Closing Costs are not a part of the unit price you will be quoted at a new project development, and they may come as a big surprise upon closing.
Here is a partial list of possible fees and charges you may have to pay upon closing:
- Heat Pump
- Public Art Levy
- Sewer Connection Charge
- Educational Levies
- possible additional charges
These and others can add up quickly to thousands of dollars.
When purchasing a new unit, be aware of of closing costs and how much cash you’ll need to set aside for closing [this is not going on the mortgage]. To protect yourself ask your Realtor to explore an option for you to “cap” closing costs i.e. to set a maximum known pre-determined agreed amount right in the contract.
In some cases, your Realtor could possibly help you not only understand what the closing costs are, but also negotiate a better cap on these expenses.
Another example why you should never walk into a condo sales centre without your agent, contact Yossi Kaplan.