Laws for selling real estate property in Canada

Selling of property in Canada is very easy and simple. There are basic legal formalities and procedures that ensure the rights of both the parties are preserved. There are slightly different rules for people who are foreign nationals and wish to sell a property in Canada. A non resident is requires to pay an amount from capital gains in taxation.



Normally, 50 % of the capital gain is considered for taxes but if a person happens to be a non resident, he is required to pay an amount equal to the estimation before the gain which is approximately around 25% of the total gain. The amount is taken care of by the seller’s lawyer until a clearance certificate is issues by the Canada Revenue Agency. Then the payment of tax is made; CRA issues a clearance certificate to the seller. This may take up to 6-8 weeks.

The certificate is issues only after a contract of sale and purchase is made and has all the conditions removes in it. If, the certificate is not issued, the purchaser may halt all the ongoing proceedings with regard to the purchase of the property and stall the payment of 25-50% from the purchase price. At the closing date, the mortgage money is transferred to the seller’s account and the title of the property is transferred to the buyer.

A non-resident national should pay the complete taxes as applicable for the current year and wait for the refunds on the taxes as the rule goes. Different tax rules are applicable of different types of properties. Each property from principal residence, a business property or a rental property has a different set of taxation rules. For example in case of rental property, a 25% tax for foreign nationals must be paid on the total rent paid by the tenant.

It is advised to use a property manager who will, by law, withhold 25% of the total rental revenue at and pay it to the Canada Revenue Agency. After this, on or before March 31 of the coming year, the property manager issues an NR4 form which earns you the right to file a Canadian tax return. You are required to file the tax return before the 30th of June and this enables you to claim expense and refund against that income.

Here is a youtube video I find very informative. Will definately help you understand the law.

The real estate option contract

A real estate option contract is a document that gives a particular buyer an added advantage over the other potential buyers in the market. It is obvious that when a seller puts a property in the market, many buyers approach for buying the property. When a buyer gets the option contract, the seller loses the right to consider selling his property to any other buyer. This however does not obligate the buyer to buy the property.

A real estate option is a contract that is signed between the buyer and the seller. The buyer pays a predefined purchase price for M City Condos and buys the right to be able to buy the property. After the contract is signed, the seller loses the right of selling the property to any other buyer. The buyer can however stay for a defined period which is approximately six months to a year. He is in no way obligated to buy the property. The money given at the time of signing the contract is kept buy the seller even if the buyer chooses not to buy the property.

Buyer’s advantage

Real estate option has advantage for the buyer. If a buyer wants to buy land and plans to construct a house on it, he can sign an option contract with the seller. This ensures that the seller will not sell the land to anyone else. In the meanwhile the buyer can wait for the agreed upon time and arrange for the additional money required. The seller has to sell the property after the end of term on the agreed cost. Some option contracts however allow the property cost to be calculated at the end of the term according to different factors.

Investor’s advantage

If played wisely, the option contract can be of great advantage. An investor can see a developing project and can lock the land for sale of that project by signing an option contract. Now he can approach different people who are in development businesses telling them about the successful development projects in future on the said land. He will obviously quote the land price at a much higher rate than he has signed the contract for. This will promise the investor great profit without having investing his actual money.

Option contract is a safe way of securing the property for a buyer who is genuinely interested in buying the property.

Here is a very good video breaking down the option contract.

Things to consider while selling a house in Canada

Since the real estate market is blooming in Canada and it is considered an evergreen market, people are always selling or buying property. Their are project which are very good and selling like hot cake like halo condos residences then their are project where sales are very slow. There are many reasons one needs to sell off its property. It could have been purchased as an investment and an urgency of money calls to sell off the property.  Or, a person could be moving off to another place and thus wants to sell off the property. The real estate market in Canada like every other place in the world keeps on fluctuating. It is very necessary to prepare one’s self before selling off the property. Few things that need to be considered before selling the property are:

Check out the market

Sometimes the market is on the buyer’s side while other times it is on the seller’s side. It is best to study the market and put the property for sale when market is favourable. Moreover, Canada has extreme winters. House sales are at peak in spring as it is easier to plan and do stuff in spring. Next, you need to see the market and compare prices if you are planning to buy another place. If the market is low, you will end up getting low price but then, you will get a new place for comparatively low rates too.  The ultimate confusion occurs when one has to decide whether to buy the place first or sell the current one first. If you find a good place before you are able to sell the current one, you can make a conditional offer that states that it is valid only when you are able to sell off your current one. Similarly, as a seller you can get an extension on the closing period until you are able to buy another place for yourself.

 

The second step is taking care of your finances

You need to see how you are going to pay for the new place. What about the existing ongoing mortgage for the current/previous place. You need to see the mortgage plan you had been following. They offer much flexibility. Some allow discharging mortgages, portable mortgages, or the buyer can assume your mortgage. You can even help your buyer to acquire the property by vendor take back mortgage.

 

All these mortgage plans need intensive study and professional guidance in order to save one from any unwanted trouble. Please fill the form and don’t forget lovia.ca if you want more information on buying or selling the car or property.

What are the responsibilities of property management professionals?

Property management professionals responsibly manage personal property, equipment as well as physical assets. The property management professionals are licensed by the local real estate board. These licensed real estate property management professionals being aware of the real market value plan the responsibilities accordingly.

Visit: Mirvish Gehry condominiums for more info.

  • The professionals take the entire responsibility of the property.
  • Searching a potential tenant for the property
  • Researching about the tenant, whether involved in any case of jurisdiction or similar offenses
  • Collection of rental amounts and depositing the same at precise time
  • Attending the complaints of the tenants regarding the property and taking effective measures to resolve it
  • Electrical, plumbing, carpentry, and other professional works are executed precisely as per the requirements and instantly
  • The property management professionals being aware of the basic rules of registration, house holding formalities, etc. are managed proficiently by the real estate property management professionals.

Though you are not interested in gaining values of your stable property, you can certainly grow your monthly income for the owned property. You need not get burdened with any stress of managing your property. Being far away from your property you can effectively get updates and benefits from your property by hiring professional for property management.

How To Take Proper Care And Manage Your Property Being Miles Away?

Are you a landlord, owning more than one property in different locations? Generally, the persons owning properties in different locations offer the properties on a rental basis which is indeed the best way to earn all around the year. But being away than the properties it certainly goes irksome to manage the properties.

Are you able to manage your property effectively? You may not get trustworthy tenants every time and being away you would not prefer to travel to the secondary property for this or that reason. If you are undergoing such troubles, then it is advised to hire Real Estate Property Management Company.

 

This post is created by our Chief of Editor: Frank Gehry

Hire Real Estate Property Management Company!

Investment on real estate properties for your financial ability is not the only matter which you need to deal with in a smart way. There are several other basic facts that you need to furnish if you want to make your property the source of income. One of the most imperative decisions for the landlords is to hire a real estate property management company.

Few landlords manage their properties on their own, but it is in the cases where they have time to invest in it. If you don’t have time for your property management, then you need to hire the professional property management company to secure your property.

Hire professionals having wide market knowledge

The property management professional company directly remain in contact with the landlords and the tenants. They bear the marketing responsibilities of your rental property as well as handle the maintenance and repairing of your property. Marketing the rental property, collecting rent and responding to the complaints of the tenants and take steps to resolve the issues are few other responsibilities.

It is your vital responsibility to assign a highly experienced property management company for avoiding any hassles. As property management is a hectic responsibility you may not be able to handle it precisely. It is advised for hiring professionals having wide market knowledge.

Tips on launch a Real State Business

9-killer-tips-starting-real-estate-business-80835351-1024x682Quite a few in today’s world are keen on making a career in real estate and owning a real estate business but hardly any of the people among this lot eventually turn out to be successful. This is because of the common basic mistakes which many people are tend to make in the real estate sector. As per the views of many experts in this field, we have summarized here a list of key features and ideas which shall help you establish and maintain your own successful real estate business. Two probable buyers and sellers are brought together by a real estate company and the one who brings both the parties together is a real estate negotiator or so called the agent. For avoiding the mistakes made by the masses, here are a few things you need to remember to make your business a successful and hit one:real estate concept with US dollars and mini house, shallow dof

  1. Ensure that the business is well set up: Real estate, like all other businesses, requires a proper setup. The business calls for a hefty amount of money for running it efficiently without any initial problems. In case this large finance is not available to you, it can be arranged in quite a few ways like from the credit union or the bank so as to get a flowing start.
  2. Understand the field properly: Since there are large amount of fields in the real estate business, you must choose the type you want to deal in and the one you wish to start up. A few primary one’s are construction sites, commercial markets, residential markets, international or national markets or even a balanced mixture of all these.real-estate
  3. Handle documents: Having all sorts of identification cards is a must before setting up your business venture so that you have clear proof of your identity. There also must be a authorized licensed which you should have that shows the permission given by the country’s government to you for starting this business.Handing Over Cash For House Keys in Front of House and Foreclosure Sign.
  4. A business plan: For running a successful business, you must have a properly-formulated plan which must incorporate a well designed summary as well as a list consisting of all the possible investors and lenders. This comes in handy for you to make a rapid overview of the business and the method you choose to adopt for earning by executing the plan accordingly. It is important to know your aims well and the services that your company offers along with their proper descriptions must be made available to probable clients.23
  5. Starting and developing your business: Before starting the business, it is important for you that the location is finalized. The place can be a deal-breaker if it does not have proper amenities or the supplies you are going to need in the coming future. It is suggested that you must start your own domain which must be updated regularly. This will help you widen your customer base and contact the favorable ones.