Costs of buying and selling a house in Quebec

Buying or selling a property: what costs should you expect?

The purchase price is not the only cost involved in a real estate transaction. Likewise, the sale price does not necessarily correspond to the net amount the seller will receive.

Here are the main costs that may be associated with buying or selling a property in Québec, particularly in Saint-Philippe and on the South Shore. Costs vary depending on the property, financing, municipality and agreements reached.

Costs to expect as a buyer

• Pre-purchase inspection — It helps you better understand the condition of the property. It is generally carried out after the offer to purchase has been accepted, within the stipulated time frame.
• Notary — The buyer generally pays the costs related to the deed of sale and, if applicable, the mortgage deed.
• Financing — The lender may require an appraisal. Mortgage loan insurance and QST on its premium may also apply, depending on the financing.
• Land transfer duties (“welcome tax”) — These are calculated according to the rules of the municipality where the property is located.
• Tax adjustments — The notary prorates municipal and school taxes between the parties based on the transfer date.
• Moving and setup — Budget for transportation, utility connections, immediate repairs and maintenance costs.
• Title insurance, if applicable — The policy protecting the owner is optional, but the lender may require coverage protecting its interest. The cost may be paid by the buyer or seller, depending on their agreement. Ask the notary to clarify who will be insured and who will pay the premium. See the Autorité des marchés financiers guide to title insurance.

For a new property, GST and QST may apply. For a condo, check the condo fees, contributions to the contingency fund and the building documents.

Costs to expect as a seller

• Broker’s commission — It is determined according to the terms of the brokerage contract.
• Mortgage repayment — The loan balance generally has to be repaid when the property is sold.
• Discharge and removal of the mortgage — These costs are usually paid by the seller. An early repayment penalty may also apply, depending on the mortgage agreement.
• Certificate of location — An up-to-date certificate may be required, depending on the status of the document and the obligations set out in the transaction.
• Preparation and moving — Repair, cleaning, moving or storage costs may be added. A pre-sale inspection is optional.
• Adjustments and amounts owing — Taxes and, for a condo, certain unpaid fees are taken into account in the transaction.

For more information about discharge costs, see the OACIQ guide for sellers.

Selling a rental property or a property that does not qualify for the principal residence exemption may also have tax implications. For questions about taxes, consult a tax professional.

Frequently asked questions

Who pays the mortgage discharge costs?

They are generally paid by the seller, unless otherwise agreed. The notary may deduct them from the sale proceeds.

Who pays for title insurance?

That depends on the agreement between the parties and the coverage obtained. Ask the notary to clarify who will be insured and who will pay the premium.

What costs are added to the purchase price?

The inspection, notary, land transfer duties, tax adjustments and moving costs are among the expenses to consider. Other costs may apply depending on the financing and type of property.

The costs that apply depend on each transaction. For exact amounts and financial or tax implications, contact the notary, lender or a tax professional.

Planning to buy or sell in Saint-Philippe or on the South Shore? I can guide you through the steps of the transaction and help you identify the costs that may be involved.