Did you know that the last Friday in June is historically one of the busiest days in the real estate world? If you have listed or are thinking about listing your house for sale, consider these tips:
1. Make sure you have a current Real Property Report for the property with a compliance report from the municipality. “Current” means that it reflects the current state of the property. If you don’t have these documents, make sure that the contract does not require you to provide them. You can offer the buyer a credit for title insurance instead.
2. If you have a fixed term mortgage which will need to be paid out on closing, don’t forget about the pre-payment penalty. Depending on how much time is left in the term, this could be substantial.
3. Know what’s on your title. Did your developer register a financial charge to ensure compliance with architectural controls? Do you have an old mortgage that was paid out but never discharged? Ensure that any financial charges can be dealt with prior to closing, as you will be required to deliver “clear” title to the new owners.
4. Don’t cancel your property insurance until after closing. Legally, you are responsible for the property until the purchase price is received. If there are closing delays, you don’t want any gaps in coverage.
5. When in doubt about anything, include a condition for lawyer review. We would be happy to review the contract and provide up-front advice to ensure that there won’t be any unexpected issues or delays with closing.
