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Be prepared for closing costs in real estate transactions

Alberta residents who are looking to purchase a home may look at the asking price without factoring in closing costs, which can account for substantial additional funds. To close deals on real estate transactions, buyers typically have several other expenses that might catch them unprepared. Depending on the urgency of the sale, the seller may be prepared to foot the bill for some of those fees.

Buyers fees can include application fees and the cost to originate a loan when applying for a mortgage. Additionally, appraisal, title search, inspection fees and other charges can accumulate into hundreds and even thousands of dollars. Sometimes, if the buyer's funds just cannot stretch to cover those additional closing fees, and the seller is in fear of losing the deal, he or she might offer to offer a credit toward the closing costs of the buyer. However, this is  less likely when the residential property market is strong.

When it comes to the seller of a residential property, he or she will not typically be responsible for closing fees, but that does not mean there will be no costs. First, there will be the real estate agent of the seller who marketed the property which must be paid an agreed percentage for the sales commission, along with any commission due to the agent of the buyer. Furthermore, if repairs are necessary after the home inspection, it may be for the seller's account -- unless the buyer agrees to pay for repairs in exchange for a reduction of the purchase price.

Those who are considering the purchase of a home in Alberta may be surprised to find that hardly anything about real estate transactions is cut and dried. Exceptions almost always exist, and to make sure they are not caught unaware, the services of an experienced real estate lawyer can be a significant asset. A lawyer can provide valuable advice throughout the process while also making sure that all documents are understood and in compliance with legal requirements.

Source:, "What Are Closing Cost Seller Fees?", Accessed on June 2, 2017

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