Closing day for a new home is a huge moment for everyone. It’s cause for celebration. It’s the day the property gets transferred from the seller to the buyer.
If you are the buyer, it’s the culmination of those weeks or months spent searching for the ideal home. You are now one step closer to home sweet home. However, what does closing day entail? What happens on a closing day in Ontario?
Today we will learn what happens on closing day, as well as help you prepare for the said day. With the right preparation, and the right team working with you, you can have a smooth and hassle-free closing day.
What does Closing Day mean?
Sometimes called “Completion Day “this is the special day buyers close on the property and successfully transfer the title. It’s the day your attorney purchases the property in your name and on your behalf.
A few days before closing the buyer will be signing and reviewing documents prepared by the lawyers. Matters regarding their mortgage loan, down payment, closing costs, the purchase price, property title and more, will be ironed out.
This process will involve the buyer’s lawyers and the seller’s lawyers. Your team of realtors or mortgage brokers need also to be actively involved in the process. They may supply the lawyer with the proper documents. Lawyers then need to prepare the statement of adjustments to issue the final closing cost.
What happens on Closing Day?
The process involved in closing a home may vary from province to province. In Ontario, the following are the summarized steps that one can anticipate on closing day:
1. The buyer signs various documents from the bank or financier prepared by their lawyer. These are documents relating to your mortgage loan and other home purchase matters.
2. The buyer receives the amount required to close on the property. Think: down payment and closing costs. The buyer must then provide a bank draft with the closing amount to the lawyer to account for other costs like transfer taxes.
3. Once it is confirmed that all the funds have been received, the lawyer registers the purchase electronically. This is the stage where the buyer officially gets listed as the owner of the
property.
4. The seller will then receive the money they earned from the sale once their mortgage balance and closing costs have been paid off. The new homeowners get the keys and a copy of the transfer!
With a proactive real estate legal team on closing day you don't have to stress about documents and surprises. On the said day you can expect to move to your new home with the keys in hand. Cue the celebration!
However, while most people know that the real estate journey involves a lot of document signing and transferring funds, the rest of the process may still be a mystery to inexperienced homebuyers. There are several prior preparations.
What are Closing Day Preparations in Ontario?
To make the best real estate experience for you and your family, here are the steps you should take to prepare for closing day.
1. Ensure that your mortgage is in order
Meet with your banker and arrange a mortgage well ahead of closing day. The banks need time to approve your application and process your paperwork and your attorney can’t have a final meeting with you until the bank gives them mortgage instructions.
2. Conduct a final inspection of the house.
Inspecting the property protects the homebuyer and helps you identify any issues that need to be fixed before closing day. Hiring professionals to inspect specific aspects of the home is a smart move.
3. Prepare your finances.
Make sure your finances are ready and available. Keep in mind that the homebuyer will be paying for the deposit and closing costs. Other fees will also need to be taken care of.
This is why having a trusted real estate lawyer on your team is most crucial. Having a successful closing day relies on the hands-on expertise of your lawyer. Come home successfully.
