Even after your bid for the house 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 real estate agent will identify the most important details of the process.}
After your offer has been accepted, the next thing to do is to meet with your solicitor and have her/him explain you all your responsibilities following from the contract. Your solicitor should help you to understand all the costs related to the closing procedures, including Land Transfer Tax, disbursements and legal fees.
UTILITIES
The attorney will also send letters to all the concerned municipal or regional utility departments, in order to verify 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 scheduled closing date, the name of the new owner and the seller’s attorney. These letters also demand details as to the type of billing and if the billing is metered.
TAXES
Taxes is another important topic. You will need to provide a Tax Certificate, which will verify the amount of the current year’s taxes and any arrears and outstanding charges for the current year and any preceding years.
BUILDING & ZONING
A letter is sent by your lawyer to the Building and Zoning Department along with a copy of the survey for the property to discover the full 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.
TITLE & EXECUTION SEARCH
A Search of title to the property is initiated in the appropriate division of the Land Registry Office to find out whether or not the seller is the owner of the property, whether or not 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. Also an execution search is completed in the appropriate Sheriff’s Office to ensure that there are no executions against the vendor or prior owners of the property that would affect your title.
FINANCING
In the meantime, while your attorney is busy completing all the initial searches, you should arrange all the necessary financing details. You should have decided, prior to signing the Agreement of Purchase and Sale, the amount of financing you will qualify for and the amount you will need to complete the business. On the day of closing, you might not know of all the costs related to mortgage financing. Your legal adviser will tell you more about these costs when you get the Mortgage Commitment Letter from your chosen financial institution.
BEFORE THE DAY OF CLOSING
You will be invited to attend 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
Yours and the vendor’s lawyers will meet at the appropriate Land Registry Office at a time convenient to both of them. They should subsearch the title and complete the final execution searches. They will exchange documents, keys and cheques and your attorney will ensure all the necessary documents are registered. As soon as this has been completed, you can get the keys and the seller will get the money.
AFTER CLOSING
Now your attorney will provide you with a reporting letter that acknowledges your title and explains all the transaction details. When you move in to your new home check to see that all things in the Agreement of Purchase and Sale indicated as included in the purchase price are left on the property by the seller. If you believe something is absent, contact your legal adviser immediately.
