INFORMATION FOR PURCHASERS

Closing Costs

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Many buyers are not aware of what is involved after they have found the home they wish to purchase.  The price has to be agreed upon with the vendor, along with the closing date and other details.  I will be pleased to review the Agreement of Purchase and Sale with you, if requested.  After the deal is “firm”, that is, all the conditions such as financing have been met, I will begin work on the file.

I will conduct a title search; ensure there are no liens on the property for taxes or utilities;  review the documents prepared by the vendors lawyer, and generally do everything to make sure that the transaction goes smoothly.  In addition, I will arrange for the purchase of a title insurance policy to protect against hidden defects in title and mortgage or title fraud.

In order to conduct these searches, fees must be paid to each agency so they will review their files and provide the necessary information.  When other charges such as couriers, long distance calls, photocopies and postage get added, the disbursements, including the title insurance policy, will average about $550.00.

In addition, of course, there is the Land Transfer Tax and Registration costs.  On a purchase of $200,000.00 the Land Transfer Tax is $1,725.00.  The formula for purchases up to $250,000.00 is as follows:  1% of the sale price less $275.00.  Registration costs are $70.60 per document, so a buyer would pay $141.20 to register a deed and a mortgage.

Legal fees depend on the complexity of the matter and the time necessary to complete the transaction.   I have over 25 years experience in real estate transactions of all types.  My fee for a typical residential purchase including one mortgage is usually $695.00.

A summary of costs a Buyer could anticipate for a purchase of $200,000.00 would be as follows:

 

(a) Legal fees – Re Purchase
                     – Re Mortgage		 $ 495.00*
$ 200.00*
(b) Disbursements $ 550.00*
(c) Land Transfer Tax $ 1,725.00*
(d) Registration Costs $141.20*
(e) H.S.T. (we don’t like collecting it any more than you like
paying it)		 $ 90.00*
Total $ 3201.20* (*Figures are approximate)

We have special rates for first time buyers.  Please contact me to discuss this further.

If you have any existing home to sell in order to purchase, you will incur additional legal fees of approximately $799.00 plus HST.

If I can provide any further information, please contact me or my assistant, Sue.