Opening doors

Closing Costs - Sale

The following are the usual closing costs associated with the sale of a property.  The basic costs are follows:

 

Deductions:

 

1.         Tax Certificate - It is the seller’s responsibility to pay for a tax certificate to verify that the taxes have been paid.  Note that  if you have paid taxes beyond the closing date, you will be reimbursed by the Purchaser through an adjustment to the purchase price on the closing date;

 

2.         Real Estate Commission - The deposit placed on the Agreement by the Purchaser is credited towards the real estate commission on closing and the balance is paid from the closing proceeds.  HST applies to your real estate commission.

 

3.         Legal Fees - Please call us to discuss the legal fees - they will vary slightly depending on the nature of each transaction.  HST also applies to legal fees.

 


4.         Disbursements - These incluse postage, photocopies, courier, faxes and HST on those items - they average approximately $65.00 on a sale transaction.

 

5.         Registry of Deeds - If you have a mortgage to pay out, a Release will have to be recorded at the Registry of Deeds at a cost of $83.51, and as well there may be a fee charged by your mortgage company for the preparation of the Release.

 

6.         Mortgage Prepayment Penalty - Before listing your property, contact your mortgage company and determine what penalty, if any, will apply to your mortgage if it is paid before it matures.  Mortgage companies are quite flexible for the most part in trying to keep any penalty to a minimum.

 

Credits

 

1.         Prepaid Taxes - If you (or your mortgage company) have paid the taxes to the municipality in advance, you will receive a reimbursement from the Purchaser for taxes you have paid for the period beyond the closing date.

 


2.         Fuel Oil - The fine print of your Agreement (clause 6) requires the Purchaser to reimburse you for the oil in your tank.  Usually, this adjustment is based on a full tank of oil and an oil top off slip is provided by you to your lawyer at the time of closing to verify the adjustment.