Referral fees may be prohibited under applicable state codes of professional responsibility unless certain criteria are met. Just like other fees, the total fee must be reasonable and you must agree to the arrangement. Your state or local bar association may have additional information about the appropriateness of a referral fee. The lawyer is paid a set fee, perhaps based on the lawyer's hourly rate. The retainer is usually placed in a special account and the cost of services is deducted from that account as they accrue.
Many retainer fees are non-refundable unless the fee is deemed unreasonable by a court.
Since this type of fee arrangement can mean several different things, be sure to have the lawyer explain the retainer fee arrangement in detail. These types of fees may appear in probate, bankruptcy, or other proceedings. With all types of fee arrangements you should ask what costs and other expenses are covered in the fee. How will the costs for staff, such as secretaries, messengers, or paralegals be charged. In contingency fee arrangements, make sure to find out whether the lawyer calculates the fee before or after expenses.