My practice is built upon foundational principles of honesty, transparency, and efficiency in serving my real estate clients in Windsor and Ontario. I believe that delivering quality legal service should not entail opaque billing or inflated fees. Achieving this balance is significantly enabled by my strategic implementation of Artificial Intelligence (AI) into my work.
However, my approach to practice is not yet the universal standard within the legal profession, particularly in real estate law. Consequently, when engaging other legal services for real estate transactions, clients should exercise caution in reviewing the final “Statement of Account” provided post-closing. This document, often generated via standard industry software, details the transaction’s financial components, including professional fees and “disbursements”. A disbursement is a cost that a law firm pays on your behalf to third parties in order to complete your real estate transaction. These are separate from the lawyer’s professional fees for their time, labour and expertise. While many disbursements are necessary and legitimate, some lawyers may unfortunately use this section to embed hidden fees or inflate charges beyond actual costs incurred.
Pay particular attention to the following areas:
- Title Search Charges – While indispensable, title searches in Ontario are greatly streamlined by electronic land registry systems (e.g. Teraview). A significant flat fee (e.g., $500) may thus appear disproportionate for uncomplicated titles. It is reasonable to request a Docket Summary from Teraview, showing how much was actually spent on title documentation.
- Software Fees – Real estate legal work involves significant repetition, historically relying on assistants to generate and populate the same document templates repeatedly for each transaction. Numerous competing software options now commonly handle this, primarily functioning by filling transaction details into templates. Although not a requirement, most law firms will use some sort of software, varying in the range of approximately $42 per transaction to $249. Indeed, clients should note that at least one specific platform, utilizing this template-based system, charges law firms approximately $249 per file, a cost passed on to the client.
- Questionable Printing Fees – In our increasingly digital workflow, substantial charges listed for “printing” (e.g., $50) merit inquiry regarding their necessity and calculation for your individual file.
- Ambiguous or Unspecified Charges – Be alert for vaguely labelled items, above a certain cost threshhold, like “File Administration Fee,” “Processing Charge,” “Other costs,” or similar unclear descriptors. Every substantial charge requires a clear link to a specific, necessary action or cost for your transaction.
Your Right to Information and Clarity:
For disbursements, remember you possess the right to request substantiating documentation, such as third-party invoices or receipts, to verify the costs passed on to you. Evidence of the payment should be available upon request if a cost is claimed to have been paid to an outside party. We encourage you to thoroughly review your Statement of Account. Your real estate transaction should conclude with financial certainty, not lingering questions about costs. Do not accept the Statement of Account without examination. Review every line item carefully. If any charge seems unclear, excessive, or unjustified, do not hesitate to question your lawyer.
I refuse to follow convention for its own sake, especially when practices may hinder transparency and honesty. This commitment extends to the tools I employ; it includes deliberately choosing not to utilize certain third-party software platforms for largely repeitive transactions, particularly the ones known for charging substantial per-transaction fees (in excess of $200) — costs which are invariably passed to the client. I believe clients deserve this standard of financial clarity and value.
Disclaimer: This blog post provides general information and commentary only and does not constitute legal advice. Real estate transaction costs, billing practices, software fees, and applicable regulations can vary. Always consult with your real estate lawyer regarding your specific situation and carefully review your retainer agreement and final Statement of Account.