Closing Costs

Real Estate Commission

This is the commission you have agreed to pay for the marketing and selling of your home.  This commission is normally shared between the listing and selling agent with some commission going to the brokerage they belong to.

Legal Fees

While the transferring of title is paid for by the buyer, a seller will be responsible for legal fees to discharge any existing mortgage.

Goods & Services Tax

As the seller you will pay the Goods and Services tax on real estate commission and legal fees.

Prepayment Penalty

If your mortgage is not portable, and you are paying out your mortgage early, you may be responsible for a prepayment penalty.  Normally, this will be equivalent to three months interest, but consult with your lender to be sure.

Property Taxes

If the property taxes have not been paid for the year, or if you have any outstanding penalties, these will be subtracted off of your final cash proceeds and distributed to you by your lawyer or notary.  They will figure out exactly what portion of the taxes you are responsible for based on your adjustment date.  However, if you have paid the taxes for the year, the buyer will be paying you for his or her share of the year.