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Understanding Closing Costs for Home Sellers in Calgary

Selling a home is an exciting journey, but it's crucial to understand the full picture when it comes to closing costs. As a seller, there are various fees and costs that can quickly add up, which can affect your bottom line. Having a clear understanding of these expenses ahead of time can help you avoid any surprises and allow you to make more informed decisions as you move forward.

In this blog, we’ll break down the key closing costs sellers typically face when selling a home in Calgary and provide an overview of a typical Seller's Net Sheet.

1. Real Estate Fees

One of the largest expenses when selling a home is the real estate commission. Typically, these fees are split between the listing agent and the buyer's agent.

- Listing Company Fee: As per your listing agreement, real estate fees are usually calculated as a percentage of the sale price. For example:

  - 7% of the first $100,000 of the sale price + 3% of the balance = Real estate commission

- GST: The Goods and Services Tax (GST) is applicable to real estate commission fees, adding to the overall cost of selling.


For example, if the sale price of your home is $500,000, your real estate fees could look like this:

Real Estate Fees (7/3 Split):

7% on the first $100,000 = $7,000

3% on the remaining $400,000 = $12,000

Total Listing Fees = $19,000

GST on Real Estate Fees (5%):


GST on $19,000 = $950

Total Listing Fees with GST = $19,950


2. Mortgage Payout

If you still have a mortgage balance, you'll need to pay it off upon the sale of the home. The amount owed will be determined by your mortgage provider. Additionally, there may be a payout penalty depending on the terms of your mortgage.

- Mortgage Amount: The balance owing on your mortgage will need to be paid from the sale proceeds.

- Payout Penalty: If applicable, this penalty could be for three months' interest or an Interest Rate Differential (IRD). Be sure to contact your bank for exact numbers.


3. Property Taxes

You’ll also need to account for property taxes. If you’ve paid property taxes annually, there may be an adjustment due based on the time of year you sell.


- Property Tax Payout: If you’re selling mid-year, there will be an adjustment for taxes that have already been paid for the year. The buyer will reimburse you for the period after the sale.

You may have taxes that are paid monthly through the Tax Installment Payment Plan System (TIPPS) or on an annual basis. Here’s an example of the expected adjustment:

- Property Tax Payout: $3,000 annually or $250 monthly TIPPS.


4. Additional Costs

Sellers often face several other additional costs, depending on the circumstances surrounding the sale. These include:

- Real Property Report (RPR): This survey is often required for closing. If you don’t already have an RPR or one that is up to date, the cost for a new one can range from $500 to $1,000.

- Insurance: You’ll need to maintain homeowner’s insurance until possession. If your home is vacant or abandoned, a special policy may be required.

- Condominium Fees: If you’re selling a condo, there may be additional costs such as condo document fees, special assessments, or levies. These should be reviewed thoroughly to ensure they are up to date.


5. Legal Fees

Lawyer’s fees are another part of closing costs. This typically includes disbursements related to title transfer and other legal requirements. The total cost can vary, but it's essential to consult with a lawyer to know exactly what to expect.

- Lawyer’s Fees: $1,000 to $1,500 for basic legal services (this varies depending on the complexity of the transaction).


6. Special Assessments or Levies

For condominium owners, it’s important to check if there are any special assessments or levies. These are additional charges that the condo board may levy to cover major repairs or improvements to the building. If these are unpaid, they will become your responsibility.

- Special Assessments/Levies: $500–$5,000 depending on the building.


The Importance of Accurate Estimates

As you can see, selling a home involves several financial considerations. Having a clear understanding of the various closing costs associated with the sale will help you manage your expectations and plan accordingly.

To ensure that you have an accurate picture of your financial situation, always consult with a real estate professional and a lawyer. They can provide you with a more detailed and personalized breakdown of costs based on your specific property and sale conditions.

By knowing the costs involved in the sale of your property, you can confidently move forward with your plans, whether that means purchasing a new home, investing in a different property, or using the proceeds for other goals.


Selling your home is a big financial decision. Understanding the closing costs involved can help ensure a smoother and more informed transaction. By working with a knowledgeable real estate agent and legal team, you can avoid unexpected costs and make the most out of your sale.

Data is supplied by Pillar 9™ MLS® System. Pillar 9™ is the owner of the copyright in its MLS®System. Data is deemed reliable but is not guaranteed accurate by Pillar 9™.
The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA. Used under license.