What happens if I can’t afford to clear title to the property?
A seller must be able to provide clear title to a buyer unless the parties agree otherwise, which is very rare. Sellers should confirm payout amounts on their mortgage(s) prior to even listing the property if they think that there may not be sufficient equity in the property to payout the mortgage(s). If the seller commits to selling the property and then discovers that the amount received will not payout the mortgage(s), the seller is obligated to bring in funds to close, or face being in breach of the agreement and liable for damages incurred by the buyer.
- What is a Property Condition Disclosure Statement?
- What is the difference between the completion date, possession date and the adjustment date and how does this affect me as a seller?
- I have a mortgage to pay out on closing – how do I get this done?
- What charges can I expect when paying out my mortgage?
- Why is my prepayment penalty higher than I thought?
- What are my closing costs?
- Paying the realtor – how does this occur?
- How are the property taxes, utilities, pad rent, strata fees or other adjustments dealt with when selling a property?
- What happens if I can’t afford to clear title to the property?
- What must I do if I am not a resident of Canada and I want to sell my property?