How much does it cost to draft a legal document?
So, you need a legal document drafted. If you are like most people, the first question you had once you discovered this need was:
“How much is this going to cost me?” “What are the document preparation fees?”
Given the reputation lawyers have for charging steep prices, this is a reasonable question to ask.
Let’s take a look at the cost of drafting a contract and all of the preparation fees.
How much does it cost to draft an agreement?
Contract drafting and preparation fees can vary depending on a lot of different factors. Some of those factors are:
- Types of agreement needing to be drafted
- Years of experience of the lawyer you hired
- Location of the lawyer you hired
- How complex the terms of the agreement are
- How quickly you need the document drafted
- Size of the transaction the document will be used for
ContractsCounsel’s platform is a marketplace to draft agreements with lawyers, so we collect a lot of cost data for legal fees, many of which are flat fee contract drafting costs. Below are some average price points from across all US states to review to give you a sense of what things costs:
Common Business Agreements:
- Business Contract : $764.96
- Business Partnership Agreement : $1,041.63
- Terms of Service and Privacy Policy : $1,189.59
- Asset Purchase Agreement : $1,275.68
- Operating Agreement : $740.81
- Liability Waiver : $630.26
- Employment Contract : $747.79
- Service Agreement : $801.74
- Contractor Agreement : $908.88
- Terms and Conditions : $890.85
Common Personal Documents:
- Prenuptial Agreement : $883.79
- Postnuptial Agreement : $951.42
- Cease and Desist Letter: $440.55
- Rental Agreement : $639.20
- Co-ownership Agreement : $651.62
- Quitclaim Deed : $655.70
- Power of Attorney : $392.92
- Real Estate Purchase Agreement : $888.09
- Lease Agreement : $582.18
The above price points are based on hundreds of matters each and averaged across the US. These rates may vary for you depending on the above factors, but should serve as a general guide for flat fee contract drafting fees and what lawyers charge.
Factors That Determine the Cost of Drafting a Contract
Below, we go into further detail about the factors that determine the cost to drafting a contract or legal document:
- Consultation Fee: Many lawyers will charge for the consultation. In some cases, this is their standard hourly rate, while others may set a special flat fee. Others still offer consults for free.
- Years of Experience: The more experience a contract lawyer has, the better they are at their job. But those years don’t come for free. More experienced lawyers generally charge higher fees.
- Complexity: If your document is something simple and straightforward, you can expect the costs to be lower than if it is highly complex and difficult to draft.
- Communication: If your contract lawyer must go back and forth with you to clarify elements and get your feedback, you can expect this to increase the cost.
- Revision: If you get the document and decide there are changes you would like to have made, this will likely increase the overall cost of the document.
- Location: Contract lawyers in major metropolitan areas tend to charge more than those in rural and suburban settings. Even the building they are in can impact cost.
- Firm: If the lawyer works for a firm, that will impact the bottom line. Firms often set prices based on their collective experience, overhead, and prestige.
- Turnaround Time: If you’re on a tight timeframe, a lawyer may charge a premium so prioritize your work over another clients.
- Size of Transaction: Given lawyers carry insurance policies, they will often adjust their rates to reflect the size of the transaction. They are absorbing liability by handling your matter, so the total bill may be reflective of how much liability they are taking on.
Keeping Costs Down
Hearing all of this, it might sound like you should expect having a legal document drafted to break the bank. But that isn’t necessarily the case.
There are some things you can do to keep preparation fees down. These include:
- Looking for contract lawyers that offer free consultations.
- Outlining the document in advance, so it is clear to the preparer what you are looking for, reducing the back and forth.
- Selecting a lawyer offering flat fee contract drafting rather than an hourly rate.
- Looking outside of big cities for a contract attorney.
- Choosing a lawyer who isn’t with a firm and is a solo practitioner. They will not have the same overhead a firm lawyer will have.
- Negotiate the number of revisions you will get before starting work. This will minimize additional costs.
- When providing feedback, make sure to do a thorough job and to not send peace mill. Limiting the back and forth between you and the lawyer will reduce costs.
- Get competitive quotes. Use an online marketplace like ContractsCounsel to get competitive quotes from lawyers for you to compare. Some lawyers may not be busy at the time and be willing to provide a competitive rate to win your work.
Keep Preparation Fees Low with ContractsCounsel
Make the search easier by connecting with a contract lawyer near you through ContractsCounsel.
As a boutique marketplace, we vet all lawyers on our platform before their profiles go live.
Get free quotes from multiple attorneys, then work with the one who is the best fit for you.
