Closing costs are one of the most expensive parts of a buying or selling real estate in Toronto. This article will help you understand what those costs are so you can make an informed decision before you commit. Here is a breakdown of the items you’ll typically find Toronto real estate lawyers charging.
The legal fee is usually the largest individual part of your closing costs. This is what the lawyer is actually charging for their work.
The mortgage placement fee covers the cost your real estate lawyer pays to register your mortgage on your property. However, lawyers may add an extra fee since registering the mortgage does increase the work they have to do.
Registration fees are what it costs an Ontario real estate lawyer to register the property with the government. In other words, it’s the cost your real estate lawyer pays to actually put the property in your name.
Title insurance protects you from problems with title. It covers things like an undiscovered debt registered against the property. It also covers title fraud – where someone purports to give you the property but they can’t because they aren’t the legitimate owners. With title insurance you are covered instead of being out the purchase price. Toronto real estate lawyers who do many transactions may be able to offer title insurance at a lower cost because they get a better rate from the insurance company.
There will also be a slew of miscellaneous disbursements. These are costs the real estate lawyer pays for out-of-pocket expenses like couriers and postage.