Legal and Closing Costs Sellers Should Understand

Chris Miller
Tuesday, June 17, 2025

Selling a home is not just about the sale price. Sellers should also understand the costs that can appear before, during, and after closing. Planning for these expenses can help you avoid surprises and calculate your true net proceeds.

Legal fees are one of the most common seller costs. Your lawyer typically helps discharge the existing mortgage, review documents, handle closing funds, and complete the transfer process. Costs vary, so it is wise to request an estimate early.

Sellers may also need to budget for:

  • Mortgage discharge fees
  • Possible mortgage penalties
  • Real estate commissions
  • Legal fees and disbursements
  • Property tax adjustments
  • Condo document fees, if applicable
  • Repairs agreed to during negotiations
  • Moving costs
  • Cleaning or staging expenses

Mortgage penalties can be significant. If you are selling before your mortgage term ends, ask your lender for a payout statement and penalty estimate. The amount may depend on whether your mortgage is fixed or variable, your remaining term, and your lender’s calculation method.

In Alberta, buyers typically pay land title transfer and mortgage registration fees, but sellers should still understand how title, mortgage discharge, and adjustments work.

Adjustments are also important. If you have prepaid property taxes or condo fees, the buyer may reimburse you for their share after possession. If amounts are owing, they may be adjusted the other way.

Your selling price is not the same as the amount you keep.

Before listing, ask for a seller net sheet. A realistic estimate of costs, mortgage payout, and expected proceeds can help you make better decisions about pricing, timing, and your next purchase.


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