Edmonton Home Selling Tips - Edmonton Realtor Kristyna Tsoy
Selling Process
When selling your residence, you will need to know the following things:
Gathering your Documents
To facilitate the marketing of your property you will usually need a current Real Property Report with evidence of municipal compliance. If your home is a condominium, you will need to gather your condominium documents. If you are not aware of these documents you should contact your industry member or your lawyer for further information.
Disclosures
Sellers cannot conceal defects or mislead buyers about condition of their property, and if answering questions you be honest. Whether you decide to sell your property yourself or through an industry member, you must disclose any material latent defects to potential buyers.
A latent defect is one that is not discoverable though the exercise of reasonable vigilance during an inspection of a property.
A material defect is one that reasonable persons would agree is a significant shortcoming in a property in light of the particular transaction.
Inclusions/Exclusions
When you sell a property, you must decide what you are taking with you and what you are leaving behind. Attached goods are those considered affixed to the property, such as curtain rods or water softeners. Anything that is attached to the property stays, unless otherwise agreed to by the buyer and seller. Attached items that you want to take with you must be identified in the Purchase Contract as exclusions. There may be unattached items that you wish to leave with the property that may become marketing features. Their inclusions or exclusion in a Purchase Contract can be negotiated.
You will also need to know if any goods are leased or under a long-term contractual arrangement (e.g. alarm systems). Ensure that the Purchase Contract reflects your intentions with such items. It is important to discuss with your industry member that you intend to include or exclude prior to selling your property
Taxes
The purchase of sale of a residence may have tax implications. Unless otherwise agreed in writing, the purchase price will include any applicable GST. It is the responsibility of the seller to seek expert advice (e.g. an accountant) regarding the applicability of payment of GST on the sale of the property.
Capital gains tax is based on the increase or decrease in property value over a specified period of time. This does not normally apply to the sale of a primary residence. However, there are a number of situations that may trigger capital gains, such as the sale of a recreation or rental property. For further information on capital gains tax, consult a tax accountant, lawyer or Canada Revenue Agency.
Contact a Lawyer
You will need to involve a lawyer for such items as title transfer and mortgage discharge. Property title transfers between sellers and buyers must be recorded at Alberta Land Titles to protect the new owners. All documents will be signed in the lawyer’s office before the possession date. Select a lawyer early in the selling process and consult him or her if you have any legal questions. For further information on real estate lawyers contact the Law Society of Alberta.
Dower Rights
In Alberta, spouses who are not on title have a right to make decisions about selling a property. These are called Dower Rights and are derived from the Dower Act. The untitled spouse must consent to the sale, in writing, in order for the sale to proceed. See your lawyer for further information if this applies to you.
Timing
Time is important. When an offer is made, the Purchase Contract will include a variety of deadlines, from how long the offer is open for your consideration to the number of days the buyer has to satisfy any conditions. (e.g. home inspection, financing, etc). These dates are important to monitor and your industry member can help you coordinate the multiple timelines.
Financial Considerations
Beyond the sale price, other financial factors could impact your decisions during the selling process. Before you sell, call your mortgage lender to fully understand the terms of your mortgage and to discuss your options. If working with an industry member, you will be asked to sign a mortgage verification form, granting permission to verify your mortgage terms and conditions.
Your Mortgage
You may choose to use the proceeds from the sale of your property to discharge (pay out) your mortgage. If you have an open mortgage, you will probably be able to discharge it without penalty. If you have a closed mortgage, you will probably have to pay a penalty to do so. You may be able to port your mortgage to the home you purchase. This needs to be clarified by your mortgage lender.
Purchase Contracts
Developed by the industry, the typical Purchase Contract sets out the terms and conditions of a real estate transaction. This standard form agreement may be modified by buyers and sellers to reflect the requirements of their transaction. When you are presented with a Purchase Contract, you may accept, reject or counter the offer. If you choose to counter the offer, the negotiations continue until both parties agree to the terms, or the offer expires.
