How Much Are Lawyer Fees When Selling a House?

If you’re preparing to sell your home, you’re likely asking: how much are lawyer fees when selling a house? Understanding legal fees, real estate lawyer fees, and closing costs is essential to know what you’ll actually keep from your selling price.

This guide explains typical lawyer fees, property taxes, other costs involved, and how they fit into the total costs of selling — whether you’re in British Columbia or elsewhere in Canada.

Legal Fees: What Do They Cover?

When selling a house, you’ll need a real estate lawyer to handle the legal aspects of the real estate transaction, including:

  • Reviewing the purchase price and legal documents
  • Managing the mortgage discharge fees
  • Completing a title search to ensure no outstanding claims
  • Preparing title insurance
  • Handling closing costs on the closing date

Typical real estate lawyer fees range from $700 to $2,000 depending on the property’s complexity, location, and whether there are title issues or outstanding permits to clear.

Property Taxes and Land Transfer Tax

While sellers usually pay legal fees, the buyer’s lawyer often handles the land transfer tax. Still, you must ensure property taxes are up to date on your closing date. Any unpaid taxes will come out of your final sale price before you get paid.

Closing Costs: More Than Just Lawyer Fees

Closing costs include more than just lawyer fees. When selling a house, expect to budget for:

  • Home staging to attract potential buyers
  • Mortgage discharge fees if you’re paying off your mortgage early
  • Professional fees for appraisals or inspections
  • Title insurance for the buyer’s protection
  • Any extra legal fees for complex legal aspects

House Closing Costs: Example Breakdown

Let’s look at an example. For a $700,000 home sale in British Columbia, your closing costs might include:

  • Real estate lawyer fees: $1,200
  • Home staging: $1,500–$3,000
  • Mortgage discharge fees: $200–$400
  • Title search and insurance: $300–$500
  • Property taxes adjustment: varies

In total, expect to spend several thousand dollars to complete the closing process.

Mortgage Discharge Fees: A Hidden Cost

One overlooked cost is mortgage discharge fees. If you still have a mortgage, your real estate lawyer will coordinate with your lender to clear the balance. Lenders typically charge $200–$400 to process the discharge. Some mortgages include fixed rate penalties for paying out early — review your mortgage for these details.

Land Transfer Tax and Down Payment: Do They Apply to Sellers?

The land transfer tax is paid by the buyer, not the seller. However, sellers should be aware of it because it affects the purchase price buyers can afford. The buyer’s down payment similarly impacts your deal, especially if a buyer has limited funds and requests repairs or price adjustments.

Home Staging: Boost the Selling Price

Professional home staging can help attract more prospective buyers, which can raise your selling price enough to cover your lawyer fees and other closing costs many times over.

Additional Costs to Keep in Mind

Besides legal fees and house closing costs, remember other expenses when selling a house:

  • Outstanding condo fees for strata properties
  • Potential repairs or upgrades
  • Marketing costs your real estate agent may not cover
  • Moving costs to your new location

Selling a House in British Columbia

In British Columbia, the process works similarly to other provinces, but legal costs can vary by city. A law firm in Vancouver may charge more than one in a smaller town. Be sure to shop around for quotes from reputable real estate lawyers.

Costs of Selling: Use Our Calculators!

Knowing your costs of selling upfront helps you budget wisely. Try our free tools:

FAQs: How Much Are Lawyer Fees When Selling a House?

Q: What do real estate lawyer fees cover?
A: Reviewing contracts, title searches, mortgage discharge, and preparing all legal documents.

Q: Are lawyer fees fixed or hourly?
A: Most real estate lawyer fees are charged as a flat fee, not hourly.

Q: How much should I budget for closing costs?
A: Expect total closing costs to be about 1–3% of your selling price, including legal fees.

Q: Do sellers pay the land transfer tax?
A: No — buyers pay the land transfer tax.

Q: Can I deduct lawyer fees from my sale?
A: They’re part of the costs of selling but aren’t typically tax deductible for your principal residence.

Final Thoughts

So, how much are lawyer fees when selling a house? Budget around $1,000–$2,000 for legal fees, plus other closing costs like mortgage discharge fees, title insurance, and property taxes adjustments. Knowing the full picture helps you save money and avoid surprises at the closing date.

Use our free calculators to plan your next move and keep more of your money when selling!