Surrey Home Sales Lawyer
Selling your home takes a lot of work and effort. Market conditions change frequently and you have no control over whether prices are going up or down for your home. We can help you make your sale a straightforward process leaving you with one less thing to worry about. Contact our Surrey home sales lawyer today.
Before you sell:
- Choose a realtor.
- Your realtor will have you complete a Property Disclosure Statement or PDS about your home. In the PDS, you disclose information about your home to potential buyers including the existence of any tenants, the issuance of a final inspection or occupancy permit, any damage cause by wind, fire or water, any restrictions on ownership, amount of monthly strata fees and/or special levies if applicable.
- If you have a mortgage on your home, speak with your lender and check if there are any prepayment penalties that are applicable to your mortgage.
- You should also obtain your mortgage reference number and how much you currently owe on your mortgage.
- Currently, Canada does not charge capital gains tax on the sale of your principal residence. However, if the house you are selling is NOT your principal residence, there may be capital gains tax to pay upon the sale of the house. We recommend you consult with a qualified accountant about any capital gains tax liability.
The Offer to Purchase:
- This is your contract to sell your home.
- It is generally prepared by the buyer’s realtor and presented to you and your realtor to review and sign if acceptable.
- Generally, the selling price is negotiated back and forth between the parties before settling on a mutually agreeable price – all on the same contract.
- Typically, the buyer’s offer to purchase will contain a number of subject conditions such as:
- Arranging financing;
- Reviewing strata documents, if applicable;
- Sale of their existing home, if applicable.
- In a market that is favourable to the seller, it is possible to receive competing offers from multiple buyers or to arrange for a bidding process amongst interested buyers.
The Contract has been Accepted by You:
- The buyer must do some work to remove their subject conditions.
- If the buyer is able to remove or waive their subject conditions, then their offer to purchase your home becomes “final” and the contract is now legally binding on you and the buyer.
- If the buyer is NOT able to remove or waive their subject conditions, then their offer become void and their deposit should be returned to the buyer.
Your Contract is Final:
- You should contact a lawyer or notary public to represent you in the sale of your home.
- Most lawyers or notaries require about 2 weeks advance notice from the closing date to complete your sale but we strongly recommend obtaining a lawyer or notary as soon as you sign the offer.
Closing Costs – Closing costs generally include the following:
- Legal costs – We offer competitive fees. In addition to legal fees (which are subject to GST and PST), there are disbursements for land title registration costs to discharge your existing mortgage.
- Adjustments – some costs such as annual property taxes or strata fees are paid in advance or arrears as the case may be. These costs will be adjusted typically to the adjustment date.
- Realtor Commission – your realtor fees will have been set out when you hired your realtor. Most realtors base their commission as a percentage of your selling price. Please note that GST is payable on realtor commission.
- Once your lawyer or notary has received your final contract, you will typically have an appointment to sign documents at least 1 working day prior to your closing date.
- You must bring at least 2 pieces of ID for the appointment, one of which must be government issued photo ID.
- In addition to signing your sale documents, you will also authorize the paying the realtor commission and paying out any existing financial charges registered against your home.
- On the closing date, the buyer’s lawyer or notary will register the transfer of title electronically at the Land Title office and upon successful registration, forward sale proceeds to your lawyer or notary. We will then attend to paying out your financial charges and disperse the net balance to you. Typically, your sale funds are available the day after your closing date.
- On the possession date (which is generally different from the closing date), you must provide your house keys to your realtor, vacate your home and generally leave it in a clean condition.
- We recommend that you cancel your fire and content insurance on your home at this stage. If your home was a strata, then you only need to cancel content insurance.
Selling and Buying at the same time
Most home owners tend to sell their existing home and buy a new home. In that situation, we strongly recommend that the closing date for the sale of your existing home be at least 1 working day before the closing date for your purchase. This will avoid any delays in completing your purchase if the buyer of your existing home has difficulty in providing funds in time to complete your purchase on the same day.
NTD – more personal by not referring to “lawyer or notary” and just assume they are using our firm???