Real Estate

Real Estate Lawyer Costs

  • Last Updated:
  • May 20th, 2017 9:39 am
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Newbie
Apr 14, 2017
5 posts
bargain_deal wrote:
Apr 13th, 2017 2:13 pm
the relative cost for legal fee has become so small in todays real estate transaction cost that there is less motivation to shop around...
This. Get a good lawyer or you'll end up like someone I know that had the builder nullify their purchase agreement on the back of a clause in the Tarion Agreement to Purchase. It's cost them literally over 160k because they can't afford the house they bought pre-con.
Member
Jun 11, 2009
256 posts
27 upvotes
and how do you define a good lawyer? your friend just happened to be unfortunate or the builder would have tried to pull it off on anyone. even if you chose the best lawyer on the planet, on that particular file, he or she could have missed that clause and you still end up in the same place...
Happy Zoomer and FIDO client!
Tangerine Orangekey 36065152S1
Newbie
User avatar
Apr 5, 2017
21 posts
18 upvotes
bargain_deal wrote:
Apr 20th, 2017 2:08 pm
and how do you define a good lawyer? your friend just happened to be unfortunate or the builder would have tried to pull it off on anyone. even if you chose the best lawyer on the planet, on that particular file, he or she could have missed that clause and you still end up in the same place...
Sadly you find out who a "good lawyer" is once your real estate transaction becomes complicated. I've had a huge number of deals come to me from "real estate lawyers" because they have to be litigated. When I do my real estate deals I make sure I put my client in the best position possible in case the transaction falls through.
Lawyer @ Law Booth Real Estate Lawyers & Notaries
Sr. Member
Aug 17, 2012
954 posts
249 upvotes
Windsor
Any recommendations for ottawa lawyer ?
Jr. Member
Apr 23, 2010
126 posts
17 upvotes
Pickering
Thoughts on this quote? Purchase price is 800k

Legal Fees
$1,073.50 Legal Fees on Purchase ($950.00 plus HST)

Disbursements
$150.54 Government Registration Fees re Transfer of Title and Mortgage
$696.60 Title Insurance Premium (Fee paid to an insurance company to protect your title and the bank’s mortgage). If the sellers do not have an up to date survey the bank will insist on you purchasing a
title insurance policy or pay between $1,500-$2,500 to obtain a new survey. Majority of residential real estate transactions close with a purchase of title insurance.
$150.00 Title Search Costs [Estimated – will depend on what is actually registered on title – Typical range is between $150.00 and $300.00]
$150.00 Courier Charges, Bank Charges and other smaller disbursements [Estimated]
$12,475.00 Ontario Land Transfer Tax (If you are a first-time homebuyer, you may be eligible for a $4,000.00 first-time homebuyer rebate)
$13,622.14 Approximate Disbursements

Optional Disbursements
$56.50 Town Tax Certificate ($50.00 plus HST) - Will tell you what the property taxes are and advise of any overdue taxes.
$45.20 Town Building Department Search ($40.00 plus HST) – Will tell you if the Town has open building permits, notices of violation, etc associated with the property.

Closing Adjustments with the Sellers
$500.00 Realty Taxes Adjustments [Estimated, will depend on what has been paid by the Seller.]
Deal Expert
User avatar
Jul 30, 2007
17422 posts
3165 upvotes
Toronto
^ the legal fee itself seems to be a bit high. I would say $700 range is more of a norm. the other smaller disbursements seem to be high as well.
Deal Addict
Dec 12, 2003
1573 posts
96 upvotes
booblehead wrote:
May 18th, 2017 11:26 am
^ the legal fee itself seems to be a bit high. I would say $700 range is more of a norm. the other smaller disbursements seem to be high as well.
$950 is normal for a respectable lawyer, I believe it's actually below average for the gta.

It doesn't make sense that people are willing to spend $30k on the real estate agent commission for this deal and cheap out on a few hundred dollars for the lawyer who actually bears far more risk than the real estate agent.
Newbie
User avatar
Apr 5, 2017
21 posts
18 upvotes
I've had quotes thrown at me from all different lawyers. They all have one thing in common, hidden fees. They fail to mention a number of things which I have to remind the client about. One lawyer gave a quote and he didn't even tell the client there is a new Toronto Administration Tax. When the client asked him about it he said "oh yeah that's included" it was evident he didn't know it existed.

Always get a lawyer that has experience and knows what he is doing. If he's charging you less he may be cutting corners on searches which could bite you in the buttocks later.
Lawyer @ Law Booth Real Estate Lawyers & Notaries
Deal Fanatic
User avatar
Mar 31, 2008
8883 posts
963 upvotes
Toronto
Mann, given the importance of what a lawyer does in relation to what they get paid vs realtor in a transaction for what they do, it's absurd.
Deal Addict
Jul 3, 2011
3894 posts
1103 upvotes
Thornhill
drunkgoat wrote:
May 18th, 2017 6:12 pm
$950 is normal for a respectable lawyer, I believe it's actually below average for the gta.

It doesn't make sense that people are willing to spend $30k on the real estate agent commission for this deal and cheap out on a few hundred dollars for the lawyer who actually bears far more risk than the real estate agent.
I'm not addressing the fees but the underlined as it's a common misconception.

Provided that the lawyer did not review the offer first the Realtor bears the brunt of the risk as it is they upon whom the buyer or seller relied; it is they who provided guidance to the buyer or seller and it is they who, if fiduciary duty was in place was legally obligated to draft the offer protecting their client from harm.

The lawyer has no choice but to proceed with the contract as it was agreed to so, if say, the Realtor did not have the seller disclose a known latent defect and the lawyer found out about it once the offer was signed it's the seller and Realtor who will be sued not the lawyer.

The lawyer is responsible for closing the contract as written and properly recording the transfer on title. If they err upon so doing Title insurance covers that and more importantly, Land Registry is responsible for accepting any error recorded on title.

Typically too the lawyer will at the time of accepting engagement and by way of email or memo, repeat certain acknowledgements made by the seller or buyer that removes liability from the lawyer. The Realtor has no such equivalency if they represented the buyer or seller.
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