There are certain expenses you will have to bear when selling your home in Kelowna – they include:
Legal fees: A lawyer/notary will ensure that everything goes according to plan and will ensure that you receive the funds before the deed is released to the buyer.
The lawyer will also handle the process of paying the real estate commission and any outstanding mortgage. In addition, if you are buying a home, the lawyer can also arrange for the transfer of funds in suitable manner.
Mortgage Discharge Fee: Most banks charge a nominal fee to complete your mortgage discharge documentation and to register the title on the mortgage.
Mortgage discharge penalty: Although a majority of all Canadian mortgages can be paid off ahead of time, sellers are required to a pay a penalty of either the interest rate differential ‘or’ three months interest – whichever is greater. A penalty of three months interest is charged on mortgages with variable rates.
Closing costs: Closing costs from a seller’s perspective include pending property taxes, real estate commission and tax on commission, pending utility bills and pending condominium dues. When an excess has been paid in advance the buyer can compensate the seller for the same.
Your lawyer will adjust fees that have already been paid. For example, in BC property taxes are due on July 1st – half of the year in arrears and half in advance. The owner will pay the full amount on July 1st and the lawyers adjust the taxes on a per diem basis.