There are a few costs to consider when factoring in the overall net profit from the sale of your home. Understanding these costs upfront will give you a better overall snapshot of what to expect after your home is sold.
4% of purchase price + hst
The commission is the percentage of money from the purchase price of the home paid to the Realtors representing both the buyer and the seller. This amount compensates Realtors for their services and is typically covered by the seller.
mortgage discharge penalties
If your home is currently under mortgage with a lender, there can be penalties for switching lenders or exiting the contract early when selling your home. This usually comes in the form of a small penalty or discharge fee.
~1% of purchase price - $2,500*
A lawyer is used to fulfill the legal requirements of transferring home ownership, carry out mortgage instructions, perform title searches and closing cost adjustments.
utility + property tax adjustments
When selling your home, you are responsible for all of the utilities and property tax until the day of closing. Lawyers ensure that if you have not already paid your property taxes up to this date, the money is set aside from the profits to do so. If you have paid for utilities in advance, the money is rebated back to you, pro-rated to the day of close.