Paperwork for a home sale has come a long way in the past few decades. A real estate agent from 30 years ago could tell clients of the days when the documentation was as simple as it came. But over time, paperwork has evolved to cover both the buyer and the seller against fraud, litigation, and general confusion. The required paperwork for each province will differ based on local regulations, but all sellers are encouraged to learn the basics behind the forms and documents they'll be working with.
Relevant Property Data
Paperwork in Canada is focused on what the buyer needs to know before they take control of the property. In addition to the deed and the title, sellers should procure the following:
- Utility bills: An electricity or gas statement tells the buyer the rates in the area and gives them a general idea of the energy it takes to power the home. If the insulation or the wiring is inefficient, buyers should see this reflected in the prices.
- Lease agreements and fixed costs: Sellers should let buyers know of any lease agreements or fixed costs they had. For example, if they have an open-ended contract with a tenant or the gardener of the property, buyers will want to know of any prior arrangements made that may affect them down the line.
- Original property assessment: The original property assessment will give buyers an idea of how much the condition of the property has changed over time.
- Inclusions and exclusions: Buyers and sellers will document and agree to all property that will be included in the sale. This means if the seller wants to take the tool shed from the backyard, they need to state this in their paperwork.
Sellers will need to prove that the home is theirs and that they've been complying with the terms of their mortgage.
- Land Title Certificate: This document includes any liens or registered interest in the property. Registered interest may come in the form of a neighbor stating that the boundaries of the property are in dispute or an ex-spouse who claims partial ownership of the home.
- Mortgage documentation: If the seller still has an active mortgage, this documentation will show the history of their loan (including any penalties that may have been incurred)
- Municipal tax assessment: This document will give a buyer a better idea of how they can factor taxes into their overall budget.
The required documents for an Auburn Bay home for sale may differ from block to block, but sellers are encouraged to be as open as they possibly can whenever possible. Working out conflicts is far easier to do before a home sale than after, and sellers could be held liable if they were found to hold anything back.
Talking to a real estate agent can make it easier to determine how much information to share to secure the sale. From formal surveyor documents to renovation receipts, there are a variety of documents that can help a serious buyer choose a home over the competition—whether the documents are required or not.
Few people love the idea of endless paperwork, but it's a necessary part of a home sale. Buyers use the information they gather to assure themselves that the sale will be quick and painless. Just one discrepancy or surprise during escrow can cause the sale to fall through, so sellers should treat paperwork seriously for a faster sale.