- Contact Your Bank– find out how much you will owe the bank to discharge your mortgage. Some important questions for your banker include:
- How much do I currently owe?
- Is there a payout penalty, if so, how much?
- Are there other fees (ie; a discharge fee) which is also payable?
- Do you owe more than your home is worth (more info on Distressed Sales here)?
It is a term of every real estate contract that all financial charges be discharged. In the event that the net proceeds of sale (after commission) are not sufficient to pay the mortgage, you will have to bring in money to complete the deal.
- Has your name changed since you last bought your home?
- Has a contractor or CRA filed a lien against your property?
- Are there certificates of pending litigation or other charges on title that will be required to discharged prior to closing,
Contact your lawyer early and get these dealt with asap before listing. If these items are on title during the selling process they will weaken your bargaining position with potential Buyers.
- Do you have the Legal Capacity to Sell?
- Are you going to be present during the selling process or are you planning a vacation in the near future?
- Does the you as seller have the mental capacity to understand the sales process?
- If you are not the registered owner, do you have a power of attorney?
- If the owner has died, have you been granted probate?
If there are issues here that are expected, contact your lawyer who can assist you with strategies to deal with some of these issues.
Have questions, Call or Email Real Estate Lawyer Peter Borszcz at Montgomery Miles & Stone Law Firm (250-980-3360).