In short
The general rule in Canada: the BUYER pays the costs of acquiring — land transfer tax, closing professional (notary or lawyer), inspection, title insurance, adjustments for taxes already paid — and the SELLER pays the costs of exiting: the agent's commission, discharging their old mortgage, and in Quebec the up-to-date certificate of location. Two nuances make all the difference: the mortgage appraisal is usually paid by the buyer but ordered for the lender; and the commission, paid by the seller, is funded by the sale price — so the buyer carries it indirectly. Every line of the table links to the dossier with the real amounts.
The split, line by line
| Cost | Who pays | The amount lives in… |
|---|---|---|
| Land transfer tax | Buyer | Land transfer tax, city by city — $0 in AB/SK, doubled in Toronto |
| Closing notary or lawyer | Buyer | Legal fees by province |
| Pre-purchase inspection | Buyer | Inspection vs appraisal |
| Appraisal required for the loan | Buyer (but the client is the lender) | Appraisal cost |
| Title insurance | Buyer (lender's policy often required) | Title insurance: cost and coverage |
| GST/HST (new homes only) | Buyer | GST/HST on a new home |
| Adjustments (taxes and fees prepaid by the seller) | Buyer — reimburses the overpayment pro rata | Closing costs |
| Real estate agent's commission | Seller — funded by the sale price | Commission: the real numbers |
| Discharge of the old mortgage | Seller | Discharge fees |
| Up-to-date certificate of location (Quebec) | Seller | Surveys and the certificat de localisation |
| Penalty if the seller breaks their mortgage early | Seller | Mortgage penalty |
| Tax on the gain (if not the principal residence) | Seller | Taxes when selling |
The customary split in Canada — the offer to purchase can move some lines (everything is negotiable, especially in a buyer's market). No amount is repeated here: each linked dossier is authoritative for its figures, with its sources and reading dates.
Calculator
The bill on YOUR price
Two amounts computed at the official schedule: the buyer's land transfer tax (registration fees in Alberta and Saskatchewan) and the seller's commission at the rate YOU enter — no rate is assumed.
Tax and registration fees: official schedules validated at source (see the land transfer tax dossier for reading dates). Commission has no "standard" rate in Canada — which is why the field stays empty until you enter yours; sales taxes apply on top. Legal fees, title insurance and inspection remain market ranges: see their dossiers in the table above.
The line everyone assigns wrong: the commission
On paper, the agent's commission is paid by the seller — they signed the brokerage contract, and it comes out of their sale proceeds. But the money comes from the price the buyer pays: a 5% commission on a $500,000 sale is inside the $500,000. Saying "the buyer pays no commission" is legally true and economically debatable — both sides carry it, each in their own way. Our commission dossier has the real rates, and agent vs selling yourself prices the alternative.
Second tricky assignment: the mortgage appraisal. The buyer almost always pays it, but it is ordered for the lender and the report is not always handed over. Who pays and who the client is are two different questions — the whole subject of our inspection vs appraisal dossier.
Adjustments: the line nobody sees coming
At closing, the professional calculates the adjustments: the seller has often prepaid property taxes, condo fees or heating oil covering a period when the buyer will occupy the house. The buyer reimburses that overpayment pro rata, on signing day. It is not a fee in the strict sense — it is a resetting of the meters — but it is a very real cheque to plan for, and it can reach several thousand dollars when the annual taxes have just been paid.
That is also why a serious closing quote separates fees, disbursements and adjustments: all three leave your account the same day, but only the first pays anyone. The typical total by province is in our closing costs dossier.
What is negotiable — and what is not
The table's split is custom, not law. In a buyer's market, sellers absorb the inspection, cover months of condo fees or credit closing costs. Conversely, in bidding wars, buyers waive entire protections — almost always a mistake, see the pre-purchase inspection. One rule: any moved line must be IN WRITING in the offer to purchase, not agreed verbally.
What does not move: state taxes and fees. The land transfer tax is owed by the buyer, full stop — only official exemption programs (first-time buyers, depending on the province) reduce it. Beware any scheme claiming to get around it.
Frequently asked questions
Who pays what in a Canadian real estate transaction?
The general rule in Canada: the BUYER pays the costs of acquiring — land transfer tax, closing professional (notary or lawyer), inspection, title insurance, adjustments for taxes already paid — and the SELLER pays the costs of exiting: the agent's commission, discharging their old mortgage, and in Quebec the up-to-date certificate of location. Two nuances make all the difference: the mortgage appraisal is usually paid by the buyer but ordered for the lender; and the commission, paid by the seller, is funded by the sale price — so the buyer carries it indirectly. Every line of the table links to the dossier with the real amounts.
Does the buyer pay the agent's commission?
Not directly: the commission is paid by the seller, who signed the brokerage contract, and comes out of their sale proceeds. But it is funded by the price the buyer pays — a 5% commission on $500,000 is inside the $500,000. Legally, no; economically, both sides carry it.
What are the "adjustments" at closing?
The resetting of the meters: the seller has often prepaid property taxes or condo fees covering a period when the buyer will occupy the house. The buyer reimburses that overpayment pro rata on signing day. That cheque can reach several thousand dollars when the annual taxes have just been paid — build it into your closing budget.
Can the seller pay part of my closing costs?
Yes, if it is written into the offer to purchase — everything is negotiable, especially in a buyer's market: inspection absorbed, fees credited, closing costs shared. The only rule is that the move be IN WRITING; a verbal arrangement is worth nothing at the closing table. State taxes, however, do not move.
What costs should the seller budget for?
Four main items: the agent's commission (the largest), discharging their old mortgage, in Quebec an up-to-date certificate of location if theirs is over ten years old or no longer reflects the premises, and — if the property is not their principal residence — tax on the capital gain. If they break their mortgage early to sell, the prepayment penalty adds thousands more.
Sources
Related reading — our data dossiers
- Canada policy rate
- 2026-2027 forecasts: will prices drop?
- What income do you need to buy?
- Average rent by city (CMHC)
- Quebec real estate prices
- Ontario real estate prices
- Alberta real estate prices
- British Columbia real estate prices
- Saskatchewan real estate prices
- Manitoba real estate prices
- Nova Scotia real estate prices
- New Brunswick real estate prices
- Rent or buy? The monthly gap by city
- How long to sell? City by city
- Land transfer tax, city by city
- 25 vs 30-year amortization: the real cost
- Real estate commission: the real numbers
- Sell with an agent or sell yourself?
- Quebec notary fees
- GST/HST on a new home, by province
- Title insurance: cost and coverage
- How much does a home appraisal cost?
- Condo status certificate: price by province
- Mortgage discharge fees
- Cancelling an accepted offer: the deadlines by province
- New home warranty, province by province
- Foreign buyers: the ban and the taxes
- Who owns that property? The title search
- Surveys and the certificat de localisation
- Real-estate market statistics
- Notary or lawyer? Province by province
- Lawyer and notary fees, by province
- Inspection vs appraisal: the difference
- Mortgage pre-approval, without the myths
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