What should I sort out before I sell my home?

Who owns the home and who has to sign

Start with a title search. It shows every registered owner, how they hold title (joint tenants or tenants in common) and everything registered against the property: mortgages, lines of credit, liens, executions. Every owner must sign the listing and the sale.

Then look past title. Under Part II of the Family Law Act, a married spouse who is not on title must still consent to the sale of a matrimonial home, and a transaction without that consent can be set aside. An estate trustee needs a Certificate of Appointment before the land registry will accept a transfer. An attorney under a power of attorney for property needs the document itself, and the same spousal consent rules apply.

What your mortgage will cost to pay out

Ask your lender in writing for a payout statement. It sets out the principal, interest to the closing date, a per-day figure in case the date moves, any prepayment charge and the lender's discharge fee. A closed term usually carries a prepayment charge; the lender's own contract governs how it is calculated. The federal Interest Act limits the charge on certain mortgages by individuals once five years have passed since the mortgage was made, so ask the lender to show its calculation.

Some mortgages can be ported to a new home, which can reduce or avoid the charge. That is a question for the lender; we make sure whatever they agree to is reflected in the closing.

Timing the sale against your next home

If you are buying as well, the order matters. A same-day closing moves your sale proceeds straight into the purchase, but the purchase cannot close until the sale funds arrive, so keys come late in the day. A staggered closing, buying first and selling a few days later, needs a bridge loan from your lender, and lenders usually want a firm sale before they lend. A purchase conditional on your sale is the safest for you and the least attractive to a seller.

Whichever you choose, both agreements should be drafted with the other in mind. Closing dates, deposit amounts and what happens if one side is late all need to line up.

Tenants, permits and what follows the house

Some things travel with the property whether the buyer wants them or not. A residential tenancy passes to the buyer under the Residential Tenancies Act, 2006; you cannot end it because you are selling. An open building permit stays open until the municipality closes it, and a buyer's lawyer can find it. Rental contracts for a water heater or furnace bind whoever owns the home until they are assumed or bought out.

Each of these is manageable, but each is far easier to manage before a buyer's conditions are running than after. Tell your agent and your lawyer about them at the start.

The documents to gather now

Find the transfer or deed from when you bought, the survey if you have one, the current mortgage and line-of-credit statements, this year's property tax bill, building permits and inspection sign-offs, warranties and manuals, the rental contracts, and for a condominium the declaration, rules and latest budget. If part of the home is rented, add the lease and rent records.

Your lawyer will also need government identification for every owner and, where it applies, the will and death certificate, the power of attorney, or the separation agreement or court order that deals with the home.