Real Estate Transaction Costs

In a real estate transaction, some costs are born by the buyer and some by the seller. This is often confusing for clients. The following, lists the responsibility of the buyer and the seller. However, sometimes through negotiations, the costs may be paid by the other party to the transaction.

The Seller is responsible for the following:

  1. Real Estate Commission
  2. Lawyer Costs for Attending to Execution of Documents
  3. Costs of Clearing Title (paying off their own mortgage and other financial encumbrances)
The Buyer normally takes care of the following costs:
  1. Inspection
  2. Appraisal (if required for financing)
  3. Insurance
  4. Property Transfer Tax (PTT = 1% on first $200k and 2% on remainder)
  5. Harmonized Sales Tax (HST)
  6. Lawyer or Notary fees
Feel free to contact me if you have any questions regarding the costs you are resonsible for in the transaction.