THE WAITING GAME IS OVER! 

Now When Do I Get My Money?

Congratulations!  You’ve finally made the decision to sell that home.  Whether you’re ready to move on to a new chapter in your life, or simply cashing in on an investment, one thing is for sure:  most people want to get their money as quickly and as easily as possible.  After all, who wants to waste time, money or energy on a property they no longer want?

            Before you even start the process of selling a home, how can a regular person ensure a fast and efficient process?  First consider enlisting the help of a reputable real estate agent or a professional home buying company.  Sorry cousin Joe, it might not be you.  The experts have the knowledge and resources to help  you navigate the entire process.  Why?  Because most of us only sell something worth hundreds of thousands of dollars a few times in our life.  Marketing, negotiating and even deciding on our price isn’t everyone’s specialty.

            However you do it, finding that buyer for your home feels great!  The next step is called the closing process.  It can take days, weeks or often up to 3 months.  Remember, your closing date can be negotiated too!  During the closing process, the Buyer has to get their insurance and their mortgage all organized; with condo’s there is some extra paperwork required.  Did you know that banks have been a common delay in the closing process for several years now?  Yup, the seller and the buyer might have done everything right, but the banks can sometimes still delay closing day if they don’t have the staffing.  Worse, some banks will refuse to finance a property if it’s in really rough shape (think fixer upper, hoarder house, barely-standing-should-really-be-torn-down-house).  And did you know that cash buyers can often close in a matter of days?  Simply because they don’t need to work within a bank’s rules.  Sometimes insurance companies won’t insure a rough property—that’s when a seller really needs an expert buyer or agent to find a solution.

            On your side, as the seller, your lawyer needs a little time too.  They need to get a payout statement for your mortgage.  They will also need to verify if all city/town taxes are paid up to date.  Some people will have a line of credit, court order, or lien on their property.  No big deal; lawyers see this stuff all the time.  They simply need time to sort it all out.  Non-residents of Canada may be in a more complex situation with tax holdbacks, but again your lawyer can sort this out for you.

            Finally, it’s closing day!  Your lawyer should receive the money from the buyer by noon (according to most real estate purchase contracts in Canada).  Reality:  this doesn’t always happen.  Then your lawyer needs to pay all of your bills (mortgage, taxes, liens, etc…).  The truth is that it takes time to write those cheques and deliver them to the bank(s).  Then your lawyer will write up a statement:  it simply outlines where all the money went, and how much is due to you.  This can take a couple of days for all of the final accounting to be completed.

            At long last, your lawyer will provide a bank draft or a wire transfer for the balance that you get.  Please note that some banks will now HOLD a bank draft for 10 business days, due to frequent frauds in this area.  It’s not your lawyer’s fault—he or she has a trust account that will have the funds in place, no doubt.  But the banks have their policies, for everyone’s protection.  Did you know that you can simply ask the lawyer for a wire transfer?  There may be extra fees, but the money would be accessible for you much faster.

            As a property-seller in Canada, you are required to give the Buyer possession on the closing date, usually by noon.  This is regardless of when you actually receive the money.  Patience—the cash will come.

            One option for faster sales is working with a reputable cash buyer or investor.  They have a lot of experience, and can often close in 7-14 days.  We’ve seen it done faster, but that is rare. To learn more about selling directly to a Calgary home buyer, check out our website and click on the red “Get Started” button:  https://westerncanadianhomebuyers.ca/.  Selling your home doesn’t have to be a long drawn-out process.  The financial benefits of the sale should be in YOUR hands as quickly as possible.

Disclaimer:  please note, we are not lawyers.  Please use a lawyer to represent you, and only you, as the seller.  Then ask your lawyer as many questions as you want and need to feel comfortable with the process in your unique situation.