When buying or selling land, a house or another form of real estate in Nigeria, one question frequently creates disagreement between the parties: who should pay the lawyer responsible for preparing the sale agreement? Although the question may appear straightforward, the answer can depend on the terms negotiated by the buyer and seller, the nature of the transaction and the professional arrangement between the parties and the lawyer.
Property transactions involve significant amounts of money, and a seemingly small misunderstanding over legal fees can quickly create tension. For this reason, both the buyer and seller should understand their responsibilities before signing documents or transferring money.
In many property transactions, the parties may negotiate who will bear the lawyer’s professional fee. There is no universal rule that automatically means the buyer must always pay or that the seller must always pay. The parties can agree on the arrangement as part of the transaction, provided the agreement is properly documented and consistent with applicable professional and legal requirements.
DDM News understands that this is particularly important in Nigeria’s property market, where transactions can involve substantial sums and where buyers may encounter different practices depending on the location, type of property and professionals involved.
Why a Lawyer Is Important in a Property Sale
A sale agreement is not simply a piece of paper confirming that money has changed hands. It is a legal document that establishes the rights and obligations of the parties involved in the transaction.
A properly prepared agreement should identify the seller and buyer, describe the property accurately, state the agreed purchase price and explain the conditions attached to the transaction. Depending on the circumstances, it may also address payment arrangements, possession, completion, default, obligations of each party and the consequences of failing to fulfil the agreement.
The lawyer may also conduct or coordinate legal due diligence to determine whether the seller has the authority to sell the property and whether there are issues that could affect the buyer’s interest.
This makes legal representation particularly valuable to a buyer who may be unfamiliar with property documentation.
So, Who Normally Pays?
In practice, the person who pays the lawyer’s fee can vary from one transaction to another.
Sometimes the buyer pays because the buyer is requesting the preparation and review of the agreement as part of the purchase process. In other cases, the seller engages a lawyer to prepare the agreement and bears the professional fee.
There are also transactions where both parties agree to share the legal cost.
The most important point is that the payment arrangement should be clearly agreed before the transaction progresses too far.
A buyer should not assume that the seller will pay. Similarly, a seller should not assume that the buyer will automatically cover every legal expense connected with the transaction.
The parties should ask the lawyer directly about the professional fees and determine who is responsible for paying them.
The Buyer Should Not Assume That Paying Makes the Lawyer “Their Lawyer”
This is an important distinction.
If the buyer pays the lawyer’s fee, that does not automatically mean the lawyer is permitted to ignore the interests of the other party or act improperly. A lawyer’s professional obligations remain relevant regardless of who pays the fee.
Where a lawyer is acting for one party, the other party should understand that they may need independent legal advice, particularly where the transaction is complicated or involves substantial financial commitments.
For example, if a seller provides the lawyer who prepares the agreement, a buyer may reasonably decide to have another lawyer independently review the document before signing it.
This can provide an additional layer of protection.
What If the Seller Says the Buyer Must Pay?
There is nothing inherently unusual about a seller asking the buyer to cover the cost of preparing the sale agreement, but the buyer does not have to blindly accept every condition.
The buyer can negotiate.
Property transactions are commercial arrangements, and expenses can form part of the negotiation. The parties may agree that the purchase price includes certain costs, while the buyer separately pays legal fees, survey costs, agency commissions or other transaction expenses.
What matters is that each cost is clearly identified.
A buyer should ask for a breakdown of the expected expenses rather than simply accepting a general statement such as, “You will pay all the documentation costs.”
That phrase can be interpreted differently by different people.
Legal Fees Are Different From Government Charges
Another source of confusion is the failure to distinguish a lawyer’s professional fee from government or statutory charges associated with a property transaction.
The lawyer’s professional fee is payment for legal services.
Other costs may include searches, registration, stamping, consent-related expenses, survey costs, title documentation and other statutory or administrative charges depending on the transaction and location.
These are not necessarily all the same expense.
A buyer who is told to “pay the lawyer” should therefore ask exactly what the payment covers.
Does it cover only the drafting of the agreement?
Does it include legal searches?
Does it include perfection of title?
Does it include registration?
Does it cover other professional services?
Understanding these distinctions can prevent unexpected bills later.
Why Buyers Should Not Focus Only on Who Pays
Although negotiating legal fees is important, the bigger issue is whether the property itself is legally safe to purchase.
A buyer should be more concerned about the authenticity and status of the property’s title than about saving a relatively small amount on legal fees.
Before completing a property transaction, proper due diligence may be necessary. Depending on the circumstances, this can include verifying ownership, conducting appropriate searches, examining title documents, checking for encumbrances and confirming whether there are restrictions or competing claims affecting the property.
A cheap transaction can become extremely expensive if the buyer later discovers that the seller did not have a valid interest in the property.
This is why independent legal advice can be valuable.
What Should Be Agreed Before Signing?
Before signing a property sale agreement, both parties should understand the major financial responsibilities connected with the transaction.
They should clarify the purchase price, payment schedule, legal fees, agency fees where applicable, survey expenses, documentation costs and any government-related charges that may arise.
The agreement should also clearly state important terms concerning possession, completion, default and the consequences of either party failing to perform their obligations.
DDM News advises property buyers and sellers to avoid relying entirely on verbal promises when substantial money is involved. If an important arrangement has been negotiated, it should be properly documented.
This becomes particularly important where one party later claims that a particular cost was supposed to be paid by the other.
What If Both Parties Have Their Own Lawyers?
This can be one of the clearest arrangements.
The seller may have a lawyer representing the seller’s interests, while the buyer has another lawyer representing the buyer.
In such a situation, each party generally pays their own lawyer, subject to whatever arrangement they agree upon.
The lawyers can negotiate the terms of the agreement and raise concerns on behalf of their respective clients.
This arrangement can be especially useful where the transaction is complicated, expensive or involves significant risks.
The Best Answer Is: Agree Before the Transaction
Ultimately, there is no reason for the question of who pays the lawyer to become a major dispute if it is addressed at the beginning.
The buyer and seller should openly discuss the issue before the lawyer begins substantial work. The agreed arrangement should be clearly communicated and, where appropriate, reflected in the transaction documents.
If the seller says the buyer must pay, the buyer can negotiate. If the buyer wants to use an independent lawyer, that should also be discussed. If both parties agree to share the cost, the percentage or amount each person will pay should be clear.
Most importantly, nobody should assume that the other party will automatically bear a particular expense.
A property purchase is one of the largest financial commitments many people make. The cost of obtaining proper legal advice should therefore be viewed as part of protecting the transaction rather than simply as an unnecessary expense.
Whether the buyer pays, the seller pays or both parties share the cost, what matters most is that the arrangement is transparent, the lawyer’s role is understood and the property undergoes appropriate legal due diligence before money and ownership change hands.
For anyone entering a property transaction in Nigeria, the safest approach is simple: agree on the legal fees upfront, understand exactly what the lawyer is being paid to do, and obtain independent legal advice where necessary. The small amount spent on proper legal guidance can potentially save a buyer or seller from a much larger financial and legal problem in the future.
