Buying or selling a home is unlike any other kind of financial transaction. A home is a place that is close to your heart. Real estate transactions are complicated and require the advice and assistance of professionals. There is a lot of money involved, and the process is daunting for many people.
There are a number of steps that you need to go through before the keys are exchanged on closing day.
For the buyers:
You will be filled with excitement when you purchase a new home. As far as you are concerned, you just want to move and start making your house a home. Be patient, and before you know it, you will be choosing paint colors and accessories.
The offer: When you find the home that you want, your realtor will help you put together an Agreement of Purchase and Sale. This is a legal document. The seller can sign this offer back, if they do not accept your financial offer, terms, or conditions. Your agent and the seller’s agent will negotiate on your behalf. A closing date will be agreed to by both sides. You will also have to provide a deposit, which will be deducted from the down payment.
Offer Conditions:You can place conditions on your offer, such as making the agreement conditional on the sale of another property, or on obtaining financing. Most realtors will advise you to make the offer conditional on a home inspection.
Offer Accepted:When the offer is accepted, you will sign the legal agreement and your agent will forward this to the buyer’s agent and your real estate lawyer. If you do not have a lawyer, a realtor can suggest one for you.
Home Inspection:Arrange for the home inspection. Your agent has many contacts and can recommend someone. The home inspector will perform a visual inspection of the home for any defects in structure, electrical, plumbing and heating components. They will also inspect the roof; look for water damage, termite infestation, or any other problems. The inspector provides you with a written overview of his or her findings. It is advised that you attend the home inspection, so that the inspector can point out any issues. If a home needs upgrading or costly repairs, you can renegotiate or decline the offer.
Survey of the property:
Many homes have an existing survey on record, however if one is needed because of any property line issues, you will need to obtain a survey of the property.
Obtain Financing: If you do not have a pre-approved mortgage, you will need to obtain financing.
Obtain Home Insurance:You will need to obtain home insurance on the property through your insurer.
Title Search:Your lawyer will conduct a title search and obtain title insurance. A title search is performed to establish that there are no liens on the property, that the seller has title to the property and there are no other owners on the title. This is done as close to the closing as possible, in the event that a lien is placed on the property at the last minute. Title insurance protects you, in the event that there are any issues or liens placed against the property.
Closing Costs:Your lawyer will provide an estimate of closing costs. These costs include the title search, title insurance, lawyer’s fees, land transfer taxes, down payment, and any other charges. Be aware that the final charges may be more or less than the estimate.
Final Inspection:You will have a final walk through inspection of your home before taking possession. The date will be arranged between you and the seller.
Certified Check:A certified cheque must be presented to the lawyer, when you sign the final documents. This usually occurs a day or two before the closing date.
Get your Keys:You will obtain the keys to your new house on closing day, once your lawyer has filed the papers.
For The Sellers:
Selling a home brings mixed emotions. You are leaving a place that holds many memories, and moving to a new place.
Accept Offer:Accept an offer of purchase and agree to the terms. Your realtor will negotiate on your behalf. When an offer is suitable, you will sign the agreement and the documents will be sent to the purchaser’s agent and your lawyer. You must disclose any issues that you are aware of, for example, if appliances are included in the sale, all appliances must be in working condition. If they are not, you must let your agent know.
Home Inspection:A home inspection may be conducted. Ensure that your home is clean and everything is in working condition.
Confirm Financing:The buyer will obtain financing. When the offer is firm, you may start packing.
Final Inspection:The buyer will make a final inspection or can attend to measure rooms and windows
Closing Papers:You will sign the final papers and provide the keys to your lawyer. On closing day, after all the papers are registered, you can pick up your certified cheque at the lawyers office.
If you have any questions in regards to closing a real estate deal in Toronto area, please fill out the form bellow – I respond to ALL inquiries.