Closing Costs to Consider
When buying a property in Nova Scotia, you have to figure in closing costs. These costs are over and above your downpayment and are due on closing.
LAND TRANSFER TAX
In Nova Scotia, land transfer tax varies by county. In Halifax, the rate is 1.5% of the purchase price. e.g. purchase price of $200,000 x 1.5% = $3000
LAWYERS FEES AND DISBURSEMENTS
Legal fees will vary depending on the lawyer. It is a good idea to shop around. The average cost is about $800-$1000. This is not including disbursements, which could be anywhere from $200-$400. Disbursements include courier fees, photocopying, title search, registration costs, etc...
When buying a home in Halifax, you should retain the services of a qualified home inspection. The average price for a home is between $400-$500. It is also strongly recommended to test septic and sewer lines and, if buying on a well, test the water for bacteria.
The seller of the home you are buying has paid property taxes to the municipality. Taxes are paid bi-annually in April and October. You will be required at closing to reimburse the seller for the taxes they have prepaid. For example, if the seller has paid $2000 for six months starting on April 1st and you were closing June 30th, you would pay the owner for July, August, and September totalling $1,000. If the home is heated by oil, the seller will top up the oil tank, and you would reimburse the seller at closing for a full tank.