Once your offer for your dream house has been accepted, there is still so much to do before you can call the house trully yours. {In the following article, an experienced realtor will familiarize you with the most important steps of the process.}
After your offer has been accepted, the next thing to do is to meet with your legal adviser and have her/him explain you all your obligations following from the contract. The attorney should also advise you as to what expenses you are likely to incur with respect to the closing procedures, including Land Transfer Tax, disbursements and legal fees.
UTILITIES
Letters are sent by your attorney to all municipal or regional utility departments to verify that there are no arrears or outstanding charges, such as 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 attorney. Details about the billing type and whether the billing is metered, all this is also requested by these letters.
TAXES
A Tax Certificate is asked by your lawyer to verify the amount of the current year’s taxes and to inquire as to arrears and outstanding charges for taxes for the current year and any previous years.
BUILDING & ZONING
The Building and Zoning Department will need to get involved as to the particulars of zoning by-laws and restrictions relating to the distance from the street and side and rear lines, type of construction, lot areas and building areas, lot frontage and depth requirements and permitted uses. Another letter is sent by your solicitor to this department, along with a copy of the survey to reveal all this.
TITLE & EXECUTION SEARCH
Another important part is to determine whether the vendor 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 revealed in the Agreement or Purchase and Sale. This is done by the appropriate division of the Land Registry Office, that realizes the Search of title to the property. Also an execution search is done in the appropriate Sheriff’s Office to confirm that there are no executions against the vendor or previous owners of the property that would affect your title.
FINANCING
All the initial searches we have just outlined are taken care of by your attorney. In the meantime, it is up to you to make all the necessary arrangements concerning the financial side of the business. 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 require to finish the transaction. There are a number of fees that you may not be aware of on the day of closing that relate to mortgage financing. Your legal adviser can advise you of these costs when the financial institution that you chose provides you with a Mortgage Commitment Letter.
BEFORE THE DAY OF CLOSING
You will be invited to show up at your solicitor’s office a few days prior to closing to sign all necessary documents and to provide your solicitor with the balance of closing funds by way of certified cheque.
CLOSING DAY
Your attorney will arrange a meeting with the vendor’s solicitor at the appropriate Land Registry Office to subsearch the title and finish the execution searches. Documents, keys and cheques will be exchanged and your attorney will supervise the registration of all necessary documents. Once the documents have been registered the vendor’s solicitor may release the finances to his clients and your attorney may release the keys to you.
AFTER CLOSING
Now your lawyer will provide you with a reporting letter that certifies your title and explains all the transaction aspects. After moving in to your new home, it is a good idea to check all items that should be included in the purchase price according to the Agreement of Purchase and Sale, are indeed left on the property by the vendor. In case you find out anything is absent, get in touch with your lawyer as soon as possible.
