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Welcome
to The Legal Corner!
By
G. Gord Mohan
Closing
Costs
Money
is always a concern. This is an understatement, especially when
you consider all the costs involved in buying your new home. In
addition to the actual costs of your dream home, you need to budget
for "closing costs."
The
closing costs for a typical house purchase transaction will consist
of lawyer's legal fees, various disbursements, and government charges/levies,
such as registration costs, land transfer tax, and law society levy.
The
legal fees will vary from lawyer to lawyer, however it is best to
shop around and obtain quotes for a block fee up front. The disbursements
tend to be the out of pocket expenses incurred by the lawyer on
your behalf for such things as title searches and obtaining clearance
letters from utility companies. The disbursements in a typical purchase
transaction will usually be around four hundred dollars. You will
also have to pay government charges on closing, which will consist
of registration of the deed and mortgage at fifty dollars each,
and a law society levy surcharge of fifty dollars.
Finally,
the largest component of your closing cost will be the land transfer
tax. This is a one time tax paid to the government, calculated as
a percentage of the purchase price.
For
example: Let's say you're buying a house for $175 000.00. The breakdown
of the total closing costs would be as follows:
| My
legal Fees: |
$475.00
+ GST |
| Disbursements: |
$400.00
(approx.) + GST |
| Land
Transfer Tax*: |
$1475.00 |
| Registration
Cost: |
$75.00 |
| Levy
Surcharge: |
$45.00
+ GST |
| *Formula
= 1% of $175 000.00 less $275.00 |
Note:
The
views expressed in "The Legal Corner" are those of the
participants and not that of the Private Home Sellers Guide. For
more information on this or any other related matter, please do
not hesitate to contact G. Gord Mohan.
More
Legal Topics
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G.
Gord Mohan - Barrister & Solicitor
Business
* Corporate * Family * Litigation * Wills * Estates
|
He
can be reached at:
25 Watline Ave. Suite 303
Mississauga, Ontario L4Z 2Z3
Tel: (905) 712-1911 | Fax: (905) 712-4673
e-mail: gmohan@istar.ca
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Preferred
fees for users of Private Home Sellers Guide.
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Purchase
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House
Purchase:
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$350.00
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Each
Mortgage:
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$125.00
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Sale
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House
Sale:
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$325.00
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Each
Mortgage:
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$75.00
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Purchase
and Sale
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Same
Day Closing:
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$795.00
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(
includes all new mortgages and mortgages to be discharged )
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