Legal Fee

[beebee123 0]

I just sold my hdb flat and bought a resale condo.

I get a bridging loan from bank and reimbursement the stamp duty fee from CPF

The lawyer charged me $3500 for buying condo.

$1200 for selling HDB flat.

He said bcos the bridging loan, so I have to paid higher legal fee

Is the fees reasonable?

[leechaorui 2]

I just sold my hdb flat and bought a resale condo.

I get a bridging loan from bank and reimbursement the stamp duty fee from CPF

The lawyer charged me $3500 for buying condo.

$1200 for selling HDB flat.

He said bcos the bridging loan, so I have to paid higher legal fee

Is the fees reasonable?

If you have not confirm the service of the lawyer, you can shop around. There may be lawyers who charge you lower.

Cheers.

[pulsar 0]

I just sold my hdb flat and bought a resale condo.

I get a bridging loan from bank and reimbursement the stamp duty fee from CPF

The lawyer charged me $3500 for buying condo.

$1200 for selling HDB flat.

He said bcos the bridging loan, so I have to paid higher legal fee

Is the fees reasonable?

$3500 too high! I paid $2500 incl. $500 Gpvt Stamping fee. Check if lawyer can act for bank & CPF as well to save $$$ else gotta get another lawyer for CPF.

[JustMortgage 0]

Remember to always ask if GST is included.

Check whether you lawyer/solicitor can act for both the bank and yourself to enjoy legal subsidy from the bank.

If the law firm is not able to act for CPF, they will typically liaise with another lawyer. It's normally transparent. You can ask the lawyer/solicitor to offer you what we call "All-in".

It also depends on whether it's a new purchase/re-financing and the purchase price of the property. If the property cost a couple of million, then don't expect sub 2k type of legal fees.

For less than $1m, in our opinion, a legal fee cost between 2k to 2.8k including GST/Mortgage Stamp Fee/CPF Charge etc. should be reasonably fair at the moment.

[therat 18]

cheap legal fee does not mean their service is good.

[BlueFly 0]

cheap legal fee does not mean their service is good.

I think you meant "high legal fee does not mean their service is good", right?

Edited March 6, 2011 by BlueFly

[BlueFly 0]

<!--quoteo(post=451856:date=Sep 28 2009, 06:54 PM:name=beebee123)--><div class='quotetop'>QUOTE (beebee123 @ Sep 28 2009, 06:54 PM) <a href="index.php?act=findpost&pid=451856"><{POST_SNAPBACK}></a></div><div class='quotemain'><!--quotec-->I just sold my hdb flat and bought a resale condo.

I get a bridging loan from bank and reimbursement the stamp duty fee from CPF

The lawyer charged me $3500 for buying condo.

$1200 for selling HDB flat.

He said bcos the bridging loan, so I have to paid higher legal fee

Is the fees reasonable?<!--QuoteEnd--></div><!--QuoteEEnd-->

Financing banks have their own panel of external conveyancing lawyers that their borrowers must select from. Banks usually absorb legal fees up to $2,500 or 0.5% of the borrower's loan amount, which is lower. That legal subsidy is the fee paid to the bank-appointed lawyer i.e. the lawyer handling your legal documentation and mortgage.

Get a quote from another independent lawyer (i.e. not on the bank's panel) to compare the legal fees. If the independent lawyer quotes a lower fee, e.g. $2,500, you should complain to your financing bank and ask why the bank-appointed lawyer charges you so much. Ask if it can be reduced. Or ask your bank to let you get a quote from another lawyer on the bank's panel.

FYI, in the past conveyancing lawyers charged legal fees according to a standard scale and fee rate approved by legislation. When property prices rose over the years, lawyers got richer and richer at the expense of borrowers. Because the legal fees (as a % of loan amt) were pegged to borrowing amount, legal fees rose as property prices rose. So conveyancing lawyers got richer, not because they worked harder but simply bcoz higher property prices means you have to borrow higher loan quantum.

A few years ago, however, the govt relaxed legal fee guidelines. So now legal fees are negotiable. By right, borrowers should benefit. The fact is, however, most borrowers are unaware of the changes or market practice. So many lawyers quietly impose the fees as they like. If I am not mistaken, legal fees actually were maintained or went up for certain loan categories like for hdb flat financing. The lawyers argue that whatever the loan quantum, whether it is $1 million or $500,000 the legal work is the same. So they charge higher fee for the same loan quantum.

Unless enough of us borrowers individually complain and make a loud noise (use social media like twitter, blogs, comments on popular yahoo news articles, insight, newspaper, etc) to the financing banks, no one will bother. Sad but true- we get what we deserve bcoz Singaporeans by and large are quiet and timid. So we kena hit left, right, and center! But now you know, so make a loud noise to your bank. In time to come we will make an impact, a difference for our children. Perhaps.

Bluefly aka GreenCoal

Edited July 27, 2011 by BlueFly

[matrix0405 0]

Just go for the cheapest u can find. The tasks are very procedural and usually perform by law clerks. The lawyer just sign and collect money. As long as they have done it before they will know what to do.

[kalimantan 6]

bring this issue up to the Law Society and they will dealt with the lawyer.

Or put it up at Straits times and hear what law society said.

[HappyHouse88 0]

I just sold my hdb flat and bought a resale condo.

I get a bridging loan from bank and reimbursement the stamp duty fee from CPF

The lawyer charged me $3500 for buying condo.

$1200 for selling HDB flat.

He said bcos the bridging loan, so I have to paid higher legal fee

Is the fees reasonable?

I think this topic is quite old.. but I want to check.. Do i need to engage a lawyer to sell my hdb flat.

I tot it's quite straight forward and hdb will ensure that all the $$ pass back to me.

[BlueFly 0]

I think this topic is quite old.. but I want to check.. Do i need to engage a lawyer to sell my hdb flat.

I tot it's quite straight forward and hdb will ensure that all the $$ pass back to me.

hdb will handle the legal doc on yr behalf, as they have in-house lawyers on their panel. the fee you pay hdb lawyer is included in the total transaction cost levied by hdb when you appear with the buyer before them to make final payment settlement and do the title transfer. the fee is minimal.

hope that helps.

Edited July 27, 2011 by BlueFly