Sale of Property

The following general information is designed for the sale of titled property in Manitoba.

Funding

The Land Titles system in Manitoba is such that there is a delay in the title registration process.  This delay in issue of a new title typically ranges from 2 - 4 weeks.

As a result, you will not receive any sale proceeds on the date of possession, but rather only when Land Titles registrations are completed.  You will however, receive interest on the sale proceeds during that time.

Interim Financing

If you are also buying a home, or require the equity in your present home prior to the funds being available, you will probably have to arrange interim financing.  You should contact your lender to make the necessary arrangements.

Documents

In order to transfer title to the Purchasers, you will have to attend at our office sometime before possession date to sign the Transfer of Land and related documents.  Please make an appointment to do so.  We recommend that you schedule the appointment to be 1 - 2 weeks before the date of possession unless you are also purchasing a property which we are handling for you.  In that case, you may sign your sale documents at the same time as the purchase documents as long as it is before the possession date of your sale.

When you attend we would ask that you bring in the following documents unless you have previously done so, or have given them to the Purchaser or Agent:

1. Surveyor's Certificate; if you have one;
2. Zoning Memorandum; if you have one;
3. Tax bill, if it is unpaid;
4. Certificate of Title, if you have "clear title" (i.e. no mortgage).
5. Mortgage (if any)

Generally, all mortgage payments which fall due on or before the date of possession must be made by you.  Our office will handle the payment out and discharge of the mortgage together with interest after the date of possession, any discharge penalty, etc.

Finance Contracts

If you have a contract with a government agency, or with Hydro or the Gas Company for home improvements (i.e. insulation, windows, air-conditioning, etc.), this will have to be paid out.  You may pay this out yourself, or if you prefer, you may instruct us to pay it from the sale proceeds.  In either case, evidence of payment is required before sale proceeds are released to you.

G.S.T.

One of the documents you will be signing when you attend our office will contain a declaration that the subject property is used residential property and is not subject the Goods and Services Tax.  Normally, this will not be a problem, however, if you have used the property in any commercial manner, or if the property was substantially renovated, it may be subject to G.S.T. and you may wish to make further enquiries.

Home Insurance

If you have a mortgage, a final release from the mortgage lender will be required before you can cancel your insurance and receive any refund of unused premium.  This is generally provided 2 - 3 months after possession.  Even if you do not have a mortgage, you should consider keeping coverage in place until such time as you actually receive sale proceeds.  While it is the purchaser's responsibility to insure the property as of possession date, there can be no assurance that such coverage will be valid.  If a loss occurs before the Purchaser's mortgage funds are released, and the coverage is denied by the Purchaser's insurer, you would be at risk if your insurance is cancelled.

Utilities

You should cancel your utilities, and in order to assist you, we provide the following telephone numbers to call.  You will receive further instructions upon calling each utility.

Centra Gas Company.                                                      480-5900

Hydro (central Winnipeg)                                               927-9500

Manitoba Hydro (rural and suburban Wpg.)               474-4990

City of Winnipeg Waterworks                                         986-5858

Water Accounts

As unpaid water accounts may be added to the property taxes, we will be required to pay any water accounts outstanding as of the date we are releasing funds.  To avoid this, please ensure you pay your final water bill as soon as possible after possession date.

Taxes

Realty taxes are paid on a calendar year basis.  Therefore, if you (or your mortgage lender, if applicable) have paid the current year's taxes, you will receive a partial refund from the Purchaser.  If the current year's tax bill is not paid as of possession date, then you will be required to refund the Purchaser for you share.  In either case, we will calculate and attend to making these refunds by "adjusting" the sale price accordingly.

Keys

Unless you have made arrangements to give keys directly to the Purchaser, you should bring in keys when you attend at our office to sign final documents.  If you are exchanging keys directly, you should not release keys to the Purchaser until we have advised you that it is safe to do so.

Final Report

Upon completion of all matters, we will forward a final report to you.  This will contain a detailed breakdown of all moneys received and paid out, as well as other pertinent information.

Your next step

Thank you for reading the foregoing.  At this time you should contact our office to provide us with certain information we require.

From the desk of Timothy A. Martin, Barrister and Solicitor