Closing Costs and Disbursements

Registration costs and transfer tax payable to the Land Titles Office. The cost of registering a TITLE depends on the value of the property being purchased and the exact costs may be determined by the property registry fees and transfer tax scale detailed in the schedule attached to this brochure.

Survey Certificate and Sketch

Although this document may be provided by the seller, be aware that our experience has shown that, in many cases, the existing certificate as provided may be inaccurate for such reasons as the later addition of a deck, garage, air conditioning unit, or house addition. Additions to adjacent properties post-dating the date of the existing surveyors certificate and sketch provided may warrant, as well, the requisition of a new up-to-date surveyor's certificate and sketch. Should a new survey certificate be required, one can expect to pay approximately $300 to a survey firm plus GST for Winnipeg area properties. The cost for a new surveyor's certificate and sketch for properties outside of Winnipeg may be more.

Zoning Memorandum
The securing of this document is based upon the surveyor's certificate and sketch for your property and will ensure that your property conforms with city or municipal regulations as to yards and building alignments.

Tax Certificate
Issued by the city and indicates if there are unpaid taxes on the property.

Title Search and Other Incidental Charges
There are several charges from the Land Titles Office relating to searches, computer access-time, microfilm, and so forth, together with such things as postage, fax charges, accounting fees and photocopying usually involving a total charge of approximately $75.

Use of Couriers
These services are used for speed and security.

Property Taxes
Either the buyer or the seller will pay the annual tax bill and will then be reimbursed by the other party as an adjustment to the purchase price. The amount paid by each party represents only the share for which they are responsible based upon the actual possession date for the property being sold. The city of Winnipeg TIPP Program allows you to make monthly tax payments. If the vendor is currently enrolled in the TIPP Program, you may make an application to the city to assume same. If not, you will have to bring the taxes current to the month you take ownership of the property.

GST/PST
GST is charged on legal fees and on most disbursements, but not on the land transfer tax or the land title costs. PST is charged on legal fees only.

Interest
Due to the nature of our land titles system and although transfer documents will be filed at or close to the date of possession, the finalization of the registration of these documents will be necessarily delayed by the amount of time needed by the Land Titles Office to process them. If you are arranging a new mortgage, the mortgage money will not be released until the completion of the registration process by the Land Titles Office and the completion of your lawyer's summary and requisition for proceeds. There will be no mortgage interest charged by the mortgage lender during this delay as interest payable to the mortgage lender will not commence until funds are actually received by your lawyer. However, it is standard practice for the home-buyer to pay, in lieu of interest to the mortgage lender, as aforenoted, interest to the seller [vendor] on the unpaid purchase price from possession date until final payment date, which final payment will occur on your lawyer's actually receiving your mortgage proceeds. (The interest rate payable to the seller [vendor] will be the same as that of the buyers new mortgage.)

Example No. 1

Purchase price: $80,000.00
Mortgage (net of all deductions): $72,000.00
Interest Rate: 6.00%
Possession Date: April 1
Balance of Downpayment (price less net mortgage) $8,000.00
Legal Fees
(including preparation of mortgage documentation) $350.00
To register Transfer of Land
(including land transfer tax) $310.00*
To register Mortgage $69.00*
To obtain Surveyor?s Certificate $300.00
To obtain Zoning Memorandum $35.00
To obtain Tax Certificate $35.00*
To estimated Interest Adjustment
($72,000.00 x 6.0% x 31 days) $366.73
To Courier charges $35.00
To miscellaneous postage, searches, accounting fees, photocopying and fax charges $75.00
To GST on $795.00 $55.65
To PST on $350.00 $24.50
TOTAL $9,655.88
LESS: Vendor?s estimated share of property taxes
($1,800.00 x 91/265 days) $448.76
Total estimated Closing Costs and Balance of Downpayment $9,207.12

*GST Exempt
Please note: Purchaser will be responsible for payment of current years taxes in full by June 30, as credit has been given for vendor.

Example No. 2

Purchase price $120,000.00
Mortgage (net of all deductions) $90,000.00
Interest Rate: 6.0%
Taxes: $2,300.00
Possession Date: September 1st
Balance of Downpayment (price less net mortgage proceeds) $30,000.00
Legal Fees
(including preparation of mortgage documentation) $350.00
To register Transfer of Land
(including land transfer tax) $660.00*
To register Mortgage $69.00*
To obtain Surveyor?s Certificate $300.00
To obtain Zoning Memorandum $35.00
To obtain Tax Certificate $35.00*
To estimated Interest Adjustment
($90,000.00 x 6.0% x 31 days) $458.49
To purchasers? estimated share of taxes
($2,300.00 x 121/365 days) $762.46
To Courier Charges $35.00
To miscellaneous postage, searches, accounting fees, photocopying and fax charges
$75.00
To GST on $795.00 $55.65
To PST on $350.00 $24.50
Total Estimated Closing Costs and Balance of Downpayment $32,860.10

*GST Exempt
Please note: The general information and the various examples cited here are for demonstration purposes only. Various other factors may come into play and affect the financial outcome of your particular home purchase or home sale.