Seller Closing Costs

The Seller closing costs are:

The Real Estate Agent Commission

The listing commission is 7% on the first $100,000 and 2.5% on the balance of the final sale price (12% HST is applicable since this is a service). This commission is split between the listing and buyer's Realtors so you only pay once.

Listing Realtor (Sellers Agent) receives 54% of payable Commission

Selling Realtor (Buyers Agent) receives 46% of payable Commission

The Listing Realtor receives a slightly larger portion of the commission because they endure the expense of Advertising, MLS fees, Websites, Signs, ext.

Commissions are deducted from the proceeds of sale via a debit on the seller's statement of adjustments, at the time of completion, and paid directly to the realtor's brokerages by your legal representative on your behalf. There are no other fees charged to list and sell your property.

Legal Representation

You will require a Lawyer or Notary Public in order to transact your sale, transfer title and discharge your mortgage if required. Costs usually range between $600 to $1500, depending on the nature of the transaction.

Utility and Property Tax Adjustements

This might not be a cost for you, depending on how your property tax and utility bill payments are scheduled. If you prepay these expenses then you can expect the buyer to refund you the difference by closing day. If, however, you don't pay these expenses in advance, it will be you paying the buyer for the amount accrued prior to the possession date. The exact amount will be calculated by your lawyer.

Mortgage prepayment or discharge fees

Be forewarned that if you plan to pay off your mortgage with the proceeds, your bank may charge a fee for closing your account, and a penalty fee if you've paid it off early. And don't forget about your new house. You'll want to be sure to budget extra funds for expenses related to your move (such as the moving company and utility hookups).