How high are realtors’ and lawyers’ fees in the Canada? What about other property purchase costs?
|Land Transfer Tax||0.50% - 2.0%||buyer|
|Goods and Services Tax (GST)||6.0%||buyer|
|Estoppel Certificate Fee||CA$100 (US$89)||buyer|
|Legal Fees|| 0.50% - 1.0%
0.50% - 1.0%
|Real Estate Agent´s Fee||3% - 7%||seller|
|Costs paid by buyer||7.0% - 14.0%|
|Costs paid by seller||3.68% - 8.42%|
|ROUNDTRIP TRANSACTION COSTS||10.68% 22.42%|
| See Footnotes
Source: Global Property Guide
There are virtually no restrictions on foreigners buying properties in Canada. The process is relatively simple.
The round trip transaction costs include all costs of buying and then re-selling a property – lawyers’ fees, notaries’ fees, registration fees, taxes, agents’ fees, etc.
Exchange rate as of 30 June 2007: 1 US$ = 1.06340 CA$.
Land Transfer Tax:
Land transfer taxes (property transfer tax or purchase tax in other provinces) are calculated between 0.5-2% of the property´s total value. This is not imposed in Alberta, rural Nova Scotia and Saskatchewan.
LAND TRANSFER TAX
|PROPERTY VALUE (CA$)||TAX RATE|
|Up to 200,000 (US$148,148)||1.0%|
|Over 200,000 (US$148,148)||2.0%|
|Up to 30,000 (US$22,222)||nil|
|30,000 – 90,000 (US$66,667)||0.5%|
|90,000 - 150,000 (US$111,111)||1.0%|
|Over 150,000 (US$111,111)||2.0%|
|Up to 55,000 (US$40,741)||0.5%|
|55,000 – 250,000 (US$185,185)||1.0%|
|250,000 – 400,000 (US$296,296)||1.5%|
|Over 400,000 (US$296,296)||2%|
|Up to 50,000 (US$37,037)||0.5%|
|50,000 – 250,000 (US$185,185)||1.0%|
|Over 250,000 (US$185,185)||1.5%|
|Outside Halifax County||Check with
|Source: Canada Revenue Authority|
Negotiable; generally at PHP20,000 and up. In some instances, legal fees can reach up to 10% of property value.
Goods and Service Tax:
For newly constructed and substantially renovated homes, 5% Goods and Services Tax (GST) is applied on the purchase price. GST is often included in the quoted sales price. New home buyers can apply for a partial rebate of the GST if the property bought is going to be the primary place of residence. GST rebate reduces proportionately with more expensive homes.
Estoppel Certificate Fee (for condominiums or strata units only):
An Estoppel Certificate outlines a condominium corporation´s legal and financial state of affairs and costs up to CAD100 (US$74). This fee is not applicable in Quebec.
Legal/Notary Fees and Disbursements:
Lawyers (or notaries in Quebec) review the Offer to Purchase, search the title and draw up mortgage documents and oversees the closing details. Legal fees are generally negotiable subject to a minimum of CAD500 or US$370, plus GST/HST), depending upon the province, the complexity of the sale-purchase process and the value of the property. Each party pays for their own lawyer. Disbursements are costs that the lawyer pays in behalf of the buyer, such as registration fees (electronic registration; CAD71.30 or US$53 per document, manual registration: CAD60 or US$44 per document, photocopies, etc.)
Real Estate Agent´s Fee:
Real estate agent´s fees are negotiable between 3% and 7% of the property value, plus 6% GST. Typically, realtors charge 7% on the first CAD100,000 (US$74,074) of the sales price and 3% on the remainder. The vendor normally pays for the agent´s fees but in certain cases there are two agents involved, the seller´s agent and the buyer´s agent.
REAL ESTATE AGENT´S FEE
|PROPERTY VALUE, CAD (US$)||RATE|
|Up to 100,000 (US$74,074)||7%|
|Over 100,000 (US$74,074)||3% on all value over US$74,074|
|Source: Global Property Guide|
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