You've invested significant time and resources in enhancing your home to showcase its best qualities. During open houses hosted by your Real Estate Professional, you've even arranged for your dog to stay with the neighbors. Now that your Real Estate Professional has successfully negotiated the best deal for you, and the offer has been accepted, you're ready for the next chapter. Congratulations on reaching this significant milestone in selling your home!
However, as you transition to the next phase, there are important financial considerations tied to the sale of your home. Typically, the buyer bears the responsibility for various closing costs, which may include:
- Legal/notarial fees for managing the sales transaction
- Disbursements or out-of-pocket expenses incurred by the lawyer or notary
- Property tax and utility adjustments
- Land transfer or "welcome" taxes
As the seller, there are also financial obligations you need to address before accessing your funds. These include:
- Real estate commissions
- Building location certificate or survey
- Legal and discharge fees
- Outstanding adjustments owed to the buyer
- Outstanding municipal/school taxes or public service assessments
- Outstanding mortgage balance and any charges associated with discharging your mortgage early (if not transferring it to your new home or if the buyer isn't assuming it)
Since fees and costs can vary across provinces and cities, your Real Estate Professional can provide guidance on the expected expenses involved in selling your home. Additionally, consulting with your financial advisor, accountant, and lawyer before the sale is a prudent step to ensure a smooth financial transition.