Fees for buying and selling real estate in Montreal and surrounding areas

Acquiring or selling a property in Quebec’s capital and surrounding areas involves a series of unavoidable costs that are added to the purchase price or subtracted from the sale proceeds. These expenses range from transfer duties and notary fees to inspection costs and government taxes. Let’s take a look at the different fees involved in […]

The costs inherent in acquiring real estate in and around Montreal

Buying a property in Montreal can involve notary fees, which include drafting the deed of sale and registering the mortgage. What’s more, the welcome tax is an important consideration when buying property in the region. In addition, buyers must also take into account property inspection fees and the costs associated with mortgage financing. Here’s an overview of the various costs involved in buying a property in Montreal or the surrounding area.

Property appraisal fees

A property appraisal is essential when obtaining a mortgage. It involves real estate fees, generally between $350 and $800. These costs cover a visit to the house by an expert to determine its market value, taking into account the quality of construction and local economic conditions.

Property inspection

Property inspections are essential for buyers, and involve an inspection fee of around $500 or more, depending on the size, age and type of house. This step detects any hidden problems, such as water infiltration. It gives you peace of mind and makes it easier to plan future renovations. Call in a certified inspector for recourse in the event of malpractice. You can also use the results of the inspection to negotiate the purchase price or request repairs before the sale closes.

Fees for legal services

To secure your real estate transaction, it’s essential to consult a notary or lawyer. Notary fees range from $1,500 to $3,000, depending on the complexity of the transaction. They prepare essential documents, supervise signatures and ensure registration and verification of titles. They are the guarantors of the legal conformity of the operation. In addition, notaries or lawyers can advise you on the legal aspects of the transaction and ensure that your interests are protected. Their expertise is invaluable in ensuring a safe real estate transaction.

Mortgage loan insurance

Mortgage loan insurance, often overlooked by homebuyers, is an important part of the cost of buying a home in Quebec. Required when the down payment is less than 20%, it protects the lender in the event of default by the borrower. Its cost, established as a percentage of the loan, is added to the mortgage payments. Premium rebates of up to 25% are available for energy-efficient homes. Take the time to explore the options available to find the best solution for your financial situation. Don’t hesitate to consult a mortgage expert for personalized advice.

Tax charges for new properties

When you buy a new home, you’ll have to pay between 5% and 15% of the property price in GST and QST. In Quebec, the combined rate is 14.975%. These taxes apply only to new properties or properties sold by companies. Refunds are available in certain situations detailed by the federal government.

Municipal expenses

Welcome tax, or transfer tax, is calculated on the purchase price of the property. In Quebec, it varies from 0.5% to 1.5%, depending on the value of the house. In Montreal, it can be as high as 3% for properties over $2,000,000. These fees, collected by municipalities or provinces, must be paid within weeks of acquisition. Municipal charges must be taken into account in the buyer’s financial planning and in estimating the costs associated with the property purchase.

Readjustment of municipal and school taxes

Adjustments to municipal and school taxes are made by the notary to reimburse the seller for the portion of taxes already paid during the year. This tax is calculated on the value of the property and is generally paid in the first few months of the following year. The adjustment is designed to ensure a fair distribution of charges between buyer and seller, taking into account the period of ownership of each.

Fees for real estate sales in the Montreal area

Here’s a sample of the costs associated with selling real estate in and around Quebec’s capital. This list includes any inspection and repair costs, bank charges related to mortgage repayment, and fees for intermediaries involved in the transaction. These expenses are essential elements to take into account when planning a property sale.

The tests

When selling a house, it’s common for various tests to be carried out if the inspector detects signs of pyrite, vermiculite or other potentially harmful substances. Checks often include in-depth analyses to assess the quality and safety of the property. They are designed to guarantee transparency and compliance with safety standards in the real estate transaction process. The cost of testing, borne by the seller, is usually around $1,000.

Impact of inspection on sale price

Inspections often reveal necessary work that sellers hadn’t anticipated, which can lead to buyers asking for a lower price. If this reduction is refused, the information must be disclosed to potential buyers in the seller’s declaration. This guarantees transparency and compliance with legal regulations. In this way, future homeowners can make an informed purchasing decision.

Updating the certificate of location

The certificate of location must be recent to be approved by the buyer’s bank. This document provides crucial information on property boundaries, easements and other essential aspects for all parties involved in the transaction. In accordance with the usual terms of the real estate broker’s promise to purchase, the seller is generally responsible for providing this document, at a cost of approximately $1,000.

Mortgage early termination fee

The premature sale of a mortgaged property may give rise to early termination charges with the bank, in accordance with the terms of the mortgage contract. These fees represent a financial commitment for the seller, and their amount is determined by the specific provisions of the contract. They may vary according to various factors, such as the remaining term of the loan and the conditions for early repayment.

Mortgage cancellation

When a property is sold, the notary is responsible for cancelling the mortgage, removing it from the land register, as the associated loan will be repaid. This procedure, called mortgage write-off, usually involves a fee of about $600. These costs are unavoidable expenses associated with the real estate transaction and are borne by the seller.

Real estate broker fees

If you have used the services of a real estate broker for the sale, his fees will be deducted by the notary from the amount paid by the buyer. These brokerage fees generally amount to around 4%, plus taxes, of the property’s sale price. These fees are standard in real estate transactions and are stipulated in the contract between the seller and the broker.

Additional fees

At the notary’s office, various fees and adjustments are anticipated, includingadjustments to municipal and school taxes, as well as other expenses such as fuel costs. The notary performs these calculations pro rata to the date of purchase to determine the exact amounts. These adjustments ensure an equitable distribution of charges between buyer and seller, taking into account their respective periods of ownership of the property.

Costs common to both buyer and seller of a property

Among the costs to be anticipated in a real estate transaction, moving costs occupy a significant place. The cost depends on the destination and the volume to be moved. On average, a small move can cost around $1,200. Hiring professional movers can offer peace of mind, although it can be more expensive, with hourly rates ranging from $85 to $110. For those who prefer a more DIY approach, renting a truck can cost up to $300 a day, not to mention extra charges for pizza and beer for friends who help out. It’s also important to book in advance, especially during peak periods such as July 1st.