General Information for Selling Your Home
When will I receive my money?
Depending on the length of time it takes for the land Transfer and Mortgage (ifthe Buyer required a mortgage) to be registered by The Property Registry, will
determine when you will receive your money. You will receive the net proceeds ofsale once the lawyer has confirmation the new Title has issued in the Buyer’sname and your lawyer has paid any debts, such as your mortgage.
Am I paid interest while I wait for the Buyer’s mortgage money?
If part of the money is coming from the Buyer’s mortgage, you will be paidinterest at the same rate as the Buyer’s mortgage, from Possession Date to thedate the mortgage money is received by your lawyer’s office.
What if I need the money from the sale of my old home to pay for a new homeright away?
You can make arrangements with your lender for interim or bridge financing.
This is a short term loan against the equity or net proceeds from the sale of your
old home, which will be repaid to your bank by your lawyer, once your lawyer
receives the money from the sale of your old home. Your bank will provide youwith details as to whether you qualify for this type of financing.
What expenses will be deducted from the sale proceeds of my house?
If you have an existing mortgage on the property, that mortgage will have to bepaid from the proceeds of sale in order to discharge it from your property andprovide the Buyer with proof.
In order to calculate the total cost of your mortgage payout, you will have to takeinto account pre-payment penalties, administration fees and interest to the datethe mortgage will be paid in full. Unless the mortgage is at the end of its term or
is an open mortgage, you may incur a penalty for paying out your mortgage early.
Often banks charge an administration fee to cover the cost of providing you witha Discharge which, when filed in The Property Registry, will remove the existing
mortgage from the property Title. Talk to your lender to find out all of the
penalties and administration fees that will be charged to pay out your mortgage.
Once your bank has provided a Discharge to your lawyer, a registration fee for
the Discharge is payable to The Property Registry. There may be other liens inaddition to your mortgage that you will be responsible for removing, and if so, at
your expense. Your lawyer will review the Title of your property to determinewhether such other liens exist that need discharging. Your lawyer will arrange todischarge these liens, if required.
Property Tax Adjustment:
The real property tax year is January 1st to December 31st with taxes due onJuly 31st for City of Portage la Prairie* properties and September 30th for Rural
Municipality of Portage la Prairie* properties. If you sell property before the tax
due date the Buyer will be responsible for paying the taxes at the tax due date. If
you owned the property for the first part of the year and did not pay any propertytaxes, a credit is given to the Buyer for an amount equal to the number of daysyou owned the property. This credit is deducted from the Purchase Price. If youpaid the taxes before selling the property then the Buyer will credit you for theyear’s remaining taxes by adding the amount to the Purchase Price.
If Possession Date is after the tax due date, the property taxes should be paid infull. The Buyer will be required to reimburse you for the number of days thathe/she owns the property free of taxes for the remainder of the year by addingthat amount to the Purchase Price.
* Note: the tax due date is different depending on where the property is located.
When do I cancel fire insurance?
We recommend that you do not cancel your fire insurance policy until you havereceived your money. If you have an existing mortgage, your insurance companymay not be able to cancel the policy until they have confirmation from your bank
that the mortgage has been paid in full.
When do I cancel the utilities?
Prior to moving you should contact the utility companies to advise them that youare moving and to give them your new address. On the date of possession, readthe meters and call in the readings to each of the utilities.
For Portage la Prairie and area here are the numbers for you to call:
- Bell MTS: 204-225-5687 or toll free 1-800-883-2057
- Water, City of Portage la Prairie: 204-239-8370
- Water, Rural Municipality of Portage la Prairie: 204-857-3821, ext. 4
- Manitoba Hydro: 1-800-652-4490
- Shaw Cable: 204-857-6623
If you would like more details on your purchase or have any questions,
please feel free to contact our office at 204-239-8710.