It is sometimes a shock to find out the legal costs required to be represented by a lawyer.
Here are things to consider:
Why?
Lawyers often times charge by the hour. The amount required to resolve a problem or deal with a legal matter depends on the complexity of that problem or issue.
A problem or issue that takes 2-3 hours to resolve is much cheaper than a dispute or complex issue that takes 3-6 months of ongoing work to resolve.
The costs of solicitors depend on the skill of a solicitor and the time expended.
For example, a senior legal practitioner can, on average, charge up to $600 plus GST an hour.
A senior associate (being a lawyer with experience of 5+ years) can charge up to $485 plus GST an hour.
A junior lawyer (being a lawyer with experience between 0 – 3 years) can charge up to $300 plus GST an hour.
And lastly, a paralegal (being a law student, law graduate or administrative worker) can charge between $180 to $250 plus GST an hour.
How?
There are two ways in which a solicitor charges legal costs.
The first is a fixed fee. Fixed fees are set out for a fixed scope of work (work described in the costs agreement). So long as the works are within the scope of work, the lawyer cannot charge additional fees.
On the other hand, lawyers charge for the work done based on hourly rate. The method used for calculating how much to charge is done proportionately. The charge is structured in 6 minute units. For example, the time charge for a phone call of up to 6 minutes will be 1 unit and the time charged for a phone call between 6 minutes and 12 minutes will be 2 units. Therefore, a phone call with a junior lawyer of 2 units will cost $60 plus GST.
It is mandatory that lawyers provide their clients with a costs agreement before doing any works exceeding $750.
What?
The types of legal works vary. A person requiring a lawyer for a transfer and purchase of a property is different to a Supreme Court dispute.
On average, lawyers charge $1,500 plus GST and disbursements for acting on behalf of a purchaser or a vendor for the sale or purchase of a property. Often, prices for purchase or sale of a property are fixed.
Where?
Each State in Australia has its own governing laws when it comes to lawyers charging clients.
It is important that you ask your lawyer to explain to you the full scope of work and costs associated before proceeding with their services.
Should you have any questions, please do not hesitate to contact our lawyer, Ahmad Al Sarray.
