Important Costs to Consider

Deposit

Upon acceptance (within 24hrs) of your Agreement of Purchase and Sale, you will be required to submit a deposit cheque which will be held in trust by the Listing Broker until closing (or until non-fulfillment of conditions). This deposit cheque is usually five percent (5%) of the sale price, depending on circumstances and closing date. The cheque must be deposited by the Listing Broker within two banking days after acceptance of the offer, whether it is a conditional or firm transaction. Arrangements can often be made with a financial institution for a short-term loan or line of credit if necessary (e.g. you have money tied up in term deposits, RRSP’s, or the equity of your current home).

Home Inspection

Home inspections are usually around $375 to $500 for average properties.

STATUS CERTIFICATE (Condominium properties only)

Condominium Corporations are required to provide a status certificate for a fee of around $100. The Status Certificate contains important information for the Buyers of a condominium unit:

  • Common Expenses
  • A Copy of the current declaration, by-laws and rules
  • A copy of the current budget
  • A list of agreements entered into by the Condominium Corporation Information about the most recent reserve fund study

Any plans to increase the reserve fund Information about insurance

APPRAISAL FEE

Vary depending on lending institutions, personal situations and overall property.

TITLE INSURANCE

Ask your Sales Representative to provide you with information on Title Insurance. It is often used when there is no survey, or for mortgage re-financing or minor title problems. Premiums can range from $200 to $500.

ADJUSTMENTS REIMBURSED TO THE SELLER

The balance due on closing is the difference between your sale price and the amount of your deposit. How- ever, there are certain items that will be adjusted at the time of closing. You will have to repay the Seller on a pro-rated basis if some bills have been paid beyond the closing. E.g. Prepaid property tax, heating fuel (oil)

PROPERTY TAXES

HOME INSURANCE

MOVING EXPENSES

LEGAL FEES AND DISBURSEMENTS

Even a straightforward home purchase requires a lawyer to review the Agreement of Purchase and Sale, search the title, draw up mortgage documents and tend to the closing details. Be sure to ask your lawyer for an approximation of the disbursement costs.