How to Avoid Paying Your Lender’s Outrageous Attorney Fees

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By: Bill Henry
PublishedMay 1, 2020
1 minute read

It’s standard practice that a borrower pay lender attorney fees – or at least some of the lender’s legal fees. You should not, however, pay an unreasonable amount.

Pay Lender Attorney Fees – What’s “Normal”?

Many loan agreements contain a provision that makes the borrower responsible for the legal fees that a lender incurs in preparing loan documents.

It’s a market provision. It’s not necessarily overreaching, but you need to make sure you negotiate a cap on those fees because a general statement that says, “I will pay for all your legal fees and loan preparation,” gives them basically a blank check.

So it’s okay to agree to pay reasonable fees to prepare documents if you’re borrowing money.

It’s not okay to give them unlimited access to your wallet. So that needs to be negotiated.

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