Preparing Your Regina Home for Sale: Utilities and Insurance

Selling Smart: Managing Utilities and Understanding Homestead Rights When Selling Your Regina Home

Last week, we explored the decision between selling your Regina home privately or with a real estate agent. This week, we delve into practical considerations as you prepare for your home sale: managing utilities and understanding the implications of homestead rights, a unique aspect of property law in Saskatchewan.

Should Utilities Remain in Place Until the Possession Date?

As you approach the possession date for your Regina home, a common question arises: what should you do with your utilities? While it might be tempting to disconnect services early to save a few dollars, it is generally wise to keep all utilities (electricity, natural gas, water) in place until the possession date.

Here's why:

• Smooth Transition for Buyers: Keeping utilities connected ensures a seamless transition for the new buyers. They can move in and immediately have access to essential services, which contributes to a positive experience and avoids any inconvenience.
• Property Maintenance: Even if you've moved out, maintaining utilities allows for essential functions like heating in winter or cooling in summer, which can prevent issues like frozen pipes or excessive heat buildup. This protects your property until the new owners take over.
• Showings and Inspections: If there are any last-minute showings or final inspections before closing, having utilities on is crucial for potential buyers or inspectors to properly assess the home.
• Avoiding Extra Costs for Buyers: While you can discontinue utilities early, most sellers try to avoid passing on extra costs to the buyers. By keeping services active until possession, the utilities can often be transferred directly to the buyers, preventing them from having to pay reconnection fees or go without essential services.

While it's best to keep utilities on, you can certainly provide advance notice to your utility companies about your upcoming move and the possession date. This allows them to prepare for the transfer of service and ensures a smooth handover.

What are Homestead Rights and How Do They Affect the Sale?

In Week 4, we touched upon The Homesteads Act, 1989 in the context of buying a home while single and later entering a relationship. This Act is equally, if not more, important when you are selling your home in Regina, particularly if you are married or in a common-law relationship.

The gist of The Homesteads Act, 1989 is to protect the family home. If a property is considered a "homestead" – meaning it is the place where a married couple or common-law partners ordinarily reside – then the consent of both spouses or common-law partners is required for any sale or mortgage of that property, even if only one person's name is on the title.

Key Implications for Sellers:

• Spousal Consent is Mandatory: Regardless of whose name is on the title, if the property is your homestead, your spouse or common-law partner must provide written consent to the sale. This consent is typically obtained through a specific form or affidavit that your lawyer will prepare.
• Definition of Spouse/Common-Law Partner: A "spouse" includes someone you are legally married to. A "common-law partner" includes someone with whom you have lived as spouses for two years or more.
• Preventing Unilateral Decisions: This Act is designed to prevent one partner from selling the family home without the knowledge or agreement of the other, ensuring both parties have a say in this significant asset.
• Documentation is Required: Your real estate lawyer will guide you through the necessary documentation regarding your marital status. This often involves signing an affidavit or consent form, depending on your situation, to confirm compliance with The Homesteads Act.

Even if you believe The Homesteads Act doesn't apply to your situation (e.g., you are single, or the property is not your primary residence), your lawyer will still need to address this point and ensure proper documentation is in place. It's a standard part of the legal process for selling property in Saskatchewan.

Understanding these details about utilities and homestead rights will help you navigate the selling process with greater confidence and avoid any last-minute surprises.