Disbursements on a Residential Real Estate Sale

Last time, we covered the typical disbursements incurred on a residential real estate purchase.

While one charge will be the fee for a lawyer’s service to complete the transaction (Click Here for Jackson LPC’s rates), some additional fees will be added on for disbursements – the expenses your lawyer incurred on your behalf. This article lists and explains the most common disbursements incurred on a residential real estate sale.

Please note that Jackson LPC cannot control the fees charged by outside organizations. These disbursements are only intended to be estimates. Disbursements also vary based on the individual circumstances of each transaction. Some disbursements are subject to HST. The fees listed below are based on the sale of an average single family home or condominium in Ottawa as of the date of this article.

Title Subsearch

$25.00 – $40.00
A title subsearch for a sale is much less extensive than the title search required for a purchase. It is conducted to confirm the current owner of the property, the property’s legal description and property identification number (PIN), and any outstanding encumbrances on the property (For example: mortgages or liens).

Registration Fees

$75.27 per document
If the house you are selling is still subject to a mortgage, once it has been discharged, documentation must be registered under Ontario’s land registration system. One document must be registered for every mortgage discharged on a property. Depending on the mortgage policy in question, your lawyer might have to register the discharge and charge you the document registration fee. However, most mortgage companies will register the discharge themselves and charge you this fee.

Software Charges

$20.00 + HST per transaction
Most law firms use specialized real estate software to help them keep the transaction and all the related documents organized. Jackson LPC uses Do Process Software’s Conveyancer, which charges for each transaction done through the program.

Courier Expenses

$40.00 – $60.00 + HST per transaction
As a general rule, a courier will be required for processing a real estate transaction. Couriers pick up documents at locations outside our office, and transfer bank drafts, documents, and keys between lawyers. As real estate transactions are time sensitive, this is done to ensure both sides of the transaction receive their required materials on time and that they are transferred in a secure manner.

Law Society Transaction Levy

$65.00 per transaction
For every real estate transaction that a lawyer does without the benefit of an approved title insurance policy, we are required to pay a transaction levy to our liability insurance provider. Since title insurance is not available for real estate sales, this fee applies to all sales in the province of Ontario.

Bank Expenses

$15.00 – $30.00 per transaction
In order to ensure the transfer of money is secure, lawyers use either certified cheques, bank drafts or wire transfers. These types of transfers tend to be subject to additional banking fees.

General Office Expenses

Many lawyers will charge for printing, photocopying and other office expenses. Jackson LPC’s flat rate fee includes all office expenses.

Disclaimer: This blog is made available by Jackson Law Professional Corporation for educational purposes only. Its purpose is to give you general information and a general understanding of the law, not to provide specific legal advice. By using this blog, you understand there is no lawyer-client relationship between you and Jackson Law Professional Corporation or any of its employees or representatives. This blog should not be used as a substitute for competent legal advice from a licenced lawyer in your jurisdiction.