What happens upon closing and what you need to know
Before The House Is Yours…
Once your offer is accepted, you still need to carry out a number of steps and fulfill certain legal requirements before the transaction is complete and the house is yours.
- Pay the deposit you agreed to in the contract. The typical deposit on a home in Toronto is 5% of the purchase price, but if you did not give this full amount on offer night, there will probably be a clause in your offer stipulating that further deposits are due on certain dates. These must be paid according to the offer, and will be kept in trust by the seller’s brokerage as part of your down payment.
- Have the home inspected. This is optional; some Realtors® do recommend that you always have your new home inspected by a certified home inspector, but Jamie prefers to decide this with you on a case by case basis, as every property is different (also, a recent inspection often exists already). Jamie will refer you to a qualified home inspector if you decide to have the home inspected.
- Finalize your mortgage. Jamie will send your lender a copy of the Agreement of Purchase and Sale and an up-to-date land survey or sketch of the property, if it is available. The lender will also arrange to have an appraisal of the property done.
On the big day, your lawyer and the seller’s lawyer will meet in the Land Registry Office. You will have already given the down payment (less any deposit funds already paid) to your lawyer, along with a cheque for the remaining closing costs. Your lawyer will exchange the deed, mortgage and any other documents related to the sale, pass on the purchase cheque, and register the deed and mortgage. And, perhaps most significantly to you, your lawyer will pick up the keys to your new home. You will have finally taken legal possession of the house. Now all that’s left is to move in. Congratulations!
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Jamie has prepared a moving guide to help you make a smooth move even after you pick up your keys. Read on…and ask Jamie how he can help you facilitate any moving and renovation requirements.