The Real Cost of Making It Legal
Sometimes lost in the overwhelming financial dealings over asking prices, offers and mortgages are the other so-called 'hidden' costs of real estate transactions. At times they may seem like a nuisance, but they can add up.
Here are some typical costs both buyers and sellers should be aware of:
- Mortgage Application Fee. This is what banks and other lenders charge to process a mortgage application. Usually around one hundred dollars.
- Appraisal Fee. Charged by mortgage lenders. Approximately one hundred and fifty dollars.
- Survey Fee. Sometimes a lot plan or survey of the property is required. If one isn't available, a new one can cost up to one thousand dollars.
- Home Inspectors Fee. Usually paid by the buyer. Highly recommended prior to purchase. For a typical house it could be three hundred dollars.
- Insurance. Standard fire and liability policies will be necessary.
- Land Transfer Tax. Payable by anyone who purchases a property in Ontario. It is calculated on the property's purchase price and varies from one half percent to two percent.
Let's not forget another key player in the real estate transaction process -- lawyers. It's essential for both the buyer and the seller to engage the services of a lawyer. There is a considerable amount of paperwork to be properly processed. In most cases, your family lawyer will be able to handle this. There are other lawyers who specialize in real estate transactions. Rick may be able to recommend one. In the course of the buying and selling of a typical house, both the buyer and the seller can expect to pay legal fees of about one thousand dollars.
Call "The Wall" For Real Estate Support.
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