1. Real estate brokerage compensation
Brokerage compensation is established in the brokerage contract and can vary according to the property and services provided. It is negotiable; there is no mandatory or standard rate.
For illustration only, if the agreed compensation were between 4% and 5% on a $700,000 sale, it would equal $28,000 to $35,000 before taxes. GST of 5% and QST of 9.975% generally apply to the brokerage service, bringing this example to approximately $32,193 to $40,241 including taxes.
This illustration is not a quote or a statement of what every broker charges. The actual compensation and included services should be discussed before the brokerage contract is signed.
2. Mortgage prepayment penalty
If a closed mortgage is repaid before the end of its term, the lender may charge a prepayment penalty. Depending on the contract, it may be based on three months’ interest, an interest-rate differential or another calculation. This cost can reach thousands of dollars.
Before listing, ask the lender for the current mortgage balance, an estimated penalty, any administration or discharge fees and whether the mortgage can be transferred to the next property.
3. Mortgage discharge and notarial costs
The existing mortgage or hypothec normally has to be discharged from the property’s title. The seller may have to pay professional and lender fees connected with its cancellation. Additional costs can arise if the notary identifies a title irregularity that must be corrected before closing.
4. Certificate of location
The seller generally needs to provide a certificate of location describing the property’s current condition. A new one may be required when the existing certificate is outdated or no longer reflects a pool, deck, extension, shed, fence, cadastral change or other modification.
The cost varies according to the property and land surveyor. Ordering it early can help prevent delays before the notarial signing.
5. Preparing a West Island property for sale
Not every home requires expensive renovations. Depending on its condition and competition in the neighbourhood, useful preparation may include minor repairs, painting, professional cleaning, decluttering, storage, landscaping, staging or specialist reports.
The objective is to identify improvements that strengthen presentation, reduce buyer objections or improve the result—not to renovate indiscriminately. Some improvements provide a much better return than others.
6. Moving and transitional expenses
Moving costs do not appear on the sale contract, but they still affect the seller’s budget. They may include movers, packing materials, temporary storage, cleaning, bridge financing, temporary accommodation, utility changes and expenses connected with the next property.
7. Tax considerations in special situations
A principal residence is treated differently from a rental property, secondary residence, commercial property or a property owned by a non-resident. Capital gains, withholding requirements or GST/QST on the property itself may apply in certain situations. Sellers outside a straightforward principal-residence sale should consult an accountant, tax professional or notary.
What could the net-proceeds calculation look like?
Two owners selling for the same price can receive very different net amounts.
My advice to West Island sellers
Before deciding on a listing price or planning your next purchase, request a preliminary net-proceeds estimate. Confirm the mortgage payout with the lender, determine whether the certificate of location needs updating and discuss which preparations are genuinely worthwhile.
A strong sale is not measured only by the price on the accepted offer. It should also account for the expenses, conditions, timing and final amount the seller keeps.