A quick and dirty guide to lawyer’s fees when you’re buying a house

Buying a new home is exciting! It’s also filled with countless decisions and choices that can cause so much stress that you may want to just decide to live in your car, or perhaps a nice cardboard box. However, one thing that you DON’T have to choose is whether or not to hire a lawyer- you really don’t have a choice in the matter. Buying a house means hiring a lawyer. End of story.

So what does your Real Estate lawyer actually do? Well, first and most importantly, your lawyer is responsible for “certifying title”. This means that she or he will guarantee that you’re actually getting the land you think you’re buying and that nobody else has an interest in the land. This means searching the title history to ensure that the seller actually owns what they are selling and ensuring that there are no outstanding mortgages or other liens against the property. Your lawyer will also make sure that the boundaries of your property are where they should be, and that your fences, sheds, and driveways are on your land, not your neighbors. Finally, the lawyer will handle preparing and registering all the deeds and other paperwork that are needed to make the land yours and, if you’re getting a mortgage, the bank’s!

What will all this cost? The fee charged for these services varies, so shop around, but don’t sacrifice service to save a few dollars on what will be the biggest purchase of your life (unless you have a penchant for purchasing private yachts, aircraft, or vintage Ferraris). Be sure to keep in mind that most law firms charge a legal fee “plus disbursements”, meaning that the fee they quote you often is only for the lawyers services, and you must also pay all the expenses they incur. The following is a list of what other disbursements you can expect to pay:

• Sheriff’s certificates (to make sure that the Sheriff can’t come and take your house because the previous owner was a deadbeat) – $35.00 for every owner of the property since 1996
• Title Search (the cost of getting someone to search the title history for the lawyer) – about $150.00
• Law Society Transaction Levy (to help pay for the cost of lawyer’s mistakes) – $50.00
• Registration of the Deed (the government’s cut) – 0.4% of the value of the property + $101.00
• Registration of the Mortgage (another government cut!) – 0.4% of mortgage value + $101.00
• Miscellaneous charges for copying, couriers, faxes, etc. – usually about $50.00

As you can see, these costs can easily add up to be several times the “legal fee” being charged by the lawyer, so make sure you know exactly what’s being included in the quote you’re given. Most importantly, make sure you’re comfortable with your lawyer, and that he or she is willing to take the time to explain these details to you and make sure you know what’s going on. While real estate transactions may be routine for most lawyers, for most purchasers they are stressful experiences. Find a lawyer who understands this and will take the time to make it as comfortable and stress-free as possible!