Understanding real estate closing costs is essential for both buyers and sellers in St. Albert, Edmonton, and the surrounding Alberta communities. These expenses can influence your final budget, negotiations, and overall experience. As a St. Albert Realtor guiding clients through transactions across Sturgeon County and the Edmonton area, I often find that many people are surprised by what appears on their closing statement. The following guide breaks down the most common closing costs in a clear, Alberta‑focused way.
Closing Costs for Home Buyers
When purchasing a home in St. Albert or anywhere in Alberta, buyers should be prepared for several additional expenses beyond their down payment.
Typical Buyer Closing Costs
- Home inspection – A professional inspection is highly recommended and typically ranges in price depending on the property type and size.
- Appraisal fees – Your lender may require an appraisal to confirm the market value of the property.
- Property insurance – Mandatory before your mortgage can be finalized.
- Title insurance – Protects against title defects and fraud, and is often recommended by lenders and legal professionals.
- Legal fees – A real estate lawyer will handle the transfer of title, registration documents, and mortgage paperwork.
- Adjustments – These include prepaid property taxes, utility bill adjustments, and condo fee adjustments where applicable.
Mortgage-Related Costs
If your down payment is less than 20%, you will require mortgage default insurance through the Canada Mortgage and Housing Corporation (CMHC) or another approved insurer. While this is typically added to your mortgage, there may still be closing‑day costs associated with processing.
Closing Costs for Home Sellers
Sellers in St. Albert and Edmonton face a different set of fees. The most common involve preparation, representation, and legal processes.
Typical Seller Closing Costs
- Real estate commissions – Commissions are agreed to in the listing contract with your Realtor and cover marketing, negotiation, and professional services. These are shared between the listing and buyer’s brokerages through the CREA cooperative system.
- Legal fees – Your lawyer discharges the mortgage, reviews the sale contract, and handles the transfer of proceeds.
- Property adjustments – Sellers may need to reimburse the buyer for items like prepaid taxes or condo fees.
- Debt payouts – If there are liens or outstanding debts registered on title, they must be cleared before closing.
How Closing Costs Differ in Alberta
Unlike some provinces, Alberta does not charge a land transfer tax. This can significantly reduce overall closing costs for both buyers and sellers. However, fees related to legal services, title registration, and mortgage processing still apply.
Preparing for a Smooth Closing Day
To ensure a stress‑free real estate experience in St. Albert or Edmonton, both buyers and sellers should:
- Review all estimated costs with your Realtor early in the process.
- Obtain quotes from Alberta‑licensed lawyers and inspectors.
- Keep communication open with your lender, lawyer, and Realtor.
- Verify adjustments and fees before signing closing documents.
Whether you are buying your first condo in Edmonton, upgrading to a family home in St. Albert, or selling acreage in Sturgeon County, understanding your closing costs ensures you make informed financial decisions. Working with a knowledgeable St. Albert Realtor helps you anticipate expenses and avoid surprises as you move toward a successful closing.
