Being charged lenders legal fees?

[ems]

Hi All

We have purchased a unit here in WA and have instructed a solicitor to act on our behalf. We received the mortgage documents yesterday (from the lenders solicitors) and have noticed were being charged a fee for the preparation and issuing of the loan documentation, settlement etc. Wouldn't this come under our solicitors fees? I don't understand why we are getting charged two sets of solicitors fees. Can anyone give an explanation here as we've never encountered this before?

Cheers
Ems

 

[HotRod]

Hi All

We have purchased a unit here in WA and have instructed a solicitor to act on our behalf. We received the mortgage documents yesterday (from the lenders solicitors) and have noticed were being charged a fee for the preparation and issuing of the loan documentation, settlement etc. Wouldn't this come under our solicitors fees? I don't understand why we are getting charged two sets of solicitors fees. Can anyone give an explanation here as we've never encountered this before?

Cheers
Ems

The lender can charge their fees. If they use a solicitor to draw up the contract, so be it. Most times banks have their own contracts they use, some lenders use solicitors.

More joy to you.

 

[INVSTOR]

On most of our loans we've been charged lenders legal fees, usually about $150.

 

[ems]

On most of our loans we've been charged lenders legal fees, usually about $150.

Were being charged over $1200..Plus our fees which will be around the same amount so nearly $2500 solicitors fees on a $295k purchase! WOW!

 

[Ausprop]

they are a bank, they can do whatever they like. all yoi can do is be happy that they didn't charge twice as much.

I am more intrigued as to the GST position of these fees, as they rarely provide a tax invoice

 

[INVSTOR]

Which bank?

 

[ems]

Which bank?

It's Adelaide bank..

 

[INVSTOR]

It's Adelaide bank..

Thanks, will stay away from them, look at their share prices instead. I hope there's no other fees on top of that, ouch!

 

[RPI]

We provide this service to some lenders and the borrower pays. $1500 plus GST is pretty normal.

Large banks have large internal staff that do all the grunt work and absorb the costs internally, smaller ones like Adelaide Bank will outsource it to a legal firm and the borrower pays accordingly.

 

[ems]

We provide this service to some lenders and the borrower pays. $1500 plus GST is pretty normal.

Large banks have large internal staff that do all the grunt work and absorb the costs internally, smaller ones like Adelaide Bank will outsource it to a legal firm and the borrower pays accordingly.

Ok thanks to you all..

It's something we've not encountered before so was a bit curious..

Ems

 

[Scott No Mates]

Yep, banks can & do charge for their legals depending upon the property type too. One that I bought a while ago, I was quoted $5k to review the headlease/sublease agreements as it was a leasehold property (not Canberra).

 

[Jack M]

Bank doesn't pay a single penny in legal documentation for any contract. Whatever charge incurred is taken from the customer usually. I think, Adelaide Bank outsourced it to some legal advisors as RPI told, you better ask to clarify your doubt.

 

[Peter_Tersteeg]

Bank doesn't pay a single penny in legal documentation for any contract. Whatever charge incurred is taken from the customer usually. I think, Adelaide Bank outsourced it to some legal advisors as RPI told, you better ask to clarify your doubt.

Actually most banks are outsourcing their document verifications and settlements process. Quite a few lenders are charging a legal fee of about $200.