Real Estate Term
Closing Costs
Fees and expenses paid at closing, including legal fees, land transfer tax, and other charges.
What is Closing Costs?
Closing costs are the one-time fees and expenses a buyer pays to complete a purchase, on top of the down payment. They typically include legal fees, land transfer tax, title insurance, and adjustments for prepaid property taxes or utilities, and often add up to roughly 1.5% to 4% of the purchase price. Budgeting for closing costs early prevents a cash shortfall at the closing table.
Frequently asked questions
Related terms
Land Transfer TaxA tax paid to the provincial or municipal government when property ownership changes hands.ClosingThe final step in a real estate transaction where ownership transfers from seller to buyer.DepositA sum of money paid as part of an offer to purchase, held in trust until closing.Title InsuranceInsurance that protects against losses from defects in title or ownership.
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