Closing Process for Sellers

Overview

In British Columbia, the completion, adjustment, and possession dates mark the legal transfer of ownership, the division of ongoing expenses, and the moment the buyer receives keys. Sellers who understand each step—and the costs attached—can negotiate with clarity and avoid delays in funding. While your lawyer or notary handles much of the paperwork, you remain responsible for accurate disclosures, timely signatures, and settling outstanding accounts.

Key Takeaways

• Title must be free of financial encumbrances other than those the buyer agrees to assume.
• Typical seller closing costs in BC include legal fees of $1,200–$1,500, mortgage discharge fees, and prorated property taxes (Northam Law (2024)).
• Risk transfers to the buyer at 12:01 a.m. on the completion date, but possession often takes place later the same day—maintain insurance until keys change hands (BCAA (2025)).
• Arrange final meter readings and account cancellations for BC Hydro and FortisBC at least three business days before possession (BC Hydro (2025)).

Legal Requirements & Key Documents

Standard dates and definitions

Under the Real Estate Board of Greater Vancouver’s Contract of Purchase and Sale, five dates govern the transaction: Acceptance, Subject-Removal, Completion, Possession, and Adjustment (Stewart (2025)). Completion is the day title transfers at the Land Title Office; possession follows once funds clear and keys are released.

Role of your lawyer or notary

Your conveyancer prepares the Order to Pay, clears any mortgages or liens, and reviews the buyer’s Statement of Adjustments (BCREA (2025)). Expect to sign:

• Form A Transfer – moves title to the buyer;
• Seller’s Statement of Adjustments – reconciles property taxes, strata fees, and utilities to the adjustment date;
• Order to Pay – instructs your lawyer on how to distribute sale proceeds.

Bring two pieces of government-issued ID; most firms accept a BC driver’s licence plus passport.

Understanding Seller Closing Costs

Legal or notary fees ($1,200–$1,500): conveyancing, title searches, and document registration.

Mortgage discharge: lenders charge a discharge fee (often $75–$300) and may levy a pre-payment penalty—usually three months’ interest or an interest-rate differential (FCAC (2025).)

Realtor commission: commonly 7% on the first $100,000 and 3% on the balance, split between listing and buyer agents (WOWA (2025)).

Adjustments for property taxes, strata fees, and utilities: credited or debited so each party pays only for the days they own the property. If annual property taxes of $4,000 are prepaid and completion falls on July 15, you’ll receive roughly $1,875 back from the buyer.

Miscellaneous: moving, cleaning, and junk removal average $1,000–$2,000, depending on property size (Metro Vancouver Life (2025)).

Signing Day Logistics

Most conveyancers book signing 3–5 business days before completion. Remote signing via secure video is widely accepted, but some lenders still require wet-ink signatures. You will:

1. Review the Statement of Adjustments and confirm payout amounts.
2. Sign Form A, Order to Pay, and any GST or non-resident tax certificates.
3. Provide banking coordinates for wire transfer of sale proceeds—funds usually clear by early afternoon on completion day.

Tip: If you are purchasing another property back-to-back, stagger completion dates so proceeds arrive in time for your next purchase (Acorn Law (2024)).

Post-Sale Tasks: Utilities, Insurance & Taxes

Final meter readings & account closures

Submit move-out requests to BC Hydro and FortisBC at least three days ahead. The buyer’s lawyer will apportion any unbilled usage to the adjustment date. Keep copies of final statements for your records.

Home insurance

Under the standard contract, risk remains with the seller until 12:01 a.m. on completion. Maintain coverage until you no longer hold legal title and surrender keys (Real Estate North Shore (2025)). Arrange cancellation effective the business day after completion to avoid a gap.

Canada Revenue Agency filings

Report any capital gain on your tax return for the year of sale. If the property was your principal residence for every year you owned it, you can claim the principal-residence exemption by filing form T2091.

FAQs

Q: Can I sign documents early if I’ll be travelling?
A: Yes. Your lawyer can prepare documents ahead of schedule and arrange video witnessing, provided original IDs are verified.

Q: What if completion is delayed?
A: The defaulting party may owe interest on the balance due and, in severe cases, face contract termination. Most delays stem from lender funding issues—keeping insurance and utilities active gives both parties flexibility.

Next Steps

Gather mortgage payout statements, recent property tax receipts, and strata forms (if applicable). Choose a conveyancer early so they can open your file and order title searches before subject removal.

Ready to list? Reach out any time.

This guide provides general information only and may not reflect the latest regulations or market conditions. It is not legal or financial advice. Always verify details and consult qualified real-estate, mortgage, and legal professionals before making decisions.