Step 6) Closing the Sale

After all the Preparation, Paperwork, Promotion your house has SOLD.

So now your offer is accepted and any conditions have been removed or waived, my Brokerage has obtained the buyer's deposit cheque on your house and it's been placed in a trust account.

The Next Step is to ensure the closing of the sale by faxing your accepted offer to your lawyer.

What you don't need in this busy time, is worry or anxiety over things left undone.

For a seller, the process of selling a property is stressful enough so you definitely need a real estate lawyer to help guide you through the closing of the sale.
In addition to reviewing your offer and preparing legal documents, the lawyer will also meet with you prior to closing to fully execute all the documents and take the keys, and will also carry out the exchange of documents and monies.

10 Points of What your Lawyer will do for you:

  •  Review and execute the offer to purchase
  •  Review and respond to request submitted by the buyer's lawyer
  •  Receive mortgage instructions from the sale of your property and discharge your existing mortgage if any
  • Prepare the statement of adjustments
  •  Prepare the draft of the transfer/deed
  •  Prepare all supporting documents
  •  Forward a request for a mortgage discharge statement for any mortgage registered on the title
  •  Meet with you to execute all sale documents and get your keys for closing
  •  Courier the keys to the buyer's lawyer after all documentation and closing funds have been received
  •  Conduct necessary correspondence and telephone conversations with any parties involved in the sale 

  • Equity is the net worth that you have in your property.

    In general, it will be the amount of the cheque your lawyer will provide to you when the transaction is complete.

    In most cases, it is difficult to calculate the exact amount of equity because of uncertainties as to the balance of mortgage owing, the status of any mortgage tax account, the amount of delay at land titles, and so on.

    The Typical Items to consider are listed below:

    Legal Fees
    A fee of approx. $850.00 for a standard residential house transaction (other than new home sales)

    These items are costs which the seller of a house must pay but which, for reasons of convenience, the lawyer pays on behalf of the seller at the appropriate time and then is reimbursed by the seller.

    These include mortgage discharge fees payable to land titles, title investigation charges, couriers, and other miscellaneous charges all of which generally range from $100.00 to $150.00 depending on the specific transaction. 

    Mortgage Discharge Fee
    There will be a discharge fee to pay to the lender and the average amount is $300.00

    It goes without saying that the balance of money you owe under your mortgage will reduce your equity. Don't forget to include any mortgage penality. Unless your mortgage is at the end of term or is an "open" mortgage, you may have to pay a penalty to the lender to have it discharged.

    Usually, if you are purchasing another house and are using the same mortgage lender the penalty is waived.

    Property Taxes
    The tax period for a titled property is always the calendar year, however, in Winnipeg, taxes are due as of June 30th. In all transactions, either the buyer or the seller pays the annual tax bill.

    The paying party is then reimbursed by the other party by way of an adjustment to the sale price.

    Final Water Bill
    An outstanding water bill is the only utility that can be added to the property's taxes, therefor the final water bill on the property is paid by the lawyer from the sale proceeds.

    Gst is payable on the real estate commission, Legal Fees, and most disbursements

    You may receive interest for the duration of the land title delay, on the sale proceeds, or part of the sale proceeds. The interest that you will earn is hard to estimate and will depend on the amount of any mortgage the purchaser is getting on the property.

 Steps for Selling your house:

 Below are the steps for selling your house.

  Step 1) Consultation and Market evaluation 

  Step 2) Preparing to sell 

  Step 3 Marketing Plan                                                                                                 

  Step 4) Listing your property for sale                                                               

  Step 5) Reviewing and accepting an offer

  Step 6) Closing the sale