Closing Costs When Selling
These are expenses occurred when selling real estate. All may not apply but it’s better to be prepared then surprised at closing. These fees are typically handled by the lawyer at closing.
Balance of Mortgage - This is usually the biggest expense a seller pays at closing. Whatever amount is left owing on the mortgage at closing is to be paid from the proceeds of the sale. The difference between the sale price vs. mortgage owing is how much the seller get's to keep. If the seller has committed to a fixed term with the lender (i.e. a 5 year closed term) and sells before the time has expired, a penalty must be paid by the seller. Certain lenders do allow you to port your mortgage from one property to the next, but only upon their approval.
Commission - The seller is responsible for paying the commission when selling the home. If another sales representative introduces the buyer to the home, then a portion of the commission is given to them for their work.
Legal Costs - Fees vary based on lawyers used and type of property sold.
Status / Estoppel Certificate Fee - This fee applies only if you are selling a condominium unit and could cost up to $100. A prudent buyer’s Sales Representative will work in your best interests, and negotiate for the buyer to pay this fee. The certificate can be ordered from your property manager. By law, they have to provide you with this certificate within 10 days of the request.
Survey - The mortgage lender may ask for an up-to-date survey prior to finalizing the mortgage from the buyer. If the seller does not have one the buyer's representative may negotiate and have the seller pay for one. It can cost in the $1,000 to $2,000 range. It is usually negotiated during the offer to be included in the purchase price.
Other costs above and beyond the ones mentioned here may occur, amounts may vary.This is meant to be used as a guideline only.
