Definition
Selling a property involves several significant costs to anticipate:
- **Real estate broker commission**: generally 3-7% of the sale price, shared between listing and buyer's brokers. On a $500,000 sale, this represents $15,000-$35,000. - **Notarial fees (seller side)**: for preparing the mortgage discharge and participating in the transaction — approximately $300-$800. - **Survey certificate**: if the existing certificate is more than 5-10 years old or work has been done, a new certificate may be required — $800 to $1,500. - **Mortgage break penalty**: if the mortgage term has not expired and the loan cannot be assumed or ported — can represent tens of thousands of dollars on a closed fixed-rate mortgage. - **Closing adjustments**: property taxes, fuel — generally in favor of the buyer. - **Capital gains tax**: if the property sold is not the principal residence, the realized gain is taxable.