Top Real Estate Closing Tips

Lots can go wrong on the day a real estate deal is closed - including getting the wrong keys, or not enough of the keys. By Mark Weisleder

Between signing a real estate deal and closing, there are plenty of things that can go wrong. By being prepared you can make sure that your deal is kept on the straight and narrow.

Here are some recurring themes I saw this year.

1. Appliance disappointments

Sellers will only guarantee that the appliances and home systems they leave behind will be working on closing. If something breaks down shortly thereafter, it is not the seller’s responsibility. Buyers should consider insurance against these types of breakdowns. Some companies that provide these policies are

2. Closing day disappointments

Sellers have to move out as soon as title changes hands. This can be as early as 9 a.m., although most deals close between 1 p.m. and 4 pm. If the seller is still there after the title changes, they can be liable for any extra moving costs the buyer incurs.

Sellers must also be sure they give their lawyer the right keys so the buyer can get in. On more than one occasion in my experience, the seller left one key but there were two locks on the front door. The buyer had to pay a locksmith and sent the bill to the seller. The same goes for junk left behind. If you leave it, you may have to pay the costs to remove it.

3. Arrange bridge financing

Most buyers want to close their sale and purchase on the same day. Sometimes it doesn’t go smoothly. For example, if the person buying your home is late closing, your lawyer may not be able to get the money to the lawyer who is acting for the person selling their home to you in time. This can result in the seller cancelling the deal if you are late, or charging a penalty to extend it for another day. In addition, you will likely pay additional moving costs as your seller may not have left the home by the time your movers arrive.

Bridge financing gives you the ability to have the funds on hand if needed and merely pay interest on the money for one or two days.

4. Appraisal policy requirements

More and more lenders are requesting that an appraisal be done a few days prior to closing, after the buyer has waived their financing condition. If the appraisal says your home is not worth what you paid for it, they will not lend you what you expected, and you will have to come up with this additional down payment yourself. This can be disastrous at the last minute.

Ask about your lender’s policy regarding appraisals before you apply for any mortgage loan. Make sure they will provide all approvals before you have to waive any finance condition.

5. The new home HST rebate

People who buy a new home or condominium from a builder must understand that the HST rebate is built into the sale price. The builder will get this money, after closing, from the Canada Revenue Agency (CRA), so long as you move into the home. If you are not moving in, but intend to rent it out or resell it immediately, you will have to pay this HST, typically between $20,000 and $30,000, to the builder on closing. Otherwise CRA may chase you for the money later.

By being properly prepared in advance, you should enjoy a positive home closing experience in 201

 

 Oakville Real Estate  -   CENTURY 21 Miller  -  TOP TEN Office*

CONSIDERING BUYING OR SELLING A HOME?

Doug MacKenzie Sales Representative
CENTURY 21 Miller Real Estate Ltd.
Brokerage, Independently Owned and Operated
467 Speers Rd
Oakville, ON L6K 3S4
Office: 905.845.9180 Direct 905 9013603 


Website: www.century21.ca/doug.mackenzie
Alternate: 
www.dougmackenzie.ca 
 

CENTURY 21 - the largest real estate organization in the world.

http://21online.century21.ca/images/email/goldpath_email.gif



At CENTURY 21 Miller Real Estate Ltd. our policy is to respect and protect the privacy of our clients and customers. We do not sell, trade or rent your personal information to others. By submitting a registration or request for information either verbally, or in writing by fax, document or email, you agree that the information you provide about yourself or your organization may be collected, stored and used for the purposes stated in the company's Privacy Policy. For a full description of our current Privacy Policy please visit our website at
www.century21miller.com, or contact us as per above.

There are no comments

Thank you! Your comment has been submitted and is awaiting approval.

Blog Archives

Tags