Buyer Closing Guide
Your Offer Was Accepted. Here's What Happens Next.
Congratulations! You now have an accepted conditional or firm offer on a property. This guide walks you through the next steps so you know what to expect, what to prepare, and when to reach out as we move toward closing.
Use This Page To
- Understand the conditional period, and what needs to be completed.
- Prepare for your lawyer, lender, insurance, utilities, and final walk-through.
- Know what to expect on closing day before you receive the keys.
There are a few important steps between now and getting the keys.
After an offer is accepted, several things can happen at the same time. You may need to submit your deposit, provide documents to your lender, complete conditions, choose a lawyer, arrange insurance, set up utilities, and prepare for closing.
This guide is meant to give you a clear overview of the process. It is not legal, mortgage, insurance, or financial advice. Your lawyer, lender, insurance provider, and other professionals will confirm the details specific to your purchase.
The Conditional Period
Step One | Deposit
Once you've accepted an offer on a property, you'll have a set time to submit the deposit to the listing brokerage. The deposit is held with the listing brokerage until the closing date and it's applied to the down payment of the property.
After you've submitted the deposit, you'll recevie a request to submit the deposit information on ReallyTrusted.
Step Two | Submit Documents
During the time the deposit is being prepared and submitted, it's time to submit the documents to your lender or mortgage professional. If we don't already have this information, we will request it from you and include you on the email. Your lender may request additional information about the property which we will be in constant contact to provide to them.
Step Three | Complete Conditions
Should the offer include a conditional period, we will work to complete the conditions. Common conditions include mortgage approval and inspection. If you are purchasing a condominium, it will also typically include a status certificate review.
Below is a list of recommended Home Inspectors:
Dave Kelly | (519) 319-7589
Checkmark Home Inspections | (519) 872-9890
A.L. Inspections | (519) 636-5710
Step Four | Finalize Documents
After all conditions are completed, we have three options to move forward. As buyers, should you not be satisfied with the mortgage approval, inspection, or the review of the status certificate (condominiums only), you would have the option to request a mutual release. A mutual release would cancel the contract and return the deposit back to you.
Alternatively, you would have the option to request adjustments should items come up during the conditional period, adjustments would typically include price adjustments or request for repairs.
Finally, if you were satisfied with all aspects during the conditional period, you would sign off on a notice of fulfillment indicating to the Sellers that you are comfortable to move towards closing.
Firm Closing Period
Step Five | Retain a Lawyer
After all conditions are fulfilled and you've signed off on the final notice of fulfillment, it's time to retain a lawyer for closing arrangements. The lawyer will complete items such as the title search which reviews unpaid taxes, outstanding work orders, and liens, as well as transfer of funds and title change come the day of closing.
On the agreement of purchase and sale, you'll see the title search date listed, no news is good news for this day. Should you have questions about the title search, the lawyer will be able to provide that to you.
Below is a list of recommended Lawyers:
Vera Dokter | vdokter@cohenhighley.com
Victoria Gordon | vgordon@cohenhighley.com
Todd Rutledge | trutledge@bbo.on.ca
Once you've determined a lawyer, we will send all the documents relating to the purchase directly to the lawyer and include you on the email.
Step Six | Sign Final Documents
Approximately one week before closing, your retained lawyer will reach out to set up the final meeting to sign documents. During this meeting you will sign off on the statement of adjustments, title, and mortgage documents. The statement of adjustments will provide you with a total cost of purchase and what you'll need to give the law firm prior to the closing date to finalize the deal.
Step Six | Final Walk Through
The final walk-through is the last step before a successful purchase of your new home, and typically completed 1-2 days before closing. During the final walk through visit, we will go over all items warranted in the purchase and ensure the home is in the same condition as when it was purchased, minus normal wear and tear. In the case that there are issues with the final walk through, we will need to ensure the lawyer is notified before closing.
Step Seven | Closing Day
On the date of closing, you can expect to obtain the keys anywhere between 10am and 5:30pm. The timing is dependent on numerous factors such as timing of funds transferred from the financial instituion, responsiveness of the sellers lawyer. It's important not to plan to move in on the same day, always leave a minimum of one day buffer period.
Frequently Asked Questions (FAQ)
When Can I Do a Walk-Through Visit?
Most offers will have the opportunity to do two walk-through visits. One of those visits can be scheduled from the offer date up until the closing date. The other walk-through would be a final-walk through. Should you wish to do one of your walk-through visits, please reach out and we can get that scheduled in, pending approval from the Seller.
When Should I Switch Utilities?
The day of closing is always responsibility of the Seller. When you're setting up utilities for your new home, you will set them up for the date after the expected closing date. For example, if your closing date is the 1st of April, you will set the utilities for the 2nd of April. Depending on your property, you will need to set up your Hydro/Water Account as well as your Natural Gas Account.
When Do I Get the Keys?
Keys on the closing date may be anytime between 10am and 5:30pm. You should expect to get the keys, avoid making any moving plans for the day of moving. It's best to plan for moving in items the day after the expected closing date. It is not recommended to purchase your new home and sell your current home on the same datre. It's also avisable to leave a couple of days buffer for your current rental and the ownership of your new property.
What Happens on Closing Day?
On the date of closing the funds transfer hands, you will have dropped off the funds for closing to the lawyer as advised. Lawyers and lenders are working in the background to complete the closing documents and transfer funds to the Seller. Closing of your new home can occur anytime between 10am and 5:30pm. Always plan for the latest time when it comes to closing. Do not plan to hire movers for the moving date as this can be expensive should the closing get delayed for any reason.
Do I Need Home Insurance?
Home insurnace is required with most mortgage lenders. If you do not require a mortgage, while highly recommended, it's not typically a requirement to get home insurnace. When considering mortgage options, it's best to send an email to your lawyer to confirm what informatio needs to be on your inusrance policy.
Do I need to be available on Closing Day?
You are not required to be physically present on the day of closing. Your lawyer may need to call you for last minute instructions, however, if you cannot be here for the day of closing, arrangements can be made to pickup and hold the keys on your behalf.
How do I pay my property taxes?
Property taxes can be paid either through your mortgage lender or through the municipality directly. You will receive your tax assessment by mail and can do a direct bill payee from your bank.