I have written before about adjustments, which are an added cost on closing when you buy a house. Today, I wanted to talk about a line item on your lawyer’s bill: disbursements.
Disbursements are items that your lawyer had to pay for on your behalf – things like a statement from the tax office that the sellers have been paying their property taxes, or title searches to make sure that the neighbour doesn’t have the right to use your backyard for boat storage. Every time there is an expense directly related to your purchase (or sale, though there are far fewer disbursements on a sale), these costs add up, and they are part of your closing costs.
When you call for a quote from a real estate lawyer, he or she will be able to tell you what the fee is, and then give you a range of disbursements based on past experience. The amount will change based on where the property is, how old it is, whether it is a house or condominium, and whether you are buying title insurance (more about that in a later post). At the very least, there will be fees to register the purchase, which have to be paid to the government.
Basically, disbursements are necessary costs that are a standard part of closing costs when you buy or sell a house.
