facilitate smooth, legally sound financial transactions. This specialised expertise is crucial for managing the investor’s portfolio and maximising returns while mitigating potential legal risks.
Consultancies
For large consultancies (such as CBRE or JLL) that manage substantial corporate assets, the role of a legal counsel is primarily focused on leasing and tenant/landlord relationships, dealing predominantly with commercial rather than residential properties.
As such, these companies seek professionals with strong expertise in tenant/landlord law, including negotiating leases, handling disputes, and ensuring compliance with relevant regulations.
While construction skills are less critical here, consultancies may still value transactional skills, especially if the company is involved in the sale or disposal of assets.
Therefore, a legal counsel in this context should be adept at managing complex leasing agreements and have a solid understanding of property transactions to support the consultancy’s range of services.