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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

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Public realm improvements are enhancements to public spaces such as sidewalks, parks, plazas, and streetscapes, often funded or contributed by. more

Mortgagee in Possession

A mortgagee in possession is a lender who takes control of a property after borrower default, but before foreclosure or power of sale. The lender. more

Lease Surrender Agreement

A lease surrender agreement is a negotiated contract between a landlord and tenant that ends a lease before its scheduled expiration. Terms may. more

Green Infrastructure

Green infrastructure refers to natural or engineered systems that manage stormwater, reduce heat, and improve sustainability in developments.. more

Escrow Holdback

An escrow holdback is a portion of funds withheld at closing and held in escrow until specific conditions are met, such as completion of repairs,. more

Underused Housing Tax

The Underused Housing Tax (UHT) is a federal annual 1% tax on the value of vacant or underused residential property owned by non-resident,. more

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