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THE FINAL STEPS

COMMON CLOSING COSTS

When selling a home there is much more to consider, It can be extremely overwhelming when your hit with unexpected closing costs. Its strongly advise to speak with your financial and accountant professionals and lawyer when considering to sell. Knowing the costs that could be due come closet will help you plan your budget and help you decide if financially now is the time to move or not or help you plan financially for you next move.

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Mortgage Penalties (If applicable}
If a mortgage is broken before the maturity date, there may be a penalty. It's strongly advised to check with your mortgage specialist for details when considering selling.
Legal Fees
Fees vary, depending on how complex the sale is and how much work the lawyer has to do; by hour or provide a flat fee. In addition, you will be responsible for any of the lawyer disbursements (out-of-pocket expenses} including administration and search fees. Disbursements range depending on how complete the work involved. Harmonized Sales Tax HST will also be in addition to all legal fees and applicable disbursements.
Adjustments
The lawyers involved will ensure that any overpayments or deficiencies, applicable adjustments will be made on closing. The buyer and seller will be credited or charged accordingly. Example could be pre-paid property tax or lack of.
Realtor Fees
When having a realtor represent you for sale of your property comes at a fee once the home is sold. A fee that is discussed prior to signage the sellers representation agreement. A fee to be disbursed to the listing brokerage and the co-operating brokerage. Harmonized Sales Tax HST will also be in addition to all real estate commissions.
Capital Gains Tax
The sale of ones principal residence is not subject to capital gains tax but income properties, vacation homes and other types of real estate are subject to capital gains tax. It's strongly advised to check with your accountant or financial advisor if you are considering selling for further details.
Other Costs
Moving costs vary based on location and the amount of possessions being moved. If you're moving yourself, you should factor gas, rental vehicles and moving supplies. Which ever your moving plan is all should be taken into account when budgeting for your move.

MANAGING THE TRANSACTION THROUGH

A pending sales agreement generally includes contingencies and special conditions to be fulfilled by the buyer and or seller by the deadline dates(s indicated on the purchase agreement. As your representative I will work closely with the buyers agent to help streamline respective contractual obligations associated with finalizing the sales getting you to "closing day". Time is of the essence during the conditional period. Typically five to seven business days are requested to fulfill standard conditions, although some conditions may require longer time frames such as due diligence and sale of a purchasers property. Once signing the agreement, both the seller and buyer are under a legal obligation to close. If you the seller decides not to for whatever reason, the buyer has the right to sue. If the buyer decides to walk away from the deal, you can put claim for the buyer's deposit if stated in the APS or sue for damages.

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Seller's Disclosures
This is the process where you as the seller are required to provide information relating to your home going above and beyond legal necessity to disclose all know defects to the buyer Including providing/releasing information requested by the buyer as part of the agreement of purchase and sale.
Buyers Due Diligence
The buyer will need to perform their due diligence during the contingence period for all conditions set out in the Agreement of Purchase and Sale. This is the time period provided to the buyer to learn, review, inspect and decide if acceptable: When each condition is complete and satisfied by the buyer, the buyer will then send a form to have each waived if satisfied.
Buyers Rights To Cancel Or Resolve Objections
If the buyer determines the evaluations and inspections to be unacceptable during there due diligence contingency period, the buyer may: No later than the due diligence deadline, cancel the contract by written notice to the seller in a mutual release form requesting out of the deal and to receive their deposit back in full, or no later than the due diligence deadline, resolve with the seller in writing any objectives.
Remaining Contingencies
In the final steps of the transaction, we will coordinate and complete any remaining details: Is the sale contingent upon an appraisal? At what amount did the property appraise? Was the sale contingent upon the buyer selling their previous home? How is the buyers financing going? Are there any last-minute issues for securing their mortgage? Does the seller have any obligations to complete as per the APS.
Appraisal
If the buyer is using proceeds from a mortgage lender, the lender will want to perform an appraisal of the home to ensure that the homes actual value justifies the loan amount being borrowed. The appraisal ensures the lender that it isn't loaning the borrower more money then what the home is worth. Sellers should note when accepting a firm deal without a finance condition, the buyer still might be using proceeds from a mortgage lender in which case an appraisal will happen and If the appraisals comes in less, the buyer will need to come up with the difference come close, if unable to do so, the buyer will ask for a price reduction.
Deal Is Firm
Once the buyer has been satisfied and has fulfilled or waived their conditions, your home is now sold. Time to finalize closing documents.
Contact Notary or Lawyer
Both parties can either hire a notary or a real estate lawyer to help finalize the transaction to ensure all of your documents are in order. Its recommended to contact a lawyer well in advanced even prior to an agreement is made as your lawyer will need time to review the contract if you choose and gather necessary documents come once the deal is firm as required plus you will want to ensure your lawyer is available to not have any closing delays.
Title Search
The buyers lawyer will perform a historical review of all legal documents relating to ownership of the property to ensure that there are no claims against the title of the property .
Final Pre-settlement Walk Through Inspection
A final walk through by the buyer to verify that the home is in the same condition as when the sale agreement was signed and or sellers obligations to the agreement of purchase and sale have been completed, if the home is not in the same condition we will try our best to get any issues rectified prior to closing date/possession date.
Closing Date | Possession Date
The day has finally come, after both parties have signed all documents required to close the transaction with their lawyers just days prior and the buyer has seen the property to ensure all is in the same working condition, the buyer will now receive the keys and the seller will get paid.
Both parties should note possession date could be delayed due to lawyers or banks. Congratulations!
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CLOSING

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THINKING OF SELLING

Elizabeth Hobson Toronto Real Estate Agent
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THE FINAL STEPS

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SELLERS CONSULTATION

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