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Sellers Completion Guide

Plan Your Move

Are your Documents in Order?

You will need a copy of your title, if you have clear title. For stratas you will require the strata meeting minutes for the last 24 months, bylaws, current financial statements, a copy of the strata plan, engineers report (if any) and you will be required to fill out a Property Disclosure Statement. For homes you will need a copy of your survey.

Contact your Lawyer or Notary Public

You will require a lawyer or NP to represent you. Contact them once you have a binding contract, so you understand the closing process. They will review your sale contract, get a copy of the title and review charges that will be discharged and ones that will remain on title. They will require a copy your property taxes and will pay any outstanding amount, same with condo fees or special levies. Realtors fees are also paid from the proceeds of the sale. As well, your bank will be contacted in order to discharge or transfer your mortgage. Co-ordinate the closing with the Buyer's Lawyer, account for the buyer's depssit which is held in a trust account. Attend to Land Title documents and confirm Seller's residency (Income Tax Act).

Notify your Bank that Your Property has been sold

Your bank will give you a mortgage payout amount and penalty amount, if any

What happens on Completion Date?

The Buyer's lawyer will forward funds to your lawyer, in exchange for clear title.  Your lawyer will provide you with a Statement of Adjustment, outlining debits and credits. You will be required to bring a cheque to pay your lawyer. You will receive a bank draft for the net amount or the funds will be transferred into your bank account.

What happens on Possession Date?

Maggie will make arrangements to meet you at your new home with keys

What are your Closing Costs?

These are the costs incurred when selling a property. They include realtor fees, legal fees, mortgage discharge fees, capital gains tax (if any) and adjustments.

 

Clearance Certificates from Canada Revenue Agency

Sellers who are not a Canadian resident are required to have an accountant file for a Clearance Certificate when you have a firm contract of purchase and sale. If the certificate is not forthcoming on Closing Date, the buyer's lawyer has to withhold 25% of the proceeds of the sale until it is. Sellers are obligated to clear title of all financial encumbrances on Closing Date. 

Closing Costs

-Adjustments

the buyer will reimburse the seller costs such as property taxes which have been paid for the year. the buyer is responsible for property taxes as of the adjustment date on the contract. Stratas usually charge a move in and out fee. Adjustment costs may also include service contracts or strata fees

-Taxes to be Paid

Unless you are selling your principle residence, you are required to pay 50% capital gain tax. Non residents of Canada are required to pay 25% tax and will be required to file Clearance Certificate with Revenue Canada. The lawyer will be required to hold back 25% if this certificate has not been issued (it can take six months or longer). You are advised to consult an accountant prior to listing your property.

-Real Estate Commission

your lawyer will deduct the real estate commission from your proceeds and disburse them. GST is applicable on real estate fees

- Legal Fees

your lawyer will arrange for the transfer of funds from the buyer's lawyer, in return for transfer of title to the buyer. Your lawyer will also discharge your mortgage and prepare a Statement of Adjustment which itemises the disbursement of all funds. Legal fess will be approx $750 plus GST.

-Cost to Discharge Your Mortgage

your lawyer will contact your bank and they will confirm the payout figure for your mortgage. Your lawyer will forward this amount from the proceeds of the sale. If you have a closed mortgage you will be charged a penalty. Open mortgages usually do not and they can also be transferred to another property

 

 

above information is deemed to be correct but should not be relied upon without verification

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