It easy to think of the down payment as the only cash outlay involved in a home transaction. It's easy and it's also wrong. There are quite a few more costs that take a bite out of the cash pie. As I'm currently in the home buying process, I wanted to share some of the closing costs that can be expected. Some of this costs vary province-by-province or even across cities so even though these are my costs, your mileage may vary.
Buyer's Closing Costs in Alberta
Property tax: If seller has prepaid property taxes for they full year, you may have to refund them a portion equivalent to taxes for the rest of the year.
Home Insurance: Your lawyers will want to see proof of home insurance before closing out the sale. If you've prepaid a full year's insurance for your old house, you could get a refund from the insurance company to offset this new insurance cost.
Legal fee: The lawyer will charge a purchase fee as well as the regulatory fees for title search, title registration, registration of mortgage and registeration of transfer of land. Depending on the law firm, legal fees can be anything from $1000 to $3500.
Contingency fee: The lawyer may request a contingency fee for unplanned costs that will be billed to you. If this ends up not being used, it will be refunded.
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