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Closing costs: How much will the lawyer charge me?

I had a phone call today from a client who is looking to purchase a house in Saskatoon.  Previous to my discussion with him, he had phoned his mortgage broker to ask how much he should have saved up for lawyer costs in terms of closing his transaction.  The banker had told him 1.5% was a good rule of thumb.  The client then phoned me to confirm this and subsequently give me a somewhat jokingly hard time for charging so much.  His purchase price is to be in the neighbourhood of $300,000.00, thus he thought ‘my fees’ of $4,500.00 were quite stiff.  I would gladly encourage clients to pay me $4,500.00 for my legal services, however that would be a tad steep.  Rather, banks will overestimate closing costs, and lawyer fees are only one part of these costs.  In addition to legal fees, there are Land Titles fees, a property tax adjustment, an interest adjustment, title insurance/surveyor certificate and other miscellaneous costs (tax searches, title searches, courier charges, etc) that a lawyer must collect for.  In a ‘worst case scenario,’ a purchaser could see closing costs of 1.5%.  Usually however, it is less than this.  Below is a rough idea as to what a purchaser of a residential property could expect to pay their lawyer in Saskatoon.


Typical legal fees on a residential purchase in Saskatoon will vary from lawyer to lawyer and vary based on the purchase price of the property.  There is no true maximum amount that a lawyer can charge their client on a residential real estate transaction; however, the recognized principal is such that it must be reasonable in light of the particular transaction.  ‘Reasonableness’ may seem vague, but it suggests the importance of a client phoning more than one lawyer to obtain a ‘quote’ for legal fees at the time they are looking to finalize their transaction.  Generally speaking, the more work involved in a real estate transaction, the more a client will pay to their lawyer.


Mike Derbowka


Cuelenaere Kendall Katzman & Watson
306-653-5000

Norm Fisher, Author of the TeamFisher Saskatoon Real Estate Blog

About Norm

Licensed in 1993, Norm brings a wealth of experience to TeamFisher. He has worked in every imaginable capacity including sales agent, office manager, team leader, broker and now, broker/owner. Norm has written a weekly review of the Saskatoon real estate market for more than 650 consecutive weeks which may make him the most consistent industry blogger in the world.Less...

Licensed in 1993, Norm brings a wealth of experience to TeamFisher. He has worked in every imaginable capacity including sales agent, office manager, team leader, broker and now, broker/owner. Norm has written a weekly review of the Saskatoon real estate market for more than 650 consecutive weeks which may make him the most consistent industry blogger in the world.

Norm is known for his passion for technology and can most often be found exploring and experimenting with the next big thing in real estate marketing. He was the first Saskatoon real estate agent to promote a home online and has been an early adopter of new technologies ever since. “Everything about this business has changed over the past 20 years, and it will happen again in the next ten. An open mind and a curious attitude are all that’s needed to continue to find new ways to serve our clients by delivering a faster, smoother, worry-free transaction,” says Norm.

In his spare time, Norm enjoys Crossfit and cycling, some years accumulating over 2,000 kilometres on the road. He’s a strong supporter of the Royal LePage Shelter Foundation and enjoys raising funds by joining fun, fitness-related initiatives like the Grouse Grind for Shelter. In 2015, he trekked the Peruvian Andes to Machu Picchu. In 2017 he walked the southern highlands of Iceland across mountains, sand, snow, ice, lava fields and forest for seven days. Collectively those initiatives raised over a million dollars for Canadian women's shelters.
 

Note: We are in the process of bringing this blog home to the TeamFisher.com domain and we have a lot of stuff to move! Another 700 posts can be found at normfisher.com where they'll remain until we can get them moved here.

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