- Lawyer and Notary expenses and fees
This cost includes, researching and reviewing title, drafting all documents and retrieving any required document from the city, municipality, or land title office. Lawyers offer various fees for their services. In addition there additional services they offer which it can be purchased such as title insurance. Also depending on each case complexity, fees can vary. It is a good idea to call 3 different lawyers and obtain their fees in detail.
- Land Title registration fees
- Obtaining survey certificate if required and not available from the seller.
- Cost of financial institution and mortgage
This cost includes the cost of mortgage company lawyer or notary, appraisal fees if applicable, and Land Title registration fees. Depending on the financial institution, costs varies and some waive the cost.
- Fire Insurance premium
This fee applies for any properties with wood burning fire whether as heating source or other purposes. In addition if your property has Poly-B plumbing, or electrical issues that are not in favor of most insurance companies, you still can insure the property through some home insurance companies with premium extra cost.
- Sales Tax if applicable.
This tax mostly applies for commercial purchases, lot, or brand new developments. It is a good idea to consult with your accountant or lawyer if purchasing a property that requires sales tax. There are some exception depending on government requirement and you maybe eligible.
- Provincial Property Tax Transfer Fees
The property transfer tax rate is:
- 1% on the first $200,000,
- 2% on the portion of the fair market value greater than $200,000 and up to and including $2,000,000,
- 3% on the portion of the fair market value greater than $2,000,000, and
- If the property is residential, a further 2% on the portion of the fair market value greater than $3,000,000 (effective February 21, 2018).
If the property is classified as residential and farm, or is residential mixed class (such as residential and commercial), you pay the further 2% tax on only the residential portion of the property.
- Goods and Service taxes if applicable.
Property annual taxes are calculated by the lawyer and any taxes due payable or credits will be applied to the closing cost. Annual taxes fluctuate depending on assessed value and neighborhood growth. This taxes relate to nearby school, transition and municipal decisions.
- Home Inspection
It is the Buyer’s responsibility to inspect the real estate property they are purchasing in Vancouver. The cost varies for each inspection company. I work with reputable and most recommended home inspection companies which I’d be happy to provide you with their referral. I always suggest to my clients to call minimum three different companies.
Keep in mind in many cases for Condo and strata units, the buyer is responsible to inform the property manager and pay a moving fee and reserve an elevator. I always review the Rules and Bylaws of the strata units in detail for my clienst and inform them in advance for any additional charges. Moving companies also are not cheap and its best to call several reputable ones to obtain a quote. The cheaper companies doesn't necessarily means better. Always go wit the most recommended companies even if they cost a little higher to protect your furniture and assets.
Purchasing a home is not a small transaction. Every real estate buyer wants to see return in their purchase and must be diligent on where the money goes. Always keep track of your expenses and making sure to calculate every cost to understand whether the house of your desire can be easily affordable and falls under your assigned budget.
I work with a reliable, reputable and professional team of lawyers, mortgage specialists, home inspection companies, real estate property management, and other needed professional that I’d be happy to provide their reference.
Call me direct 778-636-7707 or email me for any additional question.