Buying a Property and Expected Costs 

     We all know buying a property comes with costs, not only the purchase price, but other associated costs. But what might those costs be?  

Below are some of the costs you should be prepared for when purchasing a property. However, this list is not all inclusive and every  property is unique, so make sure you talk to your REALTOR® about any potential costs that may be associated with the property you’re purchasing.

Deposit  - The deposit on a property is a condition in your agreement of purchase and sale. The amount and due date are spelled out in clause 1. The deposit forms part of the purchase price of the property which you will see in your lawyers adjustments at closing.

Down Payment  - This amount will be based on a percentage of the purchase price and the amount will be provider by your lender.

Mortgage Application Fee – This amount will be provided by your lender.  

Appraisal - Sometimes required by your lending institution.

Home Inspection and other inspection fees- Can be specific to the type of property your purchasing, for example can include septic and well for rural properties. Please discuss with you REALTOR® what the specific property may require for inspections.

Survey – In some cases, title Insurance and/or Survey Certificate will be required. 

Water Testing (where appliable) - Bacteria is the minimal requirement, however other more robust tests are available. Typically, water testing is completed only on properties with private wells for their water source.

Legal Fees & Disbursements – These amounts will be provided by your lawyer.

Heating Oil and or propane (If applicable) - In the standard agreement of purchase and sale, a fuel adjustment is done on closing in which the buyer is responsible for buying a full tank from the seller. If this is a concern to the purchaser, this can be requested to be waived in the offer.

Property Taxes – Pro rated for the year based on time of possession, amount provider by lawyer upon closing. 

Rental Equipment pay outs if applicable - If there property you're purchasing has rental equipment such as a security system, depending on your agreement, there may be aquisition costs or payouts with the equipment. Please discuss with your REALTOR®.

Deed Transfer Tax – Usually a percentage of the purchase price and will vary between counties.

Hook-up Fees – When it comes time to move in, you will need to have your utilities such as power, cable, internet, etc hooked up to the property in your name. There may be installation costs with this and or deposits required.

Any immediate repairs that need to be done.     

Appliances/Furnishings – Purchasing a home in particular can come with costs to prepare to live there. If appliances were not included in the sale, you may need to purchase, and there may be costs associated with furnishing your new home as well.