Disbursements are out of pocket expenses incurred by your lawyer or notary in order to complete your transaction. They appear in all areas of law but are particularly noteworthy in real estate transactions, where the disbursements can end up be greater than the legal fees.
When you are quoted a fixed fee for your transaction, be sure to ask your lawyer or notary whether the fee includes disbursements. Some firms only quote the legal fees thereby misleading you as to what the final costs will be. While disbursements cannot be avoided and vary on file to file basis, it is important to seek clarification from your lawyer or notary as to what the final cost of your transaction will be and whether the price you have been quoted includes disbursements. Transparency will avoid unnecessary shock in the future and will allow you to ensure you have the appropriate funds available to complete.
When purchasing a property with a mortgage, typical disbursements include but are not limited to:
• Title Insurance (This is often required by the lender and can be a few hundred dollars.)
• Land Survey (varies)
• Insurance Binders (Between $35-$80)
• Land Title Registration Fees (approximately $200)
--> Tax Searches
--> Title Searches
--> State of title certificate
--> Transfer papers
--> Mortgage documents
--> Strata forms
• Courier fees/photocopying/long-distance fees, etc.
• Banking fees (such as certified cheques and drafts)
• Trust administration fees ($15 per transaction)