Step 1: Initial Contact
An industry member is obligated to discuss the different types of relationships that you can have with them. These include:
• Common Law Agency
• Designated Agency
The industry member is also obligated to present the
Agency Relationships Guide, which provides basic information about your rights and responsibilities and those of the industry member. The industry member’s obligations to you will vary depending on the relationship that you choose.
Choose the relationship which suits your needs and confirm your choice in writing with the industry member.
Step 3: Gathering your Documents
To facilitate the marketing of your property you will usually need a current Real Property Report with evidence of municipal compliance. If your home is a condominium, you will need to gather your condominium documents. If you are not aware of these documents you should contact your industry member or your lawyer for further information.
Step 5: Inclusions/Exclusions
When you sell a property, you must decide what you are taking with you and what you are leaving behind. Attached goods are those considered affixed to the property, such as curtain rods or water softeners. Anything that is attached to the property stays, unless otherwise agreed to by the buyer and seller. Attached items that you want to take with you must be identified in the Purchase Contract as exclusions. There may be unattached items that you wish to leave with the property that may become marketing features. Their inclusion or exclusion in a Purchase Contract can be negotiated. You will also need to know if any goods are leased or under a
long-term contractual arrangement (e.g. alarm systems). Ensure that the Purchase Contract reflects your intentions with such items. It is important to discuss with your industry member what you intend to include or exclude prior to selling your property.
Step 7: Contact a Lawyer
You will need to involve a lawyer for such items as title transfer and mortgage discharge. Property title transfers between sellers and buyers must be recorded at Alberta Land Titles to protect the new owners. All documents will be signed in the lawyer’s office before the possession date. Select a lawyer early in the selling process and consult him or her if you have any legal questions. For further information on real estate lawyers contact the Law Society of Alberta.
Step 9: Timing
Time is important. When an offer is made, the Purchase Contract will include a variety of deadlines, from how long the offer is open for your consideration to the number of days the buyer has to satisfy any conditions (e.g. home inspection, financing, etc.). These dates are important to monitor and your industry member can help you coordinate the multiple timelines.
Step 2: Choose your type of relationship:
As an industry member I am obligated to discuss the different types of relationships that you can have with me.
• Common Law Agency • Customer Status
• Designated Agency • Transaction Brokerage
As well I am also obligated to present the Agency Relationships Guide, which provides basic information about your rights and responsibilities and those of your chosen industry member (that's me). Any industry member’s obligations to you will vary depending on the relationship that you choose.
Step 4: Disclosures
Sellers cannot conceal defects or mislead buyers about the condition of their property, and if answering questions you must be honest. Whether you decide to sell your property yourself or through an industry member, you must disclose any
material latent defects to potential buyers.
• A latent defect: is one that is not discoverable through the exercise of reasonable vigilance during an inspection of a property;
• A material defect: is one that reasonable persons would agree is a significant shortcoming in a property in light of the particular transaction.
Step 6: Taxes
The purchase or sale of a residence may have tax implications. Unless otherwise agreed in writing, the purchase price will include any applicable GST. It is the responsibility of the seller to seek expert advice (e.g. an accountant) regarding the applicability of payment of GST on the sale of the property. Capital gains tax is based on the increase or decrease in property value over a specified period of time. This does not normally apply to the sale of a primary residence. However, there are a number of situations that may trigger capital gains, such as the sale of a recreation or rental property. For further information on capital gains tax, consult a tax
accountant, lawyer or Canada Revenue Agency.
Step 8: Dower Rights
In Alberta, spouses who are not on title have a right to make decisions about selling a property. These are called Dower Rights and are derived from the Dower Act. The untitled spouse must consent to the sale, in writing, in order for the sale to proceed. See your lawyer for further information if this applies to you.
STEP 10: CELEBRATE THE SALE OF YOUR HOME!!!