What is Sell ‘n STAY?

Sell ‘n STAY is an exciting new solution that provides additional, previously un-thought of,  options for Seniors, Divorcees, the unemployed, the physically challenged, the in debt, the entrepreneur. A program that is Safe, simple and private, it is an option for homeowners who want to unlock the equity in their home to fund a better life, eliminate the stress in their life and all without having to move out of their home.

How does it work?

Through the Sell ‘n STAY program, seniors sell their home to an real estate investor buyer. The Homeowner then enters into a lease agreement with the new owner. Although created with senior in mind, Sell ‘n STAY is a valuable option for a variety of circumstances, for homeowners of all ages.

What are the qualifications of the people who provide Sell ‘n STAY?

Sell ‘n STAY real estate transactions are handled by specially trained and licensed professional real estate agents who are trained to deal with the specific needs of the various demographics not presently served by banks.

How is the selling price of my home determined?

As with other real estate sales, market value is determined by comparing sales of similar homes that have sold recently in your same neighbourhood. A certified appraiser can also be hired to advise on the current market value of your home.

Would your home be listed and marketed on the MLS?

Depending on circumstances, your home would be listed either exclusively (no sign, no open house, no MLS) with the listing agent or through the MLS (Multiple Listing Service, no sign, no open house). Either way, it would be marketed as a Sell ‘n STAY property where you intend to stay in the home as a tenant. It is our intention to protect your privacy because of your intention to stay.

Is Sell ‘n STAY a more expensive option to sell my house?

No, in fact many people find that it is the same or less.  The sale would be handled much like other real estate transactions where the seller pays the listing agent a commission upon completion of the transaction.

When my home is listed for sale, will there be Open Houses?

No, the Sell ‘n STAY process is unlike traditional real estate sales. Sell ‘n STAY utilizes stealth marketing and advertising strategies in order to protect the privacy of our clients.  We are able to minimize cost and maximize the purchase price potential.  The combined experience of 40 agents allows us to help our clients in a way that creates harmony.  There would be no open houses or “For Sale” signs. Exposure would be limited to buyers who are interested in purchasing an investment property with an in-place A+ tenant.

Do I need to ‘stage’ my home in order to use Sell ‘n STAY?

No. The buyer will purchase the property as an investment, in an as-is, as-seen condition. It is better to repair glaring problems and tidy up in order to get a better price.

How much rent will I have to pay?

Rent is generally calculated at 5% of the sale price of the property. When comparable properties in the neighborhood are leased, they provide an indicator of fair market value for the lease. BOTH parties must come to an agreement of the lease price PRIOR to moving forward with the sale of the property.

How can I be sure I get a good landlord?

Sell ‘n STAYrepresentatives take every effort to ensure that the investor buyer is a good fit for you – their investment goals, financial stability, personality etc., and that they fully understand the Sell ‘n STAY program. Once that is confirmed, the Sell ‘n STAY rep arranges for the Buyer and Seller to meet to determine the suitability of the potential Landlord/Tenant relationship.  However, in all cases the Seller makes the final decision as to the suitability of the landlord. We have found in the past that the natural choice for both the landlord and the owner is immediate.  Homeowners, tend to immediately know that is the landlord for them.

Will my rent stay the same for the whole lease?

Each year, the Ontario government announces the province’s rent increase guideline for the following year. Ontario’s rent increases are based on the Consumer Price Index (CPI), however, the Residential Tenancies Act stipulates that the increase cannot exceed 2.5% even if the CPI is higher. ¹

What provisions for the seller does the lease agreement contain?

The Sell ‘n STAY lease agreement takes into account all of the Landlord and Tenant requirements and adds certain protection clauses for both the Tenant and the Investor/Landlord. An example would be a 10-year lease, which alleviates the concern of your being ‘kicked out’.

Once the home is sold, who is responsible for what costs? The landlord is responsible for paying property taxes, Insurance, and repairs. You are, typically, responsible for paying utilities, telephone, cable, and maintaining renter’s insurance.  The tenant is responsible for keeping the unit clean, up to the standard that most people consider normal and ordinary cleanliness. The tenant is also responsible for repairing or paying for damage to the rental property caused by the tenant, their guests or another person living in the rental unit.²

How can I be assured the new owner won’t kick me out?

The Ontario Tenancies Act protects tenants from unlawful evictions. One of the many benefits of the Sell ‘n STAY program is that all of our representatives are trained to write a lease that protects you. You can rest assured that the Sell ‘n STAY lawyers have carefully crafted the lease terms to protect you.

Will I be able to afford to pay rent?

The money you earn from the sale of your home should be ample to carry you through many years of paying rent. We recommend you work with a financial planner to optimize how the cash yielded from the sale of the house is invested to generate interest income. The sale of your home will not impact the OAS and/or pension payments you may be receiving.

Do I have to pay tax on the proceeds from the sale of my home?

Provided the house you sell is not an investment property of your own, the sale is tax exempt. In addition, your heirs will not pay tax and probate fees are avoided. Please consult your accountant, financial planner and/or lawyer for guidance.

¹:http://www.ltb.gov.on.ca/stdprodconsume/groups/csc/_ltb/_keyinfo/documents/resourcelist/ stdprod_10006211.pdf

²: http://www.ltb.gov.on.ca/en/Key_Information/STEL02_111464.html http://www.ltb.gov.on.ca/en/Key_Information/STEL02_111890.html

³: hEp://www.ontariotenants.ca/law/ act01.phtml#RTA1


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