[AMB]

Hello, the situation is that my sister has purchased a 1 Bedroom 550sf condo (241K) at
The James Club by Royal York and Dundas. Her lawyer stated that the closing costs were capped at 3K, something the builder didn't seen too happy about. Well last evening her lawyer called her and said that closing costs were just over 7K.

We will be heading to the lawyers office to get a breakdown of the numbers as the details still look sketchy, but is it just me or is this amount over excessive? I know others in downtown with pricier units that have paid as little as $2500 for closing.

Any info would be appreciated.

Thanks

 

[MadMax]

They say when purchasing a new build condo, to take into consideration about 3 to 4% of the purchase price in closing costs. 241k X 3% is $7230, so it's pretty much bang on. Doesn't seem too unreasonable to me.

 

[W. K. Lis]

Some real estate commissions can be between 1% to 2½% (for one buyer/seller side, ditto for the other seller/buyer side) for a total of between 2% to 5%. Depends on the broker or brokers, or deals worked out, can be better.

 

[Kenny]

Some real estate commissions can be between 1% to 2½% (for one buyer/seller side, ditto for the other seller/buyer side) for a total of between 2% to 5%. Depends on the broker or brokers, or deals worked out, can be better.

Usually the seller pays both commissions.

 

[Bloor West Villager]

Is she a first time homebuyer? Is she on the hook for land transfer taxes?

 

[will345]

Her lawyer stated that the closing costs were capped at 3K, something the builder didn't seen too happy about. Well last evening her lawyer called her and said that closing costs were just over 7K.

Be a little more specific. Does that include land transfer taxes or is that 7K just adjustments from the builder? If she isn't a first time home buyer and that 7K includes land transfer taxes, it seems reasonable.

 

[Torontotony]

Closing costs typically average about 1.5% of the purchase price, excluding any rebates on Land Transfer Taxes. In this case, the total closing costs should not be any greater than $3,600. The only exceptions to this would be in the case whereby your sister was still required to make part of the down payment or if she is not eligible for Land Transfer Tax rebate.

Good luck!

Tony

 

[Jewel]

Actually sounds cheap to me... I paid an extra 10K at my close in Liberty village condo

 

[AMB]

Thanks for all the responses, it turns out there was a miscalculation that was missed, the closing costs after all this ended up being $4,600 which seems more reasonable to me. My sister was a first-time home buyer so land-transfer taxes were exempt. It is important to make sure you look over all your numbers for any discrepancy. Also her lawyer seemed to overcharge some of the fees/expenses.