The Offer has been accepted, congratulations!…. now what?
Once your sale is official (subjects removed, if any), we will be waiting for the Completion and Possession Date which are noted on the Contract of Purchase and Sale. On the Possession date, we will ensure that all furniture and belongings are packed and removed from the property and the property is spotless for the new owners! Note that the Contract stipulates a specific time with regards to the Possession of the home for the new owner; it’s often at noon, but can be later or earlier in the day – so you want to make sure that you have planned your cleaners and movers well before the Possession time to ensure a smooth turnaround!
There are a few tasks that you need to do before the Completion and Possession Date. Take a look below:
1. CONTACT A LAWYER OR NOTARY PUBLIC
Upon acceptance of an offer, the deposit cheque is given the Buyers agent for deposit into the Buyer Agent’s Office trust account. The next step is to arrange for a Lawyer or Notary to handle the preparation of transfer and/or mortgage documents. Once you have decided whom you would like to use to represent you, let us know (at LEAST 3 weeks prior to Completion) and our conveyancing department will forward the Contract Documents and other necessary information to your lawyer/notary. Your lawyer go over all the legal steps of the sale , and you’ll meet with them a few days before the Completion Date to sign everything necessary. We’re happy to refer a great lawyer or notary, just ask!
2. TRANSFER YOUR CABLE/PHONE/INTERNET SERVICES
Contact your service providers to cancel or transfer your services to your new home (effective on Possession Day). This includes:
- BC Hydro 800-224-9376
- Fortis BC 800-224-9376
- Telus (Phone and Internet) 604-629-8888
- Shaw Cable (Phone and Internet) 604-310-2255
- City of Vancouver (Automatic Debit plans) 604-873-7000
3. NOTIFY YOUR BANK THAT YOUR PROPERTY HAS BEEN SOLD
Your Lawyer will ensure the mortgage is paid out, but you will want to ensure that you’ve had a chat with your bank or mortgage broker (ideally before you even list) so you’re aware of what the ramifications will be of selling now vs later, and whether or not you’ll incur any penalty fees.
Here are some things you can expect on Completion Day (or a few days prior depending on when you’re meeting with your lawyer):
- Buyer’s lawyer will forward funds to your lawyer, in exchange for a clear title.
- Your lawyer will pay off your mortgage and any property taxes, realtor fees or maintenance fees owing.
- Your lawyer will provide you with a Statement of Adjustment, which outlines all the credits and debits.
- You will be required to bring a bank draft with you to pay your lawyer, along with your ID.
- The title is transferred from your name to the Buyers name and is registered at BC Land Titles office. Your lawyer will call you to advise you of the registration number.
- Our conveyancing department will be advised of the registration number as evidence to a successful closing.
- An excess deposit cheque will be issued to you (if there was a profit on the sale after all expenses) by the Buyers real estate company or lawyer (an amount equal to the amount of the buyers deposit less the realtor’s commission + GST, Lawyer’s fees, and any other costs).
- A cheque for interest, if any, on the Buyers term deposit will be issued to the Buyer.
- These are the fees you will pay on Closing Day. All or some of the following may be included. Check with your lawyer for details.
5. KNOW YOUR COMPLETION COSTS
Adjustments – the Buyer will reimburse the Seller for costs such as property taxes which have been paid for the year. The Buyer is responsible for the property taxes as of the Adjustment date on the contract (typically the same date as the possession day). Adjustment costs may also include service contracts or strata fees and strata may also charge a move in move out fee.
Real Estate Commissions – your lawyer will deduct the real estate commission from your proceeds and disburse them. GST will be applicable on your real estate fees.
Legal Fees – your lawyer will arrange for the transfer of funds from the Buyer’s lawyer, in return for the transfer of the title to the Buyer. Your lawyer will also discharge your mortgage and prepare a Statement of Adjustment which itemizes the disbursement of all funds. The amount of the fees is to be discussed with your lawyer but budget $900+.
Taxes – unless you are selling your principal residence, you are required to pay capital gain tax – speak with your accountant about what you can expect here based on your financial situation. Non-residents of Canada are required to pay 25% tax and will be required to file Clearance Certificate with Revenue Canada. The lawyer will be required to hold back 25% if this certificate has not been issued (it can take six months or longer). You are advised to consult an accountant prior to listing your property.
Mortgage – your lawyer will contact your bank and they will confirm the payout figure for your mortgage. Your lawyer will forward this amount from the proceeds of the sale. If you have a closed mortgage you will be charged a penalty. Open mortgages usually do not and they can also be transferred to another property, though contact your bank or mortgage broker for more information on how the sale affects your existing mortgage.
6. PLAN YOUR PACKING AND MOVING SERVICES
Moving Services is another part of your move that you’ll want to book as soon as possible, especially if your move is at the beginning or end of the month. There are companies that offer both packing and moving help, boxes, or just the move. They should be professionals, with the proper equipment to ensure your breakables are protected.
The companies we recommend for packing and moving help are.
If you are just looking for the moving help, but want to pack yourself, there are numerous companies to rent boxes from.
7. FORWARD YOUR ADDRESS
Ensure you change your mailing address in advance of the move, though you can also pay Canada Post to forward your mail to your new address. You’ll need to ensure that the Government (CRA, etc), your employer, your family and friends, your subscriptions, your bills, etc, have all been notified of your new address.
8. HIRE CLEANERS
Ensure the property is cleaned and ready for the new Buyers. Make sure to deal with any requests that were agreed to in the contract with regards to cleanliness, holes in wall, painting, inclusions/exclusions, and more.
9. POSSESSION DAY
The Buyers will receive the keys through their agent. Please leave the extra keys, garage door remotes, and any instructions, manuals or security system instructions on the kitchen counter for the new owners. The Sale is now officially complete, and you’re ready to move on to your new home!
Feel free to Contact Us!