Selling a house in Quebec can involve several different expenses, and the total cost can be difficult to estimate if you only think about the real estate broker’s commission.
For some sellers, the largest expense will be brokerage remuneration. For others, the major costs may involve a new certificate of location, mortgage discharge, repairs, moving, professional services or a significant renovation completed before listing.
The good news is that many of these expenses can be identified before your property goes on the market.
Understanding the costs of selling a house in Quebec is important because the sale price is not the same as the amount you will ultimately receive. A $600,000 sale, for example, does not mean that $600,000 will arrive in your bank account after the transaction.
This guide explains the main costs involved in selling a home in Quebec, which expenses are generally unavoidable, which are optional, and what sellers should consider when estimating their net proceeds.
What Are the Main Costs of Selling a House in Quebec?
There is no single fixed cost for selling a house in Quebec.
Your expenses will depend on the property, your mortgage, how you sell it, whether you make improvements before listing and whether the property has particular tax or legal considerations.
The most common expenses include:
- Real estate broker remuneration
- GST and QST on broker remuneration
- Certificate of location
- Mortgage discharge and related costs
- Notarial or legal costs that are the seller's responsibility
- Repairs and maintenance
- Cleaning, staging and preparation
- Professional photography or other marketing expenses, depending on the agreement with your broker
- Moving costs
- Accounting or tax advice
- Potential mortgage prepayment penalties
- Adjustments at closing
- Potential income tax or capital gains tax
Not every seller will incur every expense.
The important point is to distinguish between transaction costs, which are directly associated with completing the sale, and preparation costs, which are decisions you make to improve the property's presentation or condition.
1. Real Estate Broker Remuneration
For many Quebec homeowners, the largest selling expense is the remuneration paid under the brokerage contract.
However, there is an important misconception about real estate commissions in Quebec: there is no legally mandated standard commission rate.
The remuneration is negotiated between the seller and the broker and can take different forms, including a percentage of the selling price, a fixed amount or an hourly arrangement. The agreement must specify the applicable remuneration and terms.
If the remuneration is percentage-based, it is generally calculated using the accepted sale price, although the specific circumstances and terms of the brokerage contract matter.
How Much Is a Typical Real Estate Commission?
There is no single “Quebec commission rate” that applies to every transaction.
For illustration only, consider a property that sells for $600,000:
|
Example remuneration |
Amount before taxes |
|
4% |
$24,000 |
|
5% |
$30,000 |
|
6% |
$36,000 |
These are examples, not prescribed or recommended rates.
The important question is not simply the percentage. Sellers should understand what services are included, how remuneration is structured, what amount is offered to a collaborating buyer's broker when applicable, and what the total cost will be after taxes.
OACIQ specifically states that remuneration is based on free competition and that the amount or percentage is not fixed by the Real Estate Brokerage Act or by OACIQ.
2. GST and QST on Real Estate Broker Remuneration
Broker remuneration is taxable.
In Quebec, GST and QST are added to the remuneration payable under the brokerage contract.
For example, using the current GST rate of 5% and QST rate of 9.975%, $30,000 of broker remuneration would result in:
- GST: $1,500
- QST: $2,992.50
- Total remuneration including taxes: $34,492.50
This means sellers should never budget based solely on the percentage stated in their brokerage contract.
A useful way to think about the expense is:
Broker remuneration + GST + QST = total brokerage cost
The exact amount depends on the remuneration agreed upon in the contract.
3. Certificate of Location
A certificate of location is another common selling expense in Quebec.
The seller is responsible for providing a certificate of location describing the current state of the property. This includes relevant physical changes, cadastral information and certain legal and regulatory elements.
If your existing certificate no longer reflects the current state of the property, a new one may be required.
For example, you may need to consider a new certificate if you have added:
- A pool
- A shed
- A fence
- An addition
- A terrace
- Other structures or modifications
A certificate that is more than 10 years old may also need to be replaced because the notary will generally require a new one due to the ten-year prescription period under the Civil Code of Québec.
Who Pays for the Certificate of Location?
Generally, the seller bears the cost of obtaining a new certificate of location when one is required to describe the current state of the property.
The cost varies according to the property, location, surveyor and complexity of the work.
It is therefore better to treat this as a variable selling expense rather than assume a fixed amount.
There is also a practical reason to order the certificate early. OACIQ notes that preparation can take several weeks, and delays can become an issue if the document is left until after an offer is accepted.
4. Mortgage Discharge and Other Financing Costs
If you still have a mortgage when you sell your house, the mortgage must be dealt with as part of the transaction.
The seller is generally responsible for costs related to repaying and cancelling the mortgage, unless the parties agree otherwise.
This can include costs associated with:
- Mortgage discharge
- Administrative fees
- Legal or notarial work related to the discharge
- Potential prepayment penalties
Watch for Mortgage Prepayment Penalties
A mortgage penalty can be one of the largest unexpected costs of selling a property.
The amount depends on your mortgage contract and lender. It can be particularly important if you are selling before the end of a fixed term.
Before listing your home, ask your lender for a written estimate of the amount required to discharge the mortgage on your expected closing date.
If you are considering purchasing another property, also ask whether your mortgage is portable and whether that could affect your options.
The cost of breaking a mortgage can materially change the amount of money you will have available after the sale.
5. Notary and Legal Costs
In a typical Quebec residential transaction, the buyer generally pays the notary responsible for preparing and executing the deed of sale.
That does not mean the seller has no legal or notarial expenses.
The seller may have costs associated with matters such as:
- Mortgage discharge
- Resolving title issues
- Correcting documents
- Special legal work
- Estate-related issues
- Divorce or separation
- Corporate ownership
- Complicated ownership structures
These costs are situation-specific.
For a straightforward sale, they may be relatively limited. For a property with a complicated title or financing situation, they can be considerably higher.
This is one reason it is useful to identify potential title or mortgage issues before accepting an offer.
6. Repairs and Maintenance Before Selling
Repairs are not technically transaction costs, but they can be a significant part of the cost of selling a home.
Some sellers spend very little. Others invest substantially before putting their property on the market.
Common pre-sale expenses include:
- Painting
- Plumbing repairs
- Electrical work
- Roof repairs
- Masonry
- Window repairs
- Landscaping
- Deck or balcony repairs
- Appliance repairs
- Fixing visible water damage
- Addressing deferred maintenance
The important question is not whether you can renovate your house.
It is whether a particular improvement is likely to make financial sense.
A $20,000 renovation does not automatically add $20,000 to the selling price.
Before undertaking major work, consider the property's current condition, the likely buyer profile, competing listings and the cost of leaving the issue unresolved.
For a broader discussion of preparing a property for sale, see Complete Guide to Selling a Home in Montreal
7. Cleaning, Decluttering and Staging
Preparing a property for sale can involve smaller expenses that are easy to overlook.
These may include:
- Professional cleaning
- Window cleaning
- Carpet cleaning
- Junk removal
- Storage
- Furniture rental
- Staging
- Garden maintenance
- Snow removal during a winter listing
Not every property needs professional staging.
A vacant property may benefit significantly from furniture and décor, while a well-maintained occupied home may simply need decluttering, cleaning and rearranging.
The goal should be to present the property clearly rather than spend money simply because staging is available.
8. Marketing and Photography Costs
Professional presentation can be important when selling a home.
Depending on your brokerage agreement and marketing strategy, costs may include:
- Professional photography
- Floor plans
- Video
- Virtual tours
- Drone photography where appropriate
- Printed materials
- Signage
- Advertising campaigns
Some brokers include these services in their remuneration, while others may structure certain expenses separately.
Ask for a clear explanation of what is included in your brokerage agreement before signing it.
OACIQ's seller guidance indicates that promotional activities are discussed as part of the brokerage relationship, including the types of advertising and promotional methods that will be used.
9. Moving Costs
Moving is not part of the real estate transaction itself, but it is still a cost of selling your home.
Depending on your circumstances, you may need to budget for:
- Professional movers
- Packing materials
- Temporary storage
- Cleaning
- Transportation
- Temporary accommodation
- Moving insurance
- Utility connections at your next property
If you are purchasing another property at the same time, the timing of the two transactions can affect your costs considerably.
For example, selling first may reduce financial risk but could create temporary housing or storage costs. Buying first may provide more certainty about your next home but could require carrying two properties or financing arrangements temporarily.
10. Taxes When Selling a House in Quebec
Taxes are one of the areas where sellers need to distinguish between a principal residence and other types of property.
Principal Residence
If your property qualifies as your principal residence, the principal residence exemption can generally eliminate tax on all or part of a capital gain.
However, the sale still needs to be reported.
The Canada Revenue Agency requires taxpayers to report the sale of a principal residence and designate it as a principal residence in order to claim the exemption.
Quebec also has its own reporting requirement. Revenu Québec states that sellers claiming the principal residence exemption must complete the appropriate designation form and schedule with their Quebec income tax return.
Rental or Income-Producing Property
If the property was used to generate rental or business income, the tax treatment can be different.
You may have a taxable capital gain, and other tax considerations may apply depending on how the property was used and whether there were changes in use.
This can become particularly important with:
- Duplexes and triplexes
- Rental properties
- Properties with a home office or commercial component
- Properties that were previously rented
- Properties where part of the home was used to earn income
If you are uncertain about the tax consequences, speak with a qualified tax professional before selling.
Properties Sold Shortly After Purchase
Quebec and Canadian tax rules also contain specific provisions concerning property flipping.
Revenu Québec states that, since 2023, a residential property owned for less than 365 consecutive days is generally considered flipped unless an applicable life event exception applies.
The federal tax treatment of flipped properties can also differ from the treatment of a normal investment or principal residence.
If you purchased a property recently and are considering selling it, obtain professional tax advice before assuming that the principal residence exemption will apply.
11. GST and QST on the Sale of a House
Most traditional resales of used residential properties are not subject to GST and QST.
Revenu Québec states that the sale of a residential complex that is not new and has not been substantially renovated is generally tax-exempt.
However, there are important exceptions.
GST and QST can apply to situations involving:
- New residential properties
- Substantially renovated properties
- Certain additions to multi-unit residential properties
- Properties with commercial components
- Certain transactions involving taxable real property
OACIQ specifically notes that sellers should consider whether a property is subject to GST and QST when entering into a brokerage contract, particularly in situations involving new or substantially renovated properties or commercial use.
If you are selling a property that does not clearly fall into the category of a normal resale, obtain professional tax advice before determining your net proceeds.
12. Adjustments at Closing
The amount shown on the offer is not necessarily the exact amount you will receive from the transaction.
The notary calculates various adjustments as part of the closing process.
Depending on the transaction, adjustments can involve items such as:
- Property taxes
- School taxes
- Rent
- Utilities
- Condominium fees
- Other prepaid or outstanding amounts
For example, if you have already paid property taxes covering a period that extends beyond the buyer's ownership, an adjustment may result in the buyer reimbursing you for the applicable portion.
Conversely, if an amount is owing for a period during which you owned the property, the adjustment may reduce the amount you receive.
These adjustments are not necessarily additional “selling costs.” They are usually adjustments between the buyer and seller to ensure that each party pays or receives the appropriate amount for the period in which they own the property.
How Much Does It Cost to Sell a $500,000 House in Quebec?
Consider a simplified example of a $500,000 resale of a typical owner-occupied home.
Suppose the seller has:
- Broker remuneration of 5%: $25,000
- GST and QST on remuneration: $3,743.75
- New certificate of location: variable
- Mortgage discharge costs: variable
- Repairs and preparation: variable
- Moving costs: variable
The brokerage-related cost alone would therefore be $28,743.75.
This does not mean that every seller of a $500,000 house will spend that amount.
The brokerage remuneration could be different, the seller may already have a current certificate of location, there may be minimal preparation required and the mortgage situation could be straightforward.
The example demonstrates why a seller should calculate the net proceeds, rather than simply focus on the sale price.
How to Calculate Your Net Proceeds From a Home Sale
A simple starting point is:
Sale price
− mortgage balance
− brokerage remuneration and applicable taxes
− certificate of location
− mortgage discharge and other transaction costs
− agreed repairs or other selling expenses
− applicable taxes
= estimated net proceeds
This is not a formal statement of adjustments from a notary, but it is a useful planning tool.
Example
Suppose a home sells for $700,000.
You might start with:
$700,000 sale price
Then subtract:
- $35,000 broker remuneration at 5%
- $5,236.25 GST and QST on the remuneration
- $2,500 estimated preparation costs
- $1,500 estimated moving-related selling expenses
This would leave $655,763.75 before considering the mortgage balance, certificate of location, mortgage discharge costs, closing adjustments and any applicable taxes.
If the outstanding mortgage were $300,000, the amount remaining after these simplified assumptions would be approximately $355,763.75.
The actual amount paid to the seller can differ because the final statement of adjustments and mortgage payout is determined for the transaction.
Which Selling Costs Are Optional?
Not every expense is mandatory.
Some costs are strategic decisions.
Potentially optional expenses include:
- Major renovations
- Professional staging
- Additional photography or video
- Pre-listing inspection
- Cosmetic improvements
- Landscaping upgrades
- Furniture rental
- Additional advertising
- Professional cleaning beyond what is reasonably necessary
The right question is not simply, “Will this make my house nicer?”
Instead, ask:
Will this expense improve the property's marketability enough to justify its cost?
For example, repainting a heavily marked interior may be inexpensive and improve first impressions. A $50,000 kitchen renovation immediately before selling may be much harder to justify.
Common Mistakes Sellers Make When Estimating Selling Costs
Looking only at the commission
Broker remuneration is visible, but it is only one component of the total cost.
Forgetting taxes on broker remuneration
A percentage such as 5% is generally not the final amount payable because GST and QST are added.
Waiting until an offer is accepted to check the certificate of location
If a new certificate is required, ordering it early can reduce delays.
Ignoring mortgage penalties
A significant prepayment penalty can materially reduce your net proceeds.
Assuming every renovation will pay for itself
Some improvements help marketability without producing an equivalent increase in selling price.
Forgetting moving and storage costs
The transaction may be complete, but your relocation expenses can still be significant.
Assuming there will be no tax because it is a home
Principal residence rules can provide significant protection, but eligibility and reporting requirements still matter.
How to Reduce the Cost of Selling Your Home
Reducing selling costs does not necessarily mean choosing the cheapest option at every stage.
A better approach is to control unnecessary expenses while protecting the value and marketability of the property.
Consider these strategies:
- Obtain an estimate of your mortgage payout before listing.
- Check your certificate of location early.
- Identify necessary repairs before deciding on cosmetic upgrades.
- Compare the expected benefit of major renovations with their cost.
- Understand exactly what is included in your brokerage agreement.
- Ask about any additional marketing or transaction expenses.
- Obtain moving quotes in advance.
- Speak with a tax professional if the property has been rented or used for business.
- Keep invoices and documentation for relevant property expenses.
- Build a contingency into your selling budget.
Do Sellers Need to Pay the Buyer's Real Estate Broker?
This question often causes confusion.
When a buyer is represented by a broker, the seller's brokerage contract may provide for remuneration sharing with the buyer's broker.
OACIQ explains that the seller's broker may share part of the remuneration with the collaborating buyer's broker when applicable. The arrangement must be disclosed and reflected in the relevant brokerage documentation.
The exact arrangement depends on the brokerage contracts involved.
This is another reason to review the remuneration section of your brokerage contract carefully before signing.
Do You Have to Use a Real Estate Broker to Sell a House in Quebec?
No.
A homeowner can sell a property independently.
However, selling without a broker does not mean selling without costs.
A private seller may still need to pay for:
- Certificate of location
- Legal or notarial services
- Mortgage discharge
- Advertising
- Photography
- Documentation
- Professional advice
- Repairs
- Inspections
- Other transaction-related expenses
The more important comparison is therefore not simply “commission versus no commission.”
It is the overall cost, time commitment, risk and outcome associated with the chosen selling strategy.
FAQ: Selling Costs in Quebec
What is the biggest cost when selling a house in Quebec?
For many sellers, broker remuneration and the applicable GST and QST are the largest direct transaction expenses. However, the total can vary substantially depending on the property and seller's circumstances.
How much should I budget to sell my house?
There is no universal percentage that applies to every property. A seller should consider brokerage remuneration, taxes on that remuneration, the certificate of location, mortgage-related costs, repairs, preparation, moving and potential tax implications.
Is there a standard real estate commission in Quebec?
No. Broker remuneration is not fixed by law or by OACIQ. It is negotiated between the seller and broker and may be structured as a percentage, lump sum, hourly rate or another agreed arrangement.
Does the seller pay GST and QST on the real estate commission?
Yes. GST and QST generally apply to the remuneration paid to a real estate broker.
Does the seller have to pay for a new certificate of location?
Generally, yes, when a new certificate is required to satisfy the seller's obligation to provide one describing the current state of the property.
Do I pay tax when I sell my principal residence in Quebec?
A qualifying principal residence can generally benefit from the principal residence exemption, but the sale must still be reported and the applicable designation requirements must be met.
Are renovations a selling cost?
They can be. Renovations are not required for every sale, but sellers sometimes invest in repairs or improvements before listing. Whether that investment makes sense depends on the property and market.
Does the buyer pay the notary?
In a typical Quebec residential purchase, the buyer generally pays the notary handling the deed of sale. The seller can nevertheless have notarial or legal expenses related to mortgage discharge, title issues or other matters.
How much money will I actually receive after selling my house?
Your net proceeds depend on the sale price, mortgage balance, brokerage remuneration, taxes, certificate of location, transaction costs, adjustments and any applicable tax obligations. A preliminary net-proceeds calculation can help you estimate the amount before listing.
Final Thoughts: Look Beyond the Sale Price
The cost of selling a house in Quebec is not simply a matter of subtracting a commission from the sale price.
A successful sale involves several layers of costs, some predictable and others dependent on the property and the seller's circumstances.
For most homeowners, the best starting point is to calculate the likely net proceeds before deciding on an asking price.
That means identifying your mortgage balance, estimating brokerage remuneration and taxes, checking whether your certificate of location is current, reviewing potential repairs and considering moving and other transaction expenses.
It is also important to distinguish between costs that protect the transaction and expenses that are discretionary. Spending $5,000 to address obvious deferred maintenance may be very different from spending $50,000 on a renovation that a buyer may not value in the same way.
Tax considerations should also be addressed early, particularly for rental properties, income-producing properties, recently purchased homes and properties that have changed use.
Ultimately, the question is not simply, “How much does it cost to sell my house?”
A better question is:
“How much will I actually have available after I sell?”
Understanding that number before you put your property on the market can help you establish realistic expectations, evaluate offers and make better decisions about preparation and pricing.
If you're thinking about buying or selling real estate in Montreal or anywhere in Quebec, I'd be happy to help. Call me at 514-777-1535 or email Christopher@CCMRealty.ca to discuss your real estate goals.