Sellers Closing Costs

Property costs

If you have any outstanding liens on your property you will need to pay to have those removed.  Property taxes will be need to be paid up to the date of closing, your lawyer will ensure there is an adjustment for this cost on closing.

Mortgage costs

If you are selling your home before paying off your mortgage there will be a fee to the bank to discharge the mortgage, usually around $300.  If you have a closed mortgage, your bank might also require you to pay prepayment charges, which can equal several months’ mortgage payments. These payments generally are based on the number of years left to pay, and the interest rate. It is possible however, if you are buying another home, and the price is comparable, you could transfer your mortgage to the new property.  It is also possible you will need to pay any interest on your mortgage since the last payment was made, as well as the amount payable on the mortgage.  You should speak with your mortgage specialists before listing your property to determine the funds will be available from the sell.

Real Estate Commission

A real estate professional will help ensure your interests are protected and that you are getting the maximum dollar for your home.  Not using a Realtor can lead to costly lawsuits which stem from misunderstandings and inexperience.  Realtors are trained professional who are taught to deal with the ins and outs of the real estate market.  The typical commission for selling a home is between 4 to 6 percent of the selling price.  This amount will be split between the Selling agent and the Buyer’s agent.

Legal Fees and Taxes

Legal fees are another concern for a home seller, and these include HST on the total amount paid, including agent‘s commissions, the cost of disbursements like registration fees and lawyer’s fees. Lawyer’s fees are typically around  $500 to $600 as well as any related expenses associated with using a lawyer can up the fee another $200. If you earn money from an income property you may also have to pay capital gains taxes.  Ask your Accountant for more specific advice and whether you would have to pay capital gains tax.

Closing Costs

You may also have to pay to have your utilities disconnected, or transferred to your new residence prior to moving. Examples are telephone, heating, cable TV, plus electrical and water. 

Moving Expenses

Remember to add the cost of a moving company (if you use one), buying boxes or renting them, moving insurance, any storage costs and insurance, and if you choose to have a company help you pack, you must pay them too.

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