SELLING A HOUSE IN NOVA SCOTIA?

We have prepared this web page for your information, so that you will know the various steps involved in selling your house and what our office is doing for you during each stage.

If there are no mortgages, no adjustments and no payouts to be made on your property, then you may only require the preparation of a deed. Our present fee for preparation and execution of a deed is $200.00, plus HST. It would then be up to you to arrange the exchange with the purchaser of your deed for the purchase monies.

If you require more than just a deed our legal fees are based upon the sale price and start at $400.00 plus disbursements. We will require from you the following:

1. A copy of the signed Agreement of Purchase and Sale and any Counter-Offer(s).
2. A copy of your Deed.
3. A copy of your survey certificate if you have one.
4. Whether you are a resident of Canada under the Income Tax Act.
5. Your marital status and your spouse's full name.
6. Whether you own or rent your furnace and water heater.
7. Whether your property taxes have been paid up to date.
8. Whether you are aware of any liens against the property.
9. The names of any and all companies or banks which hold a mortgage on your property.
10. Your current address and telephone number and your future address to which you will be moving.
11. How your property is heated and whether you will expect a fuel adjustment.

Once we have the above we deliver a copy of your deed to the purchaser's lawyer to enable him or her to search the title. After the purchaser's lawyer has searched the title, we prepare the deed from you to the purchaser and a closing Statement of Adjustments which sets out the amount of money the purchaser will be paying to you on the closing date.

The following are common questions asked by vendors.

Adjustments

The following will be adjusted to the closing date:

1. Taxes: Our Statement of Adjustments shows each parties' portion of this year's property taxes.
2. Deposit: Any deposit paid by the purchaser is deducted from the purchase price and this is shown on our Statement of Adjustments.
3. Oil: Most agreements provide that the vendor fill the oil tank and the purchaser pay for a full tank of oil at closing. The cost of the full tank is added to the purchase price. We will require the delivery slip from your oil company showing that the oil tank has been filled.
4. Sewer and water charges: These are common in urban areas and are adjusted on the same basis as your property taxes.

Other adjustments may include equipment lease/rentals, encumbrances being paid by the purchaser and the recording of releases. Should these adjustments arise we will discuss them with you in greater detail.

Payouts

Liens and Judgments affecting the property must be paid out in order to warrant your title to the purchaser, or in other words to give the purchaser a clear title as you have promised to do in the Agreement of Purchase and Sale and as stated in a Warranty Deed.

Any deposit paid by the purchaser is usually held by the real estate company, if one is involved, and this deposit is deducted from their real estate commission. We would pay any balance owing of real estate commission from the purchase monies.

If there is a mortgage or mortgages on your property to be paid out at the time of closing, or to be assumed by the purchaser, we deal directly with the mortgage company or bank involved, which will send us a payout statement setting out the balance of the mortgage which is outstanding. You should review this payout statement with us very carefully to make sure that the bank or mortgage company has not erred in its calculations. All mortgage payments due on your mortgage up to the date of closing are your responsibility to make. If the mortgage payout falls due on the closing date, please contact us immediately to discuss whether or not this payment should be made.

If your mortgage payment is usually taken from a certain bank account, which you are planning to close, make certain the account is not closed until the final mortgage payment has cleared the bank.

Calculations

1. Fire Insurance: You should never cancel your fire insurance policy until the house has been sold or until you have the cheque for the proceeds from its sale. Some companies will not cancel your policy until they receive a "release of interest" from your mortgage company, so advise your mortgage company to forward this if it is required. Also, you may be entitled to a rebate on your premium when you sell your property.
2. Utilities: (Nova Scotia Power Corporation, water, etc.) It is your responsibility to contact the utility companies yourself to shut off their services after your property has been sold. You may advise them in advance of the proposed closing date and confirm it with a telephone call on that date if the sale is completed so that if the transaction is delayed you will not find yourself with frozen water pipes!

Responsibilities of the Vendor

Fixtures, things that are actually attached to the building, such as built in appliances, bookcases, wall to wall carpet, are legally included in the purchase price of the property. Unless the Agreement of Purchase and Sale states that a fixture is not included in the purchase price it must stay in the house. Fixtures also include shrubbery, etc. affixed to the ground outside of your house.

The purchaser is entitled to the house and property on the closing date in the same condition as it was on the day he signed the Agreement of Purchase and Sale and therefore if any damage occurs to the property between these two dates, its repair is your responsibility. The closing date as set out in the Agreement of Purchase and Sale can be changed only by agreement of both parties. Under the Agreement of Purchase and Sale you must give vacant possession of the house on the closing date, so if a problem arises in having the house empty at that time contact us immediately as failure to have the house empty on that date could void the transaction.

Prior to closing we will ask you to make an appointment to sign the Deed at our office and at the same time review the payouts and adjustments with you. We will set up a time with the purchaser's lawyer to exchange the deed and keys for the purchase monies on the closing date. The money is sent to our office by the other lawyer and we will advise you of the approximate time that your money will be available to you.

When we are ready to sell your home, we will give you punctual service, answer your questions, and keep you fully informed.

As of March 1, 2005, all counties in Nova Scotia became subject to the Land Registration System. Properties which are transferred for value, subdivided or used as collateral for financing must be migrated to this new system. The practice is that the vendor is responsible for the migration and its cost. The parties may agree otherwise. This should be taken into consideration when listing a property for sale and when agreeing to a purchase price. The conversion process has two steps; one dealing with the description and the other dealing with title. Once the property is in the Land Registration system the Province of Nova Scotia certifies title to the purchaser. The migration will need to take place prior to the purchase. As this process can take some time it is also important to take this into consideration when setting a closing date.

NANCY M. PEERS

Please note that this information has been prepared for our clients who are selling a used residence in the Lunenburg County area. Additional factors may arise if the property is in another county, if you are selling new construction, business premises, apartment buildings, condominiums, etc. Please do not hesitate to contact us with any questions you may have regarding the sale of these types of property.

Disclaimer: The information in this article is believed to be accurate and reliable when posted, but is not guaranteed to be accurate, complete, or current at all times. This article is for informational purposes only and is not intended to provide official financial, legal, accounting, or tax advices and should not be relied upon in that regard. The rates and fees are not guaranteed to be current, though they are endeavoured to be kept current.