What expenses are there related to selling a multi-residential building?
There are a number of expenses an owner should anticipate when selling their apartment building. It is important to stress that each owner’s expenses will vary depending on their tax consequences, based on various factors such as initial purchase price, capital cost allowance taken throughout the years of ownership and one’s own tax situation. It is best to consult with an accountant familiar with the property to determine the specific tax consequences of a sale.
Below is a list of expenses and or documents required in order to complete the sale process:
A new Certificate of Location. The cost will vary depending on the number and size of the building(s) sold.
The Notarial Acquittance. This is paid by the seller to the notary to remediate any lien in place.
In the event that there is a current loan in place that a buyer is not prepared to assume, a loan penalty generally equivalent to the interest the bank would earn over the remaining term would be required to cancel the loan. It is best to verify the exact amount with your bank/lender.