Some of the basic costs for real estate sellers are as follows:
In BC Realtor commissions are paid by the Seller. This "Gross Commission" varies on several factors, including the level of services provided.
Government legislation and the Competition Act specifically prohibit any standardization of commissions. Having said that, a "customary historical commission" charged by many experienced realtors is 7% of the first $100,000 and 2.5% of the remainder of the sale price of the property. This is what we charge for most of our listings. This rate can vary, however, depending on the level of concierge service provided.
The gross commission is split between the listing realtor and buyer's realtor, approximately 50/50. Commissions will be deducted from your sale proceeds by your legal representative, at the time of completion, and paid directly to the realtors' brokerage on your behalf. 5% GST (Goods and Services Tax) is applied to the total gross commission.
This document is required for all non-resident owners disposing of real estate in Canada. Fees for its preparation and filing vary and usually range from $300-$1000 plus tax and dispersements, depending on the nature of the transaction.
Capital Gains Tax
Capital Gains Tax is not applicable on gains realized from the disposition of a principal residence, for Canadian residents. It is applicable for second residences or investment properties for residents and all properties owned by non-residents. Generally speaking, capital gains tax is levied on 50% of the gain at the seller's marginal incpome tax rate. Like many other taxes, this rate and its application will vary depending on many factors. I strongly recommend that all sellers consult their lawyer and accountant to determine exactly how the Capital Gains tax applies to them. I would be happy to discuss the process with you in general terms.
You'll require a Lawyer or Notary Public in order to transact your sale, transfer title and discharge your mortgage if required. Costs usually range between $600 to $1500 plus dispersements plus GST, depending on the nature of the transaction. I would be happy to provide a referal as required.