The hidden costs of buying and selling a house

FOR SELLERS

The costs associated with the sale of a home are not quite as complicated as for buyers, but they can be just as significant.
 
Realtors' commissions
The big fee sellers are required to pay is the commission fee, for both your own and the buyer's realtors. Generally, the total cost is 5% (2.5% for each agent), but you can sometimes negotiate a lower rate. GST is added to this.
 
Legal fees
You also need a lawyer when you sell, to discharge the title and mortgage, verify that all prepaid expenses are returned and utilities and other services cleared, and to handle the actual transaction. Again, the maximum is $1,200 plus GST, but most lawyers charge less to process sales than purchases. Disbursements, as with purchases, are extra.
 
Mortgage discharge
If you have a “closed” mortgage and sell your home before the mortgage matures, there may be penalties and discharge fees, which can amount to as much as three months worth of mortgage payments, plus a discharge fee of $200 to $300. If you transfer the mortgage to your new home, however, most lenders will waive this fee. Open mortgages usually carry higher interest rates but can be transferred or discharged without penalty.

Read more in Homes and Real Estate