In most cases, the first step in selling your home is to contact a real estate agent to list your house or condominium for sale. A real estate agent may be either an independent broker, or a sales agent employed by a broker. You should try to find an agent who is familiar with the homes in your neighbourhood and with the type of home you own. some agents are more familiar with condominiums while others may sell nothing but single family homes.
A professional real estate agent will perform an appraisal on the home by looking at selling prices of comparable homes in your area. You may wish to obtain estimates from a few different agents, or pay for one from a professional appraiser, before deciding on the selling price for your home. Once an asking price has been arrived at, the agent can list the home on the Multiple Listing Service which makes details of your listing available to other registered real estate brokers. This is an extremely valuable service which can help you to sell your home faster and for a better price. Many agents will also advertise your home in order to attract buyers.
Once you have chosen an agent, he or she will ask you to sign a listing agreement. This is a legally binding agreement which gives the real estate broker the authority to list your property for sale. A listing agreement can be either an exclusive agreement, in which case only your listing broker may sell your home, or a multiple listing agreement in which case any broker who is a member of the Multiple Listing Service can sell your home. The commission will usually be lower on an exclusive agreement, but it may take longer to find a buyer because the listing is not open to other brokers. In most cases the listing agreement will be valid for a term of 60 or 90 days. In return, the broker will receive a commission, usually 6% for a multiple listing, on the sale of your home. This commission will usually be payable even if you find a buyer yourself during the term of the listing agreement. You may also be liable to pay the commission if the home is sold within 60 days after expiration of the agreement, or if it is sold to someone introduced to you by your broker. In some cases you could be liable to pay the commission even if the purchaser found by your broker fails to complete the purchase. In order to protect yourself from this possibility, it is advisable to get a deposit from the purchaser which is sufficient to cover the broker's commission.
When a purchaser has been found for your home, an Agreement of Purchase and Sale will be prepared by your agent. This sets out the description of the property, the selling price, the amount of deposit, any fixtures or chattels included, and the closing date for the transaction, along with a number of other legally significant clauses. In most cases a standard form contract printed by the Toronto Real Estate Board or the Ontario Real Estate Agents Association will be used, although there may be a number of additional clauses written or type in. If possible you should have this agreement reviewed by your lawyer prior to signing it.
Once the Agreement of Purchase and Sale has been signed you should take a copy of it to your lawyer along with the deed to your house and any mortgages or other liens registered on title. He will need these items in order to prepare the transfer to the purchaser and to ensure that clear title passes to the purchaser. Your lawyer will complete the transaction on your behalf and make arrangements for the purchase price to be applied to discharge any outstanding mortgages or liens on your property, or to be paid to you.
If you have any more questions, or require a lawyer for the sale of your house contact Bryan Dale today!