Must Know Buyers Sellers

Must Know Buyers Sellers

Cost Guide

Prepaid property taxes or utility bills – You will have to reimburse the sellers for any prepaid property taxes or utilities proportionally till the end of the calendar year.

Mortgage loan insurance and application fee – If you get a high-ratio mortgage (a mortgage where you pay less than a 20% down payment) you will have to buy mortgage loan insurance from CMHC Canada Mortgage and Housing Corporation or a private company.

Property Transfer Tax  PTT – 1% on the first $200,000 plus 2% on the remaining balance of the property purchase price. First-time buyers, if the purchase price of the property is up to $475,000, may qualify for a full relief from the PTT. For more information please visit: http://www.sbr.gov.bc.ca

Appraisal – Before your lender approves your mortgage, you may be required to have an appraisal done. Sometimes your lender covers this cost otherwise you are responsible for covering this cost. The fee ranges from $150 to $350.

Survey fee – Your lender may require an up-to-date survey of the property. If the seller did not provide you with one, you will have to pay to have one done. The fee ranges from $350 to $450. Recently most banks and lawyers are using a Title Insurance instead which is easier to obtain and the cost is $100 to $200.

Home Inspection fee – Most Realtors recommend that you get a home inspection by a certified home inspector. It will cost you from $350 for an apartment to $600 for a regular size house. Large houses may cost more.

Home insurance – Depending on the property value and your insurance history, the annual insurance premium can vary between $500 to $3,000. A qualified insurance agent can give you 2-3 quotations from different insurance companies.

Legal fees – Lawyers/Notaries fees for closing the sale range according to the complexity of the deal and if a mortgage registration is involved, between $800 to $1,500.

Disbursements to Land Titles Office – These fees are approximately $300. Your lawyer/notary will arrange this payment.

Must Know Buyers Sellers

Tips for Selling Your Home

Offers to Purchase

An interested buyer will prepare a written offer, usually on a standard form called the Contract of Purchase and Sale. Your Realtor must present you with all written offers and if you receive several at one time, you are under no obligation to accept one over the other.

When you receive an offer, you can accept it, refuse it, or make a counter-offer to the buyers, with the changes you want.

An offer usually contains subject clauses that the buyer needs to remove by a specific date. A subject clause is a special condition that must be met before the sale can take place. For example, a buyer may want to have a certified home inspection done before they commit to the sale. Once the subjects are removed and you’ve signed the offer, it becomes legally binding.

Completion

The Contract of Purchase and Sale will specify a completion day for the sale. On this day, legal ownership of the home will transfer from you to the buyer.

Before the completion day, you should hire a lawyer or notary public to handle the completion procedures. Your Realtor will be able to recommend some lawyers or notaries.

The lawyer/notary will:

• Ensure that your mortgage has been properly discharged.
• Arrange for you to sign papers transferring title.
• Confirm that all payments you are responsible for have been made.
• Give you a cheque for the balance.

Completion Costs
Although you will receive a payment upon the sale of your home, there are still some costs you need to be prepared to pay.

They include:

• The Realtor’s commission.
• Legal fees.
• Any penalties for paying off your mortgage early.
• GST on the commission and legal fees.
• Your portion of the property taxes.

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