Equity is the net worth which you have in your property.
Think of equity as the amount of money which you will have in pocket when the sale transaction is complete.
In General, this will be the amount of the cheque your lawyer will provide to you when the Transaction is complete.
In most Cases it is difficult to calculate the exact amount of equity because of uncertanies as to the balance of mortgage owing, the status of any mortgage tax account, the amount of delay at land titles, and so on.
Commission payable to the Real estate broker of the amount agreed to during the listing contract plus Gst, and is paid by the seller from sale proceeds upon completion of the closing of the sale.
These items are costs which the seller of a house must pay but which, for reasons of convenience, the lawyer pays on behalf of the seller at the appropriate time and then is reimbursed by the seller.
these include, mortgage discharge fee payable to land titles, title investigation charges, couriers and other miscellaneous charges all of which generally range from $ 80.00 to $ 140.00 depending on the specific transaction.
It goes without saying that the balance of money you owe under your mortgage will reduce your equity. Don't forget to include any mortgage penalty. Unless your mortgage is at the end of term, or is an "open" mortgage, you may have to pay a penalty to the lender to have it discharged.
The tax period for titled property is always the calander year, however in Winnipeg, taxes are due as of June 30th.In all transaction, either the buyer or the seller pays the annual tax bill.
The paying party is then reimbursed by the other party by way of an adjustment to the sale price.
An outstanding water bill is the only utility that can be added to a properties taxes, therefore the Final water read of a property is paid by the lawyer from the sale proceeds.
You may receive interest for the duration of the of land titles delay, on the sale proceeds or part of the sales proceeds. The interest that you will earn is hard to estimate and will depend on the amount of any mortgage the purchaser is getting on the property.
