Closing the Deal

Here are some things you will need to consider to effectivley close.

The Lawyer

A lawyer is there to represent your interests and to process the documentation required for your purchase to close within the timeframe laid out in the agreement.

A contact list of reputable lawyers in the Simcoe County is available. Just ask! It is advisable to have the name of your lawyer when the offer becomes firm and binding so that the necessary paperwork can be delivered in a timely fashion.

Title Search

It is the responsibility of your lawyer to conduct a search of title (on-line) and also to contact the municipality for taxes, zoning compliance (permits, use, setbacks, pool, fencing, compliance with subdivision agreements, etc.) within the time stated in the offer. In lieu of your lawyer conducting some extra searches, a product called “Title Insurance” is offered. Most lenders will insist you buy title insurance when they are mortgaging the property so expect to buy it….it’s a good thing!
What is Title Insurance?

Title Insurance is an alternative to a lawyer’s opinion of the title of the property you have purchased. It protects you against someone else claiming an interest in your property and against any non-compliance of the requirements within the municipalities or other governing bodies. It also eliminates the need for a survey and many of the investigative searches your lawyer would normally be required to do on your behalf.

The one-time premium is obtained at the time you purchase the property (through the lawyer) and the policy stays in effect for as long as you own the property. Because your lawyer will no longer be required to conduct some of the investigative searches, this savings will usually offset the cost for the insurance. Consult with your lawyer for further details on coverage and rates. Rates are based on purchase price of property.

In brief, here’s what takes place before the actual closing day

• A copy of the offer will have been forwarded to the office of your lawyer. Your lawyer will have reviewed the conditions of the sale. You will have made your lawyer aware of how you, and any co-buyers, will be registered on the title of the property.
• All of the terms and conditions in the offer to purchase must be satisfied by the closing date.
• All of your financing details will have been finalized and ready to fall into place on the closing date. You will meet with the lender again to sign all documentation prepared.
• If the seller does not have a current land survey, and you are not purchasing Title Insurance via your lawyer, you will have had one done. Your lender will insist on it.
• You lawyer will search the title of the property to ensure that you can purchase the home without any legal problems. Your lawyer will also make sure that tax payments have all been made and there are no liens on the home or the personal property the seller has agreed to sell to you as part of the deal.
• You will want to make sure that you have contacted all of the utility, cable, and phone companies to ensure an easy transition of service and billing.
• You must arrange your home insurance prior to closing. Your lender and lawyer will need a binder letter from the insurance company, proving you are insured, before they release the mortgage funds. No insurance, no keys!
• Your lawyer will prepare a statement of adjustments. This confirms the selling price, adjustments, and the balance (less the deposit you provided with the offer). Your lending institution will send a certified cheque to your lawyer to hold in trust.

Additional settlement charges will have been paid:

• Your lawyer’s fee and disbursements
• Tax adjustments. If they have been pre-paid, you’ll have to pay the Seller for the portion of the tax they have prepaid
• Land transfer tax; based on the price of the home
• PST on High ratio mortgage insurance fees (CMHC)
• You will meet with your lawyer to sign documentation for closing the transaction during the last week before closing. Call them to book a time.