Sale Completion
Selling Your Shuswap Area Home? Seller Tips
The Contract of Purchase and Sale which you signed will state the completion day for the transaction. On that day legal ownership will transfer from you to the new owner in exchange for the purchase price of the property.
Do you, as seller, need a lawyer or notary public to complete the sale?
While it is the normal practice for the buyer’s lawyer or notary to prepare the documents necessary to transfer the legal ownership, it is recommended that you, as seller, engage legal counsel to act solely on your behalf. Among other things, he or she will protect your interests by:
- Checking the documents prepared by the buyer’s lawyer and explaining them to you
- Ensuring that your old mortgage has been properly discharged if this is required
- Ensuring that you have no further obligation regarding your mortgage if it is being assumed by the buyer
- Confirming that all payments for which you are responsible have been made
- Arranging for you to sign the transfer documents
- Preparing a statement for you outlining where all the purchase money was disbursed and giving you a cheque for the balance.
What costs can you expect?
In the transfer of ownership, there will be many financial adjustments between the seller and the buyer. Some of the costs you can expect to see deducted from the purchase price are:
- The commission you agreed to pay the listing agent
- The legal fees to discharge any existing mortgage whether or not you engage your own lawyer
- The Goods & Service Tax on the real estate commission and on your legal fees.
- Any prepayment penalty levied by the financial institution for early pay out of an existing mortgage
- Your share of the property taxes for the year if the current year’s taxes have not yet been paid, plus any penalties due for late payment of unpaid taxes
The day has arrived!! You have signed the documents, packed your boxes, received your cheque and turned over your keys.