Closing Costs When Selling Your Property

When selling your property, it’s essential to anticipate various fees associated with the transaction to avoid any unexpected surprises that could affect your budget or delay the selling process. Below, we’ve outlined the most common closing costs along with tips to help you prepare effectively.

Typical Closing Costs for Sellers

1. **Real Estate Agent Commissions**
Typically the largest expense, commissions are usually 5-6% of the sale price.

2. **Certificate of Location**
This document outlines the property’s boundaries and legal status. Fees can vary depending on your location. Be sure to check local regulations for specific requirements.

3. **Specialized reports**
Costs associated with specialized inspections, such as pyrite or soil tests, water pressure etc. may be required, though these are less common. Conducting minor repairs or improvements before listing the property can help reduce the need for certain inspections.

4. **Notary Fees**
In Montréal, notary fees are a key expense for both parties. Even as the seller, you will have certain notary costs to cover. Understanding these fees upfront can help you budget accordingly.

5. **Title Insurance**
Title insurance protects the buyer against any title disputes. Speak to your notary for additional informaiton concerning this product.

6. **Mortgage Discharge Fees**
If there is an outstanding mortgage on the property, you’ll need to pay off the remaining balance. This includes any discharge fees. Planning for this expense early in the process is crucial.

7. **Moving Costs**
Don’t forget to budget for hiring a moving truck, potential storage fees, and other related moving expenses. Planning for these costs ahead of time can alleviate stress during the moving process.

8. **Capital Gains Taxes**
If selling a revenue property, be prepared to pay capital gains taxes to the government. Understanding your tax obligations and seeking advice from a tax professional can help minimize this expense.

9. **Pre-Sale Inspections**
Some sellers opt for a pre-sale inspection to provide potential buyers with a comprehensive report, preventing any surprises during negotiations. Investing in a pre-sale inspection can save time and money in the long run.

Selling a home is a complex process with various costs involved. By understanding and preparing for these expenses, you can ensure a smoother transaction. For any further questions or assistance, feel free to contact us.