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Steps to Selling Your Home

There are many steps that complete a real estate transaction. Here are five of the major steps explained to give you an idea of how the process should look:

1. A REALTOR® must disclose to you in writing, exactly who they represent in any real estate deal. A REALTOR® may represent a buyer or a seller; they may also represent both buyer and seller in the same transaction. Your listing REALTOR® is, in law, your agent. An agent owes his or her client the duties of utmost care, integrity, confidentiality and loyalty. Make sure you discuss Agency Relationships with your listing REALTOR®.
2. The process of selling a home with a REALTOR® starts with the Listing Agreement also called the Seller Brokerage Agreement. It’s a contract between you and the brokerage company that the agent represents. It is a framework for subsequent forms and negotiations. It’s important the agreement accurately reflects your property details and clearly spells out the rights and obligations of all parties. Both you and the listing agent sign the listing agreement and each receives a copy. The agreement binds both parties to its terms and conditions. Some of the other items set out in the listing contract include the duration of the agreement, compensation, listing price, what fixtures will remain when you leave, and possibly most importantly, if there are any defects to the property that must be disclosed.
3. A REALTOR® has a number of marketing tools and options to promote your property. First is the mls.ca web site, which attracts more than a million unique visitors a month. Another advantage of listing with a REALTOR® is that only a REALTOR® is able to place your listing on the MLS® or Multiple Listing Service®. Your property gains more exposure, because it reaches the majority of the real estate professionals in your community. Your REALTOR® may also recommend an open house as a marketing strategy. There are two types: first is an agent’s open house, where sales representatives from the listing company will be invited to view your house. If you have signed an MLS® agreement, other REALTORS® may also be invited. Remember, each of these REALTORS® may have a prospective buyer. The second type of open house is a public open house, where members of the public are invited to walk through your home and have a look. Your REALTOR® may be able to give you tips on how to make your home more presentable and ready for these and all subsequent showings. Talk about the marketing plan with your REALTOR® to find out all your options and to choose the ones that are right for you.
4. Once a buyer is found, you’ll be receiving an offer that will detail how much, specify any conditions that may apply or be attached by the buyer, for example when the buyer would like to take possession, and when the offer expires. As an act of good faith, the buyer will make a deposit with the offer. You don’t have to accept the offer as is. You may wish to make a counter offer that comes part-way to meeting the offer’s conditions. The counter offer is one more step along the way to negotiating the final terms and conditions of the sale. The offer, once signed by everyone, is a binding contract. Make sure you understand and agree to all of the terms in the document. You may want to have it reviewed by your lawyer before signing. Before closing you will be asked to provide a current survey, or a “Real Property Report,” showing that the location of the house is on the property owned by you and that there are no encroachments. You may also have to prove that you have title to the property (the buyer’s lawyer will check this out when he or she conducts a title search to see if there are any liens on the property, easements, rights of way or height restrictions). Especially in rural areas, you may also be asked to provide a certificate for a well or septic system, stating the system meets local standards. The buyer may also make the purchase conditional on an inspection by a qualified engineer or inspector.
5. On or before closing day, lawyers representing you and the buyer will set up a trust account for the money coming from the sale and will pay off any mortgages you owe on the property. After these are paid, you will receive any money you have coming from the sale. You must deliver the property deed or transfer documents and mortgage details to your lawyer and keys to your REALTOR®. Your lawyer will register the mortgage discharge and transfer the deed at closing. Your lawyer should also ensure that you receive compensation for prepaid expenses such as, property taxes, electrical or gas bills, or if applicable, any heating oil left in your tank. Some lenders will make it possible for your mortgage to be portable, so you can take your mortgage with you when you move to your new home. Here, your responsibilities under the listing agreement end. You’ll have paid your listing agent the agreed-upon compensation. This can be done by your lawyer who can arrange the payment from the proceeds of the sale. If you have any questions, check with your REALTOR®.

Now that you know how the process looks, give us a call today and let’s get started!

(The comments contained on this site are for information purposes only and do not constitute legal advice.)