We often think about the price we’ll receive, rarely about what we’ll pay to sell. Yet, between the listed price and the final check, several fees accumulate, and discovering them at the time of the offer to purchase creates unpleasant surprises. Good news: these costs are known and can be anticipated. Here is the complete picture for a seller in Quebec, with figures drawn from reliable sources such as the Chambre des notaires and published fee schedules.
The biggest expenses
Brokerage commission comes first. It is generally between 4% and 6% of the sale price, often shared between the seller’s broker and the buyer’s broker. On a $500,000 sale, a 5% commission represents $25,000. Next comes what you owe the notary as a seller, which is lighter than one might think: the deed of sale itself is paid by the buyer. Your share mainly concerns the discharge of mortgage to remove your hypothec, ranging from $300 to $600.
| Fees | Estimated Cost | Paid by |
|---|---|---|
| Brokerage commission | 4% to 6% of price | Seller |
| Discharge / removal of hypothec | $300 to $600 | Seller |
| Certificate of location (if expired) | approx. $1,630 | Seller |
| Mortgage prepayment penalty (if applicable) | According to contract | Seller |
| Title insurance (sometimes) | $500 to $1,500 | Seller |
| Deed of sale at notary | $1,500 to $3,000 | Buyer |
Fees often forgotten
If your certificate of location is more than ten years old or no longer reflects the current state of the premises, expect to pay approximately $1,630 for a new one, according to the suggested rate by the Ordre des arpenteurs-géomètres du Québec. Another point to absolutely check: your mortgage contract. Selling before the end of the term can trigger a penalty that, in some cases, amounts to thousands of dollars. Add, if you use them, a home staging budget, and sometimes title insurance.
What about taxes?
Good news on this front: the sale of your principal residence is generally exempt from capital gains tax. Be aware, however, that since 2016, you must declare the sale even if no tax is due. The rules change for a cottage, a secondary residence, or an income property, where a gain may be taxable. For a specific case, an accountant remains the right contact. To know exactly what you will have left in your pocket, use our Net Seller Calculator, once your value has been established by a free appraisal.
