Let’s talk fees!

Piggybank and calculator. Isolated on white background

 Tip #5 – Let’s talk fees!

When you speak of a real estate purchase, you’re talking fees. Let’s just see what the additional costs are.

A – Welcome tax (Taxe de mutation)

B – Notary

C – Allocation

D – GST and QST (if applicable)

A – Welcome tax

This tax is calculated on the greater amount between the purchase price (before GST and QST) and the municipal evaluation. In addition, the rates vary. For a property worth $50,900 and under, it is 0.5%. From $50,900.01 to $254,400 the rate is 1%, and for properties worth $254,300.01 and over, it is 1.5%.

These three first rates were set by the government of Québec. A municipality has, however, the right to set a higher rate to a limit of 3% for properties worth more than $500,000. Thus, for the Ville de Mont-Tremblant, the rate is 2% for properties worth from $503,500.01 to $1,007,000 and is 2.5% for properties worth more than $1,007,000.01. Be aware, though, that these rates vary from town to town. Inform yourself via your broker.

B – Notary

It’s up to the purchaser to select and pay the notary. You should expect to pay between $1,300 and 2,500 plus taxes, depending on the work required.

C – Allocation

At the signing, the notary will allocate expenses. He or she will ensure that the vendor has paid what was owed and that the purchaser reimburses the amount in excess paid by the vendor. For example, if the property taxes are $5,000 per year, and the vendor has already paid this entire amount and the transaction takes place on July 1, the purchaser will reimburse $2,500 to the vendor.

D – GST and QST

This subject is worthy of its own column. You’ll just have to wait for the April issue to find out about these.

Have fun with the math!

 

Pascale Janson17 Posts

Pascale Janson, BAA Directrice d’agence, copropriétaire et courtier immobilier agréé chez Les Versants Mont-Tremblant. Pascale détient un baccalauréat en marketing et en gestion d’entreprise des HEC de Montréal. Elle a travaillé plusieurs années à Paris et à Montréal. En 2003, elle a décidé de relever le défi de créer, avec son père, sa propre bannière en immobilier. / Agency manager and co-owner Pascale studied marketing and management at the HEC Montréal and worked for several years in Paris and Montreal. In 2003, she agreed to her father Etienne’s proposal to open a local real estate office.

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