Selling FAQ

5 questions you should ask a Realtor before you list

1. How many homes have you listed and sold in the last six months?
2. What is your average length of time from listed to sold?
3. How long have you been in business?
4. How would you assist me in determining the appropriate listing price?
5. What types of things separate you from your competition?

It is a condition of a non-resident selling property in Canada that they first obtain a Clearance Certificate from Canada Customs & Revenue Agency. The wait for a Clearance Certificate is approximately 6 to 12 weeks. Prior to Canada Customs & Revenue Agency issuing a Clearance Certificate they will wish to collect any tax payable with respect to the property–this will include any tax payable on the rental income from the property which has not already been remitted as well as tax on the capital gain experienced on the property and if applicable, recapture of capital cost allowance. You may not apply for a Clearance Certificate until you have an accepted offer on your property. This is an important consideration in negotiating a Completion Date my team and I will make sure that you leave yourself enough time in this matter.

In calculating the capital gain on the property, Canada Revenue Agency allows only the following to be added to the purchase price to determine the adjusted cost base:

Legal fees and disbursements in conjunction with the purchase Furnishings and renovations included in the selling price;(receipts for the included items will be required). It is critical that you retain receipts for the furnishings and that they identify the furnishings and as having been acquired for the Whistler property as well as any Customs documentation showing furnishings acquired in other jurisdictions have been brought to the Whistler property. Goods and Services Tax (GST) which is 5% A portion of the interest on mortgage payments (only if the Vendor has properly elected to have the interest capitalized on their tax return). Canada Customs&Revenue Agency does not allow any deductions from the selling price in determining the gain (i.e. you cannot subtract the real estate commission, legal fees or GST paid on the selling commission). The amount required to be remitted on the gain is typically 15 to 20% of the gain. By filing a Canadian tax return subsequent to the sale, you can claim expenses such as commission and legal fees and some of the tax paid may be recovered. Sellers should contact their accountants or lawyers with respect to requesting a Clearance Certificate ( only if you are a non-resident) as soon as an accepted offer has been received with respect to the property. Should the completion date be prior to the issuance of the Clearance Certificate, a holdback of between 25% and 50% of the sale price will be required by the Buyer’s lawyer before the Clearance Certificate is issued.

Please note that the Buyer’s lawyer may take the position that if the property has been rented out it is a depreciable property and therefore the holdback is 50% on the portion of that purchase price that relates to the building.

Now you can relax and let me continue to go to work for you. I’ll handle everything from tracking down all the strata meeting minutes, AGM minutes and Form B from your strata manager (if you own a condo) to accompanying the building inspector into the property and all the while making sure every one of the buyer’s (and your) questions are answered. I’ll do my very best to make sure the buyer’s subjects get removed on time so that everything goes as smoothly as possible.

The hard part’s over. Now I handle getting all the required documents out to your lawyer. He’ll draft all the applicable transfer papers and courier them out to you. You’ll need to sign, have them notarized, and courier them back to your lawyer as quickly as possible. If you live close to your lawyer in Vancouver or Whistler you can probably just go over to his/her office to sign the paperwork

Contact your lawyer to ensure that they are available for your completion date as you will need to meet with your lawyer or notary prior to Completion. Also, remember to remind your real estate agent of any travel plans you may have so we can choose a closing date that is convenient for you and not when you are suppose to be enjoying a holiday.  Next, contact your service providers to let them know when they can disconnect services such as telephone, hydro, alarm or landscaping contracts.  The date to have services disconnected is the same day as your Possession Date for the new buyer.