By Harold Ayodo

Most first time buyers of homes and land look for ways to spend less on the transactions. They argue that prices of property are already very high and that saving on hidden costs is the only way to afford the property.

Many people say that conveyancers (property lawyers) are among the major stumbling blocks as they are ‘too’ professional to bargain on fees.    

Some even shelve dreams of purchasing property after realising that the cost of transaction is very high. Others hire the services of professionals, but withhold payment, forcing the professionals to go to court to recover the fees.

Some bargain for the fees charged by the professionals and end up paying way below the standard amount.

Standard charges

However, some professional bodies, such as the Law Society of Kenya, prohibit payment of any amount other than the stipulated one.

The Advocates Remuneration Act prescribes the minimum legal fees that should be charged to clients per transaction.

It is even tougher for advocates, as the law further bars them from sharing professional fees with people who are not their peers, meaning it is illegal for a lawyer to bargain and share fees with agents or brokers.

The Act also provides for written and invalid fee agreements and how disputes involving clients should be resolved.

In daily practice, the cost of legal services is left to an agreement between the advocate and client due to the complexity of some transactions. Property transactions are not the same and there are several factors that determine legal fees. Therefore, written agreements are the easiest way to avoid misunderstandings between the lawyer and investor.

The time and labour required and difficulty of a matter may affect the total amount of professional fees charged. Fees customarily charged in the area for similar services may also be a determinant.

The experience, reputation and ability of the advocate may also determine the fees charged. This means the cost of opening a file in a newly set up law firm would not cost the same with one that has been in practice for many years.

Investment suicide

Moreover, time limitations, either imposed by the client or circumstances of the representation during the transaction, may also have an effect.

Other factors could include the nature and length of the professional relationship with the client and the informed consent of the client.

Even as a section of investors grumble over professional fees, overlooking the services of professionals such as a registered conveyancer would be committing investment suicide.

Purchasing land or a house entails a series of paperwork that can only be signed, witnessed and attested by a lawyer with a valid practising certificate.

A standard property transaction involves two conveyancers — one acting for the seller and the other for the buyer.

Despite the legal fees charged, the advantages of using a lawyer in the transactions far outweigh the disadvantages.

The writer is an advocate of the High Court of Kenya.