Solicitor fees: what you need to know

In Australia there are strict rules governing solicitor fees. Those rules vary from state to state, but one common element is that the projected costs of any solicitor’s services must be clearly outlined from the start.

“Here in NSW we must provide clients with a cost disclosure document before any work commences,” says Bronwen Ginges from Annandale Lawyers.

“After an initial discussion of the client’s requirements we give them a letter detailing the scope of the work that we are planning to undertake on their behalf, and the costs associated with that.”

No surprises

It’s quite rare for solicitors to give an actual quote for their services. The cost disclosure document makes an estimate of what the solicitor thinks the costs will be over the course of the legal matter.

The document should also break down the cost components into sections.

“It’s designed so there are no nasty surprises at the end of the process,” says Bronwen. “We also notify you as soon as we believe there might be cost blow-outs or amendments for any reason.”

Ancillary costs

Any cost disclosure presented to you by a solicitor must include projected ancillary costs in addition to the fees charged by the lawyer. These ‘disbursements’ cover services that the solicitor might have to purchase on your behalf.

Common disbursements include barristers’ fees, filing fees for courts, registration fees for property dealings, and even photocopying and printing costs.

A timely manner

Solicitors’ fees are often charged at an hourly rate - especially in matters involving litigation (being disputed in court). The actual hourly cost varies from solicitor to solicitor and firm to firm.

Understanding the terms

If you enter into a legally binding cost agreement with a solicitor you will have:

• a good idea of what your legal costs will be
• an understanding of the cost breakdown of the individual components of the matter
• an idea of ancillary costs
• fewer ‘nasty’ surprises
• legal recourse to query costs at the end of the matter.

Different laws

An easy way to establish exactly what the rules are where you live is to go to the law and justice section of your state or territory government website. There you will find details of the professional bodies that govern the conduct of solicitors in your state.

Contact those bodies to find out what you can expect from solicitor fees and what you can expect to pay for their services.

Talk to a solicitor today and help your business get on top of those pressing legal issues.