COSTS ASSOCIATED WITH BUYING REAL ESTATE IN VANCOUVER
When buying real estate, there will be additional costs you may incur as a part of your due diligence that you should be aware of:
Legal Fees - lawyer fees will vary depending on the complexity of the transaction and are usually $600-$1,500 plus disbursements plus GST. Your legal representative will review your contracts, search the title, draft mortgage documents and facilitate the transfer and registration of title. Costs will vary depending on your requirements and we have lawyers that we can recommend.
Home Inspection - if you choose to have an inspection, and in most cases we recommend it, costs are typically $400-$1,000, depending on the size of the property and complexity of the inspection. We will be pleased to advise you on the value of having a home inspection performed on your chosen property and can recommend reputable local home inspectors.
Condominium Document Review - this is the most important condition when buying a condo. The seller is required to supply all the condo documents relevant to the subject condo unit for you to review. The documents will include budgets, financial statements, engineering reports, etc. (complete list). The review will let you know everything from future costs and plans for the building/complex, financial situation, issues that have been a problem in the past and any that are current, any special assessments, etc. Basically everything that can be found out. We always recommend this condition being a part of your offer on a condo to fully protect your interests.
Goods and Services Tax (GST) - All new construction properties will require 5% GST to be paid. Most builders nowadays include this in the price you are given when you price out your new property. In cases where it is not, it is simply calculated on top of the purchase price. When buying bare land or a vacant lot you will be required to pay GST as well. This can also be included in the price or not depending on how the seller is marketing the parcel of land.
Realtor's Commissions - you won't pay realtor's commissions on your purchase. Commissions are paid by the Seller.
Appraisal - your lender may require a property appraisal and costs vary but are typically between $200-$500 and in most cases are paid for by the lender. Your mortgage broker or lender will confirm that for you.