Understanding the Closing Process
October 30, 2012 | Posted by: Laurie Anne Faulkner
Understanding The Closing Process
If you understand the closing process for your new home everything will move along much smoother and with less stress. Here are the steps that will happen once you have removed your conditions:
Step 1 - Usually once you remove your final condition, you will need to give your Realtor the deposit cheque to be held in-trust with the real estate office for closing date ( this will be forwarded to your lawyer at closing and added to the remainder of funds that the lawyer will ask you for at closing to make up the total downpayment on your new home).
Step 2 - -Next you will retain the services of a lawyer or notary. If you do not have a lawyer, I can recommend some to you. You should contact your lawyer or notary as early as possible in the process.
Once conditions are removed this is also the time you will come in to sign your mortgage documents and go over all the extra details such as payment options, property tax options etc… with me. After you have signed your mortgage commitment, I will forward the documents back to the lender who will then forward the documents to your lawyer.
Your lawyer will contact you to set up an appointment to close your purchase and will need the following information:
Step 3 - your lawyer or notary will need to know how you wish to hold title to the property if you are buying with your spouse or partner or a so-purchaser. Will you hold title as “joint tenants” which means that the couple jointly owns 100% and if something were to happen to one spouse the property would go to the other as opposed to “tenants-in-common” which means each owner owns a fixed percent and can designate another as the hier to thier share in the property.
Step 4 - your lawyer or notary will conduct a title search and obtain tax information and any additional information necessary to prepare Statement of Adjustments. Statement of Adjustments is the balance sheet of the transaction showing total funds required to complete after accounting for the deposit and mortgage proceeds.
Step 5 - your lawyer or notary will prepare closing documents including title transfer, mortgage, property transfer tax forms and Statement of Adjustments. Your lawyer or notary will forward the seller’s closing documents to the seller’s lawyer or notary for execution.
Step 6 - 1- 3 days before closing you will meet with your lawyer or notary to sign documents and deliver
the balance of the down payment (minus the deposit already paid) and other monies as necessary – property purchase tax, pro-rated property tax and legal fees.
Step 7 - your lawyer or notary will register the transfer and mortgage documents, arrange for the seller’s lawyer or notary to pick up funds and notify you that the purchase has completed.
Step 8 - once registered you will receive the house keys directly from your realtor on the Possession Date as set out in the Contract of Purchase and Sale.
Move in and enjoy your new home!