If the owner is a Non Resident, a Clearance Certificate from Revenue Canada (New Name - CCRA - Canada Customs & Revenue Agency) has to be obtained. The process to get a Clearance Certificate can be outlined by your Lawyer or Notary Public. Depending on the circumstance, the normal fee that is charged to get this Clearance Certificate is approximately $500. It involves an accountant that the Lawyer or Notary selects to file an income tax return on behalf of the individual. The Clearance Certificate outlines to CCRA that there are no outstanding Tax issues with the property. This is especially important when there is a profit or Capitol Gain after the sale occurs. In the event the Clearance Certificate cannot be obtained by the closing date, the holdback by the Notary or Lawyer will be anywhere between 33% - 50% of the sale price. This holdback can cause a problem in the event there are not enough funds after paying off the mortgage. The normal time frame to process a Clearance Certificate is between 6-8 weeks. Please call Reg Chow of Jack Chow Insurance & Notary Services at 604-669-7777 or email him at reg@jackchow.com for more information about Clearance Certificates. Reg has a really good system in place to process these certificates. An alternate contact for processing the Clearance Certificates is Donald Lum – Chartered Accountant. You can reach him at 604-738-8299 (office) 604-738-8296 (fax) dlum@axion.net (email)
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