What are Closing Costs?
Paid on the closing date in addition to your down payment, closing costs are an important part of every real estate transaction. As a buyer, you should typically account for closing costs to amount to approximately 3% of the purchase price.
Below is a breakdown of these costs:
Home Inspection
Home inspections are an essential part of the due diligence process. The cost will vary depending on the property type and inspector, but you should typically budget $300-$600. On the lower end would be a condo inspection, while the higher end would be a larger property, especially one that requires a well and septic inspection.
Well and Septic Inspection
While well and septic inspections are optional, it is good practice – especially if there is no water treatment system installed at the property. A buyer should typically budget $1000-$1500 for the tests, and usually allow about a week from the inspection date for water test results to be returned from the lab.


Deed Transfer Tax
HRM (along with other municipalities) will charge a fee to transfer the property deed into the new buyer’s name. The fee is 1.5% of the purchase price.
Tax Adjustment
Property Taxes are paid twice a year to the municipality, and they are paid in advance. A buyer is required to reimburse the seller for any property tax that the seller has prepaid after the closing date. The reimbursement is calculated by the buyer and seller’s lawyers, and is paid at closing.
Fuel Adjustment
This cost is applicable to homes that are heated with oil or propane. A seller will typically provide the buyer with a full tank of fuel at the time of closing, to which the buyer will reimburse them for the cost. A full tank of oil will cost approximately $1000, while a full tank of propane will cost around $500.
Legal Fees
Having a lawyer is an essential component of buyer a home. Lawyers will review contracts and documents, including the agreement of purchase and sale, amendments, and condo board documents. They will also calculate adjustments at closing. While fees vary depending on the lawyer and the transaction, a buyer should typically budget $1000-$1500 in legal fees, due at closing.