It’s an exciting time—your offer has been accepted, and you can’t wait to move into your new home. But hold off on celebrating just yet. There’s one final stage in the home-buying process: closing the deal.
Closing is the point where ownership—and usually possession—of the property transfers from the seller to you. It happens after all legal and financial obligations have been met. While your lawyer and REALTOR® will handle most of the work, it helps to know what to expect. Here’s a step-by-step checklist for a smooth closing process:
1. Send the signed Agreement of Purchase and Sale to your lawyer
Your REALTOR® usually handles this. Your lawyer needs to review any conditions and confirm the agreed-upon closing date. They’ll also ask how you (and others involved in the purchase) should be registered on the title.
2. Satisfy any conditions promptly
If your agreement includes conditions, act on them immediately. Missing a deadline may require extensions or, worse, risk losing the deal. As each condition is met, your REALTOR® will prepare waiver forms for signatures. Most lawyers wait to complete many closing tasks until all conditions are waived.
3. Title search
After conditions are met, your lawyer will conduct a title search to ensure the property can be legally transferred to you. Electronic registration and title insurance have simplified this process significantly.
4. Home inspection and land survey
If your offer included a home inspection condition, ensure it’s completed and passed. Also, arrange a land survey if none exists; lenders often require one, and it’s helpful for your own peace of mind.
5. Finalize mortgage documents
Contact your lender to finalize your mortgage. Ask if your lawyer can prepare the documents—this often saves money.
6. Coordination with the seller’s lawyer
Your lawyer will handle any questions or issues regarding title, costs, or property details with the seller’s lawyer.
7. Check utilities and taxes
Lawyers confirm that property taxes are current and local zoning or building regulations are met. They also verify that there are no liens on appliances or other personal property included in the sale. You should arrange utility services in your name ahead of time.
8. Homeowner’s insurance
Before closing, contact your insurance agent to activate coverage on the closing date. They’ll provide a “binder” letter as proof. If moving from a previously owned home, your agent can handle the insurance transfer.
9. Review closing documents
Your lawyer will verify the draft deed, statement of adjustments, and other documents from the seller’s lawyer, resolving any issues that arise.
10. Signing and exchange
A day or two before closing, you’ll meet with your lawyer to review and sign documents. Bring certified cheques to cover closing costs—the exact amounts will be provided in advance. On the big day, the lawyers exchange documents, keys, and cheques, register the deed and mortgage, and you officially become the homeowner.
Finally, the moment you’ve been waiting for: receiving the keys and celebrating your new home!
For more guidance on buying your home and making the closing process smooth, you can schedule a consultation here.
