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Also, remember that this is a hectic day for the seller, too! Very often it's moving day
and they're trying to gather all of their belongings to leave as the purchaser is trying to
move in.
In brief, here's what takes place before the actual closing day:
1. A copy of the offer will have been forwarded to the office of your lawyer. Your lawyer
will have reviewed the conditions of the sale. You will have made your lawyer aware of how you,
and any co-buyers, will be registered on the title of the property.
2. All of the conditions in the offer to purchase must be satisfied by the closing date. If
one of the conditions in your offer was a house inspection, it should have been completed by
the closing date, and you should be satisfied with the report.
3. All of your financing details will have been finalized and ready to fall into place
on the closing date.
4. If the vendor did not have an up-to-date land survey, you may have to get one done. Some
lenders insist on it. However, the reality is this, in our Muskoka and Almaguin markets many
properties don’t have existing surveys and most lenders I recommend usually don’t require
them.
5. Your lawyer will search the title of the property to ensure that you can purchase the
home without any legal problems. Your lawyer will also make sure that tax payments have all
been made and there are no liens on the home or the personal property the vendor has agreed
to sell you as part of the deal.
6. You'll want to make sure that you've contacted all of the utility, cable, and phone
companies to ensure an easy transition of service and billing.
7. Your lawyer will prepare a statement of adjustment. This confirms the selling price,
adjustments, and the balance (less the deposit you provided with the offer). Your lending
institution will draw up a certified cheque for your lawyer to hold in trust.
8. Additional settlement charges will have to be paid:
- Your lawyer's fee and disbursements
- Condo and co-op fees (Remember to ensure there is an adequate Reserve fund in place
and that the condominium has a proper Technical Audit and Reserve Fund Study completed by
competent professionals.)
- Tax and utility adjustments; if they have been pre-paid, you'll have to pay the
vendor for the portion of the service you assume
- Land transfer tax; based on the price of the home, this fee ranges from 0.5%
to 4% of the selling price
9. You'll want to make sure your homeowner's insurance policy will be in place to cover
your new home and property once the deal is closed. Your lawyer will need a copy of the policy
before closing.
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