What’s included in closing costs for sellers?
Selling a House in Georgetown? Here’s Exactly What’s Included in Closing Costs for Sellers — and How to Keep More Cash at Closing
Quick headline: Know the exact fees before you sign — sellers in Georgetown are often surprised.
If you’re selling a house in Georgetown, Ontario, don’t wing the closing day. Closing costs for sellers hit hard when you least expect it. This guide cuts through the fog and gives you the exact items, ballpark prices, and local tips that keep more money in your pocket.
Why listen to this? Tony Sousa is a local Georgetown realtor who closes deals, fights for higher net proceeds, and knows what lawyers and mortgage lenders will charge. This isn’t theory — it’s the paperwork and fees you’ll actually see on the final statement.
The short answer — summary of seller closing costs
- Real estate commission: Often the biggest single cost. Typical range: 3%–5% of sale price (negotiable). In most Ontario markets that covers listing and buyer brokerage fees. Expect the final split on your agreement.
- Legal fees and disbursements: $700–$1,800 depending on complexity and whether there are title issues or mortgage payoffs.
- Mortgage discharge fee and penalties: $200–$400 for simple discharge; prepayment penalties can be months of interest or an Interest Rate Differential (IRD) if you break a fixed mortgage early.
- Adjustments: Property taxes, utilities, condo fees (if applicable) — prorated to closing date. This can be positive or negative depending on timing.
- Status certificates (condos): $100–$300 if you sell a condo unit — buyer usually requests this, but it’s part of closing prep.
- Repairs, credits, or holdbacks: Varies — negotiated after inspection or agreement conditions.
- Title insurance or indemnities requested by buyer: $0–$300 (often buyer pays, but sometimes seller covers specific items).
- Outstanding liens, second mortgages, or judgments: Variable — these must be paid off at closing.
- Marketing and staging costs: Optional but common — $0–$5,000 depending on strategy.
Total ballpark: On a $800,000 sale in Georgetown, expect seller-side closing costs commonly between $24,000 (3%) and $40,000 (5%) before adjustments and special charges. That’s mostly commission — other costs are smaller but important.
Deep dive: What every item is and why it matters
Real estate commission — the headline number
This is the fee you agreed to pay your listing brokerage. In Georgetown, commissions are negotiable. Common structures: a flat percentage of the sale or a tiered split (e.g., 2.5% + 2.5%). If you’re on the fence about discount brokers, remember: a cheaper commission can cost you more if pricing, marketing and negotiation skills are weak. Net dollars are what matter, not the headline percent.
What to ask: get a clear written commission split and a projected net proceeds worksheet before you sign.
Legal fees and disbursements — the paperwork charge
Your lawyer handles title transfer, registration, funds distribution, mortgage discharge instructions, and closing statements. In Georgetown (Halton Hills), expect straightforward resale closings to cost roughly $700–$1,500. Complex closings — multiple mortgages, estate sales, or irregular title issues — drive the fee higher.
Typical disbursements include: courier fees, registration fees, title searches, and bank payout letters. Always ask your lawyer for an itemized quote.
Mortgage discharge fees and prepayment penalties
If you still have a mortgage, your lender charges a discharge fee to remove the mortgage from title. That’s typically $200–$400. If you break the mortgage before term, you may face a prepayment penalty. For fixed-rate mortgages this can be the greater of three months’ interest or an IRD (interest rate differential). For variable-rate mortgages, penalties are usually smaller.
Tip: ask your lender for a written payout figure and penalty estimate early — and share it with your lawyer.
Adjustments — the invisible numbers on your statement
Adjustments are prorated amounts for property taxes, utilities, and condo fees. If property taxes are paid up front for the year and you close halfway through, the buyer reimburses you for their share — or vice versa. These small line items can change the final few hundred dollars your lawyer sends you.
Condo status certificate — mandatory on many condo sales
If your home is a condo in Georgetown, the buyer will almost always ask for a status certificate. It documents the condo corporation’s finances, any special assessments, and rules. Status certificates usually cost $100–$300 and are produced by the condo board or property manager.
Repairs, credits, and holdbacks
After an inspection, buyers may request repairs or a credit. If there are title issues or outstanding deficiencies, holdbacks may be placed in trust until the issue clears. These items vary and are negotiable.
Outstanding liens / judgments / second mortgages
Any outstanding liens must be cleared at closing. This could include home-equity lines, second mortgages or construction liens. Your lawyer will order searches to reveal these early in the process.
What’s NOT usually a seller cost in Georgetown
- Land transfer tax: Paid by the buyer in Ontario residential resale transactions (Toronto has a municipal LTT — the seller doesn’t pay it).
- HST: Not charged on resale homes (generally only applicable to new builds from builders).
Georgetown-specific notes — local rules and realities
- Municipal and Regional Adjustments: Georgetown sits in Halton Region. Property tax adjustments are prorated at closing the same way as the rest of Ontario. There is no municipal land transfer tax like Toronto’s, so sellers in Georgetown don’t pay that extra tax.
- Local legal rates: Halton Hills law firms and real estate lawyers typically price similar to GTA averages. Expect the same ballpark legal fees as in neighbouring towns like Acton or Milton.
- Market-savvy pricing matters here: Georgetown is competitive. Overpricing increases market days, which can trigger mortgage renewal penalties or staging/holding costs — all raise your net closing cost.
Sample breakdown — realistic example
Sale price: $800,000 (Georgetown detached home)
- Commission (5%): $40,000 (often split between listing and buyer’s agents)
- Legal fees/disbursements: $1,200
- Mortgage discharge fee: $350
- Adjustments (taxes, utilities): -$600 (buyer owes seller) — can be positive or negative
- Status certificate: N/A (not a condo)
Estimated seller proceeds before mortgage payout and outstanding liens: $800,000 – $40,000 – $1,200 – $350 + $600 = $759,050 minus any mortgage balance. If your mortgage balance is $400,000, you walk with roughly $359,050 before personal costs and taxes on capital gains if applicable.
This example shows commissions dominate the seller closing costs. That’s why pricing, staging, and negotiation are the biggest levers to increase your net.
How to reduce closing costs and keep more cash at closing
- Negotiate commission: Ask for different fee structures — flat fees, tiered commissions, or reduced rates if you buy another property with the same brokerage.
- Payoff timing: If you’re near mortgage renewal, talk to your lender about timing to avoid large penalties.
- Clean titles early: Order a title search and pay off small liens in advance to avoid rush legal fees.
- Stage smart, not expensive: Targeted improvements yield higher sale prices than broad renovations.
- Work with a local expert: A Georgetown realtor who knows local buyers, comps, and negotiation tactics closes faster and for more.
The legal & paperwork checklist for Georgetown sellers
- Provide signed Agreement of Purchase and Sale to your lawyer immediately.
- Get mortgage payout figures in writing from your lender.
- Deliver property information form, status certificate (if condo), and all appliance manuals to buyer’s agent.
- Order a title search through your lawyer.
- Arrange utility final reads and arrange final billing dates.
- Confirm closing date and net proceeds estimate with your lawyer 3–5 business days before closing.
Doing this early prevents last-minute costs.
Why your realtor matters more than your commission rate
If you cut commission but pick a weak agent, you can lose tens of thousands on price and still save only a few thousand on fees. That’s bad math. A skilled Georgetown realtor raises showings, pricing accuracy, and negotiation — which directly increases your net proceeds. That expertise turns commission from a pure cost into an investment.
Next step — talk to a local expert
If you want an accurate, no-nonsense net proceeds worksheet for your Georgetown property, email Tony Sousa at tony@sousasells.ca or call 416-477-2620. Tony will run the numbers, explain legal costs in plain English, and show how small changes in price or timing affect your cash at closing.
Contact: Tony Sousa — tony@sousasells.ca | 416-477-2620 | https://www.sousasells.ca
FAQ — Closing costs for sellers in Georgetown, ON
Q: Who pays land transfer tax in Georgetown?
A: The buyer pays the provincial land transfer tax in Ontario. Georgetown sellers do not pay municipal land transfer tax (Toronto only). Expect the buyer to cover the transfer tax on closing.
Q: How much are legal fees to close a sale in Georgetown?
A: Simple residential closings typically cost $700–$1,500. More complex situations (multiple mortgages, estate sales, title issues) cost more. Ask your lawyer for an itemized estimate early.
Q: Do sellers pay HST on resale homes?
A: No. HST generally does not apply to resale residential properties. HST applies to new homes sold by builders.
Q: What happens if there’s a mortgage penalty?
A: Penalties depend on your mortgage type. Fixed-rate mortgages may charge an IRD or three months’ interest. Variable rates usually require a smaller fee. Get a written payout from your lender and discuss timing to reduce penalties.
Q: Are realtor commissions fixed in Georgetown?
A: No. Commissions are negotiable. Rates depend on service, marketing plan, and market conditions. Get a clear written agreement and a projected net proceeds worksheet.
Q: Who pays for the condo status certificate?
A: Usually the seller orders and pays for the status certificate because the buyer will request it as part of their due diligence.
Q: Can I avoid legal fees by doing paperwork myself?
A: Not recommended. Real estate closings require legal registration, title searches, and funds distribution that only a licensed lawyer or notary should handle. Savings are small compared to the risk.
Q: What if there are outstanding liens or property tax arrears?
A: These must be cleared before or at closing. Your lawyer will identify liens during the title search and provide a payout plan.
Q: How soon will I get my net proceeds after closing?
A: Lawyers typically disburse net proceeds the same day or the following business day once funds clear. Timelines vary depending on bank processes.
Q: How can I get a precise estimate of my closing costs?
A: Contact Tony Sousa for a customized net proceeds worksheet. Provide your estimated sale price, mortgage balance, and any outstanding liens. Tony will coordinate with a lawyer to produce an accurate closing estimate.
If you want a precise, no-fluff net proceeds calculation for your Georgetown home, reach out now: tony@sousasells.ca | 416-477-2620 | https://www.sousasells.ca
Get the facts. Keep more. Close clean.
