Pay Dirt Series – Preparing Your Borrower for Legal Fees

In the world of ‘A’ lending, the lawyer acting for the client in a purchase or refinance typically also prepares the mortgage documents for the lender.  However in MIC and Private Lending, the lender is typically represented by their own lawyer.  There are various reasons for this including rules of the various Law Societies governing the situations in which lawyers can act for more than 1 party.

The cost of the lender’s lawyer is paid by the client in addition to their own lawyer.  While this is standard practice in the industry, it may come as a surprise to borrowers when they’re in their lawyer’s office signing all of the documents.

In order to prevent this surprise for borrowers, it’s a good idea to warn them in advance and explain why it happens.  A forewarned client is a much happier client.