A survey of real estate attorneys sponsored by a title insurer has found that nearly 26 percent of attorneys have increased their fees by at least 5 percent and a minority of those surveyed make a profit on every transaction.

The findings were announced by the Strativity Group research consulting firm in Parsippany, N.J., in their second Attorney Business Index study sponsored by the Rocky Hill, Conn.-based insurer CATIC.

Their report was based on responses from 341 attorneys in Connecticut, Massachusetts, Vermont and Rhode Island who participated in the study which tabulates key indicators such as average legal fee, profitability level, sources of business and number of quarterly transactions.

In addition to reporting that nearly 26 percent of attorneys increased fees by at least 5 percent, the survey also found:

o Only 21 percent of respondents claimed to be profitable on every transaction.

o Less than 20 percent of attorneys conduct more than 50 transactions each quarter.

o Existing clients remain the most effective source of new business with more than 30 percent of attorneys reporting that at least 50 percent of revenue comes from existing customers.

o Eighty-six and a half percent of attorneys outsource some type of service.

Rich Patterson, CATIC chief executive officer, said, “The results of this study should guide attorneys in their business decisions and provide them with invaluable insight into market trends, enabling them to improve and grow their business.”

According to CATIC, one of the most significant findings in the study is that the level of real estate business remains largely consistent even during the current housing slump where home prices have dropped, inventory has increased and sales cycles have lengthened.

The report reveals that there has been no material change in the number of real estate transactions conducted by attorneys during the previous six months; and that the percentage of attorneys raising their fees remains steady at roughly one quarter of the market.

Another finding is a repeat theme from the 2006 ABI which found that only a small minority of attorneys conduct only profitable transactions.

The CATIC ABI also segments the results by firm size and state to provide more relevant information to attorneys regarding the most effective method of designing and delivering valuable and profitable services.

An executive summary of the study is obtainable online at http://www.caticaccess.com/. The full report is available to survey participants. The next ABI survey will commence in mid-2008.

Strativity Group Inc. describes itself as a global research and consulting firm advising organizations on relationships with their customers and employees through the transformation of their strategies and execution to revolve around the customer experience.

CATIC lists itself as New England's largest domestic and only Bar-Related(R) title insurance underwriter with more than 2,800 attorney agents. CATIC is currently licensed in Connecticut, Massachusetts, Rhode Island, Vermont, Maine, New Hampshire and New Jersey.

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