Once your bid for your dream home has been accepted, there is still so much to do before you can call the house trully yours. In the following article, an experienced Toronto realtor will identify the most important points of the process.
Once the offer has been accepted, your legal adviser should explain to you your obligations under the contract. The legal adviser should also advise you as to what expenses you are likely to incur with regard to the closing procedures, including Land Transfer Tax, disbursements and legal fees.
UTILITIES
The legal adviser will also send letters to all the concerned municipal or regional utility departments, in order to confirm there are no arrears or outstanding charges for gas, water or hydro expenses. These letters also verify if the equipment on the property is rented or owned and they also inform the various utility departments of the planned closing date, the new owner’s name and the name of the vendor’s legal adviser. These letters also request information as to the type of billing and if the billing is metered.
TAXES
Your legal adviser will require a Tax Certificate to verify the current year’s taxes amount and to find out any arrears and outstanding charges for taxes, both in the current year and in any preceding ones.
BUILDING & ZONING
The Building and Zoning Department will need to get involved as to the particulars of zoning by-laws and restrictions relating to the distance from the street and side and rear lines, type of construction, lot areas and building areas, lot frontage and depth requirements and permitted uses. Another letter is sent by your legal adviser to this department, along with a copy of the survey to find out all this.
TITLE & EXECUTION SEARCH
A Search of title to the property is commenced in the appropriate division of the Land Registry Office to establish whether or not the vendor is the owner of the property, whether or not he has the right to convey the property, and that the property is not subject to any encumbrances, encroachments, easements, liens, agreements or mortgages that were not disclosed in the Agreement or Purchase and Sale. Also an execution search is made in the appropriate Sheriff’s Office to make sure that there are no executions against the vendor or prior owners of the property that would affect your title.
FINANCING
All the initial searches we have just described are taken care of by your legal adviser. In the meantime, it is up to you to make all the necessary arrangements concerning the financial side of the business. Already before signing the Agreement of Purchase and Sale, you should have decided the amount of financing you will qualify for and the amount you will need to finish the transaction. On the day of closing, you might not be aware of all the costs related to mortgage financing. Your legal adviser can advise you of these costs when the financial institution that you chose provides you with a Mortgage Commitment Letter.
BEFORE THE DAY OF CLOSING
You will also need a certified cheque to verify the balance of closing funds to your legal adviser. Bring this with you when you come to sign all the documents needed a few days before the closing.
CLOSING DAY
Your legal adviser will arrange an appointment with the vendor’s legal adviser at the appropriate Land Registry Office to subsearch the title and finish the execution searches. They will exchange documents, keys and cheques and your legal adviser will make sure all the necessary documents are registered. After the documents registration, the vendor is entitled to get the money and you can get the keys from your legal adviser.
AFTER CLOSING
After closing your legal adviser will prepare a reporting letter to you certifying your title and explaining all aspects of the transaction. After moving in to your new place, it is a good idea to check all items that should be included in the purchase price according to the Agreement of Purchase and Sale, are indeed left on the property by the vendor. In case you find out anything is missing, get in touch with your legal adviser as soon as possible.
