Prior to closing, buyers should have additional funds on hand to cover incidental costs:

LAND TRANSFER COSTS
This is a provincial tax levied when title to land is transferred. It is payable by the Purchaser upon the registration of every transfer of land. (i.e. on closing day).  The calculation of this tax on a single family home is as follows:

HOME INSURANCE
Lenders will require that the home is protected against perils, such as fire, before the mortgage loan is advanced.

FEDERAL & PROVINCIAL TAXES
Typically, resale homes are exempt from GST. Taxes are usually charged on any services, but not on the purchase price of a resale home. On new homes, you are required to pay GST on both the services and on the purchase price of the home. In some cases, this cost is absorbed by the builder, depending on the terms that are negotiated between the builder and purchaser.

HOME INSPECTION
A professional home inspector may be employed by the seller, prior to marketing the home for sale, or the purchaser, as a condition of sale. The inspection helps to reassure the buyer that they are fully informed, and it is a terrific way to increase confidence for everyone. On average, the cost of an inspection will range between $300.00 and $400.00.

Traditionally, a home inspection is done after the purchase agreement is signed, but before the conditions to the agreement are waived. In accordance with provisions in the Agreement of Purchase and Sale, the purchaser will usually have several days to complete a home inspection. The inspector will need between 2 and 3 hours to complete the study, which includes a detailed analysis of the home's 5 major systems: · Structural · Heating & Cooling Systems · Electrical · Plumbing · Roof.

A good inspector will offer you a written report at the time of inspection and it should include details on defects and/or positive qualities observed. This information may assist the buyer in planning improvements after closing. Usually, the Agreement of Purchase and Sale is conditional on a satisfactory report; this means that if there are any substantial problems, the purchaser has the opportunity to renegotiate. Under certain conditions, and in some parts of the city, a urea formaldehyde foam inspection or a termite inspection is advisable. Pat & Elspeth can provide a list of qualified home inspectors on request.

MISCELLANEOUS
Remember the costs incurred with transferring:
Telephone services
Cable companies
Fuel suppliers
Post Office (redirection of mail)

LEGAL FEES
Paid by both the vendor and purchaser:
A lawyer will charge a fee for his/her service plus pass on to the client all costs that are incurred in the process. A partial list of these items is as follows: