Is it possible to trade a house for another house here in Alberta? If it is, what does the process entail?
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Hi Tamara,
Your question is actually an interesting one. In all my years of experience in the real estate financing industry, I've never come across this scenario. I'd be interested to hear from the Real Estate Agents/Brokers about this.
One place you can ask this question would be RECA, the Real Estate Council of Alberta. They may be able to shed some light into this matter.
Good luck with it.
Kaysywww.TrusterraMortgage.com
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The process we've seen hear in Ottawa usually involved two purchase offers for the same price (close to market value of the listed home if not full price) from the buyer to the seller of home #1 and then the reverse from seller #1 to seller #2 for their home.
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We usually have appraisials done on both homes, each Owner puts in an offer for the other home; usually at fair market value. If one is greater than the other, the buyer of the high priced home would pay the difference. Best to talk to a Real Estate Associate or a Lawyer, don't do this on your own!
Good Luck,
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It can be done. You need to get unbiased appraisals done on both properties and do cash adjustments as required. A mortgage broker maybe needed to help with this financing. Also, I suggest 2 different lawyers so don't try to save a buck by using the same lawyer. Where in Alberta are we talking, Tamara?
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I definitely can be done. I did it myself before I was a realtor. We each got independent appraisals done and then agreed on the price differentiation. Then we took it to the lawyers and done! The paper work involved the standard sales contracts with terms to tie the two contracts to each other. So just to put it in simple terms it is just two purchase contracts with aggreed prices to reflect appraised or agreed values and each conditional to the completetion of the other. I let the lawyer do the work!
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House trades sound interesting but upon close examination, they almost never happen. It is tough finding 2 parties who are willing to trade. It is always best to sell first. With a firm sale on your current property you are in a must better bargaining position. With cash, one has options.
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Of course, it can be done! Both parties have to agree upon their prices; you still pay the Land transfer & Lawyer fees, though!
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