The closing or completion day is the day the title is transferred to the new buyer and they take legal possession of the property.
Preparation
You will need to select a lawyer to help you complete the sale. If you do not have a lawyer, I can provide recommendations, and provide the lawyer with a signed copy of the contract. As closing day nears, myself and the lender will monitor the progress of your transaction to ensure there are no last minute issues or concerns. You will need to arrange to meet with your legal counsel before the completion date to review and sign documents. Remember to bring photo identification and a personal cheque to this meeting to pay for legal costs.
Completion (Closing) Day
On completion day, legal ownership of your property will be transferred to the buyer. Your lawyer will receive funds for the sale from the buyer’s lawyer, and your lawyer will provide you with a statement of adjustments. This list itemizes all costs payable at completion, including legal fees, taxes and other completion costs. Finally, funds will be used to discharge your mortgage, if applicable, with any remaining proceeds transferred to you in the form of a bank draft.
Closing Costs
Closing costs associated with selling a home include adjustments, real estate commission, mortgage discharge fee, capital gains tax (if applicable) and legal fees.
Legal Fees
Lawyer’s fees vary, but often have structured fees for the purchase and sale of homes posted on their websites. Sellers pay in the area of $1200.00 for a lawyer to look after the legal details necessary to close their home.
Mortgage Fees
Check with your mortgage lender to determine if any costs will occur when transferring or releasing your mortgage. There is sometimes what is referred to as a discharge fee to remove the mortgage from title that can range from $100 to $250.
Disbursements
These fees cover additional legal expenses such as travel, copies, couriers, registration fees and preparing document transfers. Disbursements can range upwards of $500 but can sometimes be built into your legal fees.
Adjustments
It’s difficult for a home seller to calculate exactly how much money is owed to which utilities on closing day. Your lawyer will ensure that any overpayments or deficiencies on rents, mortgage interest, property tax, and utility charges will be corrected, and the buyer and seller will be credited or charged accordingly.
Closing is a process that concludes with the transaction that transfers ownership of the home. This process generally begins with the acceptance of an offer. Your lawyer will take on a long list of duties in the process of transferring the property from you to the buyer. As the closing day approaches, all conditions of the sale must be met. A title company is usually hired to carry out a search for any recorded documents that affect the deed to the property, such as liens, tax assessments, covenants, conditions, and restrictions. Once the conditions of sale have been met, all parties are invited to sign the closing documents.
There are a number of documents that must be prepared and many items that are dealt with on the closing day, including:
- Statement of Adjustments
- Draft of the transfer/deed
- Down payment and closing costs
- Payoffs of any existing mortgages
- Loan papers
- Settlement statement
- Homeowners insurance
While it may sound complicated, I will personally help you through the process, making it every easy and stress free to you.
Your lawyer will let you know by the end of the closing date that everything went smoothly. The property is officially closed when the money and keys change hands. I will help you coordinate the handing over of keys to the buyer.
As we are at the end of this successful transaction I will miss our regular contact; however I will keep in touch periodically to see how you are doing. My goal is to always build client relationships for life so please do not hesitate to contact me if you need help in any way. It will be my pleasure!