COSTS TO BUYERS & SELLERS
COSTS TO BUYERS:
Lawyer and notary fees
Typically $1100-$1600
Fire & Flood Insurance
Depends on property
Taxes
- GST (if applicable) 5% of purchase value.
- PPT ( Property Transfer tax).
1% on the first $200,000.00 of the property’s fair market value, 2% on the amount between $200,000 and $2,000,000, and 3% on the amount between $2,000,000 and $3,000,000, and 5% of the remaining fair market value.
Statement of adjustments
At the notary or Lawyer’s office you will need to pay back a portion of the pre-paid property taxes and utilities. For example, if the property tax was paid in February 2021 for the entire year by the current owner and you purchase the home in March 2021. You will be responsible to pay the property tax from March 2021 to February 2022. This cost in due at the notary.
COSTS TO SELLERS:
Lawyer and Notary fees
Typically $1100-$1600
Realtor fees
Typically 7% on 1st $100,000 and 2.5% on remaining balance. (This is spilt between the Listing agent and the Buyers agent)
Capital gains taxes
When selling your property you may need to pay capital gains tax on the profit made. If you bought your home for $100,000 and sold it for $200,000 you will make a $100,000 profit/capital gain. 50% of the capital gain is taxable ($50,000). This gets added to your taxable income.
