Real Estate

Real Estate Lawyer Costs

  • Last Updated:
  • Jun 1st, 2017 5:15 pm
Tags:
None
[OP]
Newbie
Jan 1, 2006
96 posts
5 upvotes
Markham

Real Estate Lawyer Costs

Hey All,

I just purchased a place and gotten a couple of quotes from Lawyers.
the place is roughly 330 k and is in Markham

It is a resale property and is 2 years old.

The Lawyer Fees + Disbursement Costs are 980 + HST
The Title Insurance is 179 + PST

So the Total is around

1300

If I want the lawyer to inspect the status reports which I do, it is another 50 dollars.


Therefore the total cost is 1350. Does this seem high for any of you. I am a first time home buyer so this is new to me.
104 replies
Jr. Member
Mar 2, 2011
190 posts
12 upvotes
Richmond Hill
It seems right to me. If anything, on the low side.
Deal Addict
Dec 18, 2006
1855 posts
304 upvotes
timmee21 wrote:
May 5th, 2011 1:37 pm
Hey All,

I just purchased a place and gotten a couple of quotes from Lawyers.
the place is roughly 330 k and is in Markham

It is a resale property and is 2 years old.

The Lawyer Fees + Disbursement Costs are 980 + HST
The Title Insurance is 179 + PST

So the Total is around

1300

If I want the lawyer to inspect the status reports which I do, it is another 50 dollars.


Therefore the total cost is 1350. Does this seem high for any of you. I am a first time home buyer so this is new to me.

You should be able to negotiate the price down to $1000 + HST for Legal/Disbursement/Title Insurance. The 2 lawyers we work with on a regular basis and send our clients to charge only that much. RE lawyers are a dime a dozen.

For the home inspection, a competent inspector that provides pictures, full report and spends 3hrs on the premises going through every nook and cranny costs $300-350.
Jay R
CENTURY 21 Titans Realty Inc. Brokerage
RE4L - Real Estate 4 Less
Moderator
User avatar
Jul 5, 2004
22140 posts
2058 upvotes
It might be right for Markham, but it would be high for my area.
Toronto Maple Leafs tickets for sale. PM me for details
Deal Addict
User avatar
Dec 24, 2008
1326 posts
44 upvotes
Mississauga
Sounds right on the money for a simple transaction.
Sr. Member
User avatar
Feb 27, 2009
870 posts
320 upvotes
NCR
gwan wrote:im in hamilton, house price is $243,000.
Lawyer is $700 plus disbursements of up to $700. Not sure where you get title insurance for $160 but mine is $300. Didnt know there were that many title insurance co. out there.

Same here. I just closed on April 5 and my title insurance premium was $318.
Member
Mar 9, 2004
406 posts
22 upvotes
Toronto
I am meeting a lawyer tomorrow who is offering 1750$ inclusive of all taxes and registeration cost.

Purchasing a new home from a developer.

This fee includes legal fees, disbursements, titles search costs, registration costs and HST on those amounts. It also includes a title insurance policy.

This seems to be 100-150$ more than other places but i wanted to get the forums opinion on that.

break down is $600 lawyer fees $500 Disbursements 327$ Title Insurance 71.3$ Register deed 71.3$Register new mortgage + tax = 1750
Member
Mar 29, 2006
360 posts
22 upvotes
western wrote:
Jan 18th, 2012 8:16 pm
I am meeting a lawyer tomorrow who is offering 1750$ inclusive of all taxes and registeration cost.

Purchasing a new home from a developer.

This fee includes legal fees, disbursements, titles search costs, registration costs and HST on those amounts. It also includes a title insurance policy.

This seems to be 100-150$ more than other places but i wanted to get the forums opinion on that.

break down is $600 lawyer fees $500 Disbursements 327$ Title Insurance 71.3$ Register deed 71.3$Register new mortgage + tax = 1750

Sounds way too expensive. $1300-1400 would be reasonable.
Sr. Member
Jul 18, 2009
679 posts
98 upvotes
You get what you pay for - maybe nickle and diming on legal fees isn't the best way to insure you get top-drawer advice on the biggest purchase of your life?

Your lawyer should be reviewing title searches, writing any necessary requisitions for the other side, preparing all the necessary documents, etc. These things take time. $980 inclusive of disbursements is super low. Even the $1750 mentioned, only $600 of which is fees, is low. To give an example, LawPro (the professional liability insurance company used by all Ontario lawyers) has set up a real estate working group, which suggests that legal fees on a $330k purchase should be $1925, before taxes and disbursements. You may wonder why an insurance company cares about how much we charge? Well, they care because real estate law has more claims against lawyers than any other area of law, and the claims have a higher value of damages. When lawyers don't do the proper searches, don't take the proper care, the consequences can be huge, and errors often aren't discovered until the property is sold, often many years down the road. And when LawPro asks lawyers about the claims against them, the most common answer is - "clients don't want to pay me to do all those searches, I can't afford to spend that much time on each deal."

Most lawyers won't charge you the full amount suggested by LawPro, but if they aren't charging at least half that amount (again, only fees, not taxes and disbursements) you have to wonder how they keep their businesses going. Are they cutting corners that will cost you more money and hassle in the long run than if you had simply paid a little more and gone to a lawyer who takes more care?
Deal Addict
Jul 3, 2011
4279 posts
1545 upvotes
Thornhill
An alternative is the RealProperty Lawyers Network at www.realproperty.ca Online quote requests available.

They offer 3 different packages plus a couple incentives that are quite worthwhile especially for the new build buyer. There is also a price match guarantee. They are located in Brampton but their network affiliations with participating lawyers covers the GTA. Who knows, one might even get Mark Weisleder, lawyer, author and Toronto Star contributor and if so that's a very good thing.


This says it all.
starchyk wrote:
Jan 19th, 2012 10:40 am
You get what you pay for - maybe nickle and diming on legal fees isn't the best way to insure you get top-drawer advice on the biggest purchase of your life?
Newbie
Oct 23, 2007
67 posts
9 upvotes
When you are getting a price quote, be sure the lawyer is letting you know of all possible costs. For example, be sure you get an idea of how much land transfer tax could be, whether registration fees and title insurance is included in the disbursements. It is not uncommon to hear of people having to fork up money at the last minute for some "unexpected" disbursements.

Also, be aware that different lawyers use different title insurance companies which charge different rates. You may want to look in to the company which your lawyer has proposed on using before proceeding.
Deal Addict
User avatar
Jul 10, 2006
2576 posts
69 upvotes
I just got my lawyer papers from a house I bought in oct and the lawyer fee was 3500$ (house price was 675k), total lawyer fee was 4700 with disbursements. This seems ridiculous. We bought a house with her prior and it was only 900$ legal fees :-(
"Truth is High, Higher Still is Truthful Living" Guru Nanak
Deal Addict
User avatar
Sep 30, 2003
3901 posts
116 upvotes
Toronto
we sold our condo and bought a house last year. legal fees were $2400.
--
There is no happy ending
Sr. Member
User avatar
Aug 13, 2002
809 posts
16 upvotes
I find these prices are high compared to what I pay. Here in Vancouver I'm paying for a notary to do the legal paperwork for a sale with mortgage, about $600, and a purchase with mortgage, about $1100. so a total of about $1700 for both sides... but maybe Ontario pricing is different

Top