The Certificate of Location
Do you know on what year your property’s certificate of location was issued? If it’s been a few years, or if you have completed some outdoor work since, the buyer’s mortgage lender may require a new one. You will need to pay a surveyor to draft an updated certificate. Be aware, however, that you are only obligated to provide recent documents at your expense if so specified in the purchase offer. If not, the buyer must assume the costs.
A Drop in Price Following the Inspection
Normally, when a buyer wants to acquire an asset as important as a residence, they schedule an inspection. While you won’t be paying for the inspector, you should expect this to lead to additional expenditures.
For example, the buyer might renegotiate a lower purchase price following the inspection report. They might ask that you complete some renovation work yourself, such as repairing a drain or structural component, or replacing the windows. You may likewise have to carry out certain tests at your expense to detect the presence of pyrite or vermiculite (the costs of which vary between $300 and $1,500). In short, it is better to be prepared.
Some may be surprised to learn that there is a penalty if you sell your property before you have paid off your mortgage. In fact, depending on how much you still owe and the current mortgage rate, the financial institution may charge you a specific amount. This fee is difficult to roughly estimate, but here is an example: if you have $150,000 left on your mortgage, expect to pay a penalty of between $1,200 and $3,500. This will be based on the penalty rate in effect, of course.