Selling your property: What you need to know
At ABC Law, we understand that selling a property can be a complex process. Our experienced residential real estate team is here to help you navigate the legal landscape and ensure a smooth transaction. Below is a comprehensive guide to help sellers understand their legal obligations and responsibilities, along with a practical checklist to simplify the process.
Key considerations when selling your property
Hire a real estate lawyer early
- Engaging a real estate lawyer at the start ensures that your interests are protected throughout the sale process.
- Your lawyer will review the purchase agreement, handle title transfers, and ensure compliance with local regulations.
Understand the purchase agreement
- This document outlines the terms of the sale, including the purchase price, conditions, and closing date.
- A lawyer can review or draft this agreement to ensure it aligns with your expectations and legal requirements.
Prepare the property for sale
- Address necessary repairs and improvements to increase marketability.
- Gather all property-related documents, such as past utility bills, warranties, and maintenance records.
Disclose property information
- Sellers in Alberta are required to disclose known defects or issues with the property.
- Your lawyer can help ensure that disclosures are complete and comply with provincial laws.
Clear title issues
- Your lawyer will verify that the title to the property is free of liens, encumbrances, or other issues that could delay the sale.
Understand tax implications
- Be aware of potential taxes, such as capital gains tax, if the property is not your primary residence.
- Individuals who have sold their principal residence will need to report the sale on their income tax return filed for the period in which the sale occurred. Taxpayers are now required to report every sale of a principal residence. Failure to report the sale can result in the loss of the principal residence exemption. If you have questions about the tax implications of your sale, you should discuss the same with an accountant or another qualified professional.
- Non-resident sellers must also comply with special tax withholding requirements.
Plan for closing day
- Ensure all conditions in the purchase agreement are met before closing.
- Your lawyer will facilitate the signing of documents, the exchange of funds, and the transfer of the title.
Legal obligations for sellers in Alberta
- Property Disclosure Statements: Complete and accurate disclosure is required to avoid legal disputes.
- Condominium Sales: Provide buyers with an estoppel certificate and other condominium documents.
- Land Use and Zoning Compliance: Ensure that the property complies with local land use and zoning laws.
- Mortgage Discharge: Work with your lender to discharge any existing mortgages on the property.
- Utilities and Services: Arrange for the cancellation or transfer of utilities and services on or before closing day.
Checklist for Selling a Property in Alberta
Before listing the property:
- Hire a real estate lawyer.
- Gather property documents (title, survey, utility bills, etc.).
- Address necessary repairs and staging.
- Prepare a property disclosure statement.
After receiving an offer:
- Review the purchase agreement with your lawyer.
- Negotiate terms and conditions as needed.
Before closing:
- Resolve any title issues.
- Ensure all conditions in the agreement are fulfilled.
- Arrange for the discharge of any existing mortgage.
- Prepare for the final walkthrough with the buyer.
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Sign all required documents with your lawyer.
On closing day:
- Ensure funds are transferred and the title is updated.
- Cancel or transfer utilities and services.
Why work with ABC Law?
Our team at ABC Law is dedicated to making the property selling process as seamless as possible. With years of experience in residential real estate law, we provide personalized guidance to help you avoid pitfalls and ensure a successful sale.
Contact any member of our team to learn how we can assist you in your property sale journey.
Residential real estate closing process
Selling
Preview sale agreement
Accept offer to purchase with your realtor
Request documents
Request documents with your realtor
Prepare closing documents
Review and sign closing documents with your lawyer
Review and sign
Pay out mortgage upon closing with your lawyer