Closing Costs for Seller

CLOSING COSTS FOR SELLER

Seller Closing costs -blog Sold Prices

*** Please note, these are the most commonly encountered closing costs for seller, but there may be other costs depending upon your specific transaction. Please contact your lawyer or accountant for complete details.

Legal fees and expenses (Lawyer or Notary) – Legal fees to sell your home will depend on the law firm you choose and the price of your home.  Generally you can expect to pay around $1,200.

Legal fees include:

  • Attending to execution of documents
  • Costs of clearing Title, including:
    • Investigating Title
    • Discharge fees charged by encumbrance holders
    • Prepayment penalties

Real Estate Commission (plus GST)  – When you hire a real estate agent to sell your home, the commission you will pay is negotiable and it will be on your Listing Agreement.

GST – on the Real Estate Commission and Legal fees

Other costs – Property taxes, utilities or condo fees. Prior to closing, your lawyer will give you a full breakdown of any other selling costs, which may include outstanding property taxes, utilities or Strata fees. The Seller is responsible for these costs up until the date of closing, but if your date of closing doesn’t coincide with the date you normally pay these expenses, then you’ll be responsible for payment of the partial month’s costs.  There might be additional taxes payable (eg. Empty Home Tax and Speculation Tax).

Staging and home preparation – You only get one chance to make a first impression, and most Sellers need to invest some time and money into home preparation and staging.

When calculating the profit from the Sale of your home, don’t forget to deduct the costs for the Seller!

Mortgage penalty – Read the fine print! If you have a mortgage on your home, your lender may charge you a penalty if you sell the home during the mortgage period. Most traditional lenders (ie banks) allow you to apply the remaining mortgage balance to the mortgage of a new property (provided you purchase the new home within 90 days of closing), but some mortgages have restrictions. If you’re selling your home and not buying a new one, you will likely have to pay a pre-payment penalty, which can be thousands of dollars. Make sure to talk to your lender before you list your home for sale to fully understand the details of your mortgage.

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Check our other blogs under Real Estate 101 – that might give you answers about buying or selling a home.

The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only.