Seller Closing Costs in Ottawa

Without doubt, the Buyers are paying the bulk of costs in a real estate transaction. However, Sellers do not get off scot-free.

If the house has been listed with an agent, the Seller pays the commission for both the buying and selling brokerages/agents. The Ottawa average is 5% commission but it can vary.
Sellers will need to pay off their mortgage, unless the bank has agreed to move it to the next home.
There may be penalties for paying off the mortgage before it is due.
Often people have secured a line of credit based upon their home ownership. With the sale of the house, this will need to be paid off.
There will be legal costs for the sale - for the disbursements and for the lawyer’s hourly rates.
If not the primary residence, there may be capital gains tax.
The lawyer will determine adjustments such as a tenants’ last month’s rent paid in advance, any arrears, heat and lighting not yet billed that the seller will have to cover.
In today’s market, sellers are occasionally facing a net equity position (Sale price of the house less mortgages and home equity loans) that is less than the costs of the sale. In these cases, the seller will be required to pay for the sale of his/her house.

When selling your home, be prepared to have costs.

Valerie Zinger ~ Ottawa, Canada ~ 613-723-5300 ~ vzinger@royallepage.ca

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