With an accepted Offer from the buyer, there are obligations and steps that must be taken before your home is officially sold.
You are obligated to satisfy the Conditions written in the Contract of Purchase and Sale. You may need to provide documents such as a Title search and provide access for a home inspection.
You are also responsible for maintaining your home in good condition until Possession Day. I’ll ensure this process goes smoothly while you look forward to moving into your new home!
Whether selling a detached home, condo or townhouse, there are documents such as a Title search or survey certificate that you may need to provide to the Buyer. These documents will be specified in the Contract of Purchase and Sale.
Documents for Strata Properties
With Strata properties such as a condo or townhouse etc., there are a number of additional documents that you will need to provide to the Buyer.
I’ll help you prepare these documents well in advance, before you accept an Offer. Why? These documents take time to compile and there will be unnecessary rush charges incurred as a result. The Buyer could walk away from the sale if the documents are not provided.
A list of these documents is noted below.
- Form B
- Strata Minutes (2 yrs)
- Registered Strata Plan
- Financial Statements
- Bylaws and Rules
- Property Disclosure Statement
- Annual General Meeting Minutes
- Building Envelope Report (if any)
- Depreciation Report
The services of a lawyer or notary are required to complete the sale of your home. As part of My Services, I will pay the fee for your lawyer or notary on your behalf.
Prior to your appointment, I will make arrangements to send all the necessary documents and information to your lawyer or notary. At your appointment, make sure to bring two pieces of identification (driver’s license or passport) and your bank card (credit or debit card).
Once the Buyer is satisfied with purchasing your home, it’s time for you to start preparing for the move!
Notify your utility companies in advance, obtain quotes and hire a moving company if necessary and start gathering supplies for the move.
On Completion Day, you need to prepare for costs associated with transferring title, legal fees*, commission, and applicable taxes. This is an important day, as the following take place:
- The Title (ownership) is transferred to the buyer and officially registered at the Land Titles Office.
- Your lawyer or notary will provide a Statement of Adjustments (This is a detailed breakdown of costs which include the balance owing, property transfer taxes, GST/HST, legal fees and other completion costs.)
- Your lawyer or notary will receive the funds from the buyer and complete any necessary documentation.
Other Closing Costs that you need to be aware of:
You will be reimbursed by the buyer for any prepaid costs such as property taxes, service contracts, and utilities. If you purchased a condominium or townhome the buyer must reimburse you for prepaid strata fees and there could be a fee for moving out. Refer to your bylaws for the moving out fee. Typically the fee ranges from $50 to $100. The adjustment date in the contract of purchase and sale determines the date that the costs will be credited to you.
Capital Gains Tax
If your property is income producing such as a rental property, it may be subject to Capital Gains Tax. The gain will be taxed at a rate of 50% and a non-resident will be taxed at a rate of 25%. Capital Gains Tax is not applicable to a principal residence. For further information regarding Capital Gains Tax, please consult with your accountant or legal advisor.
A Clearance Certificate is required if you are a non-resident selling a property in Canada. Before you receive the full proceeds from the sale, you must apply to Canada Customs and Revenue Agency for the certificate as soon as you accepted the offer from the buyer as the approx. wait time for the certificate is 6 to 8 weeks. Your lawyer can prepare and file the necessary documentation on your behalf. Fees generally range from $300 to $1,000 depending on the complexity of the transaction.
Fee to discharge a Mortgage
There may be fees or penalties to discharge your mortgage which primarily depends on the type of mortgage you have. Closed mortgages have penalties and discharge fees while open mortgages are flexible and can be easily transferred with little or no fee. Please talk to your lender for further clarification.
Real Estate Commission
Depending on the agreement with your agent, you will be required to pay commission for the sale of your home. For a detailed breakdown of my commission, please contact me for further details.
The fees for a notary public will be slightly less than using a lawyer, however, a lawyer can offer further legal advice. Fees generally range from $750 and up. If you are doing two transactions, for example, selling your home and buying another property, the fee will range from $1,200 to $1,500.
*As part of My Services, I will pay this fee on your behalf.
Three important things happen on this day:
- receives the keys to your home,
- reimburses you for any prepaid bills such as property tax, service contracts or Strata Fees,
- starts to pay for utilities such as hydro, cable, telephone etc.
I will coordinate the key exchange with the Buyer on your behalf!