Even after your bid for the home 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 Toronto realtor will point out the most important steps of the process.}
As soon as the seller has accepted your offer, you should meet with your lawyer and talk about all the responsibilities under the contract. One of the important points you should cover is the costs you will be facing concerning the closing procedures, including Land Transfer Tax, disbursements and legal fees.
UTILITIES
Letters are sent by your lawyer to all municipal or regional utility departments to validate that there are no arrears or outstanding charges, such as gas, water or hydro expenses. These letters also verify if the equipment on the property is rented or owned and they also advise the various utility departments of the planned closing date, the new owner’s name and the name of the seller’s attorney. In these letters, it is also important to ask for information regarding the type of billing and if the billing is metered.
TAXES
A Tax Certificate is asked by your solicitor to confirm 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 preceding 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 attorney to this department, along with a copy of the survey to find out all this.
TITLE & EXECUTION SEARCH
Another important part is to establish whether the seller 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 disclosed in the Agreement or Purchase and Sale. This is done by the appropriate division of the Land Registry Office, that manages the Search of title to the property. Also an execution search is completed in the appropriate Sheriff’s Office to verify 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 described 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. The amount of financing you will qualify for and the amount you will require to finish the business should be clear already before you have signed the Agreement of Purchase and Sale. 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 also need a certified cheque to verify the balance of closing funds to your lawyer. Bring this with you when you come to sign all the documents needed a few days before the closing.
CLOSING DAY
Your legal adviser will arrange to meet with the vendor’s lawyer at a mutually convenient time at the appropriate Land Registry Office where he will sub-search title and complete final execution searches. The attorneys will exchange all the documents, keys and cheques and your solicitor will attend to the registration of all the necessary documents. Once the documents have been registered the vendor’s legal adviser may release the finances to his clients and your attorney may release the keys to you.
AFTER CLOSING
After closing your solicitor will prepare a reporting letter to you certifying your title and explaining all details of the transaction. When you move in to your new home check to see that all items in the Agreement of Purchase and Sale specified as included in the purchase price are left on the property by the seller. Let your attorney know without any delay if you think something is absent.
