If you're here, then you're probably thinking about selling your property in Vancouver, and you're wondering exactly what you'll walk away with after all your fees are paid. It's important to pay attention to these closing costs, especially when you're looking to purchase your next property.Here's the breakdown, as a seller, what you will have to pay:
Lawyer Costs -
You'll need to retain a lawyer or notary to act to convey the title to the buyers of your property. They will take care of the land title filings for you, and ensure that your current mortgage if you have one, is paid out correctly.
They will inquire as to any registered debts that you have on the property, and deduct these from the proceeds of the sale, and remit these amounts on your behalf.
Cost of Clearing Title -
When we transfer the title of your property to the buyer, it's typical that all financial charges will be removed upon closing by the lawyers. If there are any additional fees or costs associated with discharging these charges, they will also be deducted by the lawyers upon completion.
A good example of this would be if you had a mortgage, there might be a penalty applied by the lender, should you pay this off early.
Real Estate Commission (Plus GST) -
Real estate fees are charged by the brokerage you retain to sell your property. The fees for both the selling and buyers agents are deducted by the lawyer on your behalf at closing.
The good news is typically, no fees are due until the sale becomes finalized, at the PLACE Real Estate Team - we don't charge any upfront marketing fees, we only collect those fees upon closing.
There are no standard fees or commissions related to real estate agents, agents and brokerages are free to charge whatever they like, pertaining to the services that they offer.
Goods and Service Tax - GST (If Applicable) -
While not typical, there are some situations where the seller can be responsible for the GST applicable to a transaction, myself and my team are definitely not accountants, so you'll have to check with yours prior to knowing for sure if this applies to you. Here's a couple of examples where it could be applicable:
- The sale of an Assignment
- Sale of a property that's been used for commercial use including short term rental (we see this often in Whistler for example)
- If it's a new build property and the buyer as part of their contract has asked you to be responsible for, and remit the GST on their behalf
I'm more than happy to run through with you, specific costs for your situation for when you sell your property. I have a great spreadsheet that I can send you that details all of these costs, and shows you what you'd walk away with when everything is said and done, feel free to reach out if that would help you.
If you need an idea of what your property would be worth, click here to get a Free Market Evaluation.
Cheers! Adam Chahl - 7783856141
