Cost On Closing

Cost On Closing No one wants surprises on closing so it is advisable to be educated and budget ahead for closing. At closing, the buyer will have to pay the seller the basic purchase price - but on top of that there are many other costs incurred in a real estate transaction. Although discussed in greater detail elsewhere in this guide, here is a quick overview of expenses you should budget for: Adjustments: If you are buying a home in February, and the seller has paid their property taxes until June, they will want reimbursement for that time. Your lawyer will calculate this amount exactly. If you’re buying a property with an oil tank, the seller is to have filled the tank before closing, you will be billed for this amount. These are the most common adjustments payable on closing. CMHC and other mortgage fees: These will often be included in the amount you borrow. Your mortgage broker or bank representative will advise you of this. Commission: Although rare, there are some scenarios where the buyer will be responsible for real estate commissions. We will advise you before writing an offer if this will be an issue. Deposit: Payable when an offer is accepted and credited towards your purchase price on closing day. Down Payment: A minimum 5% is required. Home Inspection: Recommended before finalizing offer to purchase because it may reveal areas where repairs are required. The inspection may range between $300-$500 depending on the inspector and the property. Moving Costs: This will depend on whether you rent Paul M.G. Smith, Q.C. Professional Corporation www.paulsmithqc.com

Down Payment: A minimum 5% is required. Home Inspection: Recommended before finalizing offer to purchase because it may reveal areas where repairs are required. The inspection may range between a truck or hire movers, the time of year you are moving $300-$500 depending on the inspector and the property. and also how much stuff you have! Moving Costs: This will depend on whether you rent Land Transfer Tax: This amount varies depending on the purchase price. If you are a first time home buyer, you can receive a rebate of up to $4000 of this tax. Paul M.G. Smith, Q.C. Professional Corporation Legal Fees: Real estate lawyers have many hard costs Real Estate Law • Trusts & Estates Law when they process a purchase. This includes searching Wills, Powers of Attorney, and Notary Public Services title, transferring the deed, title insurance and more. Corporate - Commercial Law The lawyer’s fee varies from firm to firm. Legal fees Personal Injury Law vary widely, and the total cost depends on the extent 32 Pellissier Street South, Box 1057 of services provided. You will also be responsible for Byron Basiga, B.Sc. J.D.Campbellford, Ontario disbursements (any costs related to handling your file, Barrister & Solicitor K0L 1L0 such as long distance calls and travel). Property/Fire Insurance: Proof of insurance is www.paulsmithqc.com required by your closing date and it must at least cover replacement value of home and contents. Status Certificate: If you’re buying a condo, you’ll need $100-$125 for a status certificate outlining the rules of the condo and its financial standing. Tarion: If you’re buying a new home, the cost of the Tarion warranty is paid by the buyer and usually $600 - $800, depending on the sale price of the home. Water/Septic/Fireplace: If you’re purchasing a property with a well, septic system, or fireplace, you may need to pay a professional to take a look before you waive your conditions. In most cases, we ask the seller to pay for pumping the septic system and ensuring the code compliance of any fireplaces or wood stoves, but as the buyer you should plan on paying about $225 for an hour-long pump test of the well and more for additional chemical analysis (Ministry of Health Water Testing is a free service).

seller to pay for pumping the septic system and ensuring the code compliance of any fireplaces or wood stoves, but as the buyer you should plan on paying about $225 for an hour-long pump test of the well and more for additional chemical analysis Testing is a free service)

Cost On Closing No one wants surprises on closing so it is advisable to be educated and budget ahead for closing. At closing, the buyer will have to pay the seller the basic purchase price - but on top of that there are many other costs incurred in a real estate transaction. Although discussed in greater detail elsewhere in this guide, here is a quick overview of expenses you should budget for: Adjustments: If you are buying a home in February, and the seller has paid their property taxes until June, they will want reimbursement for that time. Your lawyer will calculate this amount exactly. If you’re buying a property with an oil tank, the seller is to have filled the tank before closing, you will be billed for this amount. These are the most common adjustments payable on closing. CMHC and other mortgage fees: These will often be included in the amount you borrow. Your mortgage broker or bank representative will advise you of this. Commission: Although rare, there are some scenarios where the buyer will be responsible for real estate commissions. We will advise you before writing an offer if this will be an issue. Deposit: Payable when an offer is accepted and credited towards your purchase price on closing day. Down Payment: A minimum 5% is required. Home Inspection: Recommended before finalizing offer to purchase because it may reveal areas where repairs are required. The inspection may range between $300-$500 depending on the inspector and the property. Moving Costs: This will depend on whether you rent

Cost On Closing No one wants surprises on closing so it is advisable to be educated and budget ahead for closing. At closing, the buyer will have to pay the seller the basic purchase price - but on top of that there are many other costs a truck or hire movers, the time of year you are moving and also how much stuff you have! incurred in a real estate transaction. Although discussed Land Transfer Tax: This amount varies depending on in greater detail elsewhere in this guide, here is a quick the purchase price. If you are a first time home buyer, overview of expenses you should budget for: you can receive a rebate of up to $4000 of this tax. Adjustments: If you are buying a home in February, Legal Fees: Real estate lawyers have many hard costs and the seller has paid their property taxes until June, when they process a purchase. This includes searching they will want reimbursement for that time. Your lawyer title, transferring the deed, title insurance and more. will calculate this amount exactly. If you’re buying a The lawyer’s fee varies from firm to firm. Legal fees property with an oil tank, the seller is to have filled the vary widely, and the total cost depends on the extent tank before closing, you will be billed for this amount. of services provided. You will also be responsible for These are the most common adjustments payable on disbursements (any costs related to handling your file, closing. such as long distance calls and travel). CMHC and other mortgage fees: These will often Property/Fire Insurance: Proof of insurance is be included in the amount you borrow. Your mortgage required by your closing date and it must at least cover broker or bank representative will advise you of this. replacement value of home and contents. Commission: Although rare, there are some scenarios Status Certificate: If you’re buying a condo, you’ll where the buyer will be responsible for real estate need $100-$125 for a status certificate outlining the commissions. We will advise you before writing an offer rules of the condo and its financial standing. if this will be an issue. Tarion: If you’re buying a new home, the cost of the Deposit: Payable when an offer is accepted and Tarion warranty is paid by the buyer and usually $600 - credited towards your purchase price on closing day. $800, depending on the sale price of the home. Down Payment: A minimum 5% is required. Water/Septic/Fireplace: If you’re purchasing a Home Inspection: Recommended before finalizing offer to purchase because it may reveal areas where repairs are required. The inspection may range between $300-$500 depending on the inspector and the property. property with a well, septic system, or fireplace, you may need to pay a professional to take a look before you waive your conditions. In most cases, we ask the seller to pay for pumping the septic system and ensuring the code compliance of any fireplaces or wood stoves, Moving Costs: This will depend on whether you rent but as the buyer you should plan on paying about $225 for an hour-long pump test of the well and more for additional chemical analysis (Ministry of Health Water Testing is a free service). Paul M.G. Smith, Q.C. Professional Corporation www.paulsmithqc.com

a truck or hire movers, the time of year you are moving and also how much stuff you have! Land Transfer Tax: This amount varies depending on the purchase price. If you are a first time home buyer, you can receive a rebate of up to $4000 of this tax. Legal Fees: Real estate lawyers have many hard costs when they process a purchase. This includes searching title, transferring the deed, title insurance and more. The lawyer’s fee varies from firm to firm. Legal fees vary widely, and the total cost depends on the extent of services provided. You will also be responsible for disbursements (any costs related to handling your file, such as long distance calls and travel). Property/Fire Insurance: Proof of insurance is required by your closing date and it must at least cover replacement value of home and contents. Status Certificate: If you’re buying a condo, you’ll need $100-$125 for a status certificate outlining the rules of the condo and its financial standing. Tarion: If you’re buying a new home, the cost of the Tarion warranty is paid by the buyer and usually $600 - $800, depending on the sale price of the home. Water/Septic/Fireplace: If you’re purchasing a property with a well, septic system, or fireplace, you may need to pay a professional to take a look before you waive your conditions. In most cases, we ask the seller to pay for pumping the septic system and ensuring the code compliance of any fireplaces or wood stoves, but as the buyer you should plan on paying about $225 for an hour-long pump test of the well and more for $400-$600 additional chemical analysis (Ministry of Health Water Testing is a free service).

$100-$200

$225 - $300 for an hour-long pump test of the well and more for the additional chemical analysis (Ministry of Health Water Testing is a free service).

Real Estate Law • Trusts & Estates Law Wills, Powers of Attorney, and Notary Public Services Paul M.G. Smith, Q.C. Professional Corporation E-Mail: info@paulsmithqc.com Phone: 705-653-1860 Fax: 705-653-4903 Byron Basiga, B.Sc. J.D. Barrister & Solicitor Corporate - Commercial Law Personal Injury Law 32 Pellissier Street South, Box 1057 Campbellford, Ontario K0L 1L0 E-Mail: info@paulsmithqc.com Real Estate Law • Trusts & Estates Law Wills, Powers of Attorney, and Notary Public Services Corporate - Commercial Law Personal Injury Law 32 Pellissier Street South, Box 1057 Campbellford, Ontario Byron Basiga, B.Sc. J.D. Phone: 705-653-1860 K0L 1L0 Barrister & Solicitor Fax: 705-653-4903 www.paulsmithqc.com

Real Estate Law • Trusts & Estates Law Wills, Powers of Attorney, and Notary Public Services Corporate - Commercial Law Personal Injury Law 32 Pellissier Street South, Box 1057 E-Mail: info@paulsmithqc.com Campbellford, Ontario Byron Basiga, B.Sc. J.D. Phone: 705-653-1860 K0L 1L0 Barrister & Solicitor Fax: 705-653-4903