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What are the usual fees associated with purchasing a property and hiring a Real Estate lawyer?

Picture of Chris Battis By   ·  1 minute read

The usual fees associated with purchasing a property and hiring a Real Estate lawyer vary depending on the jurisdiction and the complexity of the transaction. Here is a breakdown of the common fees that a buyer may encounter:

  1. Legal Fees: Real Estate lawyers charge legal fees based on the time they spend working on your transaction. Typically, these fees range from $1,500 to $3,000 for a standard residential property purchase. However, this may vary depending on the complexity of the transaction, the lawyer's experience, and the jurisdiction.
  2. Title Search and Insurance: A title search is necessary to ensure that the property you are buying has a clear title and that there are no outstanding liens or judgments against it. Title search fees can range from $300 to $500. Additionally, the cost of title insurance will depend on the value of the property, but it can range from 0.5% to 1% of the purchase price.
  3. Appraisal Fees: Many lenders require an appraisal of the property before they approve the loan. The cost of the appraisal can range from $300 to $500.
  4. Home Inspection Fees: It is advisable to hire a home inspector to conduct a thorough inspection of the property before finalizing the purchase. The cost of the inspection may range from $300 to $500.
  5. Mortgage Fees: If you are financing the purchase of the property, you will need to pay mortgage fees, including the application fee, appraisal fee, and loan origination fee.
  6. Land Transfer Taxes: Some jurisdictions require buyers to pay land transfer taxes when they purchase a property. The cost of the land transfer taxes will vary depending on the jurisdiction and the value of the property.

In summary, the total cost of purchasing a property can range from 2% to 5% of the purchase price, and this includes legal fees, title search and insurance, appraisal fees, home inspection fees, mortgage fees, and land transfer taxes.

If you are considering purchasing a property, it is important to consult with a Real Estate lawyer who can guide you through the process and help you understand the fees and costs associated with the transaction. The lawyer can also advise you if there are any exemptions or limitations in your jurisdiction that may reduce the cost of the transaction.