Costs to Expect When Selling

Real Estate Commission

This fee covers all the leg work, marketing and advice provided by your agent, as well as commission to the buyer’s real estate agent (the seller pays both). Keep in mind, the sale of your home is not subject to HST, but the commission portion on the sale is.

Legal Fees and Disbursements

When you’re involved in a financial transaction as big as this, you want to be sure you’re protected.  Your legal professional will ensure that the buyer has made good with all terms outlined in the Agreement of Purchase and Sale (offer), and that you have met your legal obligations so the deal may close.  Legal fees vary widely, and the total costs depends on the firm and services being provided. 

Utility and Property Tax Adjustments

This might not be a cost to you, depending on how your property tax and utility bill payments are scheduled.  If you prepay these expenses then you can expect to be refunded by closing day.  If however you don’t pay these expenses in advance, it will be you paying the buyer for the amount accrued prior to the possession date.  The exact amount will be calculated by the lawyer.

Mortgage Prepayment or Discharge Fees

Be forewarned that if you plan to pay off your mortgage with the proceeds, your bank may charge a fee for closing your account and a penalty fee if you paid early.  If your term on your mortgage isn’t up and you’re not porting (getting another mortgage of equal or greater value) you will be charged a penalty for each month you break your term.  Contact your financial institution for further details.