Toronto Real Estate: Closing Costs for Sellers!

The following is a list of expenses normally incurred by a Seller when completing the sale of a Residential property within Toronto.

Toronto
Toronto by Phil Grodin
  1. Legal Fees -The tariff rate for residential properties is between .25% and .5% of the purchase price, normally not to exceed $1,450.00. Lawyers may negotiate their fees and will provide individual quotes when requested. However, in general, the costs for Selling a home should be less than those for Buying, as the Seller's Lawyer mostly responds to the Buyer's requests.
  2. Land Transfer Tax - There is no LTT for the Seller however, if the property is an income property, it may be subject to Capital Gains Tax. You should consult your Tax Accountant if that is the case.
  3. Survey - A new survey may be necessary if you do not have an "acceptable" survey and one is required by the Buyer. Cost: $750.000 - $1100.00
  4. Disbursements - These should be minimal as no search is done by the Lawyer. However, if there is a Mortgage, there will be costs involved in transfering or discharging it.
  5. Mortgage - There may be a penalty and you should be aware of all costs associated by doing a Mortgage Verification. Don't be caught off guard and get it in writing from your Mortgagee before you list. The more flexible your existing financing is, the better it will be as a sales tool.
  6. Title Insurance - The Seller is not responsible for Title Insurance. It is the Buyer that must buy it for the house or Condo.
  7. Adjustments - On a pro rata basis the lawyer will apportion the following expenses, as of the date of completion:
    Taxes; Oil (usually topped-up by Seller and Buyer receives a full tank);
    Water (only flat rate accounts in Toronto);
    Common expense fees

NOTES: Building clearances City of Toronto will not comment on surveys. They give only zoning and work order information, front yard parking, committee of adjustment files, etc. Toronto Hydro - They give neither written nor verbal information. It is entirely up to the Seller and Buyer to call them.

All disbursements with the exception of registration costs are subject to applicable G.S.T.

Please contact me direct at mail@richardsilver.com and I will be happy to answer any further questions that you might have.

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