What to expect on closing day of real estate purchases
Mar 21, 2017
Purchasing a home is an incredibly exciting time, but it is also a complicated process. You are likely familiar with the basic steps of this process. You must search for a home, secure a mortgage and make an offer to purchase. When you lay out your Agreement of Purchase and Sale contract with your realtor and then review with your lawyer, there are a number of clauses that must be negotiated, including your closing date.
Your closing date will determine the date of the transfer of property ownership and requires preparation on your own behalf, as well as, your lawyers.
What is the closing date?
The closing date is the date that the ownership of the house transfers. The buyers and sellers agree to this date in the Agreement of Purchase and Sale contract. Typically, a closing date is chosen for convenience between the seller and buyer.
How to prepare for your closing date in Ontario?
If you are purchasing the home or property you must hire a lawyer prior to the closing date to prepare the proper documentation required to transfer ownership. Ideally you should have your real estate lawyer review your Purchase agreement before it is finalized to ensure that your rights are protected. Prior to closing date, your real estate lawyer will order title insurance, transfer the titles of the property and arrange the balance of the purchase price.
You will meet with your real estate lawyer to sign your mortgage documents and sign your sale and land transfer contracts. You will provide your lawyer with a certified cheque or money order to cover the mortgage and down payment. You will also need to arrange insurance, including fire and home insurance, and provide document to your lawyer that shows that it will come into effect on closing day.
You should schedule a final inspection of the home to ensure that the home remains in the condition it was when you purchased. You should also call the local utility companies to read their meters for the day of closing.
If you are interested in learning more about your closing date and the steps your lawyer must take to allow for the transfer of ownership, please follow the link below to contact one of our Niagara real estate lawyers.