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The
range for combined fees and disbursements will run normally anywhere from
$1,000 to $1,600. Anything less has to be considered a red flag that the
level of service and/or quality of work will be sub-standard. Anything more
should raise concerns that you are being seriously over-charged. We find
that most of the purchase transactions we are involved with fall within
the $1,300 to $1,500 range and that includes fees, disbursements and taxes.
However, that amount does not include land transfer tax which is a one time
levy by the Province that every purchaser pays on every purchase of land
in Ontario. I point this out even though it is not technically "an
amount paid to the lawyer to handle my purchase" but because it is
a significant cost that purchasers must be aware of when they are budgeting
for their home purchase. Land transfer tax is calculated using on a formula
based on the value of the property being purchased. For properties costing
between $50,000 and $250,000, which is common for most first time purchasers,
the formula is one per cent of the purchase price less $275. There is a
different formula for properties up to $400,000 and a different one for
properties over $400,000.
If you are purchasing
a new home that is under construction, you can expect to pay an additional
amount to have your lawyer review the offer before it becomes a firm offer.
The documentation for new homes and new condos is fairly detailed so expect
to pay $150 to $300 for a lawyer to review the material.
Also if you are
buying a new condo, typically you will have an interim closing where you
take possession of the unit, and a final closing where you actually get
title to the condo. Fees and disbursements for an interim closing would
be in the $400 to $600 range, while the final closing will still be $1000
to $1600. |
