When purchasing a home in Calgary, it’s vital to take all closing costs and professional fees into consideration; including your lawyer fees.
Breaking down your full closing costs may not be as straightforward as you think, especially as there are no standardized prices for some of these services.
Factoring Closing Costs into Your Home Price
How much should you expect in closing costs? This is one of the questions we field the most frequently in regard to real estate law and is one that many first-time home buyers aren’t prepared for.
Closing costs are the fees paid during your home purchase that aren’t necessarily tied to the price of your home but could end up increasing the amount of money you will need to pay to complete your home purchase. Common closing costs include:
- Home inspection
- Appraisal
- Credit report
- Property insurance
- Condo document review
- And, of course, lawyer fees and disbursements
The ‘Extra’ Costs of Buying a Home
Knowing all the ‘extra’ costs that need to be factored into your home purchase is essential to know what your overall home purchase budget should be. Some of the costs that you’ll encounter in addition to your home purchase price and closing costs include:
- Title insurance
- Adjustment costs
- Property insurance
- Utility service charges
- Moving expenses
- Realtor fees
- CMHC mortgage insurance
These ‘extra’ costs are defined as the charges and/or fees that are paid during house purchase finalization. As such, the ‘extra’ costs above will require immediate payment and are not eligible for closing cost financing.
Looking to learn more about the expenses that must always be factored into your budget? ATB Financial expertly breaks down both the mandatory and potential non-lawyer fees that are musts when building your budget.
“What Should I Budget for Lawyer Fees?”
Real estate lawyers set their own fees and you will notice variable rates when you compare one against another. It’s important that you do your research and don’t get caught off guard by a lawyer bill that’s much higher than anticipated. Typically real estate lawyers charge for disbursements in addition to their legal fees. Disbursements are third-party costs a lawyer incurs in order to close your deal (for example: land titles costs, courier fees, software charges etc.)
Based on the price lists of existing Alberta real estate law firms, the real estate lawyer fee typically starts at $795 CAD plus GST and disbursements The total amount you’ll pay depends on but is not limited to the value of the property, the amount of the mortgage and complexity of the transaction.
At One80 Law Group, our fully-remote lawyers offer flexible service hours and transparent rates that provide our clients with certainty and peace of mind.
Get a Legal Partner You Can Trust With One80 Law
Purchasing a home is one of the biggest milestones in life, so the importance of knowing the process and trusting your legal partner can’t be overstated. The more prepared you are, the better off you will be once you settle in. Working with a real estate lawyer from One80 Law Group can help you avoid the shock of hidden fees and costs you did not expect.
Book your appointment today to close the sale of your house and have some budget left to make it feel like home.