29 | Closing Costs: The Costs Beyond the Purchase Price

<p>You found the house. You negotiated the price. Your offer was accepted.</p><p>So… how much money do you actually need to close?</p><p>On this episode of <strong>Espressold</strong>, we&#39;re breaking down the costs that happen <em>around</em> a real estate transaction — because the purchase price is only one piece of the financial puzzle.</p><p>We’re talking about:</p><p>We break down some of the most common buyer closing costs, including:</p><ul><li>Legal fees and disbursements<br></li><li>Title insurance<br></li><li>Home inspections<br></li><li>Property appraisals<br></li><li>Property tax adjustments<br></li><li>Mortgage default insurance<br></li><li>Other financing-related expenses<br></li></ul><p>We also talk about why budgeting a general percentage for closing costs can be helpful, but why you should always get an estimate based on <strong>your specific purchase and financing situation</strong>.</p><p>Selling a property comes with costs too.</p><p>We discuss:</p><ul><li>Real estate commissions<br></li><li>Legal fees<br></li><li>Mortgage discharge fees<br></li><li>Potential mortgage prepayment penalties<br></li><li>Property adjustments<br></li><li>Repairs or other obligations associated with the sale<br></li></ul><p>Most importantly, we talk about the difference between your <strong>sale price</strong> and what you will actually <strong>net from the sale</strong> — especially if you&#39;re relying on your equity to purchase your next home.</p><p>We also dive into something that can have a major impact on a real estate transaction: <strong>selling Canadian real estate as a non-resident for tax purposes.</strong></p><p>If a non-resident seller is disposing of certain taxable Canadian property, CRA rules can require the purchaser to withhold part of the sale proceeds unless the appropriate Certificate of Compliance has been obtained.</p><p>Depending on the property and circumstances, the applicable withholding can be <strong>25% or 50%</strong>.</p><p>And this is important: that withholding is <strong>not necessarily the seller&#39;s final tax liability</strong>. It is part of the CRA&#39;s process for securing potential Canadian tax obligations.</p><p>We discuss why non-resident sellers should involve their <strong>accountant and lawyer before listing the property</strong>, particularly when there may not be enough equity available to satisfy the applicable withholding.</p><p>We also discuss how residency is addressed in the <strong>Alberta Residenti