The fees for your lawyer’s own services. Disbursements – expenses incurred by the lawyer as part of your sale or purchase – examples: land title fees, couriers, tax and title searches. GST is payable on the fees.
Property tax adjustments
A portion of the year’s property taxes which are credited to the Seller if the Seller has already paid them, or credited to the Buyer if the Buyer will be required to pay them. If you’re obtaining a new mortgage, the mortgage company may wish to hold back funds for future taxes as well. If you’re obtaining a new mortgage, the mortgage company may wish to hold back future taxes as well.
Transfer registration fees at the Land Titles Office
The Land Titles Office charges fees to register documents transferring ownership of property from one person to another and another fee is charged for registering mortgage documents. They also charge fees for discharging encumbrances, such as mortgages, from title to the property.
The mortgage company will not advance funds until title is transferred into your name and the lender’s mortgage is registered in the Land Titles Office. Because it takes time to register these documents at the Land Titles Office and to obtain the mortgage advance from the Lender, the sale price may not be paid to the Seller until after the possession date. Until then, you will be unable to pay the Seller the full purchase price and will probably have to pay interest on the unpaid amount. In Edmonton this rate is usually Alberta Treasury Branch Prime plus three (3.0%) percent.
Goods and Services Tax (GST)
There is a GST cost to the Buyer on the purchase of most new housing, although the Buyer will get a partial rebate in most cases. Most purchases of used housing will not require you to pay any GST. The Seller will give your lawyer a written statement that no GST is payable.
Appraisal and inspection fees (if obtained)
A real property report or in the alternative Title Insurance.
Taking the guesswork out of buying your home
Buying a home may be the largest investment of your life! Often, many years of planning and saving have been required. It makes sense to hire an expert to protect this investment – just as you use an expert to repair your car, to educate your children, and to take care of your health. Your lawyer knows about problems in the real estate business, and can protect you from them if you ask for advice early enough.
If you are obtaining a new mortgage there are costs associated with it.
Call our office to discuss these costs.