Seller's Closing Costs

Closing Day – Seller’s Closing Costs

Closing costs are fees owed on or by closing day that must be paid for your home sale to be complete.

To give you a rough idea of what to expect, some of the most common expenses are listed below. 

• The real estate agent's commission (plus GST)
  Real estate agent commissions are typically calculated as a percentage of the final sale price and are payable upon the successful completion of the transaction. In British Columbia, commissions vary by brokerage and service structure, but they are always subject to GST, which is added to the commission amount at closing. Your agent will outline their specific commission rate and any additional fees in your listing agreement.
• Legal fees and disbursements 
  When selling a home, a real estate lawyer manages the key legal components of the transaction. Their work typically includes reviewing the purchase agreement and related documents, managing any mortgage discharge requirements, completing a title search to confirm there are no outstanding claims, preparing title insurance, and handling all closing‑day documentation and funds. Pricing varies depending on the complexity of the file and the level of representation required, but in British Columbia, legal fees for a standard home sale generally range from $700-$2000. .
• Utility and property tax adjustments
  When selling a home, you may also encounter utility and property tax adjustments at closing. These adjustments ensure that each party pays their fair share of costs for the period they own the property. Your lawyer or notary will calculate any outstanding property taxes, utilities, or municipal charges and prorate them between you and the buyer. If you’ve prepaid beyond the closing date, you’ll receive a credit; if amounts are owing, they will be deducted from your sale proceed
• Mortgage prepayment or discharge fees
  If you sell a home that still has an active mortgage, your lender will charge a mortgage discharge fee—also known as a mortgage prepayment penalty. This fee covers the administrative work required to remove the remaining mortgage balance from your property title. The amount varies based on your lender and the specific terms of your mortgage agreement. For the most accurate and up‑to‑date information, it’s best to contact your lender directly.
• Other costs
  If it is an investment property, there may be capital gains – check with your accountant/lawyer.