Even after your offer for the home you decided to buy has been accepted by the seller, there’s plenty left to do before you can rightfully move in. {In the following article, an experienced realtor will highlight the most important pitfalls of the process.}
After your offer has been accepted, the next thing to do is to meet with your attorney and have her/him explain you all your obligations following from the contract. Your lawyer should help you to understand all the expenses connected to the closing procedures, including Land Transfer Tax, disbursements and legal fees.
UTILITIES
The solicitor will also send letters to all the concerned municipal or regional utility departments, in order to validate there are no arrears or outstanding charges for gas, water or hydro expenses. The utility departments will also be informed if the equipment on the property is rented or owned, and also about the planned closing date, the name of the new owner and the vendor’s legal adviser. Information about the billing type and whether the billing is metered, all this is also asked for by these letters.
TAXES
Your attorney will ask for a Tax Certificate to verify the current year’s taxes amount and to find out any arrears and outstanding charges for taxes, both in the current year and in any previous ones.
BUILDING & ZONING
Your legal adviser will also send a letter to the Building and Zoning Department, along with a copy of survey for the property. The purpose of this is to find out all the details of zoning by-laws and restrictions concerning the distance from the street and side and rear lines, construction type, lot and building areas, lot frontage and depth requirements and permitted uses.
TITLE & EXECUTION SEARCH
Another important part is to establish whether the seller is the property owner and whether he has the right to convey the property, and that the property is not subject to any encumbrances, encroachments, easements, liens, agreements or mortgages that were not disclosed in the Agreement or Purchase and Sale. This is done by the appropriate division of the Land Registry Office, that manages the Search of title to the property. Also an execution search is made in the appropriate Sheriff’s Office to verify that there are no executions against the seller or previous owners of the property that would affect your title.
FINANCING
While your legal adviser is completing his initial searches, it is your responsibility to make necessary arrangements for financing. Already before signing the Agreement of Purchase and Sale, you should have decided the amount of financing you will qualify for and the amount you will need to finish the deal. On the day of closing, you might not know of all the costs related to mortgage financing. Again, it is a good idea to ask your lawyer about these expenses, when you get the Mortgage Commitment Letter from the financial institution that you have selected.
BEFORE THE DAY OF CLOSING
A few days before the closing, you will need to visit your lawyer’s office to sign all the necessary documents and to produce a certified cheque to confirm the balance of closing funds.
CLOSING DAY
Your solicitor will arrange an appointment with the vendor’s legal adviser at the appropriate Land Registry Office to subsearch the title and finish the execution searches. They will exchange documents, keys and cheques and your attorney will make sure all the necessary documents are registered. Once the documents have been registered the vendor’s attorney may release the money to his clients and your legal adviser may release the keys to you.
AFTER CLOSING
After closing your lawyer will prepare a reporting letter to you certifying your title and explaining all aspects of the transaction. When you move in to your new home check to see that all items in the Agreement of Purchase and Sale specified as included in the purchase price are left on the property by the seller. Let your lawyer know without any delay if you believe something is absent.
