You will find below some useful information to make you better prepared to place your property on the market.

Required documents

The vendor must normally supply a recent survey certificate and a valid title deed. The approximate cost for the production of a survey certificate is 600 $. Additional legal fees are to be expected if the title deed is not clear.

Financial costs

If the vendor sells his property and pays his mortgage before term, he must expect to pay a compensation for anticipated reimbursement. The compensation varies with the economic context, i.e. if the market rate is superior to the contractual rate the compensation is generally less than if the rate is inferior to the contractual rate. If the vendor buys an other house and needs an equal or higher mortgage, he normally should not have to pay compensation for anticipated reimbursement. If the new property requires a higher mortgage rate, the financial institution will probably offer a weighted rate between the previous loan and the additional amount required i.e. a combined rate taking into account the importance of the original loan with respect to the new one. If the contractual rate is 100 000 $ at 7% for another tree years and it is necessary to add 50 000 $ to obtain the new 150 000 $ mortgage. The current rate for a tree year term is 9%. We will get 7% x (100 000 / 150 000) + 9% x (50 000 / 150 000) = 7, 67%

In any case, the vendor will have to pay for the quittance of the mortgage in force on the sold house, unless the creditor absorbs this cost. The costs are about a few hundred dollars. Moving, reconnection of services change of address costs etc. must also be considered.

Prepare the property for selling

The appearance and physical condition of a property play an important part in the selling process. Since the average buyer takes less than 40 minutes per visit and that he visits several properties before making his choice, the appearance of the property becomes very important if its value is to be maximised. This is where the
« Home Staging » concept comes into the picture.

Essential documents

The vendor will have to supply various documents and answer several questions. Following is a list of useful documents for the sale of a property:

• Property and school tax bills;
• The last year's electricity and gas bills;
• Bills for all renovation work that was done in the last years;
• A survey certificate. If not available, one must be obtained from a surveyor;
• Deed of sale or title of ownership;
• Evaluation report if possible;
• Inspection report if possible;
• Condominium regulations (if applicable);
• Pictures of the exterior taken during the summer and showing the landscaping if the sale occurs during the winter.

MOVING COSTS AND METHOD

The insurance company

The insurance company must be notified a few weeks in advance of changes to be made to the insurance policy. It must be informed of the residence change, the policy change and the change in responsibilities. The rule is that the property must be insured in the name of the buyer on the day of the signature of the act. Should the buyer still be the owner of the property he is selling, but for which he has not been to the notary, he shall insure both properties. The insurance company will look into the details. It is required that the new insurance policy is brought to the notary.

The property coverage for the new property must be determined. If the insurer cannot send an inspector he will ask several questions over the telephone to determine the replacement value of the property, i.e. the amount the property is insured for. One must not compare or mistake the merchant value or the price paid for the property with the replacement value. Firstly the insurance company only covers the replacement cost of the building and, in certain cases, the foundations and landscaping are excluded. These elements have a good chance of surviving a disaster and still be in good shape, and the land will still be there.