Selling Your Property
Once you have made the decision to sell your home, there are some important things that you need to consider with the help of your representative:
The market conditions – The real estate market is always changing and it is important to understand how the current conditions will affect your position as a seller
What the market value of your home is – This is influenced by market conditions, location, size, style, condition, amenities and financing options.
What a realistic selling price would be – Homes that are priced right sell faster and can generate higher, competing offers.
Here is a summary of the selling process:
The Offer - This will be influenced by the market conditions and the buyer but is usually different from the asking price.
The Deposit - Once an offer has been accepted, the buyer will place a deposit on the property. This deposit will be applied against the purchase price when the sale closes.
The Terms - This includes the total price the buyer is offering and the financing details.
The Conditions - This is a series of requirements that must be fulfilled prior to closing. The sale may be subject to such things as a home inspection, the sale of the purchaser’s property and/or the buyer obtaining financing.
The Inclusions and Exclusions - This is a list of furnishes, appliances, decorative items, fixtures, etc. that are being included or excluded from the sale.
The Closing and Possession Dates - In general, the closing date is the day that the seller will receive the funds and the title will be transferred to the buyer. In BC, the possession date is usually 1 to 3 days after the closing date.
The seller of a property in Squamish is responsible for the following costs:
Representation Fee - The real estate commission is the agent’s fee for service. It is a percent of the sale price negotiated at the time of the listing.
Lawyer or Notary Fees & Expenses - Includes attending to the execution of documents and discharging of any encumbrances.
Obtaining a Clearance Certificate - If you are not a Canadian seller, you will need a Clearance Certificate from Revenue Canada prior to the completion date of your transaction. The current wait for a Clearance Certificate is 6 to 8 weeks, 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.
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.
Goods and Services Tax (GST) - The GST is a 5% tax that, in the case of a vendor, applies to the commission fee and other services related to the sale.
Adjustments for Ownership - This may include property taxes and/or strata fees
Capital Gains Tax - We recommend that you speak to your accountant or financial adviser to determine the more beneficial way to dispose of your real estate investment.