Purchasing a home is likely to be the largest investment you make in your lifetime – so when you are ready to sell, it is important for you to understand the process of doing so.
In our last blog post, we discussed the first five things to consider when selling your home. Here are the final four considerations:
On the Purchase and Sale Agreement, the Seller must clearly identify the fixtures being sold with the house and differentiate them with the items they plan on taking that are attached to the walls, ceiling, or floor. Fixtures include anything that is physically attached to the property – such as furnaces, lighting fixtures, and satellite dishes. Household items that you can easily transport, such as patio furniture, sheds, picture mirrors, and picnic tables are not generally considered fixtures.
The closing/possession date will be stated in the Purchase and Sale Agreement. It is on this date that the property being sold is transferred to the Buyer and the Seller’s interest and responsibility is terminated. While it is important to ensure that the Seller cancels any automatic debit payments paid on the home, out of an abundance of precaution, they should not cancel their house insurance until they are in receipt of all of the purchase money for the sale – this is to be protected against a delay in closing, which can arise when the purchaser does not get the funds to the seller’s lawyer in time.
The aforementioned closing date (found in the Purchase and Sale Agreement) also indicates the day that the lawyer must complete their duties by. They must complete a title search to know if any requirements are to be fulfilled prior to title being transferred to the Buyer, such as encumbrances and charges against the land. These must be removed, or an undertaken by you lawyer to have them removed, prior to the closing date.
Your lawyer may also prepare a Statement of Adjustments – a statement indicating the final amount of money due with respect to the sale. It shows the cost of the property less the deposits and adds any unseen costs (which are typically property tax adjustments).
The Buyer’s lawyer will forward the purchase price to the Seller’s lawyer, who will then pay all outstanding financial obligations including the realtor’s commission, an outstanding mortgage loan, and all legal fees – and the balance is for the Seller to keep.
To transfer title, both the Buyer and Seller must sign a Transfer of Land, and said Transfer must be registered at the Land Titles Office. This is generally completed prior to the Seller receiving the money, because in order for the Buyer to obtain a mortgage, the property must be in their name (in the name of the mortgagor). However, if the Buyer is closing using western protocol or title insurance, it may not occur until after closing. As a precaution, the Buyer also signs a Transfer-back to restore title and possession to the Seller if the mortgage monies are not advances as expected.
At Estate Connection Law Office, we have over 25 years of experience in handling real estate transactions. If you are considering selling your home, call our office for a quote on the legal fees. Remember, we are here to help!
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