Below is a breakdown of the costs associated with a typical real estate purchase as well as a description of the common disbursements incurred by your lawyer in completing the purchase of your new home.
Disbursements*:
Determining Land Transfer Tax
Land Transfer Tax is payable on most residential real estate
transactions and is calculated based on the price of the home being
purchased. Please note that the purchaser may be eligible for a Land
Transfer Tax rebate up to a maximum amount of $2,000.00 if they are
a first time home buyer . The following is the formula used
to calculate Land Transfer Tax:
| Purchase Price | Calculation |
| $0.00 - $55,000 | .005 x purchase price |
| $55,001 - $250,000 | .01 x purchase price - 275 |
| $250,001 - $400,000 | .015 x purchase price - 1525 |
| $400,001 plus | .02 x purchase price - 3525 |
For example if your purchase price was $250,000 the Land Transfer Tax calculation would be .01 x $250,000; minus 275 = $2,225.00.
This amount is due and owing on the closing date of the transaction and is payable to the Ontario Ministry of Finance.
Click here to access the Ottawa Real Estate Board's Land Transfer Tax calculator by clicking here.
Title search
Prior to closing, your solicitor will conduct a search of title to
ensure that you will have a valid title to the property you are
purchasing. The cost for the search of title will vary (usually
$150.00 +) depending on the type of property you are purchasing
(i.e. full lot or a part lot). A sub search is performed again on
closing to ensure the vendors have not further encumbered the
property.
Registration cost
The current cost to register a document with the land registrar is
$70.00 per document. The registration cost for the average
transaction is $140.00 (representing the transfer and mortgage of
land).
Executions search
An execution search must be performed against the registered owners
of the lands (vendors) as well as any mortgagors (purchaser
obtaining a mortgage). The cost of the execution certificate is
$11.00 per person. A preliminary search is performed when
conducting the search of title and again on closing.
Title insurance
Title insurance for the purchase of Single Family with one Mortgage
with a purchase price between $200,000.00 to $500,000.00 costs
approximately $250.00 - $350.00 plus HST.
Office expenses
Disbursements include execution certificate, photocopies, courier,
and postage/long distance.* The disbursements quoted are estimates
only and may vary depending on the municipality. H.S.T., where
applicable, is in addition to the disbursements quoted.
* The disbursements quoted are estimates only and may vary depending on the municipality. H.S.T., where applicable, is in addition to the disbursements quoted.