What exactly are disbursement costs?

Disbursement Fees

Why do they matter?

Buying a house is an exciting time, especially if it’s your first house! You will be very aware of the price you have agreed to pay for your new home, but you should also be aware that the house price is not the total cost of closing your purchase. There are a lot of moving parts and expenses to pay.

Once your offer to purchase has been accepted, your mortgage lender may require you to pay for an appraisal. If your agreement provides for a home inspection, you will have to pay a home inspector to give you an opinion of the condition of the home. Once that’s done, if you’re getting a mortgage, you’ll
have to come up with a down payment of at least 5% of the purchase price. In addition, you will have to pay your lawyer.

Lawyer Costs

Your lawyer’s bill will include both the lawyer’s fees and the lawyer’s disbursements. Disbursements are the costs that the lawyer incurs to complete your file, including for searches to ensure that you will get a clean title. Typical disbursements you will find on your lawyer’s bill include, but are not limited to:

Title Search $350.00
Tax Certificate – $60
Water Certificate – $60
Execution certificate – $12.15/person
Admin Fee – $30
Couriers – $36
Bank Fees – $17.50
Software transaction charges – $25.00
Transfer registration $78.79
Mortgage registration $78.79
Title insurance $350-$450


These disbursements are approximate and may vary from property to property depending on what further searches are required. When budgeting for buying a house, it is good to know what to expect and to also include a “cushion” to allow for additional costs that may arise. It’s always best to consult a lawyer before making a plan when it comes to buying a house

In Conclusion

Buying a house can be more costly than your initial view, but those additional costs aren’t hidden fees. With a little research and consulting with a good lawyer, you’ll be well equipped for your house hunt. Give us a call to get started!

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