The day of closing, also known as the closing day or completion day, is when a property is transferred from the seller to the buyer. There are many things to organize before the closing day, such as who needs to be present, and what happens that day. The following frequently asked questions will be answered to help you understand more about the day of closing.
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How Early in Advance Do I Meet with My Lawyer?
Your real estate lawyer will prepare a statement of adjustments defining what has been paid, and what is owed. Ensure that you set aside time in advance to review these statements before you close. An appropriate time to meet with your lawyer to review the documents is at least two days in advance of the closing date. You may need to book this date well in advance to ensure that both you and your lawyer are available.
Does the Seller and Buyer Have to Be Present at Closing?
No, the seller and buyer do not need to be present at closing. The seller and the buyer usually attended the lawyer’s office a few days before closing. It is not necessary to be there on the closing date itself. If you are unable to be there for the signing appointment prior to the closing date, you should tell your lawyer immediately as alternate arrangements have to be made if possible. The purpose of the closing signing meeting is to sign documents that are drafted by the closing lawyer and your lender. If for some reason the buyer or seller cannot attend, whomever you choose to close for you will be attending signing your documents on your behalf. However, you will need to notify your lender and the closing attorney beforehand, or ask them if they will allow someone else to sign for you using Power of Attorney. Some lenders will not allow you to do so, whether for their own reasons or because the property they are providing to you does not allow anyone other than the buyer to sign. In most cases, when selling, no consents are required if you will not be available for closing. You should just make sure that you perhaps get the document signed before you leave or have your lawyer prepare Power of Attorney.
What Is a Power of Attorney?
A Power of Attorney is a form that you sign as a buyer which allows someone else (such as a spouse, parent, or adult child) the power to sign your documents on your behalf. Their signing binds you to the terms and conditions of those documents. If your lender allows someone else to sign for you, they will need to know ahead of time.
What if My Co-Buyer Cannot Be Present at Closing?
If you are closing with another buyer, such as your spouse, and they are unable to come to the closing, you may contact the seller and ask if they can move the date. If they are unable to do so, your other buyer can sign a Power of Attorney that will allow you or someone else to sign on their behalf. Your lender must approve this beforehand. If Power of Attorney is approved, you may sign any document on behalf of yourself and your co-buyer, closing the home without any inconveniences.
How Much Are Closing Costs?
The closing costs in Ontario will vary depending on the sale price of the home, where you live, the land transfer tax, legal fees, disbursements, adjustments and other related factors. At Zinati Kay – Real Estate Lawyers, we offer a fixed closing cost of $999.00 plus H.S.T for all fees and disbursements, plus Title Insurance, for most purchases under $500,000.00. Speaking with your real estate lawyer in advance of closing will ensure that you have sufficient funds available to make these payments.
Important Tips to Remember
- Prepare Down Payment Funds: If you are using your RRSP to complete the purchase, make sure you have access to the money in advance by contacting your bank representative. You should contact them a month prior to closing the property to ensure the funds are available.
- Do a Walk-Through: There should be a term that you arrange with your realtor and seller to visit the property once or twice before closing. The purpose of this inspection is to test the plumbing, electrical systems, heating, and appliances. The seller should have completed everything they have promised to do before your close.
- Review Contract: To ensure you are aware of all the items the seller could leave behind and all the additional terms you agreed to, you should review your contract before closing. This is something you can do with your lawyer before your closing date. Find out if the microwave is included, if any fixtures will be removed, etc.
- Home Insurance: To obtain mortgage financing, the lender will likely require you to have home insurance. Arrange your coverage well in advance, as they may have questions that you need to answer in detail. Setting up insurance can take time, and you may need your realtor to send a feature sheet to your broker or ask the seller specific questions to ensure the close goes well.
How Can Zinati Kay – Real Estate Lawyers Help You
The more prepared you are for buying and gaining possession of a property, the better. Inadequate funds, failing to inspect the property before you sign, or having your lender pull out due to a change in your financial situation are problems that can be avoided when you take the time to carefully prepare. If you need assistance as you prepare to sell or buy a home, Zinati Kay – Real Estate Lawyers can help you. We are a full service residential real estate law firm that provides fixed closing costs to buyers and sellers when they buy, sell, mortgage, or title transfer their property.
Over the past 25 years we have closed over 21,000 real estate transactions. We have three real estate lawyers in Toronto to service our clients and were one of the first firms to provide fixed closing costs. We provide professional service and reasonable real estate lawyer fees and have thousands of satisfied clients to prove it. If you need any assistance, contact us at 416-321-8766 for more information about our services.