Personal Finance

How much are lawyer fees for Closing Costs?

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  • Nov 29th, 2014 4:19 pm
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Deal Addict
Nov 26, 2011
2184 posts
252 upvotes
Ottawa

How much are lawyer fees for Closing Costs?

I wanted to know how much are lawyer fees. Because the fees I got charged for seem very high. The legal fees came to almost $1000 (tax included). But at the same time I almost got charged another $1000 for misc fees such as almost $200 (tax included) for stuff such as photocopies, postage, couriers, etc. More than $800 for Title Insurance Premium, Paid To Title Search, Registration of Mortgage, etc. Am I being ripped off or what. What were the $1000 legal fees for if I am getting charged for all the other stuff.
17 replies
Deal Expert
User avatar
Dec 11, 2005
20136 posts
2964 upvotes
$600 - $1000 is the average range. It depends on a ton of crap and varies depending province to province...

You can shop around, like with anything else, and get a better deal. Keep in mind though you normally want an experienced lawyer for this because even though it is routine, there is a lot of $$$ on the line and you don't want a cock-up.

I paid $823 to close on a piece of land I purchased two years ago, with no mortgage. I am pretty sure I wasn't being shafted since the lawyer is a friend of the family. Here is the breakdown I got:

$200 - Fees (essentially this is the lawyer's time)
$20 - Tax Certificate (certificate from the province stating the amount of property tax paid so far this year and what is outstanding - billed by province)
$35 - Certificate of ownership (Issuance of a certificate from the province, again, billed by province)
$25 - Photocopies (Seems high but whatevs)
$17.50 - Planet Searches (This is searches in land titles database for the property. The lawyer has to pay the province per search, they pass it on to you)
$289 - Land transfer tax (To province obviously)
$125 - Title insurance (this is optional but I decided to get it)

As you can see, the majority of the fees are actually not something the lawyer is charging it is the province. Yes it is a bit ridiculous tp charge $25 for photocopies I guess but hey it is how law offices work.

I never had any documents couriered... seems odd this day in age. Most things were just emailed to me and I signed them, scanned them back in, and gave him the original later.
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Deal Addict
Aug 19, 2013
2397 posts
1091 upvotes
masoud100 wrote: I wanted to know how much are lawyer fees. Because the fees I got charged for seem very high. The legal fees came to almost $1000 (tax included). But at the same time I almost got charged another $1000 for misc fees such as almost $200 (tax included) for stuff such as photocopies, postage, couriers, etc. More than $800 for Title Insurance Premium, Paid To Title Search, Registration of Mortgage, etc. Am I being ripped off or what. What were the $1000 legal fees for if I am getting charged for all the other stuff.
No your not getting ripped of. The title insurance is not being determined by your lawyer they just buy it on your behalf. And you want title insurance. You may find someone who will charge you a couple hundred bucks less but then you may get what you paid for. And yes usually real estate transactions go smoothly but I can tell you from experience they don't always and that's when you want a decent lawyer.

The $1000 fess is for the work they do. The rest of the charges are put of pocket expenses that they are paying on your behalf.
Deal Addict
Nov 26, 2011
2184 posts
252 upvotes
Ottawa
brunes wrote: $600 - $1000 is the average range. It depends on a ton of crap and varies depending province to province...

You can shop around, like with anything else, and get a better deal. Keep in mind though you normally want an experienced lawyer for this because even though it is routine, there is a lot of $$$ on the line and you don't want a cock-up.

I paid $823 to close on a piece of land I purchased two years ago, with no mortgage. I am pretty sure I wasn't being shafted since the lawyer is a friend of the family. Here is the breakdown I got:

$200 - Fees (essentially this is the lawyer's time)
$20 - Tax Certificate (certificate from the province stating the amount of property tax paid so far this year and what is outstanding - billed by province)
$35 - Certificate of ownership (Issuance of a certificate from the province, again, billed by province)
$25 - Photocopies (Seems high but whatevs)
$17.50 - Planet Searches (This is searches in land titles database for the property. The lawyer has to pay the province per search, they pass it on to you)
$289 - Land transfer tax (To province obviously)
$125 - Title insurance (this is optional but I decided to get it)

As you can see, the majority of the fees are actually not something the lawyer is charging it is the province. Yes it is a bit ridiculous tp charge $25 for photocopies I guess but hey it is how law offices work.

I never had any documents couriered... seems odd this day in age. Most things were just emailed to me and I signed them, scanned them back in, and gave him the original later.
Well i did not even include the land transfer tax which is another $3000 after rebate. I alreadybhad the lawyer but payment was never discussed. However i expected $1200 the most but got charged almost $2000.
Deal Addict
Aug 19, 2013
2397 posts
1091 upvotes
masoud100 wrote: Well i did not even include the land transfer tax which is another $3000 after rebate. I alreadybhad the lawyer but payment was never discussed. However i expected $1200 the most but got charged almost $2000.
You did get charged $1200. The rest is title insurance.
Member
Nov 27, 2009
319 posts
25 upvotes
I paid approx $1450 everything included (fees, misc, title insurance, etc). Land transfer is of course extra that you pay to the lawyer and he pays on your behalf to the province.
Deal Guru
May 1, 2012
10538 posts
11427 upvotes
Toronto
I had a friend refer lawyers to me. Cost was around $1350 including everything and title insurance.
Member
Apr 15, 2007
281 posts
31 upvotes
Toronto
mine was just a bit under $1200 for everything.
Sr. Member
Jul 18, 2009
679 posts
103 upvotes
People saying that they paid this much or that much for title insurance is meaningless without knowing how much was paid for the property. The title insurance premium is based on the price of the property, and its roughly $100 for every $100k in purchase price.

The lawyer who charged $200 in fees was doing a favor for a friend. $200 in fees for a purchase is completely unrealistic otherwise.
Deal Addict
Dec 27, 2013
3731 posts
1526 upvotes
Woodbridge
To give you an idea - my wife and I are currently in the market for a home in the $500-$520ish range and we've been told by several people (our realtor, other realtors, our mortage broker, etc.) that we can expect to spend anywhere from $1,500 to $2,000 all in for everything the lawyer does. On top of this would be the land transfer tax.

I'm not certain if purchasing a condo would increase the fees since the lawyer also needs to review the status certificate. Maybe others can speak to that.
Newbie
Jun 8, 2010
54 posts
5 upvotes
As you're in Ottawa, I thought I'd add my two cents.

I would avoid Jacques Robert; they're not very professional and seem to lack depth. Something you don't want in a law office.

I have also used Soloway Wright / Gibsons Law - both downtown core - and they were both great, had lovely offices and were organized but you pay a premium for their services.

I've started to use Delaney's and they are a smaller firm but with very reasonable fees and a personal touch. I'll be sticking with them moving forward.

Best of luck.
R.
Newbie
Nov 25, 2014
13 posts
1 upvote
Ottawa, ON
jvnanu wrote: To give you an idea - my wife and I are currently in the market for a home in the $500-$520ish range and we've been told by several people (our realtor, other realtors, our mortage broker, etc.) that we can expect to spend anywhere from $1,500 to $2,000 all in for everything the lawyer does. On top of this would be the land transfer tax.

I'm not certain if purchasing a condo would increase the fees since the lawyer also needs to review the status certificate. Maybe others can speak to that.
That's great, but if you want a really good quote, call a lawyer. No surprises then.
Deal Addict
Dec 27, 2013
3731 posts
1526 upvotes
Woodbridge
OTTMortgAgent wrote: That's great, but if you want a really good quote, call a lawyer. No surprises then.
Yes, that goes without saying.
Deal Addict
Jul 8, 2009
1025 posts
701 upvotes
Toronto
Four years ago, I paid $1150, all-in (title insurance included). Property was a condo which cost about $280K.
Deal Addict
Aug 31, 2014
1505 posts
564 upvotes
YVR, BC
about $800 in Vancouver, mind you we get ripped off on the house price so they get you one way or the other.
Member
Sep 22, 2014
448 posts
189 upvotes
Ottawa, ON
We paid $1600. It was a new build some I believe there were some Tarion fees.
Deal Addict
Nov 26, 2011
2184 posts
252 upvotes
Ottawa
Well guess next time i should ask a quote before going thru with anything. However the price seems to be all over the place but that could be the low prices reflecting low house prices.
Newbie
Nov 25, 2014
13 posts
1 upvote
Ottawa, ON
The only other suggestion I would add is to make sure that you are comparing apples to apples. To some folks, your lawyer's fees are the professional fees that you pay your lawyer to close your deal and do not include things like disbursements, copying, Title Insurance and whatnot. Closing costs are the sum total of all the fees that you pay on your closing day and include your lawyer's fees, land transfer tax and everything else.

Some people are even more confused when they are selling one house and buying another as there are now two separate transactions and the closing costs can add up quickly.

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