If you have an existing mortgage on your property, it needs to be paid off on or before the closing date of the sale. We coordinate this process on your behalf. Funds from the sale are first used to pay off the outstanding balance of your mortgage, including any prepayment penalties or discharge fees if applicable. After these deductions, the remaining funds are transferred to you.

When selling a primary residence in Canada as a non-resident, a 25% holdback of the purchase price is required. For example, if your property sells for $1,000,000.00, the buyer’s lawyer must withhold $250,000.00. If the sale proceeds are not sufficient to cover this holdback, the seller is responsible for providing the difference as part of their closing costs.

Next, the seller applies for a clearance certificate under s. 116 of the Income Tax Act. The Canada Revenue Agency (CRA) calculates the capital gain or other taxes owed from the sale of the property, and the held-back funds are used to pay this tax. Once the tax is paid, the CRA issues a clearance certificate, and any remaining funds are returned to the seller.

For non-residents selling an investment property, the holdback could be as high as 50% according to the Income Tax Act.

When examining an offer to purchase, ensure your real estate agent knows which fixtures you wish to retain. This is particularly crucial as staging becomes increasingly popular, and any fixtures used for staging should be explicitly excluded from the agreement.

Typically, rental equipment will have a service sticker with a company name. Contact this company to verify if the item is rented, its monthly cost, and the term duration. Additionally, some rental items might appear on your Enbridge bill. Performing this due diligence when selling your property is crucial to avoid unnecessary delays or financial losses.

MoveSnap is a platform accessible via an invitation from your lawyer. It features a checklist of tasks that need to be completed before your closing date, such as coordinating movers, transferring utilities, or changing the address on your driver’s license. The platform is interactive: for instance, clicking on “change utilities” will display the electricity provider for your current and new address. Once you confirm the utility transfer, it’s done, and the progress graph on MoveSnap is updated to reflect this. The cost of the MoveSnap concierge service is included in your closing costs, and there are no additional charges. It’s entirely optional to use but can be an excellent tool if you choose to utilize it.