Real Estate Lawyer Fees 101

Which came first: real estate lawyer or real estate lawyer fees? You know the answer yourself, and actually, you don’t need this answer. What you really do need is to be provided with legal support on refinancing, buying, or selling a property. 

De Krupe Law firm does these services properly and transparently. Conveniently located offices in Toronto, Newmarket, and Barrie help our team with that. 

For special treatment and your comfort, our professionals can make an appointment with you for a distant contract sign. We aim to give our guests an efficient and time-saving experience. 

Therefore, we are known as a legal service in which every client matters. We believe that everyone should have an opportunity to understand the legal specifics. So, how much are real estate lawyer fees?

Breakdown of Real Estate Lawyer Costs

It’s essential to pay attention to the cost of a real estate lawyer when we’re talking about legal representation on property transfer, litigation, and other real estate-related issues. 

Eventually, the cost depends on the following:

• Competence and reputation of a firm;
• Complexity of a case;
• Required services spectrum. 

The usual fee of real estate lawyers is summed up from hourly pay or a flat fee and disbursements (expenses). So right questions to a real estate lawyer at the very beginning are crucial for you to understand the overall fee structure and what is included. 

Types of Real Estate Transactions Fees

It doesn’t matter if you put real estate up for sale if you buy or resell it. In any case, make sure you know what types of real estate transactions exist. 

At DeKrupe Law, our fees on standard residential transactions are as follows:

• Legal fees, these typically included all of the disbursements and HST except for the following:
  • Land transfer tax;
  • Government registration fees;
  • Title insurance.

Contact us at TEL: 416-901-9344 or send a message to arrange a consultation about your legal needs, including real estate lawyer fees. Communication is very important to us and absolutely FREE for you.

Sale fees

These are costs related to the sale of a property or asset. Sales fees typically involve real estate commissions to real estate agents, which are usually a percentage of the sale price, and other possible expenses such as closing costs, legal fees, as well as any expenses associated with preparing the property for sale.

Purchase fees

In real estate, the purchase fee can include a number of costs like closing costs (which cover various administrative and legal fees), title insurance, the cost of an appraisal, and even sometimes commissions from the buyer’s agent. In addition, there may be inspection fees.

Mortgage refinance fees

When a homeowner is refinancing their mortgage, they’re basically changing their existing mortgage to a new one, frequently with different terms or interest rates does not necessarily have to be with a different bank. The fees affiliated with this entire process are commonly known as mortgage refinance fees. 

They typically can include: 

• Application fees;
• Loan origination fees;
• Appraisal fees;
• Title search and insurance fees;
• Possible penalties for paying off the current mortgage early. 
• Legal fees.

There also may be closing costs similar to the original mortgage agreement.

What Is the Difference Between Legal Fees and Disbursements?

Legal fees are charges levied by lawyers for their professional services. These fees vary based on several factors including the time spent on the case, the lawyer’s experience and reputation, the complexity of the case, and the results achieved. 

Common types of legal fee arrangements include:

1. Consultation fee — this may be a fixed or hourly charge for the first meeting to assess if the lawyer can assist with the case;
2. Contingency fee — the lawyer’s payment is a percentage of the awarded amount in the case. If the issue is lost, the lawyer typically does not receive a fee, but clients might still incur some expenses;
3. Flat fee — a specific, total fee charged for more straightforward or routine cases like uncontested divorces or traffic tickets;
4. Hourly rate — charges based on the time the lawyer spends on the case, often varying for different types of work;
5. Referral fee — a portion of the total price paid to a lawyer who refers the client to another lawyer;
6. Retainer fee — an upfront payment that serves as a down payment against which future costs are billed. It may also ensure the lawyer’s availability over a period.

Disbursements in a legal context refer to the expenses that are incurred by a lawyer on behalf of their client during the legal process. 

These can include: 

• Costs for court filings;
• Title search fees;
• Payments to expert witnesses;
• Postage and photocopy fees;
• Copying documents;
• Courier fees;
• Bank fees;
• Other necessary expenses to prepare and present a case. 

In most firms disbursements are not part of the lawyer’s fees but are additional costs that are often required to complete a case. They are usually itemized and billed to the client along, with the lawyer’s fees. These fees can be substantial and sometimes come as a shocker to the client at the very end. That is why at De Krupe Law our real estate lawyers give you the final number with disbursements so you as a client can have peace of mind knowing that our fees will not increase at the end. No one likes a shocker at the end!

Comparison

Comparing legal fees and disbursements reveals distinct differences. Legal fees are what a lawyer charges for their professional services, like legal advice, representation in court, and preparing legal documents. These fees are based on various structures, such as hourly rates, flat fees, or contingency fees, depending on the case’s nature and complexity. 

Disbursements, on the other hand, are additional expenses incurred during the legal process. These are not fees for legal services but are necessary costs for activities like filing documents in court, hiring expert witnesses, or making photocopies. 

Legal fees cover the lawyer’s time and expertise, while disbursements cover the operational costs of managing a case. Clients should be aware of both these aspects when engaging legal services, as they contribute to the overall cost of legal representation. 

What Do and Do Not Legal Fees Cover

Legal fees in real estate primarily cover the services provided by a real estate lawyer.

They include: 

• Reviewing purchase agreements;
• Arranging for title insurance;
• Checking for property title;
• Facilitating the closing of the transaction;
• Preparing and registering change of ownership documents;
• Preparing and registering mortgage documents;
• Paying land transfer tax.

These fees do not encompass disbursements, which are additional costs incurred by the lawyer on the client’s behalf. 

At De Krupe Law, for a residential transaction our fees usually include all Disbursements except for the following: 

• Land transfer taxes — taxes levied by the local or provincial government when property ownership is transferred from one party to another;
• Title Insurance – charges associated with title insurance, this insurance protects you from fraud and unpaid taxes, utilities and etc. 
• Registration fees — charges associated with registering the property in the new owner’s name and registration of the mortgage in the official land registration system or land registry office. 

What Does a Real Estate Lawyer Do?

If you’re buying a home, you’ll want to start working with a real estate lawyer as soon as you’re ready to sign the Offer to Purchase Real Estate. 

From thereafter, your lawyer’s job is to:

• Conduct a title search;
• Get title insurance in place;
• Register the home in your name;
• Draw up a Statement of Adjustments;
• Facilitate the financial transactions on closing day; 
• Draft any mortgage documents and register the mortgage on title;
• Advise the city of change of ownership for property tax purposes.

Oh, and then they’ll give you the keys to your new home!

When you decide to sell your home, your lawyer will also draft the deed of the home for the buyer, calculate any closing costs you have to pay, and prepare a Statement of Adjustments for you. On closing day, they’ll facilitate the financial transaction and hand you a cheque or wire for what’s left over after paying off anything you owe on your mortgage, your real estate agent’s fees, legal fees, etc.

Finally, if you’re refinancing a mortgage, your real estate lawyer will conduct another title search to ensure it’s clear of defects; this protects both you and your lender. After that, your lawyer will register the new mortgage, pay off and close your existing mortgage and facilitate the rest of the financial transaction. 

When you refinance, your lawyer drafts up a Trust Ledger Statement instead of a Statement of Adjustments. It’s a financial document, but your transaction is only with the bank — not another buyer or seller.

Real Estate Lawyers for Buyers	Real Estate Lawyers for Sellers	Mortgage Refinance
Obtain a title insurance policy	Review the agreement	Draft and register the new mortgage
Receive Mortgage Instructions	Deal with any issues related to the title	Obtain Title Insurance
Calculate the land transfer taxes that are due on the closing date	Make sure property taxes are paid or factored into Adujstmetns	Draft and review all legal and mortgage documents
Coordinate to get your keys on closing day	Pay Real estate agents’ commissions using the additional funds	Prepare cheques and execute the financial transactions on the closing date

When Do I Contact a Real Estate Lawyer?

The time for contacting your lawyer depends on the type of your real estate transaction. If you are buying or selling a house, it is better to call De Krupe Law real estate lawyers as soon as you are ready to sign an Offer to Purchase. An Offer of Purchase is also known as an agreement of purchase and sale. It is a crucial document that states the final terms of your real estate deal. After you sign it, you’ll need to see your lawyer one more time on closing day to finish the transaction.

However, when we are talking about refinancing a mortgage, you don’t need to see your lawyer often. His or her help will be required only once when the time comes to sign all the paperwork. 

IMPORTANT: Contact your De Krupe Law real estate lawyer to get more detailed information. 

Regardless of your transaction type, you will need the legal advice and help of a real estate lawyer Toronto. A lawyer will carefully review all your documents and explain all the legalese in plain terms. Remember that the consequences of breaking the contract can be expensive, so it is wise to invest in your problemless future today.

Where Can I Meet with My Real Estate Lawyer?

With conveniently located offices in Toronto, Newmarket, and Barrie, the De Krupe Law team is dedicated to providing exceptional legal services and delivering practical and effective solutions while upholding the highest standards of professionalism.

Our team of experienced lawyers is committed to providing convenient and accessible legal services. Understanding the diverse needs of our clients, we offer consultations via phone, ensuring that legal advice is just a call away. 

To accommodate busy schedules, appointments can be booked any day from Monday to Saturday. We also provide the option for online meetings, catering to those who prefer to stay at home or can’t reach us for any other reason. 

We have further extended our services by enabling our lawyers to do remote signing, ensuring that even those who cannot come to our office receive the legal assistance they need.

At De Krupe Law, we are focused on achieving the best possible solution by providing you with the highest quality legal services.

With our expertise, we know what our clients expect from the law firm. And it goes naturally for us to offer you the full suite of legal services, such as:

• Real Estate Law — at De Krupe Law, we focus on ensuring high-quality and efficient management of real estate transactions, such as buying or selling homes, mortgage refinancing, and title transfers, with a commitment to client support and a stress-free experience;
• Family Law — involves resolving disputes in family relationships and marriages, focusing on achieving amicable outcomes through negotiation and avoiding court litigation wherever possible. Learn more in our informative blog post How to Navigate Family Law with a Real Estate Lawyer;
• Corporate Law — legal support for businesses of all sizes, specializing in real estate market transactions and corporate events, ensuring efficient handling of activities such as business acquisitions, sales, and shareholders’ agreement structuring;
• Wills and Estate Law — assisting clients with estate planning to ensure the well-being of their families and the efficient management of their estates after passing, including maximizing estate value and minimizing taxes.

Contact De Krupe Law today to schedule a consultation with one of our experienced lawyers. 

Real Estate Lawyers VS Real Estate Agents

Comparing real estate lawyers and real estate agents highlights distinct roles in property transactions. Real estate lawyers generally cost less than agents and focus on the legal aspects of buying or selling a home. 

They handle: 

• Legal documentation;
• Advise on legal matters;
• Ensure transactions comply with legal standards. 

Conversely, real estate agents concentrate on the market side of transactions. 

They assist in: 

• Finding or listing properties;
• Conducting market analyses;
• Hosting showings;
• Marketing properties. 

While agents earn commission based on the sale price, lawyers typically charge a flat fee, allowing for unbiased advice. Legal questions and advice fall under a lawyer’s purview, whereas agents manage the sales process and negotiations. Each professional plays a crucial role, with lawyers ensuring legal compliance and agents facilitating the practical aspects of buying or selling property.

Key Takeaways

Following what we discussed earlier, real estate lawyer costs stand on three legs:

1. Real Estate issue type you want to address;
2. The complexity of this issue;
3. How debatable your case is.

Generally, real estate lawyer fees can be either fixed or hourly rate. Both have their advantages and disadvantages. The one you choose depends on your personal preferences and circumstances. Contact De Krupe Law today and get a FREE consultation on any of your real estate issues.