Home Selling Guide

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The costs associated with selling

You’ve spent considerable time and money on home improvements to bring your home into “show” condition. You’ve taken the dog to the neighbors when your realtor hosted open houses. You’re pleased that your realtor has negotiated the best price on your behalf. The offer has been accepted and you’re set for your move. Congratulations! You’ve accomplished a major milestone in selling your home.

There are financial items you’ll want to consider upon the sale of your home. The buyer is typically responsible for these closing costs including:

• legal/notarial fees for handling the sales transaction
• disbursements or out-of-pocket expenses incurred by the lawyer or notary
• property tax and utility adjustments
• land transfer or "welcome" taxes

As the seller, you’ll also have some debts to discharge before you can access your funds, including:

• real estate commissions
• certificate of location, or survey
• legal and discharge fees
• outstanding adjustments owed to the buyer
• outstanding municipal/school taxes or public service
• assessments
• outstanding mortgage balance and any charges associated with discharging your mortgage early (if you are not transferring your mortgage to your new home, or the buyer is not assuming it)

As fees and costs vary from province to province, and city to city, your professional realtor can advise you on the costs you’re likely to face when selling your home. It’s also a good idea to check with your financial advisor, your accountant and your lawyer prior to the sale.