A Checklist for Buyers or Sellers

By Lorne Shuman:

The closing of a sale or purchase is the culmination of all of the hard work, time, preparation and excitement of buying or selling a property. To ensure that it goes smoothly, the following steps should be considered.

For Purchasers:

1)     Choose an experienced lawyer who specializes in real estate.

2)     Have your financing in place well before closing to ensure that your lawyer has enough time to prepare the mortgage documents so that there are no delays in funding. The main reason why deals do not close as scheduled is because of last-minute financing issues which can be avoided.

3)     Budget carefully – do not forget that your closing costs will have to be paid on the closing date. These include land transfer tax, registration fees, title insurance, legal fees and disbursements, CMHC premiums and adjustments.

4)     Insurance must be arranged for the property. Your insurance broker will need to send your lawyer written proof of insurance prior to closing. This does not apply to a condominium purchase, however, it is always advisable to obtain a condominium owner’s policy of insurance.

5)     Arrange your movers for late in the afternoon. Keys will not be released until the deal closes which does not usually happen until later in the day.

6)     Arrange for utilities, cable and telephone to be activated on the closing day.

7)     Schedule your pre-closing visit shortly before closing to ensure that there are no changes to the property since you signed the Agreement of Purchase and Sale.

For Sellers:

1)    Provide your lawyer with a copy of any mortgage statements and property tax bills. Your lawyer will need these documents to obtain a discharge statement from your lender and to prepare the Statement of Adjustments between you and the purchaser.

2)    Contact the various utility companies to advise them of your closing date so that they may read the utility meters on the date of closing. You should also notify your cable and telephone providers of your move.

3)    Contact your home insurance company to advise them of your closing date. However, do not cancel your home insurance until you have confirmation that the deal is closed.

4)    Cancel any pre-authorized payment plans so that you are not billed for anything that you do not owe after closing.

Keep in mind that whether you are buying or selling, all registered owners and purchasers will need to meet with the lawyer to sign all the closing documents and provide keys or certified funds a few days prior to closing. If you are not available at that time, you should advise your lawyer well in advance of the closing date.

If you follow these simple steps, you can avoid last-minute problems and ensure that you have a smooth and easy closing.

Courtesy: Lorne Shuman