Preparing for Closing Day: What Will You Need to Pay?

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Closing day is finally here! You’re likely thrilled at the prospect of having those keys in your hand, but it’s important not to get so excited that you forget about the practicalities of closing day. This is the time where everything will be finalized. A lot of documentation is required, so it’s best to go into closing day knowing exactly what to bring with you and what you will be paying.

Your real estate attorney will help you gather all of the necessary items. If you’ve chosen not to hire an attorney to help you along this process, you can still gather all of this information yourself. This guide to closing day will help you understand what exactly will be expected of you when you finalize the sale with the seller and their attorney.

What Will You Need to Pay for on Closing Day?

There are many associated fees that relate to taxes and insurance:

  1. Land transfer tax – Different areas pose different taxes for the purpose of transferring land. You may also be required to pay a municipal land transfer tax.
  2. Legal fees – Your attorney will charge you for the drafting of closing documents. This cost usually runs in the area of $500.
  3. Title insurance – This type of insurance helps to protect lenders in the event of there being a dispute over the home that’s being sold. You can purchase this insurance policy from your attorney. This cost is usually between $100 and $300.
  4. CMHC or PST insurance – These are two standard forms of insurance that must be paid on closing day.
  5. Property insurance – Homeowners are required to purchase homeowners insurance to protect the property against catastrophe.
  6. Property taxes – If the previous homeowner has already paid their property taxes in full, they may have to be reimbursed to the previous homeowner.
  7. Utility bills – While you aren’t guaranteed to be made to pay this amount, it is generally expected that you will pay for your first month’s utility bills.

How A Real Estate Attorney Can Help You

The information outlined above applies to conventional closing day costs. Your real estate attorney will be able to determine if any additional costs and documents may be required of you on the day of closing. Additionally, your attorney can get all of the information together and provide you a final figure so that the costs of closing day don’t surprise you.

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