Note: The information on this page covers typical real estate purchases only. Readers are advised to seek legal advise specific to their situation.
Why Do I Need a Lawyer to Sell My Home?
|
Chances are your home is your biggest financial asset. Selling your home can be a long, complicated, and sometimes risky process. You don’t want to hand over the title to your home until you have received payment, and a buyer won’t want to give you money until they have received clear title to the home. In fact, a buyer’s bank won’t transfer money until they have a legal guarantee that your mortgage will be paid out. That’s where your lawyer comes in.
Your lawyer will work with you each step of the way, providing you with timely advice and ensuring your best interests are looked after. Selling your home is one of the most important financial moves you will make. Your lawyer will protect your home’s title and value until your money is in the bank. |
Your Lawyer Will: |
How Much are the Legal Fees?
The lawyer’s fees on the sale of a typical home are usually less than half a percent of the sale price—a small price to pay for peace of mind and protection of your assets.
The cost of legal representation is based on the sale price of your property and the complexity of the real estate sale. The team at Amy K. Murphy follows general fee guidelines, and they pride themselves on providing top-notch legal services for reasonable fees. Sometimes a lawyer may act on behalf of both the buyer and the seller, reducing the fees for both parties. Call our office today for a personalised quote.
The cost of legal representation is based on the sale price of your property and the complexity of the real estate sale. The team at Amy K. Murphy follows general fee guidelines, and they pride themselves on providing top-notch legal services for reasonable fees. Sometimes a lawyer may act on behalf of both the buyer and the seller, reducing the fees for both parties. Call our office today for a personalised quote.
Do I Need to Charge GST?
For most sales of used residential properties, there is no GST on the sale. Commercial and mixed-use properties might be subject to GST, and it is the seller’s responsibility to determine whether or not GST should be collected for the sale. Your lawyer will work with you to determine how GST applies to your sale.
What Will Selling My Home Cost Me?
Title Insurance
It used to be common for buyers to require the seller to provide a Real Property Report (RPR), proving that their property met municipal requirements. These reports cost upwards of $1000. Title Insurance is a more affordable alternative to the RPR. It insures against survey errors, zoning enfractions, and other problems that an RPR might detect. Title Insurance is a one-time fee, ranging from $150 to $225.
Commissions
You and your realtor will agree on the real estate commission when you sign your listing agreement. There is GST on realtor’s commissions. If your buyer makes a deposit on the purchase of your home, your realtor will hold it in trust and when the deal closes, the deposit will be applied to the commission. Money from the deposit that is over and above the realtor’s commission will be collected from the realtor by your lawyer and added to your net payment.
Property Taxes
In a standard real estate sale, the seller is responsible for making sure that property taxes have been paid. If any previous years’ taxes are due, your lawyer will arrange to pay them from the sale proceeds. The current year’s taxes are split between the seller and buyer based on the number of days each has possession of the house. If the sale happens before the taxes are due, the buyer will pay the full amount and the seller must pay their share through a credit that would reduce the net proceeds. If the sale occurs after the seller has already paid the property tax, they will be credited in the net proceeds. Your lawyer will make sure that property taxes are split fairly between the buyer and seller.
It used to be common for buyers to require the seller to provide a Real Property Report (RPR), proving that their property met municipal requirements. These reports cost upwards of $1000. Title Insurance is a more affordable alternative to the RPR. It insures against survey errors, zoning enfractions, and other problems that an RPR might detect. Title Insurance is a one-time fee, ranging from $150 to $225.
Commissions
You and your realtor will agree on the real estate commission when you sign your listing agreement. There is GST on realtor’s commissions. If your buyer makes a deposit on the purchase of your home, your realtor will hold it in trust and when the deal closes, the deposit will be applied to the commission. Money from the deposit that is over and above the realtor’s commission will be collected from the realtor by your lawyer and added to your net payment.
Property Taxes
In a standard real estate sale, the seller is responsible for making sure that property taxes have been paid. If any previous years’ taxes are due, your lawyer will arrange to pay them from the sale proceeds. The current year’s taxes are split between the seller and buyer based on the number of days each has possession of the house. If the sale happens before the taxes are due, the buyer will pay the full amount and the seller must pay their share through a credit that would reduce the net proceeds. If the sale occurs after the seller has already paid the property tax, they will be credited in the net proceeds. Your lawyer will make sure that property taxes are split fairly between the buyer and seller.
