Payout penalties: These may be charged by your lender under certain circumstances such as discharging a mortgage with more than three months to run. Consult with your mortgage broker to minimize mortgage related costs. Typically three months interest is charged.
Liens and caveats: Any liens or caveats registered on your title which are not assumed by the buyer must be discharged out of the proceeds of sale.
Real Property Report: Normally you would have received one when you bought your property and it would be included in the closing package from your lawyer. If you need to get a new one the cost would be about $600.
You must have a stamp from the City showing that the property is in compliance with City bylaws. The cost is $150.
If an encroachment agreement or relaxation is required due to something like a fence line or a garage overhang crossing the property line, the seller will have to apply with the City for those agreements. The cost is about $500. Normally buyers will ask for a holdback of sales proceeds pending issuance of the agreement. This could take 6-8 weeks.
Bridge Financing: If a portion of your proceeds are held back by a holdback, you may need to get bridge financing to move on with your plans. This is straightforward financing to get but there will typically be an application fee and a daily interest payment required on the bridged amount.
Condo documents: If you are selling a condominium, you will be require to supply a complete copy of the bylaws and other documents relating to the condominium. These can be expensive to supply if they need to be purchased. $200 would not be a surprising amount that the seller would have to pay.
The seller is also required to provide an estopel certificate at about $200.
Legal fees: These will cost about $650 plus disbursements of perhaps $50.
Real Estate Commissions: All real estate commissions are negotiable between the seller and the seller’s agent and normally are based on the service being provided. Typical full service fees in Alberta are 7% on the first $100,000 of the selling price and 3% on the balance. Normally these fees are split between the two brokerages involved in completing the transaction.