- 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