Attorney’s Fees for a Land Deed of Sale in the Philippines
Everything you need to understand about percentages, computation methods, and legal grounding
1. Where attorney’s fees fit in a land transfer
| What has to be paid | Typical payor | Who receives the money |
|---|---|---|
| Capital Gains Tax (6 % of gross selling price or zonal value, whichever is higher) | Seller (unless agreed otherwise) | Bureau of Internal Revenue (BIR) |
| Documentary Stamp Tax (1.5 %) | Seller | BIR |
| Transfer Tax (0.25 %–0.75 %, rate varies by LGU) | Buyer | Provincial/City Treasurer |
| Registration Fee (≈ 0.25 %) | Buyer | Registry of Deeds (RoD) |
| Attorney’s / professional fees (drafting, due-diligence, liaison work, notarization) | Either party, per agreement | Lawyer or law firm |
Attorney’s fees are therefore private professional fees—distinct from statutory taxes and registry charges. They are governed primarily by contract and by the Code of Professional Responsibility and Accountability (CPRA, 2023), Rule 20 on Fees.
2. Is there a government-fixed percentage for attorney’s fees?
No. Unlike taxes, Philippine law does not prescribe a mandatory fee schedule for lawyers in land sales. Instead:
Freedom to contract (Civil Code Art. 1306): parties may agree on any reasonable basis—lump-sum, hourly, or percentage.
Reasonableness standard (CPRA §20.01): fees must be “fair and reasonable,” taking into account:
- time and labor required
- novelty and difficulty of the issues
- customary charges in the locality
- amount involved and benefit to the client
- experience, reputation, and ability of the lawyer
- whether acceptance precludes other work
Court oversight: should a dispute reach court, Art. 2208 of the Civil Code allows recovery of attorney’s fees only when justified (e.g., bad-faith refusal to pay).
3. Customary percentile ranges you will actually encounter
| Scope of work | Common arrangement | Comments |
|---|---|---|
| Draft-only deed of absolute sale (no due diligence) | ₱5 000 – ₱15 000 fixed | Small, straightforward transactions |
| Full conveyancing package (title search, tax clearance, drafting, notarial, RoD follow-through) | 1 % – 3 % of the higher of (a) zonal value or (b) contract price | Most mid-range residential sales (₱2 M – ₱30 M) |
| Complex / high-value (> ₱100 M) or with corporate layering, estate issues, or adverse claims | 0.5 % – 1 % sliding downward as value rises (degressive) | Big-ticket practice relies on economies of scale |
| Contingency-style (lawyer advances all out-of-pocket costs then recoups upon registration) | 5 % – 10 % | Rare; usually when seller lacks liquidity |
Rule of thumb: In Metro Manila and other urban centers, the going rate for a “normal” land sale hovers at ≈ 2 % of the property’s taxable base, subject to minimums (often ₱15 000–₱25 000) and caps by agreement.
4. Notarial fees vs. professional fees
Notarial fee is a subset of the professional fee if your own counsel notarizes the deed.
Supreme Court Administrative Matter No. 02-8-13-SC (2004) allows Regional Trial Courts to adopt a Schedule of Maximum Notarial Fees. A typical schedule for deeds of sale of real property is:
- 1 % on the first ₱50 000 (but not less than ₱1 000)
- +0.5 % on the excess, capped (commonly at ₱100 000 total)
- Many IBP chapters publish similar (non-binding) guides.
If you engage an outside notary, payor often shoulders the notarial fee separately (₱500–₱2 000 flat, or per schedule above).
5. How parties usually allocate the fee
| Scenario | Who pays the lawyer(s) |
|---|---|
| Seller retains counsel to prepare the deed; buyer reviews only | Seller pays 100 % |
| Parties hire a single lawyer as common drafter | 50/50 split is common |
| Each party has its own counsel | Each pays its own; they may agree to split costs relating to government processing |
Always memorialize the arrangement in the Contract to Sell or a separate engagement letter to avoid disputes.
6. Sample computation
Facts: Residential lot in Calamba, Laguna.
- Selling price: ₱4 000 000 (matches BIR zonal value)
- Parties hire one lawyer for full conveyancing at 2 %.
Attorney’s fee = ₱4 000 000 × 2 % = ₱80 000 Split 50/50 → ₱40 000 per party.
Out-of-pocket taxes and registry fees are separate.
7. Ethical limits and bargaining tips
- Caps in percentage deals – For very large sales, negotiate a sliding scale (e.g., 1.5 % on first ₱10 M, 1 % on next ₱40 M, 0.5 % thereafter).
- Advance on fees – Lawyers may ethically ask for a retainer or acceptance fee; unused portions must be refunded.
- Receipts – Demand an official receipt (OR). Under the Tax Code, lawyers are VAT-registered professionals once annual gross receipts exceed ₱3 M.
- Billing transparency – Under CPRA §20.03, a lawyer must explain how the fee was arrived at upon request.
8. Recovering attorney’s fees in litigation
If the sale turns contentious (e.g., specific performance suit), prevailing party may claim attorney’s fees as damages only insofar as courts allow under Art. 2208—normally 10 % of the judgment amount or “reasonable” quantum meruit, but never automatically.
9. Practical checklist before signing an engagement
- ✅ Written fee agreement (scope, rate, mode of payment, who shoulders taxes and filing fees)
- ✅ Timeframes for BIR Certificate Authorizing Registration (eCAR) and title release
- ✅ Identification of who advances documentary requirements (e.g., CTC of TCT, tax declaration, real-property tax clearance)
- ✅ Whether the lawyer’s staff will appear in person at BIR, Treasurer’s Office, RoD, and how many follow-ups are covered by the fee
- ✅ Exit clause for termination and refund calculation
Key Take-aways
- There is no statutory fixed percentage; attorney’s fees are essentially market-driven but must be reasonable under the CPRA.
- In ordinary residential or small commercial land transfers, expect 1 % – 3 % of the property value, plus incidental notarial fees.
- Always document the fee arrangement, understand what services are included, and demand transparent billing.
This article provides general information only and does not constitute legal advice. Consult a Philippine lawyer who can assess your specific transaction.