June Smith - www.CondosAndTownhomes.ca 25 Years Condo & Townhome Sales



 

 

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1. Buyer To Do List

Congratulations on the purchase of your new home.  The wait between the time you buy your home and move in can seem endless.  However, time will fly by and there are still lots of details to attend to.  Please review the list below and ensure that you have addressed all these issues for a smooth closing.  Any questions along the way, don't hesistate to give me a call.

Lawyer

Be sure to call your lawyer and advise him that he will be handling the closing for you.  Re/Max will send paperwork to him shortly after the deal has been finalized so make sure we also know who your lawyer will be.  Your Lawyer will provide you with a quesionnaire, a list items they require and a checklist to complete.

Financing

It is your responsibility to obtain adequate financing for this purchase.  Make sure you complete all the paperwork required by your Bank or Mortgage Broker well before closing.  Some financial institutions are also now requiring photo identificaiton before advancing funds. If a rate is being held for you, in most cases, you will be guaranteed that rate or lower if the rates go down prior to closing. 

Remember to provide your lawyer with the details of how you will be financing the purchase as soon as it has been arranged.

Insurance

Please arrange insurance well before closing. It is necessary to ensure that adequate fire insurance coverage is in effect to cover your home as of the day of closing. If you have a mortgage, you or your insurance agent must provide your lawyer with written confirmation of insurance otherwise your lender will not advance the mortgage loan.

Insurance for Condominium Purchasers

The insurance obtained by the Condominium Corporation does not cover insurance for your furnishings, fixtures, improvements made to the unit, equipment and other personal property. It also does not provide liability coverage for occurrences within the unit of an owner. You should consult your insurance advisor prior to closing to determine what form of insurance is best able to properly protect you from any claims or liability.


Change of Address

The post office makes available change of address cards which you may wish to send to your friends, associates or credit card companies.

Phone and Cable

It is your responsibility to contact Bell Canada and your cable television supplier to arrange for disconnection and reconnection at your new property.

BELL 1-800-668-6878 - www.bell.ca

COGECO CABLE  1-800-267-9000 - www.cogeco.ca

ROGERS CABLE - 1-888-764-3771 - www.rogers.com

Utilities

Even though your lawyer will contact gas and hydro prior to closing to arrange for meter readings on the date of closing, you also need to call them to complete billing arrangements. Oakville Hydro will require that you come into their offices in person with photo identification even if you have been a customer in the past. 

Note:  If the property is heated by oil, the normal practice is for the seller to arrange for a fill of the tank and charge that amount to you as a closing adjustment.

UNION GAS-1-888-774-3111- www.uniongas.com

UNION ENERGY - 1-877-267-7902- www.unionenergy.com

ENBRIDGE GAS-1-888-492-5100- www.enbridge.com

RELIANCE HOME COMFORT - 1-866-735-4262 - www.reliancehomecomfort.com

NATIONAL HOME SERVICES - 1-877-673-5373 - www.nationalhomeservices.ca

OAKVILLE HYDRO 905-825-9400- www.oakvillehydro.com

BURLINGTON HYDRO - 905-332-1851/600 - www.burlingtonhydro.com

HAMILTON HYDRO - 905-522-9200 - www.hamiltonhydro.com

MILTON HYDRO - 905-876-4611 - www.miltonhydro.com

All final charges for utilities consumed from the date of the last monthly payment to closing day are the responsibility of the seller. However, if the Seller does not pay the final bill for hydro or water, unpaid amounts can form a lien on the property.

Since most Agreements of Purchase and Sale do not provide for a holdback, title insurance protects you if final accounts are not paid by the Seller.

Equipment Purchase Agreements

If any equipment such as a central air conditioner, furnace, hot water heater, alarm system has been purchased on a purchase plan agreement by the Seller and which you are not going to be assuming, make sure your lawyer is aware so he can requisition payment in full on closing by the Seller’s solicitor. Most hot water heaters are rentals and the purchaser is responsible for continuing the monthly rental agreement with the Supplier.

Property Taxes

Your lawyer will obtain municipal tax information to find if there are any arrears and arrange for these to be paid by the Seller. Depending on how much of the year’s property taxes have been paid as of the closing date, the amount due on closing may be adjusted to ensure that each party bears his shares of the year’s taxes.

Keys

It is hard to predict what time during closing day the keys will be delivered to you. Your lawyer cannot guarantee a particular closing time as your transaction may be part of a chain of closings.  If you are moving in, you should not plan to start moving in until late in the day. Do not make moving plans that depend upon a specific closing time as your transaction may close at any time between 9:30 a.m. and 5:00 p.m. You will then be asked to pick up keys from your lawyer's office.

Signing

Your lawyer will prepare all of the closing documents and will be contact you some time in the week before closing to inform you of the amount due on closing and to make an appointment for you to review and sign the closing documents.

Your lawyer will receive a Statement of Adjustments from the Seller's lawyer. It is like an invoice for the balance due and takes into account the sale price plus H.S.T. (if applicable), the deposit and any other adjustments. To this amount they will add their fees and disbursements for the closing plus Land Transfer Tax and deduct the amount to be received from your lender to arrive at the amount required from you to complete the purchase.


Closing Funds

Please make sure that you are in a position to provide your lawyer with your closing funds at least two business days before closing. If your closing is on a Monday, they will require funds the preceeding Friday. Funds must be either by certified cheque or bank draft. It is always best to bring your certified cheque with you when you come in to sign the closing documents.

Disbursements (which include registry agent fees where incurred, land transfer tax (see below), and registration costs), together with closing adjustments owed to the Seller and mortgage lenders are not fully known until closing; accordingly, please allow some leeway in your financial arrangements.

Closing Day

Please be sure you are available on the day of closing and let your lawyer know where you can be reached. On closing day, your lawyer will meet with the Seller’s lawyer to exchange documents and money. All deeds and other documents must be registered before you become the owner and before you become entitled to keys to the premises.

First Time Home Buyers

If you are a first time buyer, you should check with your mortgage lender to determine whether there will be any deductions from your mortgage advance for such items as interest adjustment, holdback for property taxes, application fees or other items. If your downpayment is 20% or less of the purchase price, CMHC or other mortgage insurance premiums (plus 13% sales tax) will apply and can also affect the amount of money advanced by your lender. It's a good idea to allow a cushion to account for such deductions and other unforeseen costs related to moving. It is only the net amount after these deductions are made that your lawyer will be receiving and which amount will be applied towards your purchase.

Inspection

Most Agreements of Purchase and Sale will contain a clause that will allow you to re-visit the property.  It is suggested that you save one of these visits to just before closing to ensure all is in order.  Pre-closing inspections are normally arranged through your realtor.

Survey

Make sure you lawyer gets a copy of the survey if you were given one by the Seller during the purchase.

Title Insurance

When you buy property, you want to ensure you have good title. The traditional method is to obtain a lawyer’s opinion based on searches conducted by your lawyer. An increasingly popular alternative is title insurance. With title insurance, your lawyer still prepares and register all documents to complete the transaction, search the registered title and verbally confirm taxes are paid.  However, compared with the traditional method, they do not conduct as many other searches (those which usually are shown to be clear). For example, building and zoning matters are not reviewed. Instead of these searches, a policy of title insurance is purchased covering the purchaser and mortgage lender for any loss of marketability as a result of not doing those extra searches. A survey is not required. For more information, see Stewart Title - www.stewart.com.

Land Transfer Tax

Every purchaser of land in Ontario has to pay a tax on the closing date which is based upon the purchase price. For single family residences the tax is calculated as follows:

() up to $55,000.00 - Purchase price X .005

() on any amount over $55,000.00 up to $250,000.00 - Purchase price X .01 less $275

() on any amount over $250,000.00 up to $400,000.00 - Purchase price X .015 less $1,525

() over $400,000.00 - Purchase price X .02 less $3,525

H.S.T.

Generally, sales of reseal residential properties are exempt from H.S.T. However, if the property has been rebuilt or substantially renovated by the seller, H.S.T. may apply. Sales of vacant land and new residential housing are usually taxable, as are virtually all sales of commercial property.  Responsibility for determining that H.S.T. is or is not payable rests with the purchaser. If you have any doubt, your lawyer will examine the transaction more closely.  HST will be payable on legal fees.

 
2.  Seller To Do List

Congratulations on the sale of your home.  The wait between the time you sell your home and move out will fly by and there are still lots of details to attend to.  Please review the list below and ensure that you have addressed all these issues for a smooth closing.  Any questions along the way, don't hesistate to give me a call.

Lawyer

Be sure to call your lawyer and advise him that he will be handling the closing for you.  Re/Max will send paperwork to him shortly after the deal has been finalized so make sure we also know who your lawyer will be.  Your Lawyer will provide you with a quesionnaire, a list items they require and a checklist to complete.

Your lawyer will probably ask for copies of your title papers, if you still have them from when you purchased, including a copy of your registered Deed,  Mortgage(s) if any and your latest Tax bill. While they are able to proceed without these items, it is often easier and less costly to arrange for such matters as mortgage discharges if they have copies of them. 
 
Change of Address
 
The post office makes available change of address cards which you may wish to send to your friends, associates or credit card companies. 
 
Phone and Cable
 
It is your responsibility to contact Bell Canada and your cable television supplier to arrange for disconnection and reconnection at your new property.
 
Utilities
 
Please contact utility suppliers such as gas and hydro prior to closing to arrange continuation of service if required at your new residence and forwarding of final bills to your new address. 
 
Note:  If the property is heated by oil, the normal practice is for the seller to arrange for a fill of the tank and charge that amount to you as a closing adjustment.
 
Hydro Holdback
 
It is normal practice for the lawyers to arrange for utility meters to be read on the day of closing. All final charges for utilities consumed from the date of the last monthly payment to closing day will be your responsibility. If the purchaser’s lawyer requests it, you may have to agree to a hold back of $250.00 from the sale proceeds pending payment by you of the final accounts for hydro and water since these can form a lien on the property if not paid.
 
Property Taxes
 
The purchaser’s lawyer will obtain municipal tax information to determine if there are any arrears and arrange for these to be paid by you either before closing or from the sale proceeds. Depending on how much of the year’s property taxes have been paid as of the closing date, the amount due on closing may be adjusted to ensure that each party bears his or her share of the year’s taxes. Usually the adjustment results in a credit to the seller.
 
Closing Proceeds
 
Prior to the closing date, your lawyer will prepare and deliver to the Purchaser’s lawyer a Statement of Adjustments. It is like an invoice for the balance due and takes into account the sale price plus H.S.T. (if applicable), less the deposit and any other adjustments.   From the balance due and received from the purchaser’s lawyer on the day of closing your lawyer will deduct their fees and disbursements and arrange for the payout of any mortgages and the balance of any real estate commission due.
 
Disbursements (which include registry agent fees where incurred, registration and other expenses of closing), together with closing adjustments owed to the purchaser and mortgage lenders are not fully known until closing; accordingly, please allow some leeway in your financial arrangements. 
 
Insurance
 
You are responsible for maintaining insurance coverage up to closing.   
 
Property Taxes
 
If property taxes are due prior to closing, you should pay them and your lawyer will make adjustments on closing.  Usually the adjustment results in a credit to the seller. 
 
Condo Fees
 
Condo fees should be paid when due and will be adjusted (ie credited back to you) on closing.  If your fees are paid by pre-authorized debit, please advise your Condo Corporation in writing that you wish this discontinued and advise them of your closing date.
 
Keys
 
You will be asked to bring a set of keys to your lawyer just before closing.  It is customary to leave all additional keys, garage door openers in the home on the kitchen counter when you leave.
 
Signing
 
Your lawyer will be contacting you as early as possible in the week before closing to make an appointment for you to review and sign the closing documents.
 
Closing Day
 
Please be sure you are available on the day of closing and let your lawyer know where you can be reached. On closing day, your lawyer will meet with the Buyer’s lawyer to exchange documents and money or it may also be done electronically.  Once the transaction is closed, your lawyer will advise you and you can pick up the cheque from his office.  If there was a large deposit held by the Real Estate Brokerage, there may also be a small balance owing to you after real estate fees are disbursed.  Make sure your Realtor has your forwarding address.
 
 
 
This information is provided as a general quide by June Smith, ReMax Aboutowne Realty Corp., Oakville, specific details should be discussed with your lawyer and your Realtor.

 

 

 

 
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