Buyer Agreement
A buyer agreement is a contract that is signed between the buyer and the real estate broker or agent. The parties work together for a period of time, and agree to respect the terms and obligations set out in the contract. (a copy is available upon request)
Start-up Costs
Did you know that when you buy property, you need to have money put aside to cover start-up costs? A down payment and mortgage payments are not the only costs involved so it’s wise to plan some savings to take care of these other “first” expenses.
These costs should not be taken lightly and some mortgage lenders will even check that you have these funds available before granting you a loan. Mortgage loans are calculated based on the value of your home and, therefore, cannot be used to meet these additional amounts.
Here is a list of common start-up costs:
- Property inspection and evaluation
- File processing fee for mortgage insurer as well as any taxes on the insurance premium
- Notary fees
- Adjustment costs determined by the notary (electricity, heating, municipal and school tax, equipment rental contract, etc.)
- Property transfer tax (welcome tax)
- Moving expenses
- Service and utilities hook-up fees (phone, electricity, etc.)
- Decorating (paint, curtains, etc.)
Welcome Tax or “Transfer Property Tax”
The tax, which is based on the selling price or on the M.U.C. evaluation of the property whatever is greater. It will be calculated as follows:
| .005 Of the first |
$ 50,000 ($ 1.00 - $ 50,000) |
| .01 Of the next |
$ 200,000 ($ 50,001 - $ 250,000) |
| .015 Of the balance |
($ 250,000 ...............) |
After you have signed the deed of sale at the notary’s office, the municipality will send you an invoice shortly after you have moved into your new home. We are glad to have you, come again!
Example #1 - Sales price: $ 150,000
| .005 x $ 50,000 = |
$ 250 |
| .01 x $ 100,000 = |
$ 1,000 |
| Transfer tax |
$ 1,250 |
Example # 2 - Sales price: $ 300,000
| .005 x $ 50,000 = |
$ 250 |
| .01 x $ 200,000 = |
$ 2,000 |
| .015 x $ 50,000 = |
$ 750 |
| Transfer tax |
$ 3,000 |
Example #3
| Sales price |
Transfer tax |
| $ 100,000 |
$ 750 |
| $ 150,000 |
$ 1,250 |
| $ 200,000 |
$ 1,750 |
| $ 250,000 |
$ 2,250 |
| $ 300,000 |
$ 3,000 |
| $ 350,000 |
$ 3,750 |
|
