Lawyer, author and speaker to the Real Estate Industry, Mark Weisleder recently released a great article identifying 17 important things to know about closing your house deal. Follow the below tips to ensure that you are properly prepared when closing day approaches.
If you are selling:
- Ensure your lawyer has a copy of any deed, mortgage, survey and current property tax bills.
- Keep insurance on your home until you hear that the deal has been closed.
- A few days before closing, ensure that your lawyer has a set of keys to your home.
- Non-residents of Canada must obtain a certificate from Canada Revenue Agency regarding any income tax payable (otherwise the buyer will be able to hold back 25% of the sale price until you receive it).
- Notify your cable and telephone providers to ensure that your service is disconnected on closing day. Also, have your utility meters read on closing day so that you will only be responsible for your share of utilities.
- Cancel any pre-authorized, post-dated cheques at your bank to ensure you don’t pay for anything after closing date.
- Arrange to move out of your home before 5:00pm.
If you are buying:
- Shortly before closing, schedule a visit to the home to ensure that it is in the same condition as when you signed the offer.
- Arrange moving time late in the afternoon in order to give the seller adequate time to get out. If you are moving into a condo, reserve the elevator well in advance.
- Fire insurance must be arranged for the full replacement cost of the home and should not be left until last minute.
- For mortgages with less than 20% down, the bank will deduct for certain costs (i.e., mortgage insurance, appraisal fees and HST). Be prepared ahead of time to ensure that you are aware of any difference you may need to come up with to close your deal.
- A statement of adjustments will be prepared just before closing. Find out the total ahead of time.
- At least 2 days before closing, you will need to provide your lawyer with the balance of money needed to close the deal.
- Ensure your lawyer knows how you will be taking title to the property.
- Ask your lawyer to order title insurance for you; this will protect your property against title defects, survey issues, work orders and frauds while you own the property.
- Schedule your cable and telephone providers to install service on closing day or immediately after.
- Have the utility meters read on the day of closing to ensure that you are only responsible for charges after you move in.