are buys outs minus real estate fees

[dadontherocks]

To offer to buy my x out, do I subtract real estate fees from the sale price, minus the mortgage and give her half of what remains?

She told me legal council said real estate fees are not to be subtracted, but thats not the true value in $ of whats left and I will have to sell at some point and pay it all

[HammerDad]

First suggestion - Stop taking legal advice from your STBX.

Second, generally closing costs are deducted from the value of the house as of the valuation date.

[veritas]

My understanding is the courts do see the value of real estate fee costs if a spouse wants to keep the house, and 50% of real estate fee applies.

Most are at 5% SO....here is an example:

Evaluated @ 400,000.
(5% divide 1/2)= 2 1/2% -10,000.
Morg. Bal -100,000.

Balance for division 290,000. Equalization value 145,000 each

Hope this helps

[standing on the sidelines]

after just having gone through this, yes real estate fees are subtracted, then the mortgage and you pay her half the equity left

[staysingle]

Yes, it's all about the equity left after expenses. Real estate fees are deductable for equalization purposes. Listen to HammerDad and stop listening to anyone other than your lawyer and this forum

[Canada Gold 2010]

Thought I'd comment on this based on what I've been advised. I'm in Alberta and going through this whole ugly process myself.

My lawyer told me that realtor fees are NOT subtracted when one party is buying the other party out of the matrimonial home, because the house isn't being sold. It's as simple as that. He went on to advise that if the 2 partners come to their own agreement, then that's one thing, but a judge certainly will not subtract realtor fees on a matrimonial home buy out.

When I spoke to my mortgage broker about refinancing the house due to divorce, she indicated the same thing to me: Realtor fees are NOT subtracted.


Canada Gold 2010

[standing on the sidelines]

here in ontario my lawyer told me it was and the appraiser i had in said the same.

[NBDad]

Realtor fees may not be in some provinces, but remember to account for refinancing fees/penalties/etc. that the bank may hit you with.

[shellshocked22]

Also, don't forget to add the (in ONtario anyway) 13% HST which applies to real estate commissions. For a $400,000 home, 5% real estate fee is $20,000 BUT there is another 13% appliable to the $20,000 so the real cost is $22,600. Every penny counts right lol !

[concerned11]

Does any know if the cost of carrying the property (mortgage paymentts, utilities, taxes and insurance) get divided equally if one spouse paid these entire amounts from the date of separation to the date of buyout or sale?

[FWB]

@Concerened11.....

get divided equally if one spouse paid these entire amounts from the date of separation to the date of buyout or sale?

Throwing the question back to you, did the other spouse remain in the house or did they leave? Here is why I ask.......

It can be argued by the other part that you remained in the house, when it could have just been sold or rented. I have come across cases where Judges awarded a portion of the carrying cost before the buyout/sale

I my own particular instance, I didn't even bother.....I kept paying the mortgage but not the house tax, and when the house sold, all that bill was included in what needs to be paid out before any equity division

[arabian]

^I believe these would be reviewed in equalization. You have to specify whether this is an investment property or the matrimonial home. If it is the matrimonial home, and one of the parties is currently living in the home, you have to consider occupational rent. Separation date is important.

[North of 40]

Great info.

I'm going through this right now.

In fact going to court on wed to get clarification. A motion.

Essentially, my ex is saying no fees are to be deducted.

My lawyer, citing numerous canlii.org cases has attempted
to show there are many precedents for a 5 percent disposition fee.

We asked for 2.5 percent to be fair. Plus legal costs. 1k

I did have an appraisal company come up with the value.

I will be asking for legal costs for the day as well.

Hope this helps.

[concerned11]

very helpful! thank you

[FB_]

I just bought my ex out of our house and she was arguing the house was worth more than I was offering. My offer did not include legal fees. I pointed this out and said maybe you're right we might be able to sell it for $5000 more but if we did that we are going to have to pay all these fees.

So in the end if you want something settled it's best to make it something they want to accept.