LicenseIQ

closing

attorney fee

An attorney fee is the charge for legal services in a real estate transaction, such as reviewing contracts, examining title, preparing deeds, or conducting the closing. In some states attorneys customarily handle closings, while in others title or escrow companies do. Each party typically pays its own attorney, and the fee appears as a debit to that party on the closing statement.

Exam tip
On a closing statement, an attorney fee is a debit only to the party who hired the attorney; it is not prorated or shared unless the contract says so.
Example
A buyer pays her attorney $1,200 to review the contract and attend closing, which appears as a $1,200 debit on her side of the statement.

1. A home sells for $389,000. The seller pays a 5% commission, a $212,600 mortgage payoff, $1,200 attorney fee, $1,950 transfer tax and $600 in other costs. What are the seller's net proceeds?

Answer & explanation

Answer: D. Commission = $389,000 x 0.05 = $19,450. Total costs = $19,450 + $212,600 + $1,200 + $1,950 + $600 = $235,800. Net = $389,000 - $235,800 = $153,200.

Related terms & state variants

closing statementdebitsettlementtitle search

Sources

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Last verified: 2026-10-23