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 dats(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" If you and your buyer have both efficiently taken care of your respective contractual obligations associated with finalizing the sale, the process of completing the transaction should go smoothly with hopefully no surprises. A pending sales agreement generally includes contingencies and special conditions that must be fulfilled by the buyer and seller by the closing date.
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 buyers 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 | Fiancing
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 agreement of purchase and sale.
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 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.
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-settlemenet Walk Through Inspections
A final walk through by the buyer to verify that the home is in the same condition as when the sale agreement was signed, if the home is not in the same condition we will try our best to get any issues rectified prior to possession/closing 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!
COMMON CLOSING COSTS
When selling a home there is much more to consider, It can be extremely overwhelming when your hit with unexpected costs along your real estate journey of selling your home. Having certain documents and payments set aside will help for a much less stressful time leading you up to your closing date.
Discharge of The Mortgage
Check with your mortgage lender to determine if any costs will occur when transferring or releasing your mortgage. Seller could incur penalties for discharging the mortgage before the mortgage contract is up.
The lawyer involved will ensure that any overpayments or deficiencies on rents, mortgage interest, property tax and utility charges will be corrected, and the buyer and seller will be credited or charged accordingly.
Homeowners Association FEE - HOA - Only Applicable to Condo Owners
Before you can sell, your HOA dues must be paid off in full. If you owe late dues, fines or fees, you will have to pay them off.
Title Search of The Property
If lawyers find any liens against the property, the cost will have to be discharged before the sale of the house would be legal.
Harmonized Sales Tax - HST
In a real estate contact will read either Included In, meaning the seller will be responsible for paying the HST at close, or it might read In addition requested by the seller which means the buyer will be responsible for the HST come closing if the property is subject to hst.
Capital Gains Tax
When selling an investment property not being your primary residence, you will be expected to pay a capital gains tax. A professional is advised to calculate prior to selling.
Realtor Fees + HST
When having a realtor represent your home for sale comes at a cost once the home is sold. A fee that is discussed prior to accepting the terms to the sellers representation agreement. A fee that includes both seller and buyer commission. Realtor fees are up for negotiation.
Fees vary, depending on how complex the sale is and how much work the lawyer has to do. Some charge by the hour or provide a flat fee - best to shop around in advanced.
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.