On closing day as a home buyer, you can expect several key steps and processes to occur. Here’s a breakdown of what typically happens:
- Final Walkthrough
- Before you officially close on the property, you’ll be given the opportunity to do a final walkthrough. This is to ensure that the property is in the agreed-upon condition and that any terms or conditions (like repairs) in the Agreement of Purchase and Sale have been met.
- Paying the Balance
- You’ll need to pay the remaining balance of the purchase price, including the down payment (if it hasn’t been paid already), closing costs, and any adjustments for property taxes, utilities, or condo fees.
- Your lawyer or notary will coordinate with the lender to transfer the mortgage funds.
- Signing Documents
- You’ll sign the necessary legal documents to transfer ownership. This typically involves meeting with your lawyer to review and sign documents, including the deed, mortgage agreement, and other legal paperwork.
- Your lawyer will ensure that everything is in order before the transaction proceeds.
- Transfer of Funds
- Once the documents are signed and the funds are transferred, your lawyer will send the payment to the seller’s lawyer. The sale is officially completed once the funds are transferred and the deed is registered.
- Receiving Keys and Possession
- After the transaction is complete and the deed is registered with the land registry office, you’ll officially own the property.
- You’ll receive the keys to your new home, and the seller will vacate the property, unless you have agreed on a different possession date/terms.
- Finalizing Property Tax Adjustments
- There may be an adjustment of property taxes depending on the closing date. For example, if you’re closing mid-year, you might need to reimburse the seller for property taxes they’ve already paid for the remainder of the year, or vice versa.
- Closing Costs
- On top of the purchase price, expect to pay additional costs like:
- Land Transfer Tax (unless you qualify for a first-time homebuyer rebate)
- Legal Fees (for the lawyer handling your closing)
- Title Insurance (optional but often recommended)
- Home Inspection Fees (if applicable)
- Property Appraisal Fees (if required by your lender)
- Mortgage Insurance (if your down payment is under 20%)
- Post-Closing
- After the closing, your lawyer will register the title of the property in your name.
- You’ll receive a copy of the deed and other documentation for your records.
Make sure to communicate with your lawyer or Realtor about any specific concerns, as the process can vary slightly depending on individual circumstances.
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