Estimated Closing Costs in NS

When Purchasing a Home

Before you sign on the dotted line, it is important to understand the ancillary costs inherent in completing the purchase of a new home. Below are the key closing fees to be aware of…

• Home Inspection Fee: This is a service I STRONGLY encourage my clients to avail themselves of. Home inspections usually cost between $400-$600 plus hst. Your Realtor® can help point you to reputable inspectors.

  
  

• Legal Fees: You will need a lawyer to complete the purchase of your home. Legal fees vary from lawyer to lawyer but on average it is safe to allow $800 - $1000 for legal fees and another $300 to $400 for disbursements such as registering the deed etc. The legal fees for a purchase of a $250,000 home would be about $1000 for the lawyer and $300 for disbursements for a total of $1300. Paid on closing.

  
  

• Realtor's Fee: Typically, the buyers of a home do not pay anything to the Realtor or Brokerage representing them in the transaction. The commission owing is paid by the sellers, unless some unique arrangement has been made.

  
  

• Well & Septic Inspections/Tests: If you are buying a property on well and septic the combined inspections will cost in the neighborhood of $1,000 to $1,500. These tests are optional, but can save you in excess of $10,000 if, for example, the septic system is compromised.

  
  

• Deed Transfer Tax: The municipality the home is located in will charge a fee to transfer the deed into your name. This fee is between 1% and 1.5 % of the purchase price of the home. For example, in a $300,000 purchase you would pay $4,500 deed transfer tax (at 1.5%). This tax is paid on closing.

  
  

• Non-resident Deed Transfer Tax and Property Tax: (PDTT) The PDTT applies to all residential properties or portion of property deemed residential with 3 dwelling units or less, including vacant land considered to be residential property. A residential property is one that is used, or intended to be used, for residential purposes.

  The PDTT is a 10% tax levied on the purchase price or the assessed value of property (whichever is greater).

  
  

• Property Tax Adjustment: The sellers of the home you are buying have paid property taxes to the municipality. These taxes are paid twice a year and are paid in advance. You will be required to reimburse them for the taxes they have prepaid. For example, if the seller has paid $2000 for 6 months starting on April 1st and you were closing June 30th you would be required to pay the owner half of the taxes prepaid or $1,000. Count on 3 months taxes and you should be safe.

  
  

• Fuel Adjustment: If the home you are buying has oil heating or has a propane fireplace you will be required to pay the seller for a full tank of fuel on closing. The owner will fill the tank(s) the day before closing. You will pay this at your lawyer's office on the closing date. The cost for this will vary. You should budget $800-$1000 for a full tank of oil and $400-$500 for full tank of propane.

  
  

• Optional Radon Test: Radon gas is a cancer-causing gas that is found in some homes in the province It usually comes in the house through the basement floors or walls. Test kits cost approx. $60 and can be done yourself. Professionals cost between $200 and $300. If higher than recommended levels of radon are found, remediation is between $1,500 and $2000. To see radon levels in Nova Scotia: www.fletcher.novascotia.ca/DNRViewer/?viewer=Radon

• Other Costs: Movers, power/phone/internet/television.

Below is an approximation of total costs which can be levied during the closing of a real estate transaction…

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