If you are buying or selling a home this fall, now is a good time to make sure you are prepared for your closing.
Here are several important things to keep in mind.
1. Start Your Legal Process Early
Once your Agreement of Purchase and Sale is firm, your lawyer will need time to review the transaction, search title, communicate with the other side’s lawyer and lender, and prepare the necessary closing documents.
Do not leave everything until the last minute.
If you are obtaining a mortgage, your lender will also provide instructions to your lawyer. Delays in receiving mortgage instructions or completing lender requirements can sometimes affect the closing process.
Providing your lawyer with the requested information and identification as soon as possible can help avoid unnecessary delays.
2. Review the Agreement of Purchase and Sale
Your Agreement of Purchase and Sale sets out the terms of your transaction, including the purchase price, deposit, closing date and any conditions or additional provisions.
Before closing, your lawyer will review the agreement and make sure the transaction is being completed in accordance with its terms.
If there have been amendments, extensions or changes to the agreement, make sure your lawyer receives copies of all relevant documents.
3. Be Prepared for Property Tax Adjustments
Property taxes are commonly adjusted on closing so that each party is responsible for the appropriate portion of the taxes for the period in which they own the property.
Your lawyer will review the available tax information and calculate the appropriate adjustment.
If you have a pre-authorized property tax payment arrangement with the municipality, you should also discuss it with your lawyer to determine what steps may be required after the closing.
4. If You Are Buying a Condo, Review the Status Certificate
For condominium purchases, the status certificate can provide important information about the condominium corporation and the unit.
It may contain information regarding common expenses, arrears, the corporation’s budget, reserve fund and certain legal proceedings.
A status certificate should be reviewed carefully before you become legally committed to the purchase, where the agreement provides for that opportunity.
Your real estate lawyer can help identify issues that may require further attention.
5. Remember Title Insurance
Title insurance is commonly used in residential real estate transactions in Ontario.
It can provide protection against certain title-related risks and other covered issues, depending on the policy.
Your lawyer can explain the coverage available for your transaction and answer questions about the policy before closing.
6. Watch Your Closing Date
Fall can be a busy time for real estate transactions. If you are selling one property and buying another, the timing of your transactions can be particularly important.
Make sure you understand when you need to provide funds, when documents need to be signed and when you can expect to receive keys.
If you are relying on the sale of another property to fund your purchase, discuss the timing with your lawyer as early as possible.
7. Prepare for Your Move
A real estate closing involves more than simply signing documents.
Before closing, make sure you have arranged your movers, utilities, insurance and any other services you will need at your new property.
Your lawyer will deal with the legal and financial aspects of the transaction, but you should also make sure the practical side of your move is organized.
8. Don’t Wait Until the Closing Date to Ask Questions
One of the most important pieces of advice I can give clients is simple: ask questions early.
If you are unsure about an adjustment, mortgage requirement, deposit, title issue, condominium matter or closing document, contact your lawyer before the closing date.
Most issues are much easier to address when there is time to deal with them.
A Smooth Fall Closing Starts With Preparation
Whether you are buying your first home, selling a property or moving from one home to another, preparing early can make the closing process much smoother.
As autumn approaches, take the time to review your transaction, provide your lawyer with the required documents and make sure you understand what is expected from you before closing.
A well-prepared closing is usually a much less stressful closing.
If you are buying or selling a property in Toronto or the surrounding area, the office of Eran Gevantschniter is available to assist you with your residential real estate transaction.
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