The real costs of selling a house in Quebec

How much is a real estate commission in Quebec?

There is no legal or standard rate in Quebec. A commission is negotiated in the brokerage contract between you and the agency, and it is often a percentage of the sale price. GST (5%) and QST (9.975%) are charged on top of the commission, so the amount you pay is about 15% higher than the commission itself. Read the contract for the rate, the length of the contract, and what is owed if a buyer introduced during the contract buys after it ends.

A private sale or a direct sale to a buyer like Bruce Malcolm has no commission. That does not make every other cost below disappear, and the comparison only makes sense on the net amount you keep.

Will I pay a penalty to break my mortgage when I sell?

If you have a closed mortgage and you sell before the end of the term, probably yes. The Financial Consumer Agency of Canada explains that the penalty is usually the higher of three months’ interest on what you still owe or the interest rate differential (IRD). Its own example, a $200,000 balance at 6% with 36 months left and a current posted rate of 4%, gives $3,000 for three months’ interest and $12,000 for the IRD, so the penalty is $12,000. An administration fee may be added.

This is often the largest surprise on a seller’s statement. Ask your lender for a written payout figure for your target date, and ask whether the mortgage can be ported to your next home. If you are behind on payments, the timeline is different; the situation page on a hypothec in arrears explains it.

Do I need a new certificate of location to sell?

Usually the seller provides a certificate of location that reflects the current state of the property. If yours is old, or if a shed, pool, deck, extension or fence was added since it was made, a land surveyor (arpenteur-géomètre) will usually need to prepare a new one. The fee depends on the surveyor and the property. Order it early: in busy months, surveyors book weeks ahead.

Who pays the notary when you sell a house in Quebec?

In ordinary practice the buyer chooses and pays the notary who prepares and publishes the deed of sale. The seller usually pays for what concerns the seller’s own title, mainly the discharge (mainlevée) of the existing hypothec once it is paid from the sale price. Ask the notary for the exact amount for your file.

What adjustments come off the sale price at the notary?

Municipal and school taxes are adjusted to the date of the deed. If you already paid the full year, the buyer reimburses the part after closing. If you have not, your share comes off your proceeds. Fuel oil in a tank, and condo fees where they apply, can also be adjusted. These are not extra fees; they divide a year that is already paid or owed.

The welcome tax, officially transfer duties, is a separate bill sent by the municipality to the buyer. In Montreal the 2026 brackets go from 0.5% on the first $62,900 up to 4% above $3,113,000, according to the City’s own page. It is not the seller’s cost, and the post on the welcome tax lists the full scale.

Do I pay capital gains tax when I sell my house in Quebec?

Usually not on the years the house was your principal residence, but the sale still has to be reported. Revenu Québec says that, in general, half of a capital gain on the sale of a house is taxable, and that you can designate all or part of it as your principal residence to avoid tax on all or part of the gain. To claim it in Quebec you complete form TP-274-V and check box 109 in Part F of Schedule G. Revenu Québec states that not sending the form can bring a penalty of $100 per month, up to $5,000. The federal return has its own designation on Schedule 3 and form T2091(IND); the CRA can accept a late designation, with a penalty of $100 for each complete month late, up to $8,000 (CRA Information Circular IC07-1).

Years when the house was rented out, or a house received from an estate, can change the answer. Ask an accountant before you sign.

What other costs do sellers forget?

Moving, storage, cleaning out the house, closing utilities and insurance, and carrying costs (mortgage interest, taxes, heating, insurance) for every month the house waits. Preparing a house for showings, including paint, repairs and staging, is optional but common on a listing. With Bruce’s offer you do not prepare the house, and you can leave what you do not want.