Once you have a firm and binding offer (all subjects have been removed and deposit received) there are a few steps to taken.
Lawyer/Notary
You will require a lawyer or notary to attend to the execution of documents on the sale of your property, please advise us of your lawyer’s contact information and our administration department will forward the appropriate documents. If you wish we can supply a few lawyers/notaries for you to contact. Communicate with your lawyer/notary what they require from you (photo id, signing arrangements, etc) upon a firm deal so that you have the appropriate time to have everything organized by completion dates.Please ask your legal representative what their fee structure is, prices can vary between lawyers and notaries.
Obtaining a Clearance Certificate
If you are a Non-Resident of Canada you will need to have your accountant assist you in a Certificate of Compliance. The current wait for a Clearance Certificate is around 4 months, so it is important to contact your lawyer or accountant as soon as an accepted offer has been received. Before issuing the Clearance Certificate, Revenue Canada will need to collect any tax payable on the property to be sold. A Canadian accountant will need to be hired to assist you in this matter. Perhaps you already have a Canadian accountant that could answer your questions concerning costs or any other tax questions you may have, if not we can suggest a few.
Pre-payment penalties
In Canada, a mortgage is for a fixed term usually between 6 months and 5 years. There are penalties to selling the property before the term of the mortgage is up and are usually the greater of three months’ interest or the interest rate differential. Please discuss with your lender.
Closing Costs
- Adjustments for Ownership: Adjustments, - prepaid or payable annual expenses will be adjusted on a prorated basis for the year and either credited or debited to the funds you will need. These generally include property taxes, condo/home ownership fees, resort fees, rental income, etc
- Capital Gains Tax: Does not apply to your principal residence, for other properties please speak to an accountant or lawyer for details
- Commissions; outlined in the Multiple Listing Contract
- Discharge of mortgage
- Legal Fees
- GST: applies to the commission fee and other services related to the sale
Other steps to consider:
- Contact your rental property manager to advise of the sale
- Contact your strata manager to advise of the sale
- Contact moving companies, book one in advance
- Hire a cleaning company to clean your place
- Notify all utility companies of your closing dates: Terasen Gas, BC Hydro, Shaw, Bell
Completion Day
The ‘Completion Date’ is the date on which the seller is entitled to the net proceeds of the sale and the buyer is entitled to the transfer of title. Your lawyer/notary will receive funds from the buyer’s lawyer/notary along with a Statement of Adjustments.
The Statement of Adjustments: this provides the parties with detailed information relating to the balance due from one (the buyer) and the balance due to the other (the seller). Some of the more common items that appear on the statement include the deposit, mortgages, property taxes, legal fees, strata.
Possession Day
The Buyer receives the keys to their new place. Most transactions will require unit keys, common area keys, mail box keys, if you do not have the required keys that are indicated on the Contract of Purchase of Sale please order and have all keys sent to us a few days prior to Possession Day.
