Selling a property

Considerations include preparing your sales contract (if you don’t have a realtor), reviewing your contract, removing mortgages and other charges from the title, and finalizing the transaction at closing.

When you sell a property with an existing mortgage, the mortgage must be paid off using the proceeds from the sale. Typically, this is handled by your lawyer or notary, who ensures that the mortgage lender is paid the outstanding balance before disbursing the remaining funds to you.

This depends on the terms of your mortgage. Some mortgages are “portable,” meaning they can be transferred to a new property without penalty. It’s important to consult with your lender to understand if your mortgage is portable and the conditions that apply.

Outstanding property taxes are usually settled at closing. The seller is responsible for property taxes up until the date of sale, and the buyer assumes responsibility from the date of purchase. Your legal representative will typically arrange for these taxes to be paid out of the sale proceeds.

This depends on several factors, including whether the property is your primary residence and how long you’ve owned it. In many jurisdictions, profits from the sale of your primary residence are exempt from capital gains tax, but this can vary. It’s essential to consult with a tax professional for advice specific to your situation.

Selling a rental or investment property typically has tax implications, such as capital gains tax on the profit made from the sale. Specific tax treatments can vary based on the laws in your jurisdiction and your individual circumstances.

Absolutely. When planning to sell your property, it’s important to factor in the prepayment penalty as it can significantly impact the net proceeds from the sale.