- What Happens on the Closing Date? -

The Closing Date specified in your offer, is the date that the home purchase will be finalized.  The purchaser will officially receive the keys to the new home; the vendor will receive the money from the sale. The closing date should be at least 3 weeks to a month after the vendor has accepted your offer in order to allow time for the mortgage paperwork to come together, a title search and status certificate (in the case of a condo) to be ordered and for your lawyer to prepare all of the things he or she needs to do in order to complete your deal.

For the Purchaser:

Your lawyer will receive funds from the mortgage company on the Closing Date.  He or she will use these funds as well as your "down payment" to pay for your new home.

Your lawyer will transfer the necessary money to the vendor's lawyer or his representative via courier on the day of closing.  The vendor's lawyer will then send over the keys to the property as well as a number of important legal documents, including the deed that signs the ownership of the home over to you.  Your lawyer will check these documents to ensure their validity.  Your lawyer will then register the deed and your mortgage, and he or she will pay the registration fees and Land Transfer Tax on the purchase from funds that you have previously provided.  Your lawyer will then contact you to make arrangements to pick up the keys to your new home.

After the closing date, your lawyer will send you a final report that summarizes the transaction.

For the Vendor:

Your lawyer will receive the required money from the purchaser's lawyer or his representative.  Your lawyer will then deposit this money into his Trust account. These funds will be used to pay out any old mortgage(s), real estate commissions or any outstanding tax balances.  The remainder of the funds from the sale of your home will be paid to you.  Your lawyer will contact you when the transaction is complete to make arrangements for you to pick up your cheque.

Send E-mail to David Fysh at david@davidfysh.com

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