Closing day on a house sale is a significant milestone in many people’s lives. They have likely spent months looking for the perfect home and are now just a step away from getting the keys.
But many new homeowners don’t know what the day will entail.
For starters, there will be a tedious amount of paperwork. To help such individuals, our real estate lawyers in Mississauga have prepared a list of important things to know.
Let’s get started.
What Should You Expect on Closing Day?
The Canada Mortgage and Housing Corporation suggests doing these things on closing day:
- The lender should provide the mortgage money to your notary or real estate lawyer.
- You need to provide the remaining purchase price to your property lawyer or notary along with other associated closing costs.
- Your notary or real estate lawyer will pay the person selling the home, register it in your name, and hand you the deed and keys.
While this might sound easy, numerous potential issues may arise if you’re not properly prepared
Prepare Beforehand
To prevent setbacks, consider doing the following:
- Check the Documents: Make sure you go over all of the documentation related to the property purchase and ensure they are complete and free from errors. Also, go over your disclosure forms, loan documentation, and any other important paperwork. If you can’t understand any of the documents or don’t know what they are for, ask your real estate lawyer to clarify this for you.
- Have the Property Inspected: Long before signing your contract, be sure that the property in question is the one you truly want. That should include finding out whether there are any issues that may cost a lot to fix. Have a professional home inspector examine the property before closing the deal. This guarantees that there aren’t any surprises waiting for you after you have moved in. This inspection will determine the property’s true value and uncover any last-minute problems. If you discover any such issue, ask the seller to have it looked into and fixed, or re-negotiate closing fees to enable you to cover the cost of having it fixed.
- Review the Contract: Ideally, buyers should review their contract again on closing day to know what items the seller is supposed to leave behind or take. For instance, are any of the fixtures going to be removed? Are kitchen appliances included?
Your real estate lawyer in Mississauga will review this with you and refresh your memory as to what is to stay or be removed. This will eliminate surprises once you move in.
Avoid Common Problems
When preparing for closing day, there are some important things to avoid to make certain the process is completed smoothly.
- Arrange for Home Insurance: If you are looking to obtain mortgage refinancing with the help of your property lawyer, the lender will ask you to set up insurance on the property. Your insurance company may also have a questionnaire that you will be required to fill out.
If you are buying an older detached home, ask the previous owner about the plumbing and wiring. If they are outdated, the result will be a higher insurance premium. On the other hand, if you are purchasing a strata property, look for their insurance as it will enable your insurance provider to determine what they will cover.
- Don’t Do the Closing Yourself: When purchasing or selling a home, there are many things to consider before signing the contract and moving in. Even one step done incorrectly can have serious consequences, including wasted time and money.
For instance, maybe you don’t know how to effectively conduct a title search. This can negatively affect your property transaction. Furthermore, not having legal knowledge regarding what to submit as valid title requisitions to the other party can severely impact the purchase. So, it’s in your best interests to hire a real estate lawyer in Mississauga to ensure your interests are protected.
Possession Dates vs. Closing Dates in Ontario
Most first-time homeowners are unaware that the closing date and possession date are always separate.
Also known as the completion date, the closing date is the day when the final payments are made and property ownership is transferred to the new buyer. Typically, the seller’s notary or property lawyer in Mississauga conducts this process.
The possession date signified the day that the new property owner can possess the property physically. This is the day they receive keys and are allowed to move in.
Both processes are completed on separate days to ensure the transactions have been conducted and completed properly.
While the closing process may seem like a lot of work, it’s worth it to make sure things are done properly. It’s never a good idea to rush such deals as real estate transactions are substantial investments. Your real estate lawyer in Mississauga will be with you at every step of the process and protect you from facing unnecessary problems later on.