Thorne and Thorne Barristers and Solicitors  


Are there any other costs I should know about when buying a home?

Most contracts dealing with real estate allow for adjustments to be made for costs that are paid for by either the Buyer or the Seller directly, but benefit both the Buyer and the Seller. These adjustments are presented on a document known as the Statement of Adjustments and commonly include an adjustment for property taxes that have either been paid by the Seller or will be paid by the Buyer, an adjustment for condominium fees in the case of transactions involving Condominium Units, and adjustments for damage deposits and paid up rental in the case of transactions involving rental property.

When a Seller has made payments that are adjusted to reflect the fact that the Buyer will have a benefit from that payment after becoming the owner of a property, then those amounts are added to the total that the Buyer must pay to the Seller on closing. When the Buyer must make payments after becoming the owner that the Seller has already received a benefit for, such as property taxes, then those amounts are deducted from the total that the Buyer must pay to the Seller on closing.

Additionally, Buyers and Sellers will need to pay legal costs. A Buyer will need to pay the costs of registration of the transfer of land and, in the case of a Buyer with financing, the Buyer will also have to pay for the costs of preparation of financing documents and registration of security, usually by way of a mortgage, for the Buyer’s lender.

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The general opinions expressed herein are for information purposes only and are not to be relied on. Individuals are encouraged to seek legal advice as it relates to their specific fact scenario to ensure they are fully aware of their legal rights and obligations.

Thorne and Thorne
Barristers & Solicitors