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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

Rent Control

Rent control refers to government regulations that limit how much landlords can increase rent for residential tenants each year.. more

Receivership

Receivership is a legal process where a court or secured creditor appoints a receiver to take control of a borrower’s assets, such as property or. more

REALTOR

A REALTOR is a licensed real estate professional who is a member of the Canadian Real Estate Association (CREA) and adheres to its Code of Ethics and. more

Property Use History

Property use history refers to the documented past uses, functions, and occupancy of a property, which may affect environmental risk, zoning, or. more

Property Management

Property management is the oversight and administration of real estate assets on behalf of the owner, covering leasing, maintenance, financial. more

Property Maintenance

Property maintenance refers to the ongoing upkeep, repair, and management of a building or land to preserve its safety, functionality, and appearance.. more

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