• Balance of Purchase Price — the purchase price less the buyer’s initial deposit (the latter could be anywhere from 5% to 20%) • Legal Fees — amount depends on purchase price and lawyer (approximately $1,800 for a $500,000 purchase in Toronto) • Title Insurance — sometimes included in legal fees ($250-$400) • Mortgage Broker Commission — if you use an agency/ real estate professional to sell your home. • Land Transfer Tax — varies according to province and depends on purchase price • Adjustments/Prorated Costs for Annual Expenses — includes property taxes, condominium fees, and utilities • Other Fees Sometimes Paid by Seller — appraisals, inspections, closing costs, etc. According to Mortgages.ca, lenders request appraisals, and the borrower (seller) pays the appraisal cost. However, many home buyers, especially first-timers, order one on their own to protect themselves. Further, closing costs can’t be paid by the seller on the buyer’s behalf in Canada.
STEP 8: MOVING
The closing is usually the time when the buyer takes possession of the property, so you need to be out of the home by then. There are situations in which a rental agreement is set up between the buyer and seller. However, it’s far less complicated if you tackle the packing and moving process before closing. Keep the following in mind as you do so.
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