For a vendor, the disbursements
are typically under $200.00. These would include the registration
costs to discharge outstanding mortgage(s), courier costs,
etc.
For a purchaser, however, the disbursements are usually more.
This is due to the "caveat emptor" rule, placing
the onus on the purchaser to check all matters relating to
the property before buying it. The cost of obtaining letters
of status and compliance from the various utilities and government
authorities has risen dramatically during the last number
of years.
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The following disbursements may apply in a typical residential
real estate transaction:
Municipal and Utility Searches and Registrations
Tax certificate |
$30.00 to $60.00 |
Water certificate |
$30.00 to $40.00 |
Gas Search |
$15.00 |
Zoning By-Laws |
$60.00 to $100.00 |
Building By-Laws |
$35.00 to 146.00 |
Work Orders |
$18.00 to 46.00 |
Transaction Levy |
$50.00 |
Registration of Deed |
$70.70 |
Registration of Mortgage |
$70.70 |
Title Insurance
Title insurance is becoming increasing popular with residential
home buyers. It offers many advantages over a non-titled transaction.
Some of these are: (i) you avoid some disbursements, and in
many cases savings on disbursements will be greater than the
cost of title insurance; (ii) it provides broader coverage
than a lawyer’s certificate on title (which is often
qualified); and (iii) it usually eliminates the requirements
of a new survey.
Land Transfer Tax
This is tax payable by the purchaser of any land in Ontario.
It is payable at the time of closing. It is calculated as
a percentage of the purchase price. If the premises being
purchased include GST (which normally applies when purchasing
a newly constructed house from a builder), the tax will be
calculated on the price after deducting the GST. For a purchase
price between $55,000.00 and $250,000.00 the easiest way to
calculate the tax is to multiply the purchase price by 1%
and then deduct $275.00. The following schedule may be of
assistance to you.
Purchase Price Land Transfer Tax
$ 75,000.00 |
$ 475.00 |
$100,000.00 |
$ 725.00 |
$150,000.00 |
$1,225.00 |
$200,000.00 |
$1,725.00 |
$250,000.00 |
$2,225.00 |
| Over $250,000.00 Check with your lawyer |
Note that in certain transactions payment of land transfer
tax may be reduced or waived. For instance, the government
has at times waived payment for first time buyers of new homes.
Also, certain non-arms- length transactions may be exempt.
Survey
A new survey may be required if a fairly recent and up-to-date
one cannot be obtained from the Vendor or someone else. Generally
speaking, a survey will cost in the neighbourhood of $1,000
in the Ottawa Area. A cheaper alternative to a new survey
may be title insurance.
Prepared by Gerald A. Dust, Dust Evans, 2589
St. Joseph Blvd., Orléans, Ontario l www.dustevans.com
Telephone: 1-613-837-1010 Fax: 1-613-837-9670
Home telephone: 1-613-835-4056 |
