Most sellers think about their gross sale price. The number that matters is the net - what you walk away with after all transaction costs are paid. Here is a transparent breakdown of every cost typically involved in selling a Montreal property.

Broker Commission

In Quebec, real estate broker commissions are negotiable and not regulated at a fixed rate. A typical full-service commission structure for a Montreal property is 4–5% of the sale price, split between the listing broker and the buyer's broker. On a $700,000 sale at 5%: $35,000 in total commission, with QST applied on the commission amount (adding approximately $3,500).

This is the largest single cost of selling, and it is also the one that most directly affects how well your property is marketed and negotiated. A broker who reduces their commission may also reduce their marketing investment and negotiating effort.

Notary Fees (Seller)

The seller's notary (if separate from the buyer's, which is common) handles the discharge of the existing mortgage and preparation of the deed of sale on the seller's side. Fees are typically $800–$1,500.

Mortgage Discharge Penalty

If you are selling before the end of your mortgage term, your lender will assess a prepayment penalty. For fixed-rate mortgages, this is typically the greater of 3 months' interest or the Interest Rate Differential (IRD) - which can be substantial in certain interest rate environments. Get a discharge quote from your lender before listing so this number is not a surprise at closing.

Pre-Listing Preparation Costs

Depending on the property's condition: professional cleaning ($300–$700), painting ($1,000–$5,000+), staging consultation ($300–$600), minor repairs ($500–$2,000+). These costs are optional in a technical sense but typically return 3–10x their value in sale price. Budget them as investments, not expenses.

Capital Gains (If Applicable)

If the property was your principal residence for all years of ownership, the sale is exempt from capital gains tax in Canada. If the property was a rental or investment property for some or all of the ownership period, capital gains tax applies on the proportional gain. This is a significant consideration for plex sellers - consult an accountant before listing if your property was not exclusively owner-occupied.

Your Net Proceeds Calculation

Sale price − commission − QST on commission − seller notary fees − mortgage discharge penalty − pre-listing costs − capital gains tax (if applicable) − moving costs = net proceeds. Run this calculation with real numbers before committing to a list price, and share it with your financial advisor if the proceeds are funding a subsequent purchase.