You’ve purchased a home, all conditions have been met and now you’re eagerly waiting for closing day to arrive. Before that can happen, there are a number of important housekeeping items that need to be taken care of to ensure a smooth closing process.
The Lead Up to Closing Day
Depending on the date that has been negotiated in the agreement of purchase and sale, the closing on a particular property can happen quickly (in as little as a few weeks) or much longer (several months). In the time between the sale being completed and closing day, your agent will work with you to complete a number of closing related tasks.
Immediately following the purchase of your new property, your bank will require you to send them a copy of the agreement of purchase and sale as well as the MLS listing page.
Making the deposit
An immediate step (typically done within one day or sooner from the sale) is to submit your deposit to the listing brokerage. This is usually somewhere between $10-30K and the amount is negotiated and set out in the agreement of purchase and sale. It is included as part of the total purchase price and not in addition to it. Your agent will provide you with instructions on how to submit the deposit which is usually done through an electronic funds transfer or bank draft.
Working with a Lawyer
Your lawyer will need a copy of all of the documents that are associated with the deal. Your agent or the brokerage that they represent will typically complete this step on your behalf. If you do not already have a lawyer, your agent will be able to recommend one to you.
The closing process involves a number of tasks that can only be completed through a law firm due to the highly valued nature of the asset that you’re taking ownership of.
Within a week or two prior to your closing date, you will meet with your lawyer to sign off on all of the appropriate documents needed to complete the transfer of ownership. Your lawyer will provide you with a statement of adjustments which shows the remaining balance owing to the sellers in order to complete the purchase. While this usually takes place in person, some lawyers have been performing these services virtually throughout the course of the pandemic.
Home Insurance
One of the most important things you’ll need to do is purchase a home insurance policy for your new property. Your agent will provide you with guidance on how to go about doing this – and once complete, your lawyer will require a copy of the insurance policy as well.
Utility Accounts
You will also need to set up an account for all of the various utilities that are serviced to your home. These include your property tax and water bill through MyService Ottawa, Enbridge MyAccount for heating and gas as well as MyAccount for electricity services through Hydro Ottawa. If you have purchased a condo, some of these utilities may already be handled through your monthly management fee. Your agent will help you determine what will need to be set up and what is already taken care of.
The Final Walkthrough
Within a week or two prior to closing day, you and your agent will coordinate with the listing agent and their sellers to arrange for a ‘final walkthrough’. This is the opportunity to see your new home one last time prior to closing day in order to ensure that there are no issues or concerns ahead of move in day. If there are any outstanding items that need to be addressed or rectified, your agent, in consultation with your lawyer will be involved in ensuring they are resolved.
Taking Possession
On closing day, your lawyer will be responsible for transferring funds and disbursements to the seller’s lawyer, including the down payment. At this time, your lender will begin to fund the property on this date.
Typically between 12 noon and 6pm on the day of your closing is when your lawyer will give you the go ahead that the house has closed. At this time, you will either go pick up the keys from them or they will be provided in a lock box at the house. Once you’ve received the key means you’ve officially taken possession of the property and all of the necessary legalities have been completed.
When you work with us at SERNO Realty, we’ll guide you through every step of the closing process to make it as seamless and easy as possible. Click here to learn more about our homebuyer services!