The Home Closing Process for Sellers in Alberta
Closing Process For Sellers in Alberta
1.0 The Deal is Firm, Now What?
Congratulations, the “Sold” sign is up! This means the buyer has removed all their conditions and the deal is legally binding. Now, the final phase of the transaction begins: the closing process. This stage is managed primarily by the real estate lawyers for both the buyer and the seller, who work behind the scenes to ensure the legal ownership and funds are transferred correctly and on time.
2.0 Your First Step: Hire a Real Estate Lawyer
As soon as the deal is firm, you will need to hire a lawyer who specializes in real estate transactions to represent you. We can provide a list of trusted legal professionals in Edmonton. Your lawyer will handle all the financial and legal details of the closing on your behalf.
3.0 The Closing Process Timeline
Here’s a general timeline of what happens between the “Sold” date and the possession day.
- 2-3 Weeks Before Closing: You will meet with your lawyer to sign the official transfer documents. Your lawyer will also ask for key information, such as the details of your existing mortgage, so they can request a payout statement from your lender.
- The Statement of Adjustments: Your lawyer will draft a “Statement of Adjustments.” Think of this as the final balance sheet for the sale. It reconciles costs that have been pre-paid by either party, such as property taxes or condo fees, ensuring each party only pays for the days they owned the property.
- 1-2 Days Before Closing: The buyer’s lawyer will transfer the purchase funds (which includes the buyer’s down payment and their mortgage funds) to your lawyer to be held “in trust.”
- Closing (Possession) Day: This is the final step. On the morning of possession day, your lawyer will use the funds they received to pay off your mortgage, pay the real estate commissions, and pay their own legal fees. Once all funds have cleared and the land title has been registered, the sale is complete. Your lawyer will then authorize us to release the keys to the new owners. The remaining funds—your net proceeds—will then be transferred to you.
4.0 Your To-Do List Before Possession Day
While the lawyers handle the legal side, your focus is on preparing the home for the new owners and planning your move.
- Schedule the cancellation and final meter readings for your utility accounts (gas, power, water).
- Arrange to have your mail forwarded to your new address.
- Ensure the property is left in a clean, “broom-swept” condition, as is standard in contracts.
- Remove all personal belongings and garbage from the property.
- Leave behind any items that were included in the contract (e.g., appliances, window coverings).
- Provide all keys, garage door openers, and security codes to your lawyer.
For a complete overview of the selling journey, return to the Ultimate Guide to Selling a Home in Edmonton.
Common Seller FAQs
If you’re ready to sell or have more questions, you can contact us here.
What are the closing costs for a seller in Alberta?
Closing costs for a seller in Alberta typically range from 1% to 4.5% of the home’s purchase price and are primarily made up of real estate commissions and legal fees. Other potential costs include legal fees, mortgage payout costs, and adjustments for property taxes and other pre-paid items like condominium fees.
How long does it take to close after I accept an offer on my house in Alberta?
It typically takes 41 to 44 days to close after a conditional offer is accepted, assuming the buyer is using a mortgage. This timeframe can vary, with a cash offer often closing in as little as one to two weeks, and a financed deal potentially taking longer depending on the complexity and any issues with conditions like a low appraisal.
Do I need a lawyer when selling my home in Alberta?
Yes, you need a lawyer to sell your home in Alberta because their involvement is essential to finalize the sale legally. Without one, you risk dealing with issues like title problems, unexpected liens, and mortgage complications, and you won’t be able to complete the transaction. Your lawyer will handle crucial tasks such as preparing the transfer of land document and registering it with the Land Titles Office.
What happens on closing day when I’m the seller?
You will sign final paperwork, have your outstanding mortgage paid off from the sale proceeds, and receive the remaining funds.
When do I hand over keys and vacate the property?
You should hand over the keys and vacate the property by the date specified in your lease agreement, typically on or before the lease end date. Ensure you have completely moved out, cleaned the property, and are ready for a final inspection before returning the keys to the landlord or property manager. It is recommended to have a written confirmation of the key return.
