"Unless you try to do something beyond what you
have already mastered, you will never grow."
Ralph Waldo Emerson
Poet and Essayist, 1803-1882
DECLARATIONS BY THE SELLER
This is a very important document and really should be completed by every homeowner. Your declarations could protect you from any legal action taken by the purchaser, against possible latent defects. This document also provides the purchaser with the history of your home as well as any information regarding improvements or repairs completed by you on the property.
Cost: Ten minutes to complete
CERTIFICATE OF LOCATION
This is the legal description of the property and shows the footprint of your home on the lot as well as the dimensions of the building, land and everything attached to it.
Do you need to update your certificate of location? Possibly! If, during the period of your ownership, you've added a pool, cabana, fence or a deck, air conditioning/heat pump unit or widened your driveway, you will need to have a surveyor prepare a new certificate of location. These changes are required to be up-dated on the certificate and will demonstrate that the property and those changes conform to municipal by-laws.
Furthermore, it is always a condition of the purchaser's mortgage lender to request a new survey and if there have been on changes made to the property, the cost will be borne by the purchaser.
My suggestion, if you are planning on selling your home in the next few years then get a new survey. The prices for these surveys go up every year.
Cost: $650
MORTGAGE
The existing mortgage on the property will need to be radiated at the time of signing. Each mortgage (including a mortgage in the form of a collateral line of credit) needs to be radiated and the notarial fees to radiate each mortgage would be:
Cost: $475
PENALTY
If you are reimbursing your mortgage prior to the renewal date (assuming you do not have an open mortgage meaning you can pay it off at anytime without penalty), you may be charged a penalty for early repayment of your mortgage. The penalty may be either (1) an amount equal to three month's interest or (2) the difference between your existing interest rate and the current re-investment interest rate for the balance of the term, which ever amount is greater.
Cost: 3 months interest or interest differential between rates
OIL HEATING
You will need to fill your oil tank a few days before the signing date and bring a receipt that this was done. The purchaser will then pay you for a full tank of oil at the price indicated on the fill-up receipt. A normal oil tank holds 909 litres.
Paid to you: based on cost per litre
PROPERTY TAXES
You prepay property and school taxes and depending on when you vacate your home, the notary will make an adjustment in your favour in an amount equal to the prepaid taxes.
Paid to you: Prepaid city and school taxes
COMMISSIONS
Real estate commissions shall be deducted from the proceeds of the sale and remitted to the real estate broker. The law requires you to pay the GST and QST on the commission owing.
Cost: 6% - 7% of sale price
TITLE DEEDS
All the title deeds you have in your possession need to be given to the listing agent upon receiving an accepted Promise to Purchase.
The law requires that a realtor obtain copies of:
• your deed of sale;
• mortgage deeds and last mortgage statement;
• certificate of location;
• copies of invoices for any improvements you’ve made to your home;
• your municipal and school tax bills, heating and electrical bills;
• contracts for equipment under a lease or lease purchase contracts;