Buying or selling a home is an exciting milestone, but the period between signing the Agreement of Purchase and Sale and the closing date is just as important as finding the right property. Proper preparation can help prevent unnecessary delays, reduce stress, and ensure your transaction closes on time.
As a real estate lawyer, I often tell clients that a successful closing begins well before the closing date. Here are ten important steps every buyer and seller should keep in mind.
1. Stay in Contact with Your Lawyer
Once your transaction is firm, provide your lawyer with all requested documents as soon as possible. Prompt communication allows your lawyer to review the file, conduct title searches, prepare legal documents, and address any issues before closing.
2. Finalize Your Mortgage Early
If you are purchasing a home with financing, work closely with your mortgage broker or lender to ensure your mortgage is fully approved well before closing. Delays in receiving mortgage instructions are one of the most common reasons real estate transactions become stressful.
3. Arrange Home Insurance
Lenders require proof of home insurance before they will advance mortgage funds. Arrange your insurance several days before closing and provide your lawyer with the insurance information promptly.
4. Budget for Closing Costs
In addition to your down payment, remember to budget for expenses such as:
- Land Transfer Tax
- Legal fees and disbursements
- Title insurance
- Registration costs
- Property tax adjustments
- Utility adjustments, where applicable
Understanding these costs in advance helps avoid last-minute surprises.
5. Avoid Major Financial Changes
If you have obtained mortgage approval, avoid making significant financial changes before closing. Large purchases, new credit applications, or employment changes may affect your lender’s final review.
6. Review Your Closing Documents Carefully
Your lawyer will prepare documents for you to sign before closing. Take the time to review them and ask questions if anything is unclear. Understanding your legal obligations is an important part of the process.
7. Arrange Certified Funds on Time
If additional funds are required to complete your purchase, ensure they are available before closing. Waiting until the last minute to obtain a bank draft or transfer funds can delay the transaction.
8. Schedule Your Move Realistically
Although everyone hopes for an early morning closing, registrations and fund transfers occur throughout the day. It is often wise to schedule movers later in the day or even the following day whenever possible.
9. Complete a Final Walk-Through
Buyers should complete a final inspection of the property shortly before closing to confirm that it is in substantially the same condition as when the offer was accepted and that any agreed-upon repairs have been completed.
10. Ask Questions
No two real estate transactions are exactly alike. If you have questions about your purchase, sale, mortgage, or closing process, ask your lawyer early. Addressing concerns in advance can prevent unnecessary complications.
The Value of an Experienced Real Estate Lawyer
Your real estate lawyer plays a vital role in protecting your interests throughout the transaction. From reviewing title and coordinating with your lender to preparing documents and registering the transfer, your lawyer helps ensure that every legal detail is handled properly.
At The Law Offices of Eran Gevantschniter, we pride ourselves on providing responsive, practical, and personalized legal service. Whether you are buying your first home, selling an investment property, refinancing, or purchasing a condominium, we are committed to making your closing as smooth and stress-free as possible.
If you are planning to buy or sell real estate anywhere in Ontario, contact our office early in the process. We are here to guide you every step of the way.
The Law Offices of Eran Gevantschniter
Protecting your investment. Guiding your closing. Delivering peace of mind.