What are closing costs for sellers?
Sell in Georgetown? Here’s the exact breakdown of closing costs for sellers — what drains your proceeds and what you can control.
Quick headline: What do sellers pay at closing in Georgetown, Ontario?
If you’re selling a home in Georgetown, ON, your closing costs aren’t a mystery. They’re dominated by a few predictable items: real estate commission, legal fees, mortgage discharge charges, repairs and adjustments. Add a few situational taxes or HST rules if you sold a new-build or commercial property. Know them. Control them. Keep more cash at closing.
The real numbers — typical seller closing costs (Georgetown, Halton Hills, Ontario)
- Real estate commission: 3% to 5% of sale price (common split between listing and buyer agents). On a $800,000 home that’s $24,000–$40,000.
- Legal/conveyancing fees and disbursements: $700 to $1,800.
- Mortgage discharge and administrative fees: $200 to $1,500 (depends on lender and penalties).
- Repairs, inspection fixes, or credits: $0 to $10,000+ (depends on inspection results and negotiation).
- Adjustments at closing (property taxes, utilities, condo fees): prorated portion, usually few hundred to a few thousand dollars.
- Status certificate (for condos): $100 to $300 (seller often pays).
- Home staging and marketing: $0 to $3,500 (optional but often improves net proceeds).
- Capital gains tax: applies only if property is not your principal residence — taxable portion depends on the gain and your tax situation.
Bottom line: most sellers should budget roughly 6%–8% of the sale price to cover commission and routine closing expenses, unless they take deliberate steps to reduce commission or fees.
Local rules that matter in Georgetown, ON (short, actionable)
- Land Transfer Tax: paid by the buyer in Ontario — not a seller cost. Don’t let anyone confuse you.
- HST (13% Ontario): typically not charged on resale homes. HST applies to new homes sold by builders, new condominium assignments, or certain services. If you’re selling a new-build or are a builder/developer, consult an accountant. For most private sellers in Georgetown, HST won’t be a closing cost.
- Condo status certificate: for condos in Halton Hills, sellers usually order and pay for the status certificate. Ask your lawyer to get it quickly — it speeds closing.
- Mortgage early repayment: check your mortgage contract. Some lenders charge a prepayment penalty or interest adjustment. Get a payoff statement early from your lender.
Taxes you must understand — plain language
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Capital gains tax: If the property you’re selling was your principal residence for every year you owned it, you pay no capital gains tax. If it wasn’t your principal residence for the entire time (rental period, secondary home), you may owe tax on a portion of the gain. Canada taxes capital gains at 50% inclusion — that means half the profit is added to your taxable income and taxed at your marginal rate.
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HST: As above, resale homes are generally HST-exempt. But if you made substantial renovations and your business sells the property, or you sell a newly built house, HST can be triggered. Talk to your accountant before you sign a listing if there’s any chance HST applies.
How sellers lose money — and how to stop it
Stop guessing and start planning. The biggest leak is commission. Second biggest is surprise legal and mortgage fees. Third is post-inspection demands and slow legal work.
Action plan:
- Get a net proceeds estimate before you list. Ask your agent for a detailed net sheet showing commission, estimated legal fees, mortgage payoff and adjustments.
- Request a mortgage payoff statement early. Know your discharge fee and whether you face a penalty for early repayment.
- Order a pre-listing inspection if you want to avoid last-minute repair credits. It costs a few hundred dollars and removes buyer leverage.
- Get 2 quotes from real estate agents. Compare marketing plan and net proceeds, not just commission percentage. A cheaper agent that gets a lower price will cost you more.
- Shop for a lawyer. Conveyancing fees vary — ask for a flat quote with disbursements included.
- Time the sale to minimize property tax adjustments where possible.
- If the property is a condo, get the status certificate early. It reduces delays and surprise fees.
Negotiation tactics that save thousands
- Negotiate commission structure: Offer a tiered commission — lower rate up to a target price, higher rate above that. It aligns incentives.
- Limit seller-paid closing items: Clearly list what you will cover in the offer (e.g., repairs up to $X). Don’t agree to open-ended obligations.
- Sell “as-is” with a fair price if you don’t want to fund repairs. Be upfront and reduce buyer renegotiation room.
- Offer a small credit in lieu of doing major repairs if it accelerates sale and reduces holding costs.
Capital gains planning — a quick checklist
- Confirm principal residence status for each year you owned the property.
- If you rented out the property for part of the time, compute the partial exemption and consult an accountant.
- Time the sale across tax years only if it gives a real tax advantage — discuss with your tax advisor.
- Keep records of improvements (not maintenance). Capital improvements raise your adjusted cost base and reduce the taxable gain.
Real examples — common seller scenarios in Georgetown
1) Family home sold for $900,000 — principal residence: You pay commission (~$27k–$45k), lawyer fees (~$1k), mortgage discharge (~$500), adjustments (~$1k). Net closing costs ~3%–5% of sale price.
2) Investment condo sold for $500,000 — rented for 5 years: Capital gains apply. You also pay status certificate (~$150), possible repair credits, legal fees. Plan for tax on half the gain.
3) New-build resale from a builder or assignment: HST and special rules can apply. Don’t assume the sale is HST-free. Call an accountant and your lawyer.
What a Georgetown seller should do in the next 48 hours
- Request a net proceeds estimate from your agent.
- Order a mortgage payoff statement from your lender.
- Book a pre-listing legal quote.
- If unsure about principal residence status, email your accountant with ownership and use details.
Do these four things and you replace guesswork with control.
Why hiring the right agent in Georgetown matters
An agent who knows Halton Hills market rules will get you a better price and faster closing. That reduces time on market and holding costs. A good agent coordinates lawyers, inspectors and buyers to limit post-offer renegotiation. That’s how you convert a 3% commission into a 6% effective savings by getting a higher sale price.
Tony Sousa knows Georgetown and Halton Hills. He runs clear net-proceeds scenarios that show exactly what lands in your pocket. He pushes lenders for payoff statements, orders status certificates, and organizes pre-list inspections so there are no last-minute surprises. If you want predictable closings that protect your profit, get a quick, no-BS estimate now.
Contact Tony:
- Email: tony@sousasells.ca
- Phone: 416-477-2620
- Website: https://www.sousasells.ca
FAQ — Quick answers sellers in Georgetown want to know
Q: Who pays land transfer tax in Ontario?
A: The buyer pays land transfer tax — not the seller.
Q: Do sellers pay HST on a resale home in Georgetown?
A: No, HST generally does not apply to resale homes. HST applies to new-builds, some assignment sales, and certain commercial sales.
Q: How much are legal fees to close in Halton Hills?
A: Expect $700–$1,800 depending on complexity. Get fixed quotes.
Q: Will I pay capital gains tax when I sell my family home?
A: Only if the home was not your principal residence for all years you owned it. If it was your principal residence, you likely owe no capital gains tax.
Q: Can I negotiate my agent’s commission?
A: Yes. Negotiate structure, not just percent. Ask for a performance-based split or tiered commission.
Q: What is a seller adjustment at closing?
A: A prorated share of property taxes, utilities or condo fees the seller has paid beyond the closing date. It’s adjusted so the buyer pays their share going forward.
Q: Should I get a pre-listing inspection?
A: If you want fewer surprises and quicker closings, yes. It costs a few hundred dollars and often saves thousands.
Final word — control your closing, protect your profit
Selling a home in Georgetown shouldn’t feel like a guessing game. Plan ahead, get payoff statements, order key documents early, and work with an agent who runs tight net-proceeds numbers. That’s how you keep more cash at closing.
Want a no-nonsense net proceeds estimate for your Georgetown property? Email Tony at tony@sousasells.ca or call 416-477-2620 today. Expect clear numbers, local knowledge, and a plan that protects your profit.
Author: Tony Sousa — Georgetown real estate expert. https://www.sousasells.ca
