Closing Costs Are Not Just for Buyers: What Sellers Need to Know
When it comes to real estate transactions in Quebec, closing costs are often associated with buyers. From notary fees to transfer taxes and adjustments for municipal and school taxes, buyers must account for a range of expenses. However, sellers also face significant costs when selling their home. If you're considering putting your property on the market, here are the key expenses to keep in mind:
1. Notary Fees
While buyers typically cover the cost of hiring a notary for the transaction, sellers also have notary-related expenses. The notary is responsible for reimbursing existing loans and publishing the release. Each mortgage or loan that needs to be cleared comes with a fee. Since notary fees can vary, it's wise to inquire beforehand to avoid surprises.
2. Mortgage Payout & Bank Fees
Beyond notary fees, sellers may also incur penalties or fees from their financial institution when paying off a mortgage. If you have a fixed-rate mortgage and sell before the term expires, early repayment penalties can apply. Be sure to check with your bank or lender to understand these costs in advance. In some cases, negotiating a reduction in these fees is possible.
3. Certificate of Location
A valid certificate of location is required for the sale. If your current certificate is over 10 years old or if you've made modifications to your property—such as adding a pool or extending a deck—you may need to order a new one. The notary can confirm whether your existing certificate is acceptable or if an updated version is required.
4. Condo-Specific Fees
If you're selling a condo, additional administrative fees often apply. The co-ownership syndicate may charge the notary for document preparation and transfer fees, which are typically the seller's responsibility. It's important to verify these costs in advance to ensure a smooth transaction.
Plan Ahead for a Smooth Sale
Understanding your financial obligations as a seller can help prevent last-minute surprises and allow for better financial planning. If you have any questions about selling your property or need guidance on these costs, feel free to reach out via email. I’m here to help make your sale as seamless as possible!
