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Buyer’s Closing Costs (PT7)

Looking to buy a home? Ever wondered what fees are included in your closing cost?

This is your power realtor Cherine Anderson with another Power Tip for today.

Here are 6 fees that are included in your closing cost.

 

  1. Stamp DutyThis is a  Government Tax paid to the Stamp Office at a rat... More.

This is 4% of purchase price.  But it’s shared equally between the purchaserA person, company or business who buys a property for sale. ... More and the vendorA person, company or business offering a property for sale. ... More.  So as the purchaserA person, company or business who buys a property for sale. ... More you’ll only pay 2%

  1. Registration FeeThis is a fee charged by the National Land Agency (NLA) - ... More

Now your registration feeThis is a fee charged by the National Land Agency (NLA) - ... More is 0.5% of the purchase price. However, this is also shared equally between the vendorA person, company or business offering a property for sale. ... More and the purchaserA person, company or business who buys a property for sale. ... More. So you’ll only pay 0.25%

 

  1. Legal Fees

There are two parts to this

  • The vendor’s attorney prepares the Sale Agreement. Now whatever the vendor’s attorney charges the vendorA person, company or business offering a property for sale. ... More for preparation of the sales agreement, you’ll pay a half of this fee plus 16.5% GCT
  • Then you’ll also have legal fees for you attorney which could range between 1% -3% of the purchase price plus GCT

 

  1. Valuation Report and Surveyor Report

This is part of your due diligence. You want to ensure that if you are buying a property, let’s say its advertised at $10 Million Dollars, that its actually worth $10 Million Dollars, cause it’s could be worth more ( or less)

If you decide to take out a mortgage, your lender will require both a valuation and surveyor’s report. And, if the property is over 40 years old, you may be asked to provide a Structural Engineer’s report.

 

  1. Processing Fees for your loan. The bank is not going to give you money for free. So there are fees associated with processing your loan. This varies from lender to lender. So you want to make sure you do your research to ensure you are getting the best rate.

 

  1. Letters of Utilities and letter of possession

 And then there are your letters of utilities and possession which also attract a fee.

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