The cost of a letter of demand in Singapore depends on the difficulty of the issue at hand. This seems to be the standard stock answer received when you make an appointment at any law firm, from the solo practitioner to any of the larger firms.
While this might seem like a lawyerly cop-out, the truth is that most lawyers prefer to find out more about the complexity of the situation before deciding on the price to charge. The reason for this is because lawyers face potential liability for improper demand letters, and have to make sure they get their facts straight. Sending out a letter of demand is also the first step on the road to litigation, and the more complex the case, the more follow-up work has to be done.
Generally, the cost of having a law firm send out a demand letter on your behalf in Singapore varies widely. Larger law firms tend to charge a premium, with prices starting out from at least S$300 to S$400. Without getting into a long discussion about law firm economics, larger law firms have higher bills to pay, and have to charge accompanying high prices for even the simplest of demand letters.
Smaller to mid-size firms usually charge less. However, the prices vary as well, and depends on the business model of the law firm in question. Some law firms price the drafting of the demand letter at their hourly rate while other law firms look at writing the demand letter as a “loss leader” in the hope of getting subsequent business and charge lower prices accordingly.
While elaborate demand letters involving complicated issues can cost an arm and a leg, this shouldn’t be the case for most demand letters. For example, a simple demand letter requesting for a deposit back for a rental property shouldn’t cost you more than S$100.
In fact, most situations involving a demand for payment in Singapore aren’t usually exceedingly complex and should range from between S$80 – S$150.
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