Real Estate

Real-EstateI can assist you in completing a purchase or sale transaction, and in arranging for a mortgage or refinancing.

If you anticipate purchasing a house, freehold or leasehold condo or an apartment, regardless of whether you are a first-time buyer, your first concern is “How much will it cost me to retain a lawyer and close my transaction?” You know the price of the house as you negotiated it with the real estate agent or directly with the seller/purchaser, but the cost of the real estate transaction, mortgage fees, lawyer’s fees and disbursements, is usually unknown. Purchase transactions are more expensive than a sale as many additional costs are associated with a purchase.

There are certain fixed fees and disbursements associated with all real estate transactions. Fees are what the lawyer charges for his or her services, and this amount is subject to HST. Disbursements are out of pocket expenses such as search and registration fees, title insurance, etc., some of which are HST inclusive. Some disbursements are fixed costs, and some are calculated based on the value of the property being purchased, and the amount of the mortgage being registered.

The following is an estimated summary of fees and disbursements you can expect to pay for a simple purchase, purchase and mortgage, or sale transaction. By simple, I am referring to a single-family, residential property, within city limits, using a mainstream mortgage lender (ie TD, BMO, RBC, CIBC, BNS, MCU).

Purchase Fee: $550.00 (+ HST) Sale Fee: $550.00 (+ HST)
Mortgage Fee: $250.00 (+ HST)
Disbursements:
Title Insurance $300.00 (estimate) LSUC Levy $65.00 (HST incl)
Register Deed $71.30 (HST incl) Software Fee $18.65 (HST incl)
Register Mortgage $71.30 (HST Incl) Copies, Faxes, etc. $60.00 (+ HST)
Title Search $50.00 (estimate)
Execution Search $44.00 (estimate)
Software Fee $18.65 (HST incl)
Tax Certificate $25.00 (estimate)
Copies, Faxes, etc. $60.00 (+ HST)
Estimated Purchase: $1,550.00 Estimated Sale: $770.00

In addition to lawyer fees and disbursements, each real estate purchase is subject to Ontario Land Transfer Tax. That fee is calculated based on the purchase price of the property as follows:-

Current Land Transfer Tax Rates

  • 0.5% of the value of consideration for the transfer up to and including $55,000
  • 1% of the value of the consideration which exceeds $55,000 up to and including $250,000, and
  • 1.5% of the value of the consideration which exceeds $250,000, and
  • 2% of the amount by which the value of the consideration exceeds $400,000 for land that contains at least one and not more than two single family residences

If, however, you are a first time home buyer, you may be eligible for a Land Transfer Tax refund to a maximum of $2,000.00.