Aurora Ontario Real Estate

In addition to the actual purchase price of your home, there are a number of expenses (directly related to your closing), which must be paid. Following is a description of the costs you may incur. Please note that all costs are approximate.

1. Survey
If the vendor does not provide you with an up-to-date, or acceptable existing survey in the Agreement of Purchase and Sale (showing the existing location of fences, buildings and structures), it will be necessary to have one prepared as mortgages require it.

Even if you do not require a survey for the mortgage, it is a good idea for you to have one prepared to ensure that there have been no additions to the property which would contravene municipal zoning by-laws and regulations, etc.

Approximate cost: $800.

for a property under $55,000., the tax is $5.00 per thousand
from $55,000. to $250,000., it is $10.00 per thousand, minus $275.00
over $250,000., it is $15.00 per thousand, minus $1,525.00
Home/Duplex over $400,000., is $20.00 per thousand, minus $3,525.00

3. Legal Fees
This varies according to lawyer. It is best to shop around a little to find someone with whom you feel comfortable. Perhaps your sales representative can refer a few lawyers to you if you do not already have one. Make sure you ask what the fee includes (more specifically, does it include the title searching fee? If not, how much will that be?). Also ask the lawyer if he/she will be charging extra to act on behalf of the mortgagee. And if so, how much? It is highly distressing on closing to discover that due to legal fees, you have insufficient funds for closing.

Most lawyers charge a flat fee (including the title searching fee) and usually charge extra for the mortgage.

Approximate cost: $500., and up

4. Disbursements
There will be other costs which the lawyer will have to pay on your behalf. Things like photocopies, tax certificates, zoning clearance and work orders, couriers, registering of deeds and mortgages, searching title (but not the fee), searching executions, mortgage schedules, estoppel certificates (for condominiums) and other incidentals.

A typical list of disbursements is as follows:

City Tax Certificate
Building Division Reports
Engineering Reports
Sheriff's Certificates
Registry Office Searches
Utility Searches
Register Deed
Register Mortgage
Law Society Fee
Copies, fax, postage, courier

$24.00*
$245.00*
$40.00*
$150.00
$100.00
$20.00
$50.00
$50.00
$50.00
$21.00*

5. Balance Due on Closing & Statement of Adjustments
Basically, the balance due on closing is the difference between the sale price and the amount of your deposit (presented with the offer).

However, there are certain items which will be adjusted at the time of closing.

Taxes
If the vendor has paid taxes for the full year, you are responsible for your portion from the time of closing, to the end of the year.

Fuel
If the property is heated with oil or propane, the vendor is entitled to be paid for what was in the tank on the premises at closing date. Since gauges are unreliable, it is usual to have the vendor fill the tank and pay the supplier for that amount. The purchaser then pays the vendor for the full tank.

Utilities
All metered utilities and gas will be read on closing. The vendor is responsible up to the date of closing. The closing day itself is apportioned to the purchaser.

8. First Mortgage Costs
"Interest Adjustment" - This is something many purchasers do not understand. If youi are arranging a new First Mortgage, your lawyer will receive the mortgage monies from the mortgage company on the morning of the closing date. However, most Mortgage Companies use the 1st or the 15th of the month as payment date. Therefore, if you were closing a deal on August 10th, the Mortgage Company would deduct from the mortgage monies, interest from the date of closing (10th) to the 1st of the following month (ie. September 1st) Interest Adjustment Date; and your first payment would then commence on the 1st day of the following month (ie. October 1st) and continue on a monthly basis thereafter.

Example: $100,000. First Mortgage at 11%

As mentioned, it is a common procedure with Mortgage Companies and is only done for the purpose of adjusting the interest for a part of the month at the beginning of the mortgage. Simply be aware of it.

9. Second Mortgage Costs
Usually additional legal fees (check with your solicitor) and appraisal plus brokerage charges of about $475.00, and up.

10. Moving Costs
This varies anywhere from $85. to $125. per hour, depending upon the company and the number of people involved. It will also depend on the size of the vehicle, the amount of furniture and the time of the month you are moving.

Just a note at this point about the procedure on the actual closing date.

It is necessary for your lawyer to obtain the money from your Mortgage Company on the day of closing, and arrange for an appointment in the Registry office to close the deal with the other lawyer. Lawyers often have many deals closing on busy days, and it is often difficult for them to arrange a closing time until later in the day.

It is strongly advised therefore, that you do not order your moving truck early in the day, as you are not entitled to possession of your new property until after the deal has closed. By not ordering the truck for "the break of dawn", you will not be paying the movers to sit outside your new home waiting for the deal to close. Please discuss this with your lawyer.

Also subject to GST are survey costs, legal fees, disbursements (those indicated with an * in 4.), fuels and utility adjustments, home inspections, home insurance and moving costs.

Your lawyer should be in touch with you within the week prior to closing to arrange an appointment for signing final documents.

1. Survey	2. Land Transfer Tax	3. Legal Fees
4. Disbursements	5. Adjustments	6. Home Inspection
7. Home Insurance	8. First Mortgage	9. Second Mortgage
10. Moving	11. GST

Guide to 1999 Closing Costs