Legal Definitions - procuration fee

A procuration fee is a commission or brokerage paid to a solicitor for obtaining a loan. This fee is paid by the borrower and is usually a percentage of the loan amount.

John wants to borrow $10,000 from a bank. He goes to a solicitor to help him with the loan application. The solicitor charges a procuration fee of 1% of the loan amount, which is $100. John agrees to pay this fee.

Another example is when a real estate agent helps a buyer obtain a mortgage to purchase a property. The lender pays the procuration fee to the agent for their services.

These examples illustrate how a procuration fee is a payment made to a solicitor or agent for their assistance in obtaining a loan or mortgage for a borrower.