Disbursements
Understand disbursements in Canadian real estate, what they are, what they cover, and why they’re an important part of your closing costs.
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
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
An overview of Hedge Road Landing. (Alliance Homes)
6525 Mississauga Road and its surrounding context. (RBC Capital Markets & CBRE)
Property details for 6525 Mississauga Road. (RBC Capital Markets & CBRE)
National average resale-price growth and housing-starts growth, smoothed over three months. The comparison illustrates the cycle; it does not establish how much a price change causes construction to change.
Trailing 12-month starts in centres of 50,000 or more remove the usual monthly seasonality. Ownership combines the homeowner and condominium categories; rental is shown separately.
Six-month averages of provincial starts, expressed at annual rates. The smoothing reduces the influence of individual apartment projects.
The same August benchmark compared with two different starting points. Three-month changes are not annualized.
Average sale prices show the difference in purchase costs across markets. They do not measure affordability relative to local incomes or construction costs.
Newfoundland and Labrador remains above its pre-pandemic sales pattern, but August activity was below last year. Historical lines retain their original release vintages.
Average and median describe different aspects of the same month’s transactions. Both are affected by the mix of homes sold.
Category averages compare different homes and locations; the gaps are not estimates of the cost to upgrade an otherwise identical property.
The five categories shown account for 5,000 of the board’s 5,057 sales. The remaining 57 transactions were in other housing categories.
Monthly observations are not seasonally adjusted. Active listings count properties available at month-end; they are not construction inventory.
Average and median prices share one dollar axis. These unadjusted transaction measures do not control for changes in the homes sold.
TRREB’s 416/905 categories compare the apartments sold in each area. The difference does not isolate a location premium for equivalent units.
Highlights from the Delta Golf & Country Club listing brochure. (Colliers)