Once all pre-purchase conditions have been satisfied by you or the home seller as outlined in the offer to purchase; the agreement is considered legally binding.
To complete the process of closing, you will need the services of a real estate lawyer.
Refer to your local Directory of Businesses to find a real estate lawyer near you.
An estimate of your total closing costs can usually be provided to you, several weeks before possession.

Upon receiving a copy of the satisfied offer to purchase, your real estate lawyer will:

** Search the title to make sure it is free of any complications

** Confirm that the property taxes are paid up to date

** Prepare all documents to transfer ownership

** Confirm that the seller’s mortgage is discharged

** Prepare a Statement of Adjustments outlining the money you owe

** Arrange a transfer of funds from your lender to the seller

** Register you as the new owner in the Land Titles Office

At or close to possession date, you will meet with your lawyer to review the documents prepared for the change in ownership. Once signed, you will be able to get the keys to your home and move in!

Many homebuyers are unpleasantly surprised at the long list of expenses involved in finalizing a deal. Most people know to save for the initial deposit and down payment, but what about the other “miscellaneous closing costs”? What are they and how much will they total?

As discussed in the Financing section, your pre-purchase expenses include the deposit, mortgage application fee, appraisal fee,  and home inspection fee.

You will also need savings to cover the post-purchase expenses including the down payment, legal fees, land transfer tax, property taxes, property insurance, and moving expenses, as well as appliances and windowcoverings if not included in the purchase agreement.

On average, a home buyer should plan to have between $1,500 and $5,000 set aside.

The “basic” fee for a residential purchase is typically between $375.00 and $450.00.

Note: This may not apply to new home purchases, private transactions, relocation purchases, or commercial properties.

Land Transfer Tax: This is payable to the Land Titles Office at the time the title is registered. The tax is calculated as a percentage of the purchase price and varies slightly depending on the province where the purchased property is located.
In Ontario, the rates are as follows:

Up to $55,000 X .5 % of total property value
From $55,000 to $250,000 X 1 % of total property value
From $250,000 to $400,000 X 1.5 % of total property value
From $400,000 up X 2 % of total property value

Registration of Title and Mortgage: This is payable to Land Titles Office at the time of registration. The cost for each is $60.00.

Survey Certificate: This document will show the exact location of the property’s boundaries and the exact situation of buildings on the land. You can usually obtain the existing survey certificate from the home seller at no charge. If there has been any recent physical changes to the property such as decking, a garage or new fencing you may require a new survey. Generally, a surveyor will charge approx. $800.00 for a standard residential survey.

Zoning Memorandum: This is provided by the city or municipal office and indicates the zoning of the property and whether the structures comply with yard and alignment requirements. The average cost is $35.00.

Tax Certificate: This is issued by the city or municipality and indicates whether or not there are any unpaid taxes. The average cost is $30.00.

Couriers: They are used to move payments, keys, and documents from one lawyer to another, with an average cost of $25.00.

Title Searches: Costs of approx. $15.00-20.00 may be incurred for the title search, computer access time, or obtaining microfilm copies of documents.

Miscellaneous: These costs might include photocopying, postage, or filing materials. A standard charge is $30.00.

At the time of closing, the buyer will be required to reimburse the home seller for any portion of the annual property taxes that have been pre-paid. If for example, you are taking ownership in August, you may be required to reimburse the home seller the August to December taxes (5/12th of the annual amount).

The actual “calendar year” for property taxes will vary from one jurisdiction to another. In some municipalities, homeowners can arrange to make automatic monthly installments on their annual property taxes.

You are responsible for paying interest on the mortgage amount to the seller until the land titles processing is complete and the mortgage is released. The process is typically completed three to four weeks after possession, with a three to four week interest amount owing. Fortunately, you are not “owing” a mortgage payment during this time.

The balance for your down payment will be less your deposit, as outlined in the offer to purchase document under Financial Details.

Depending on your jurisdiction, GST or HST may be payable on the legal fees and most disbursements, but not on the land title costs or land transfer tax.