Key Steps To Closing The Sale Of Your Home

Aug 30, 2018

While you’re packing and preparing to move, here are some key steps to consider as you prepare for the sale of your home.

Preparation

First of all, you’ll need to select a lawyer or notary to help you complete the sale. We can provide recommendations, and provide the lawyer with a signed copy of the contract.

As closing day nears, we along with your lender will monitor the progress of your transaction to ensure there are no last minute issues and concerns.You will need to arrange to meet with your legal counsel before the completion date to review and sign documents. Remember to bring photo identification and a personal cheque to this meeting to pay for legal costs.

Completion (Closing) Day

On completion day, legal ownership of your property will be transferred to the buyer.Your lawyer or notary will receive funds for the sale from the buyer’s lawyer or notary, and your lawyer or notary will provide you with a statement of adjustments.This list itemizes all costs payable at completion, including legal fees, taxes and other completion costs. Finally, funds will be used to discharge your mortgage, if applicable, with any remaining proceeds transferred to you in the form of a bank draft.

Closing Costs

Closing costs associated with selling a home include adjustments, real estate commission, mortgage discharge fee, capital gains tax (if applicable) and legal fees.

Possession Day

On possession day, we will help you coordinate the handing over of keys to the buyer.

Potential Seller Costs

As you draw closer to the close, you’ll need to account for associated costs as well:

  • Commission: 7%/1st $100k & 2.5% on balance (Listing agent – approx 54% and selling agent – approx 46% of total)
  • GST on commission
  • Legal fees for closing & conveyance (Notary or Lawyer) $1000-$1500
  • If property taxes are not paid for the current year, then the seller will be responsible for the period he/she owned the property during that year. Pre-paid taxes will be adjusted back to the Seller at the time of completion.
  • Any penalties on prepayment of the mortgage. May be 3 months interest or IRD “Interest Rate Differential” (whichever is greater). Plus other charges as per mortgage agreement. Contact your lender.

Closing the Sale: Checklist

  • Advise your lawyer that an offer has been signed.
  • Begin to satisfy any of the subjects within the contract of purchase and sale before the set date of completion.
  • Notify your lawyer and financial institution if the buyer is assuming the mortgage.
  • Contact the utilities companies and start to transfer utilities.
  • Contact your insurance company and arrange cancellation or transfer of your house insurance.
  • Contact a moving company and arrange a moving date.
  • Contact Post Office and Governmental authorities regarding an address change.
  • Notify your realtor is anything changes regarding your property situation.

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