Before a law firm starts work, it should tell you how it will charge and give you an estimate in writing. Most firms use one or more of these arrangements.
Fixed fees
One agreed price for a defined piece of work, such as a simple will, a power of attorney or a straightforward home purchase. Check exactly what the fixed fee includes and what would cost extra.
Hourly rates
Time is charged at an hourly rate, often different for partners, associates and paralegals. This is common for disputes and negotiations, where nobody can know in advance how much work will be needed. Ask for an estimate, and ask the firm to tell you if it is likely to be exceeded.
Other costs
Court fees, search fees, expert reports and similar costs paid to third parties are usually charged on top of the firm’s own fees. Some firms also ask for money on account before they start.
Good questions to ask
- Is this a fixed fee or hourly work?
- What is included, and what is not?
- Will you tell me before the cost goes above the estimate?
- When will I be billed, and can I pay in stages?
This article is general information, not legal advice. Rules differ between states and countries; speak to a lawyer about your own situation.