A property Lawyer in Uyo or anywhere in Nigeria is bound by the provisions of the Legal Practitioners (Remuneration for Business, Legal Services & Representation) Order 2023. Scale 4 of the Order specifies in details how much Legal Practitioners who engage in property transactions should charge. Property Lawyers are therefore bound by the fee structure charge as set out in the Legal Practitioners (Remuneration for Business, Legal Services & Representation) Order 2023 in compliance with the Order.
Scale 4 of the Order is represented below;
| A | The Assignee’s or Mortgagee’s legal practitioner | Property value or mortgage value in the case of a mortgage: < N50,000,000 | Property value or mortgage value in the case of a mortgage: N50,000,000 – N100,000,000.00 | Property value or mortgage value in the case of a mortgage: > N100,000,000 |
| Min Max | Min Max | Min Max | ||
| Conveyancing and Assignments (public or private auctions) | 10% | N5m for
the first N50m and 5% of every subsequent amount up to N100m |
N7.5m for
the first N100m and 3% of every subsequent amount |
|
| Mortgages | 4% | N2m for the
first N50m and 3% of every subsequent amount up to N100m |
N4.5m for
the first N100m and 2% of every subsequent amount |
B The Assignor’s or Scale of charges for reviewing the draft agreement shall be one half of the
Mortgagor’s legal amount payable to the Assignee’s or Mortgagee’s Legal Practitioner
Practitioner
The above is the scale of charges for Assignments, Conveyances and Mortgages. Our primary concern is the scale for Conveyancing and Assignments, which relates to the transfer of legal and equitable interest in land.
By the scale, the Assignee’s i.e. the purchaser’s lawyer, is entitled to 10% of the value of the property, when the value is less than N50m. For instance, If you purchase a landed property worth less than N50m, say N45m, your lawyer is entitled to 10% of N45m which is the sum of N4.5m as his professional fees for the documentation of the purchase. Please note that by virtue of the Order, 10% is the minimum fee to be charged on such transactions not exceeding N50m.
For properties valued between N50m and N100m, a property lawyer by law is expected to charge N5m for the first N50m and then 5% of every subsequent amount up to N100m. What this means is that if you purchase a landed property worth N100m, the property lawyer is entitled to 5m for the first N50m and then 5% of the remaining sum i.e 5% of the remaining 50m, being N2.5m. In total, your lawyer is entitled to charge N7.5m only as his professional fees for such transaction. Again, this is the minimum fee a Legal Practitioner is expected to charge.
For properties valued above N100m, a property lawyer is entitled to charge N7.5m for the first N100m and then 3% of every subsequent amount. What this means is that if you purchase a property worth N250m, a Property Lawyer is entitled to N7.5m for the first N100m and then 3% of the remaining sum i.e 3% of the remaining N150m, being N4.5m. In total, a property lawyer is expected to charge N12m only as his professional fee. This is also the minimum fee a property lawyer is permitted to charge by law.
Also, where the seller is represented by a property lawyer who reviews and vets the draft agreement as prepared the purchaser’s lawyer, the seller’s lawyer is entitled to charge half of the amount charged by the purchaser’s lawyer.
Why you should pay your lawyer in accordance with the provision of the law
- Legal and Ethical Obligation: A property lawyer in Uyo or anywhere in Nigeria is bound by ethical rules and professional standards, which often require him to charge reasonable fees for their services. Paying according to the prescribed fee ensures you’re respecting this professional framework.
- Quality of Service: Lawyers invest significant time, expertise, and resources into handling cases. The prescribed fee usually reflects the level of service you are receiving, including their experience, knowledge, and the complexity of your case.
- Maintaining a Professional Relationship: Paying your lawyer the agreed-upon fee helps maintain a professional and respectful relationship. Lawyers often have a heavy workload and rely on their fees to support their practice, so paying on time is essential to ensure your legal matters are prioritized.
- Preventing Unnecessary Delays: Lawyers need to be compensated to dedicate the necessary time and resources to your case. If you’re not paying them according to the agreed fee, it may cause delays in your case, as the lawyer might not prioritize or invest the needed time to prepare your case effectively.
- Support for Access to Justice: When lawyers are compensated properly, it allows them to continue offering legal services, which supports access to justice for everyone. Lawyers often provide a range of services, including pro bono work, but paying the prescribed fee ensures they can continue offering both paying and pro bono services in a sustainable way.
Consequences for not paying the prescribed fees
- Ethical Breach: Lawyers are governed by ethical codes and professional conduct rules, which often require them to charge reasonable fees for their services. Failure to pay the prescribed or reasonable fees could be seen as unethical and violate these standards.
- Disciplinary Action: If a property lawyer in Uyo or anywhere in Nigeria is found to be not charging properly, they could face disciplinary action. This can include reprimands, suspension, or even disbarment in extreme cases.
- Undervaluation of Legal Services: Underpaying can inadvertently lead to the undervaluation of legal expertise and the services lawyers provide. It may create unrealistic expectations among clients about the cost of legal services in general.
- Loss of Credibility: A lawyer is consistently underpaid may lose their professional credibility. Clients might view the lawyer as unprofessional or unreliable, leading to a damaged reputation that could affect future business.
In summary, a property lawyer in Uyo or anywhere in Nigeria is by law expected to charge fees in accordance with the provisions of Scale 4 of the Legal Practitioners (Remuneration for Business, Legal Services & Representation) Order 2023. This fee is for documentation of property transactions. Failure to pay the prescribed fees can result in a range of professional, financial, and legal issues for the property lawyer. It can damage their practice, harm their relationship with clients, and even result in disciplinary action or reputational harm.
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