The time between acceptance of your offer and the closing date is sometimes a confusing time period. This article will remove some of the mystery. Hopefully, any questions you might have, have been anticipated; however if there is anything that hasn’t been covered, please do not hesitate to contact us at any time.
We will be in touch at regular intervals until closing date ( and after) to ensure that everything is proceeding in order.
The Agreement of Purchase & Sale
The Agreement of Purchase and Sale, (and any amendments or waivers) will be sent to your Lawyer or Paralegal as discussed.
The Deposit will be placed in an Interest Bearing Account until closing and credited against the purchase price on the Statement of Adjustments. If there was a clause that the interest on the deposit cheque is to be paid to the purchaser, then this cheque will be mailed after closing.
Title Search & Requisition Date
If there are no conditions in the Agreement, your lawyer will open a file and begin the procedure to ensure that you will have good title to the property. If there are conditions the process will be delayed until the conditions have been waived.
This procedure may include other things, but here are the basics:
- The Title Search
- Obtaining a Tax certificate (showing current realty tax information)
- Assurances from Municipal and Utility Departments that there are no liens or issues affecting the property (i.e. work orders or outstanding payments etc.)
- A search to ascertain if there are any judgments outstanding against the current owners and if there is a mortgage on your purchase, they will also search regarding your name(s).
All of the searches will be conducted prior to the Requisition Date noted in your Agreement. If there are any questionable issues, they will be addressed in the form of a “Requisition Letter” to the Vendor’s Lawyer; to be satisfied prior to closing. Your lawyer will address any of those concerns (if any) around that time.
Survey And/Or Title Insurance
If an existing survey for the property is not available (or does not show the current location of the fences, buildings, and structures), the mortgagee will require either a new survey or title insurance.
Title insurance is less expensive and acceptable for the mortgagee, in most situations (insuring the property against possible encroachments etc. that an up to date survey might reveal). First Canadian Title Company is one of such companies offering this survey, but your lawyer may recommend others.
If you choose to have a new survey prepared, we can provide you with a few names of those we have used in the past, or your lawyer may have someone they prefer. We would be happy to assist you in making any arrangements.
Your lawyer will in all probability also represent your financial institution with respect to your first mortgage. In that regard, they will send any documentation directly to your lawyer, and make the funds available for the closing date. If you have a closing date that extends beyond your rate commitment watch the rates and get in touch if you see rates increasing. (Get your commitment extended.)
Executing Documents & Balance of Down Payment
During the week prior to closing your lawyer will request an appointment for you to execute closing documents, (i.e. mortgage documentation, land transfer tax affidavit etc.) and review the Statement of Adjustments. You will also be required to bring a certified cheque at that time for the balance of your down payment and legal fees. This appointment usually occurs the day prior to closing.
On the closing date, your lawyer will exchange documentation and balance of closing funds with the vendor’s lawyer’s firm and complete the transaction.
Your lawyer may have many transactions closing on your closing date, and it is often difficult to close early in the day. If you are selling as well, then that transaction has to close first in order to have the money to close your purchase. You are not legally entitled to possession of the keys and your new home until the closing has occurred. Keys will be given to your lawyer on closing.
Keep this in mind when making your moving arrangements. You don’t want to pay for a moving van all day if the closing doesn’t occur until later in the day.
Access Visits Prior to Closing
Visits prior to closing will be arranged through Lakeview Realty Inc. (with the listing agent and the vendor.) If you require any assistance with respect to contractors etc., We have names that we could recommend.
Please visit our Concierge section for more details. We would be happy to help.