Standard Sale Transaction

1. Preparing to Sell

• Cleaning and Repairs: Clean the property and make any necessary repairs to enhance its marketability.
• Staging: Consider staging the property to make it more appealing to potential buyers.
• Documentation: Gather important documents, such as property tax receipts, utility bills, and any warranties for recent renovations and chattels on the property that potential buyers my need.

Hiring a Real Estate Agent

• Selection: Choose a licensed real estate agent with experience in your area.
• Listing Agreement: Sign a listing agreement outlining the agent’s commission and terms of service.

Setting the Price

• Market Analysis: Work with your real estate agent to conduct a comparative market analysis to determine a competitive listing price.
• Pricing Strategy: Decide on a pricing strategy, such as setting a slightly higher price to allow room for negotiation.

2. Marketing the Property

Listing the Property

• MLS: Your real estate agent will list the property on the Multiple Listing Service (MLS) and other relevant platforms.
• Photography and Virtual Tours: Use professional photos and virtual tours to attract online buyers.

Open Houses and Showings

• Scheduling: Coordinate open houses and private showings with your real estate agent.
• Flexibility: Be flexible with showing times to accommodate potential buyers.

3. Receiving and Negotiating Offers

Reviewing Offers

• Offer Presentation: Your real estate agent will present any offers received and explain the terms and conditions.
• Multiple Offers: In the case of multiple offers, consider all aspects, including price, closing date, and any conditions.

Negotiating Terms

• Counteroffers: Respond with counteroffers if necessary to negotiate better terms with potential buyers.
• Acceptance: Accept an offer by signing the Agreement of Purchase and Sale if you agree to all the terms and conditions stated in the APS.

4. Fulfilling Conditions

Home Inspection

• Buyer’s Inspection: The buyer will likely arrange a home inspection. Be prepared to address any issues that arise.
• Negotiation: Negotiate any repairs or credits based on the inspection results.

Financing and Appraisal

• Buyer’s Financing: The buyer will arrange financing and may need an appraisal of the property.
• Appraisal Access: Provide access to the property for the appraiser.

5. Closing the Sale

Legal Process

• Hire a Lawyer: Engage a real estate lawyer to handle the legal process of the sale.
• Title Search: Your lawyer will conduct a title search to ensure there are no liens or encumbrances on the property that are inconsistent with your Agreement of Purchase and Sale.

Finalizing Documents

• Document Preparation: Your lawyer will prepare the necessary closing documents, including the Statement of Adjustments.
• Review and Sign: Review and sign all closing documents as prepared by your lawyer.

Transfer of Ownership

• Closing Meeting: Attend the closing meeting to finalize the sale.
• Transfer of Funds: The buyer’s funds will be transferred to your lawyer’s trust account, who will then disburse the funds to you after deducting any outstanding amounts (e.g., mortgage balance, real estate commission, legal fees and disbursements as discussed during review and signing of the documents).

Handover of Keys

• Key Transfer: Hand over the keys to the buyer on the agreed closing date after the closing is complete. The keys can be delivered to the buyer’s real estate agent, their lawyer or the buyer directly or keys can be left in a lockbox code outside of the property in a secure location, and the buyer can be provided with a lockbox code to access the keys after closing.

6. Post-Closing

Financial Considerations

• Outstanding Payments: All the outstanding utility bills or property taxes should be settled before closing.
• Proceeds of Sale: Your lawyer will transfer the net proceeds of the sale to you with the method as agreed by you, for example, transferring the funds into your bank account, delivering the funds cheque to you etc.

6.2 Moving Out

• Move-Out Plan: Coordinate your move-out date with the closing date.
• Property Condition: Leave the property in the agreed-upon condition for the new owners.

Selling a property in Ontario involves several steps, from preparing the property for sale to closing the deal and transferring ownership. Engaging professionals such as real estate agents and lawyers is crucial to ensure a smooth and legally compliant transaction.

For more detailed information and resources, visit the Ontario Ministry of Government and Consumer Services website or consult with our real estate lawyers today.