![]() On your closing date, your lawyer will receive the required money from the buyer’s lawyer to close the transaction. The total amount in the credits column (purchase price + prepaid items) minus what’s in the debit column (the deposit) is what the buyer will owe you on closing day. In the buyer’s statement of adjustments, the debits represent amounts already paid, such as the deposit, while the credits include the purchase price of the home and any fees or utilities the seller has prepaid. This document includes a list of various debits and credits with a balance at the end. Statement Of AdjustmentsĪ statement of adjustments is similar to your monthly bank statement. Because you’ll be obligated to provide clear title to the property to the buyer on closing, your lawyer will create a Letter of Direction on your behalf agreeing to use the proceeds from the sale to discharge any outstanding financing and property tax debts. To put it simply, a Letter of Direction is a letter the lawyer will write on your behalf that provides direction or instructions to the buyer. This is an important part of the process you won’t be able to do on your own. On average, Canadian sellers will likely have to pay around $1,500 in legal fees but what exactly are these fees being paid toward? Title SearchĪ lawyer will perform a title search to look through public records to confirm a property’s legal ownership and determine what claims or liens are on the property. The term “legal fees” sounds very broad and encompassing so it’s important to understand what it refers to and how much it’ll set you back when you sell. To put these fees into perspective, if you purchase a $400,000 home and have to pay a 4% REALTOR ® fee on the sale, you’re looking at $16,000. If the market is hot, you may be able to sell your home without a real estate agent to save on these fees, but if you go that route, you won’t want to do so without getting your home appraised professionally and seeking out a real estate lawyer to draw up your paperwork. The fees are first paid to a lawyer, who will then pay out the commissions to both the buyer and seller agents after the transaction for your home has been completed. In Canada, generally the seller pays the commission to both the buyer and seller agents. As an estimate, you can expect to pay between 3%-7% of the price of your home in REALTOR ® fees. Your REALTOR ® fees will depend on where you live and what you negotiate. The biggest fee you’ll have to pay when you sell your home, is the commission fees of the REALTORS ® involved with the sale of the property. Learn more about the types of costs you’ll encounter and what you can expect to pay as part of the selling process so you’re prepared to take the leap and list your house. Part of the process will also involve budgeting as there are plenty of costs associated with selling your home in Canada that you may not be aware of. ![]() ![]() Whether you’ve outgrown your neighbourhood, need to downsize/upsize, or are looking for a fresh start, there are a lot of steps you’ll need to take before you’ll be ready to sell your home. Find the best mortgage option for you in minutes Get My Rateĭespite how it may look on television, selling your home is never as simple as deciding on a price, tidying and putting up a sign in your front yard.
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