How much does it cost in legal fees to close a real estate transaction?

ASHBURN, VA

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CARY CHAPNICK

Buzzer

116

How much does it cost in legal fees to close a real estate transaction?

Hey there,

Just waned to find out what you guy feel the going rate for Legal Fees should be for closings of houses/condos.
Do you think a lawyer should charge more for more expensive houses ?
Also if you buy and sell does your lawyer give you a break on the fees?

Thoughts
Cary

Canada / New Home Q&A

MAXIM ZAVET

Buzzer

1 BEST REPLY

On a sale fees are usually fixed because the disbursements are fixed and if its a typical residential transaction (not a multi-residential or commercial) is typically between $800-$1000 (plus HST).
On a purchase, the fees do depend on price and the nature of the property because title insurance is pegged to the price of the property and search costs will vary depending on whether someone is buying a part lot (therefore abutting land searches may have to be done) and, in the case of a condo, whether a parking(s) and locker(s) are purchased. The lawyer fee (no disbursements) is typically $700-$1000 (plus HST and disbursements).
For more info, visit my blog: http://www.plzlaw.com/blog/index.php/2010/11/16/real-estate-law-choosing-a-real-estate-lawyer-and-understanding-fees/

MATTHEW SLUTSKY

BuzzStaff

1969

Great question, and one that I need the answer to as well! I expected closing to cost roughly $900 in legal fees.
Anyone?

GRACECONDOS

Buzzer

I've always found Feld Kalia's site to be great for calculating closing costs: http://www.feldkalia.com/quote.html
They are not the cheapest, but a premium of a few hundred dollars is well worth it to ensure closing goes smoothly.

CARY CHAPNICK

Buzzer

116

Maxim,
I recommend a select few lawyers who have always respected me, shared leads and most of all taken care of my clients.
A client asked me why fees were all over the place and i thought this was a great forum to talk.
I guess its like agents that sell your house for 2.75% total or an agent that charges 4%-5%. Fees are always negotiable and i just was wondering if people had gotten deals with 2 transactions. I have only bought so i never went to a lawyer with 2 sales if they made deals like we Brokers do with our commissions if we do a buy/sell

GRACECONDOS

Buzzer

Well, when they close both a purchase & sale, they do the full work for both jobs and have the associated costs. So it makes sense they are paid for their work. I would feel bad asking someone to do their job and reduce their income.
If they are good at what they do, they'll probably be quite busy and I wouldn't expect them to flex on their fees.

CARY CHAPNICK

Buzzer

116

GraceCondos,
While i do hear what you are saying i am always flexible with my fees epecially in multiple real estate transactions.
For example I have a $600,000 C4 Upper Forest Hill listing now and am listing a Casa Loma townhouse in the new year for $1,300,000.
I am giving the same level of services to both clients yet why should client two be forced to pay me double the fees for my services just because his property is priced higher. I always work to make sure I am compensed fairly for my exceptional service levels but i always make sure the client is pleased.
And when i buy and sell my next set of houses, I would expect a break from the lawyer who got both transactions

EUGENE MEZINI

Buzzer

156

Lawyers are really important and the good ones are surprisingly hard to come by. Personally I would not ask for a break when buying and selling. A hundred or two hundred dollars in savings is just not worth it and I truly believe they have earned their money if they do a good job and are easily accessible.