Selling a Home in Ontario: Who Pays What at Closing? Ontario Seller Closing Costs explained.

A Seller & Buyer Cost Guide for Ottawa, Cornwall, and Eastern Ontario

When buying or selling real estate anywhere from Ottawa to Cornwall and everywhere in between, one of the most common questions I hear is: “Who actually pays what at closing?” Understanding the typical closing costs in Ontario helps both buyers and sellers plan properly, avoid surprises, and make confident decisions throughout the transaction.

At HomeGeeks – eXp Realty, we believe an informed client is a confident client, so here’s a simple breakdown of how closing expenses are typically handled in Ontario resale transactions.

Typical Closing Costs: Buyer vs. Seller in Ontario

Buyer Typically Pays

Buyers are generally responsible for costs related to purchasing and financing the property, including:

• Land Transfer Tax (and Toronto Municipal Land Transfer Tax if applicable)

• Legal fees for purchase closing

• Mortgage insurance (if required)

• Home inspection costs

• Adjustments such as reimbursing the seller for prepaid property taxes, utilities, or condo fees from the closing date forward

These costs are usually due on closing day and should be budgeted for in advance.

Seller Typically Pays

Sellers are generally responsible for costs associated with transferring ownership and selling the property, including:

• Real estate commission (as outlined in the listing agreement)

• Co-operating brokerage commission offered through MLS®

• Mortgage discharge fees and any applicable mortgage penalties

• Legal fees for the sale

• Adjustments for taxes, utilities, or other prepaid items up to the closing date

Important Commission Clarification (Ontario MLS® Sales)

In most Ontario MLS® resale transactions, the seller pays the total real estate commission, which includes the portion offered to the cooperating brokerage representing the buyer. When a property is listed on MLS®, and a reasonable cooperating commission is offered, buyers typically do not pay their agent’s commission directly.

This is one of the reasons MLS® exposure remains the most effective way to market a property — it ensures broad agent participation and maximizes buyer reach without requiring buyers to pay additional representation costs.

Why Understanding Closing Costs Matters

Knowing who pays which expenses helps sellers accurately estimate their net sale proceeds and allows buyers to prepare their total cash-to-close amount. A properly structured listing strategy, accurate pricing, and strong negotiation guidance can also influence how certain costs are handled during negotiations.

Thinking About Selling in Ottawa, Cornwall, or SDG Counties?

Whether you are selling in Ottawa, Cornwall, Long Sault, South Stormont, or anywhere across Eastern Ontario, our HomeGeeks team combines local market expertise with data-driven marketing strategies to help you sell confidently and for maximum value.

If you’d like a personalized home value estimate or a clear breakdown of your expected selling costs, reach out anytime — we’re always happy to help you plan your next move with confidence.

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