CLOSING THE DEAL
Once your offer is accepted, it is time to take the final steps to close the deal. You must provide a deposit cheque to be held in trust until all the conditions have been met. The amount of the deposit is usually indicated on the listing and this amount is negotiable.
A deposit is a measure of good faith in completing the transaction and the amount indicates the level of seriousness. Submitting a larger deposit is a negotiating technique that can make an offer more attractive to a seller. However, if you are unable to fulfil all the conditions, the offer becomes null and void and the deposit is returned in full to you.
Once conditions are met, the deal becomes ‘firm’ and the deposit will be held by the listing brokerage until closing when it is applied to the sale proceeds and credited to the Buyer as part of the purchase price.
You will have to provide your driver’s licence, passport or other type of identification to your Realtor once your offer is accepted. This is Federal Government requirement as legislated in the Proceeds of Crime, Money Laundering and Terrorist Financing Act.
FULFILLING THE CONDITIONS
Conditions usually have a set period of time for removal. If an offer is conditional on financing, your pre-approval will make this process quick and easy. Your lender will finalize your mortgage approval and they will approve the property you have offered on.
If the offer is conditional on a home inspection, you will need to hire a professional home inspector. An inspection usually takes 2 to 3 hours thoroughly checking out the home. It is recommended that you are present for a home inspection because the inspector will give you lots of good tips about the house (such as where the water shut off is and how to change the furnace filter), also if there is a problem you are there to see it first hand. A summary of their findings will be produced and you can decided if you’re satisfied with the condition of the house.
Once the conditions are met, you will sign a Notice of Fulfilment and the deal is firm. If you’ve completed all these steps, then you are a successful home buyer!
The closing usually takes 30-60 minutes at the lawyer’s office. During the closing, there will be many mandatory documents to sign in order for you to obtain your loan and take title to the property. If you are a person that prefers to read all documents before you sign, ask to get a copy of the documents at least a day ahead of the closing. Otherwise, your lawyer or legal assistant will explain each document and what it means to you. Contact your lawyer once your offer is firm. Ask for a list of information, documents and identification you will need for the closing date. A legal professional is there to represent your interests and to provide the legal documentation required. We have provided you with the names of a few local legal professionals who are familiar with real estate.
Before you close on the property, we will take one last walk through the property with you to ensure the property has not been damaged since you last viewed it and to verify that all the chattels and fixtures are in place. Usually this is done several days before the closing date.