Selling Expenditures

Many consumers do not realize that there are other costs associated, besides realtor commissions, with selling a property.  One of the fees that is often overlooked is the Discharge or Prepayment penalty fee that is charged to you by your financial institution if you have an existing mortgage on the property.  There is no set amount for this fee and is strictly situation dependent.  It is recommended that you contact your existing mortgage holder to determine this charge.

Individual Costs And Their Meaning

Commissions: This is the amount of remuneration your Real Estate Agent will receive.  This will also be subject to Goods and Services Tax (“GST”) and other applicable taxes.

Legal Fees and Disbursements:  These must be paid upon closing and will cost between $250-$750.00 (plus GST).  Your lawyer/notary will also bill you any direct costs to check on the legal status of your property. 

Adjustment Fees:  The Adjustment Date will be the same as the Possession Date.  As of the Adjustment Date you will be responsible for all taxes, utility charges, maintenance fees (in the case of a strata property) and other such applicable charges.  As an example, if the possession date of the transaction is August 1, the previous owner is responsible for property taxes up to the day before the possession date and you are responsible for the taxes from the possession date onwards.  In this case, the previous owner should have already paid the taxes, as they are due on July 1.  This means that you will have to reimburse the Seller for the property taxes from August 1 through till December 31.   

Property Survey: Generally, a bank or trust company will require a Survey to confirm that the house does not encroach or cross over the property line. A Seller will often already have a Survey, especially if the Seller also had a mortgage on the property. Otherwise, a new Survey on a house will cost approximately $350.00. Surveys are not necessary if the Buyer is buying a strata property or condominium. Some Lenders will accept title insurance in lieu of a survey at a cost of $150.00.