What a sold price includes, and what the seller actually nets
A sold price is the purchase price written in the agreement of purchase and sale. It covers the land, the building, the fixtures that stay with it and any chattels the agreement names as included. It does not show what comes out on closing: commission and its tax, legal fees, the mortgage payout, adjustments, credits and anything sold separately. That is why two homes with the same sold price can net their sellers very different amounts.
A neighbour’s house sold for a number, and the seller does the math in their head: that number, less a bit for the agent, is what they will get. Then the statement of adjustments arrives and the cheque is smaller than planned. Most of that gap can be explained well before closing.
The sold price is the number in the agreement
The sold price is the purchase price in the accepted agreement of purchase and sale, as amended. If a sign-back or amendment changed it, the final figure is the sold price. The deposit is part of that price, held in trust and credited on closing, which is worth saying to a seller who sees a large deposit on offer night and counts it twice.
What the price covers
- •The land and the building: the property described in the agreement, with its legal description and lot. For a condo, the unit and its share of the common elements, plus any parking or locker the agreement names.
- •Fixtures: things attached to the property, such as built-in light fixtures, a furnace or window coverings on their hardware, generally go with the house unless the agreement lists them as excluded. A fixture the seller wants to keep has to be named in the exclusions.
- •Included chattels: movable items like a fridge, a stove or a washer and dryer go with the house only when the agreement lists them as included. If they are listed, their value is inside the sold price. There is no separate line for them on closing.
What the sold price does not show
None of this appears in the published sold price, and all of it changes the seller’s cash on closing.
| Item | Why the sold price hides it |
|---|---|
| Commission and the tax on it | Paid from the proceeds on closing. The total in the listing agreement, with the co-operating brokerage’s share paid out of it. |
| Legal fees and disbursements | Billed by the seller’s lawyer, with tax on the fee. They vary by lawyer and by file. |
| Mortgage payout | The balance on closing day, interest since the last payment, the discharge fee, and a prepayment penalty if the mortgage is closed and is not being ported. |
| Other debts on title | A secured line of credit or a second mortgage has to be paid out too. |
| Tax and fee adjustments | Prepaid property tax or condo fees come back to the seller as a credit, and amounts owing come off. Your lawyer works out the exact figures. |
| Closing credits | A credit to the buyer agreed after an inspection, in place of a repair, reduces the cash the seller receives while the recorded price stays the same. |
| Chattels sold separately | Furniture or a hot tub sold on a side agreement is paid outside the purchase price, so it is in neither the sold price nor the net on the statement. |
Land transfer tax is the buyer’s, paid by the person acquiring the land, so it does not belong in the seller’s math. Sellers who remember paying it when they bought sometimes expect it on the way out.
Where HST fits
For most resale homes, HST is not part of the price at all. The CRA treats most sales of previously occupied residential housing as exempt, and the tax applies to newly constructed or substantially renovated homes. When it does apply, the agreement says whether it is included in the price, which changes what the seller keeps. For the details, see HST on new homes in Ontario, and send the seller to their lawyer or accountant when a renovation might count as substantial.
The HST on your commission applies to every sale, and it is a line on the seller’s sheet.
Why two homes with the same sold price net differently
Two houses on one street, sold for the same price, can net their sellers very different amounts. The usual reasons:
- •One seller has a large mortgage with a closed fixed rate and pays a penalty to break it. The other owns the house outright, or ports the mortgage to their next home.
- •One agreement includes a full set of appliances and the other excludes them. The same price buys more in the first sale.
- •One closing date falls just before the property tax instalment and the other just after, so the adjustments swing in opposite directions.
- •One seller gave a credit after the inspection. The other negotiated it down or fixed the item before closing.
- •One has a rented water heater the agreement requires them to buy out, and one has a line of credit registered on title.
The same is true of two offers on one listing. A higher price with a closing date that forces a penalty or bridge financing can net less than a lower, cleaner offer.
How to explain it to the seller
The answer is a net sheet, run early and run again. At the listing appointment, show the net at the list price and a price either side of it, so the seller sees from the start that their number is the price less a stack of lines. When offers come in, run a sheet for each offer at its own price, with its closing date, inclusions and conditions in mind. Every line of an Ontario sheet is covered in how to prepare a seller net sheet.
- •Mark the payout as an estimate until the lender’s payout statement arrives, and ask for that statement as soon as the listing is signed.
- •Show credits and chattels sold separately on their own lines, so the seller sees why the price and the net moved apart.
Frequently asked questions
What is included in a listing’s sold price?
The purchase price in the accepted agreement of purchase and sale: the land and building, the fixtures that stay with it, and any chattels the agreement lists as included. It does not show commission, legal fees, the mortgage payout, adjustments, closing credits or anything sold on a separate agreement.
Does the sold price include HST?
On most resale homes HST does not apply to the sale. On a new or substantially renovated home it can, and the agreement says whether it is included. Check with the seller’s lawyer or accountant before you assume either way.
Why is the seller’s cheque lower than the sold price?
Commission and the tax on it, legal fees, the mortgage payout with any penalty and discharge fee, and the closing adjustments all come out on closing. A net sheet shows each of them before the seller signs.
How Listing Launchpad handles the gap between price and net
Listing Launchpad keeps the net sheet inside the listing, built from the numbers you already entered.
- •The seller who reads the sold price as the cheque: the net sheet starts from the listing’s price and total commission, adds the tax on commission as its own line, then the mortgage payoff and discharge, legal fees and other costs, and shows the net as you type.
- •Two offers at different prices: change the price on the sheet for each offer and the net updates in front of the seller. After the sale, a new sheet starts from the sold price.
- •The seller who wants to think it over at home: share the sheet as a live link with your logo and brand colour. The seller can try another price or payoff on their phone, and nothing they change is saved or touches your sheet. A one-page print is there for the kitchen table.
- •The quick estimate before you have an account: the free seller net sheet calculator runs the same math for an Ontario sale with no sign-in.
The net sheet in the listing workspace and its shared link are on Pro and Studio, and in the 14-day Pro trial. The free calculator is open to anyone.
Robert Cekan is a REALTOR® in Hamilton, Ontario, the publisher of Urbanicity Hamilton, and the founder of Listing Launchpad. The playbooks here come from running real listings.