Why a retainer fee?
Asked by: Rashawn Murphy | Last update: October 25, 2025Score: 4.9/5 (34 votes)
A retainer fee is an upfront payment to secure the services of a lawyer, consultant, freelancer, or other professional. A retainer fee is most commonly paid to third parties that the payer has engaged to perform a specific action on their behalf. These fees only ensure the receiver's commitment.
What is the purpose of a retainer fee?
Using a retainer helps establish trust between the attorney and client—while protecting both. The client trusts the attorney to safely hold their funds until rightfully earned, and the attorney trusts the client to uphold their financial obligations when they've exhausted the initial retainer fee.
Do you have to pay a retainer fee for a lawyer?
After an initial consultation with a lawyer, a client will make an upfront payment that covers the agreed-upon deposit for the legal services. As a lawyer works on the matter, they will track their time and bill against this retainer fee.
What are the disadvantages of a retainer fee?
Cons of a retainer pricing model
They can easily lead to unintentional underservicing or over servicing of clients, with your company producing either less than a client expects, or more than you've anticipated.
Do I get my retainer fee back?
Do you ever get your retainer fee back? Yes, you should receive a refund of any and all of the unearned retainer after your attorney invoices all work that was performed on your case. If the work performed exceeds the amount of money that you had in trust, you may have a balance due to your attorney.
Pricing Retainer Fees Without Knowing the Scope
Can I fire my lawyer and get my retainer back?
Since your lawyer is legally obligated to keep your retainer in an escrow account and can't access the money without sending a formal bill to you, he or she will probably repay it without delay. If your lawyer fails to return these funds within 30 days, you may take several steps to ensure that you aren't cheated.
Can you negotiate a retainer fee?
Clients and professionals negotiate these terms to align expectations and ensure mutual satisfaction. The retainer may be refundable or non-refundable, contingent on the agreement specifics. The benefits of using retainer fees in professional relationships include security and predictability.
What happens when retainer fee runs out?
After the retainer fee is depleted, the attorney may bill the client in several ways. The first option is to enter into a contingency fee agreement with the client. A contingency fee agreement provides that the lawyer does not get paid unless he wins the case.
Is a retainer fee the same as a deposit?
In a definitive sense, a retainer is a fee that is paid in advance in order to hold services (ie. a wedding or event date). While a deposit may also reserve a date, it is returned when the services have been completed. A retainer is by default non-refundable and is not returned.
Why do attorneys ask for a retainer?
In the U.S., a retainer is an amount provided to hold an attorney in reserve for ongoing legal advice and routine work, such as reviewing contracts.
What is a reasonable attorney fee?
COURT AWARDED ATTORNEY'S FEES - WHAT IS 'REASONABLE'?
THE DISCRETION OF THE COURTS IN DETERMINING THE PROPER AMOUNT OF A FEE AWARD IS FOUND NOT TO BE UNLIMITED IN EITHER CONTEXT. IN BOTH CONTEXTS, A REASONABLE FEE IS ONE THAT AWARDS THE ATTORNEY THE MARKET VALUE OF THE TIME AND EFFORT JUSTIFIABLY EXPENDED.
Will a lawyer take a losing case?
If they can't sufficiently prove your case, a personal lawyer may refuse to take it. Remember, lawyers, do not like to take cases they don't think they can win. A lot of hours go into preparing a lawsuit involving more people than just the attorneys.
How much is a normal retainer fee?
Retainer fees for attorneys work as an advance fee. Lawyers hold the fee in a dedicated account and deduct it after they complete the work. Clients can either make an online payment for the fee or they can opt for a traditional payment method. The average lawyer retainer fee can be around $2,000.
Does a retainer need to be paid back?
Unearned funds from either a security or advanced payment retainer must be refunded at the end of the work. Two ways to show that a retainer is non-refundable are (1) written informed consent by the client and (2) appropriate billing records.
What are the rules for retainers?
DO NOT wear the retainers while participating in sports or swimming. NEVER eat anything while wearing your retainers. It's OK to drink water while wearing the retainers, but remove them if you drink other beverages. If you forget to wear your retainer, wear the retainer full-time for few days to re-align your teeth.
Do you have to pay lawyers up front?
Usually you must pay all costs immediately, but some lawyers will add them to their monthly bill. If the lawyer is working for you on a “contingency basis,” then costs might be at the end of your case.
How expensive is a retainer?
In general, a removable wire retainer may cost approximately anywhere between $150 and $600 in the U.S. Clear plastic removable retainers tend to ring up around $400 to $800.
Why is a retainer non-refundable?
Opinion 611 emphasizes the distinc- tion between a payment to secure an attorney's services and a payment for services to be rendered. In this sense, a non-refundable retainer is solely for the availability of future services rather than the provision of future services.
What do most lawyers charge for a contingency fee?
Lawyers usually calculate contingency fees as a percentage of the amount of compensation recovered. A typical contingency fee falls between 20% and 40%, with most totaling 30% to 35%. You pay the fee at the end of the case out of your compensation.
How much should I ask as a retainer fee?
How Much Should a Retainer Fee Be? It depends on the industry of the professional you're retaining the services of and their compensation expectations. Generally, it should be close to the professional's hourly rate multiplied by the hours they expect to work.
How long are retainer contracts?
A retainer agreement is simply a contract, usually over a period of several months or a year, that guarantees a freelancer will get paid a certain rate for a pre-set number of hours or projects per month.
Why do lawyers want a retainer fee?
About retainer fees
A retainer fee can be used to guarantee that the lawyer will be available to take a particular case. With this type of agreement, the client would be billed additionally for the legal work that is done.
How to get out of paying your lawyer?
If you don't have the funds to pay, your attorney will likely recommend bankruptcy. Attorneys' fees are generally dischargeable, meaning you can wipe them out. If your income is low, you will probably qualify for a quick Chapter 7 bankruptcy.