Kokanee Glacier. Photo: Wild Air Photography
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SELLING PROPERTY

There are a number of reasons why someone may choose to sell their property. Some of the reasons for selling are:

Some of us do own property instead of having a retirement plan in place. When the time comes, we sell our properties in order to help us live out the years when we no longer are able to or want to work anymore.

Whatever the case maybe, it’s important to be clear as to why you are selling. This will help in in determining how fast you want to sell or need to sell, which in turn will help assist in the sale price.

Selling Costs

Costs of clearing title including:

Lawyer or Notary Fees & Expenses:

Real Estate Commission

GST on Commission and other services only

Adjustments for Ownership

Capital Gains Taxes – if applicable

For non-residents, there are some things you should be aware of when considering the sale of your Canadian Property:

Obtain a Clearance Certificate

You will need a Clearance Certificate from Revenue Canada prior to the completion date of your transaction. The current wait for a Clearance Certificate is 6 to 8 weeks, so it is important to contact your lawyer or accountant as soon as an accepted offer has been received. Before issuing the Clearance Certificate, Revenue Canada will need to collect any tax payable on the property to be sold.

Calculating Capital Gain

To determine the adjusted cost base in order to calculate capital gain, Revenue Canada allows the following:

Revenue Canada does not allow any deductions from the selling price in determining the gain, and the rate of the Capital Gain Tax is 33.33% of the gain. However, by filing a Canadian tax return with Revenue Canada after the sale, some of the tax paid may be recovered. For more information on disposing or acquiring certain Canadian Property click here.

Disclosure

Sometimes home owners feel they shouldn’t disclose anything that may affect the sale of the home. It is best to disclose all defects that are known to you that way if there is a potential buyer that’s interested they will feel comfortable knowing there is nothing hidden. It creates trust. Which is important to anyone who is spending hundreds of thousands of dollars in a single purchase. More importantly it will protect you from any legal issues that could arise if known defects are discovered after the purchase. Proper disclosure will also avoid all parties wasting time. As a seller you don’t want your home to sit on the market for any longer than it takes to find the right buyer.

Feedback

After each showing sellers should be informed of the feedback. This allows you to repair or replace any features that are hindering any possible sales. Or it allows you the option to adjust the sale price to reflect any issues that are not easily improved.