Disbursements

Understand disbursements in Canadian real estate, what they are, what they cover, and why they’re an important part of your closing costs.

Disbursements

May 22, 2025


What are Disbursements?

Disbursements are out-of-pocket expenses paid by a real estate lawyer or notary on behalf of the buyer or seller during a property transaction.

Why Disbursements Matter in Real Estate

In Canadian real estate, disbursements are a key part of closing costs. These fees are separate from legal fees and cover third-party services necessary to complete the transaction.

Common disbursements include:
  • Title search and registration
  • Courier and document handling
  • Land transfer tax registration
  • Municipal compliance certificates
Disbursements vary by location and property type. They are itemized on the closing statement and must be paid before the deal can close.
Understanding disbursements helps buyers budget properly and understand the breakdown of costs associated with their legal services.

Example of Disbursements

In addition to $1,200 in legal fees, a buyer pays $475 in disbursements for title searches, courier charges, and registration fees.

Key Takeaways

  • Paid by lawyers/notaries to third parties.
  • Separate from professional legal fees.
  • Part of total closing costs.
  • Includes registrations, taxes, and delivery.
  • Must be settled before closing.

Related Terms

  • Legal Fees
  • Closing Costs
  • Title Transfer
  • Real Estate Lawyer
  • Land Transfer Tax

Additional Terms

Recourse Loan

A recourse loan is a type of loan where the lender can pursue the borrower’s personal assets, beyond the collateral, in the event of default.. more

Pari Passu

A pari passu clause is a contractual provision ensuring that multiple creditors share equally in repayment priority from the borrower’s assets.. more

Non-Recourse Loan

A non-recourse loan is a type of loan where the lender’s only remedy in case of default is to seize the collateral property; the borrower is not. more

Net Operating Income

Net operating income (NOI) is the total income generated by a property after operating expenses are deducted but before taxes and financing costs.. more

Mechanic's Lien

A mechanic’s lien is a legal claim by a contractor, subcontractor, or supplier for unpaid work or materials provided for a property.. more

Lis Pendens

Lis pendens is a legal notice filed in the land registry indicating that a property is subject to ongoing litigation that may affect its title.. more

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