What must I do if I am not a resident of Canada and I want to sell my property?
In short, obtain a clearance certificate as soon as possible. Non-resident sellers should always work closely with their accountant during the sale process as a non-resident seller faces a holdback of 25-50% of the sale proceeds pending receipt of a clearance certificate from Revenue Canada. The clearance certificate will state how much, if any, tax the non-resident seller must remit from the sale proceeds prior to receiving any balance of funds. If this seller has a mortgage, the seller may be required to bring in funds to payout the mortgage despite having significant net sale proceeds (the amount after the mortgage is paid out) from sale, as these net sale proceeds are not available until the clearance certificate is received. Clearance certificates do take months to obtain, so should be obtained early on, or the seller should prepare to have funds frozen until it is received.
- 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?