Are There Other Municipal Fees That May be Due Upon Closing?

The Halifax Regional Municipality’s Property Tax Department advises prospective purchasers of new condos to be aware of all potential municipal tax implications of their purchase. While apportioning the payment of the annual property tax bill is an obvious charge that should be negotiated prior to closing, other fees that could be transferred to the new property owner if not paid by the previous owner are outstanding property tax bills, false alarm fines, and local improvement charges such as paving, sewer lines, water lines and curb and gutters, to name a few.

Thus, a prospective buyer should ensure that their attorney receives a tax certificate so that all charges are noted and apportionment of payment between the seller and buyer can be negotiated prior to the closing. A buyer should also inquire whether there are pending paving, sewer, water or sidewalk projects planned for the area, as “these community enhancements may create future bills” for the new property.