Cost to be Borne by The Sellers
- Lawyer or Notary fees and expenses
This cost includes attending and execution of all related documents to the sale. Such as clearing title which is investigating title: discharge fees charged by encumbrance holders and prepayment penalties. Lawyer fees vary from the scope of the work required.
- Real estate Commission (Plus GST)
In most cases in Vancouver, the Seller is responsible for the full commission payment assigned by the Contract signed between the representative Brokerage and the Seller. This commission will be divided in 4 ways. Listing broker, Listing agent, buyer broker and buyer agent. BCREA, new regulation requires the listing agent to disclose the total agreed commission to the seller every time an offer received or countered. In addition, listing agent is responsible to disclose any additional commission earned, (Disclosure of remuneration) related to this transaction.
I’m very open and comprehensive, when it comes to discussing on my fees and the amount of commission. It is a touchy subject for some, but it is a good idea to discuss it openly to my clients so they can understand the value they are paying and receiving.
- Any outstanding taxes and penalties
The Seller’s lawyer will also investigate on all outstanding or credit remaining on taxes due payable or paid before.
- Tenanted property
If a property is partially or fully tenanted, the seller lawyer, also must provide the damage deposit provided by the tenant at the beginning of their lease agreement to the buyers. In addition, depending on the closing date, a credit of rent for amount of rent given for the whole month, needs to be calculated and given to the buyer as a new landlord.
It is important to involve an experienced tax accountant to fully determine the taxes, and capital gains involved to eliminate any sudden surprises. This is important for investment properties and rental incomes.
- Mortgage fees
If there is an existing mortgage in place, it is crucial to contact the financial institution and discuss the process and fees involved to transfer the mortage to paying it off. There are mortgage penalties that most sellers are surprised about.
According to National Realtors report, 70% of homes with staging, sold quicker with higher average sale price. This is an important fact that by staging your home, you make it buyer friendly and more inviting for offers.
- Preparation and repair
Prior to list the home publically, home sellers in Vancouver must prepare and repair everything on the to do list provided by their real estate specialist and advisor. From major expenses like kitchen and bath update to smaller repair like paint and touch ups. Landscaping the property is a good investment that makes a first and last impression for detached and duplex homes.
- Home inspection
Although this a cost often associated to buyers, I always advise my home sellers to do a presale home inspection for the home for sale to eliminate any surprises. This helps to look after all items necessary on the home inspector list.
- Cleaning the property
At the closing time, it is the seller’s responsibility to fully ad professionally clean the property and make it move-in ready for the buyers.
- Other costs
There are other costs, like moving companies, utility change fees. In addition, depending on the contract of purchase and sale and the agreement with buyer, the seller may have to do additional repair or changes.?
Have more question, Contact me today and I’m happy to help.