5 Things to know when Closing at the end of the month
As a result of the record-breaking sales this past Spring in the GTA, lawyers’ offices will be bustling at the end of June, July and August this year. As a result, it is more important than ever for buyers and sellers to be adequately prepared in advance. Here are five things to remember
Avoid buying and selling on the same day.
If your sale is delayed for any reason, you could default on your purchase transaction. Worse, you may close the sale very late in the day without giving you enough time to complete your purchase. Now, due to that delay, you will likely have to stay in a hotel and pay extra moving costs while your purchase closing is delayed. Therefore, it is preferable to close your purchase a few days early and obtain bridge financing for a few days. The price should not be more than $200 – 300, and you will likely save more in moving costs.
Have your mortgage conditions satisfied early
Since lenders are also extremely busy this summer, the mortgage instructions often don’t come to the lawyer’s office until just before closing. Ensure you have satisfied any conditions that the lender has given you early on to not cause problems right before closing.
How much money will you need to close?
It is essential that you have a general idea of how much you owe the seller on closing and what your lender is giving you after deducting any CMHC premium, PST, administration fees or interest payable in advance. Once you know what your lender will be advancing, you can then add in your legal fees and land transfer taxes to obtain a good idea of the total down payment you will need to close the deal.
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Know when you can pick up your keys
Keys can only be released when the deal has closed, and since your deal may not close until as late as 5 or 6 pm, the buyer’s lawyer cannot release the keys until that time. Be careful about reserving an elevator at your condominium, as you may not get there in time.
When do the sellers have to be out of the house?
In Ontario, Sellers have until 6 pm to vacate the home, but it is ideal to vacate earlier if possible. Sellers should also remember to remove any debris from the house and the yard and leave the home clean.
At our law firm, we do every part of a transaction safely, whether it is signing documents through a video conference, transferring funds to our trust account and arranging lockboxes on closing for the keys. If you have any questions about how to set up your closing day, please contact me at [email protected].