12 essential tips when selling residential Real Estate in Ontario
You have decided to sell your Ontario property. What are 12 critical things to consider before signing the agreement of purchase and sale?
- Fixtures are improvements made to a property that are attached or cannot be removed easily without causing damage to the property. Fixtures are assumed to be included in the sale of the home, unless they are specifically excluded in the agreement. Make sure the listing excludes any fixtures or furnishings that are permanently fixed like built in book cases, hot water tanks and chandeliers that you intend to take with you.
- Chattels are moveable items of personal property contained on the property and must specifically be listed in the agreement if they are to be part of the sale of the home. For example, if you agree to include your refrigerator, stove, or gardening equipment in the sale, these items must be specifically identified in the Agreement. If there is any doubt whether an item is included or excluded, it should be clearly specified in the agreement.
- Ensure your agreement requires the buyer to agree to assume rental contracts (if assignable) in respect of the property being purchased. Typical items include: hot water tanks, furnaces, and security monitoring systems. The price for the rental items is not included in the purchase price, but will be accounted for in the statement of adjustments.
- Make sure you confirm the dimensions of the property.
- Are there any existing encroachments or easements or rights of way that ought to be disclosed in the listing Agreement? What about registered restrictions? Are they complied with?
- Was the property ever used as a grow operation or meth lab in the past (before you owned it). How would you know? There are disclosure obligations.
- You should check to ensure that your mortgage can be discharged on the proposed closing date. Will your mortgage provider charge you a fee/penalty for early discharge? If so what is that fee/penalty?
- If you are selling as buying, avoid closing your purchase and sale transactions on the same day.
- Arrange Bridge Financing with your bank or other lender. Moving can be very stressful. If you are selling as well as buying, do not close both on the same day. If your buyer delays the closing due to funding issues for example, you want to ensure you are still able to close your purchase transaction.
- Arrange bridge financing from your friendly banker so you can close your purchase a few days before your sale. It’s not expensive and it will give you options if things don’t work out as planned.
- Be careful about offering a warranty on the condition of any appliances and other equipment you sell with the property transaction.
- Can you use the survey you have from many years back?
Completing an Agreement of Purchase and Sale can be complicated and technical. Before the Agreement is final, it may change several times as you and your buyer negotiate its terms, and counteroffers are presented. To be certain you understand all the terms, it is best to have your agreement reviewed by a lawyer before your purchase or sale is finalized.
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