Closing costs are fees owed on or by the closing day that must be paid for your property sale to close.
 
To give you a general idea of what to expect, some of the most common expenses are listed below.  These expenses are approximations only and may vary by region and are prone to frequent changes that may not be reflected here.
 
Real Estate Service Fees
 
This fee covers the legwork, marketing and advice provided by your own Agent, as well as fees to the Buyer’s Agent. It is documented on your listing contract.
 
Legal Fees and Disbursements
 
When you are involved in a financial transaction as large as this, you want to be sure you are protected.  Your legal professional will ensure that the buyer has made good on all terms outlined in the Offer to Purchase, and that you have met your legal obligations so the deal will close.  Legal fees vary widely and the total cost depends on the extent of services provided.  You will also be responsible for disbursements (any costs related to handling your file such as long distance calls, faxs, etc.). Count on legal fees of around $1,000.

HST

HST is payable on legal and real estate service fees.
 
Property Tax Adjustments
 
This might not be a cost for you, depending on how your property tax payments are made.  If you prepay this expense then you can expect the buyer to refund you the difference on closing day.  If however, you don’t pay the expense in advance, it will be you paying the buyer for the amount accrued prior to the possession date.  The exact amount will be calculated by your lawyer.
 
Mortgage Prepayment or Discharge Fees
 
If you plan to pay off your mortgage with the proceeds of the sale of your property, your financial institution may charge a fee for closing your account and possibly a penalty fee if paying the mortgage off early. Call your financial institution before you list your home for sale so you are prepared and ask me for ideas on saving money on these costs.
 
Incidentals
 
You may wish to budget funds for expenses related to your move such as the moving company, utility hook ups and meal expenses on the day of moving.