Key Takeaways
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Closing day is a thrilling adventure that represents the final step of a real estate transaction! On this day, ownership formally transfers, and both seller and buyer have some key tasks to accomplish.
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It is customary for sellers to vacate the home by the time closing is scheduled. If they do require additional time, they should negotiate a post-closing occupancy agreement in writing with the buyer.
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Delays are easily avoided if sellers are prepared with the right documents. These will be the deed, mortgage payoff statement, and any warranties or manuals related to the property.
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Should sellers fail to leave the property by closing, they could open themselves up to litigation or additional expenses. What’s most important is to be prepared and follow the schedule.
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Costs sellers should expect include legal fees, real estate commissions, and any outstanding taxes or utility bills that need to be paid on or before closing.
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A smooth closing can be achieved with proper preparations, open communication with all parties, and seeking professional guidance to navigate potential challenges.
When it comes closing day, lots of sellers are often left wondering when they should move out. Sellers typically have to be out of the property by the time the deal is completed.
This usually occurs at the time the buyer formally takes possession. The details can differ depending on what’s in the agreement of purchase and sale.
We explain everything to make closing easy for sellers and buyers. That way, there are no last minute surprises as we get into the closing.
What Is Closing Day?
Closing day is the last step in any real estate transaction, when the property officially changes hands. In fact, it’s more frequently referred to as “completion day” in British Columbia. At this point, the buyer pays the seller.
Then all closing costs are paid, and buyer and seller happily sign the various papers necessary to deliver the deed to the new owner. Usually this period is 30-90 days, depending largely on funding sources and legal documentation.
We make this easy with a set amount of closing costs, so you know exactly what to expect. For purchases, sales and refinancing it is $999 (+ HST and disbursements).
While closing costs are mostly the buyer’s responsibility, which typically run about 1.5% to 4% of the purchase price, timing is key. Closing close to the end of the month can avoid incurring these charges.
Having our remote signing process, which is a huge convenience in general but particularly when documents can be prepared days ahead.
Backed by 25+ years of experience and zero upfront costs, it’s easy and worry-free to hire us.
Seller Responsibilities on Closing Day
Closing day is an exciting milestone for buyers and sellers. It’s important for sellers to be ready and organized to make everything flow perfectly on closing day. The most important seller responsibility on closing day is making certain the property is delivered in the condition agreed upon in the contract.
Buyers will usually want a final inspection before closing, so anything that was agreed upon to be repaired or maintained should be done prior to closing. Failing to do so may result in avoidable delays. Sellers will want to consider their move-out date as well.
Strata properties usually need at least two weeks’ notice to their building management. By providing the elevator key ahead of time, you’ll avoid any last-minute issues and ensure the smoothest transition for the buyer.
The transfer of title is the last important step. This legal obligation, usually managed by the seller’s attorney, completes the sale. Showing up prepared with the required funds and paperwork is the best way to prevent things going south.
Taking care of any last-minute issues that arise, like walk-through complaints, right away helps to stay on schedule. By being thoroughly prepared and mindful of these important details, sellers can make the day run smoothly for both themselves and their buyers.
Documents Sellers Must Prepare
Whether buying or selling a home, being prepared with the proper documentation can help ensure smooth sailing for everyone at the closing table. First, you will have to produce your deed, since this is the legal document that conveys ownership to the buyer.
First and foremost, having a copy of the title insurance policy is key. It provides the buyer insurance against future title defects. A statement of adjustments is another very important document, listing out all costs associated with the transaction, including the down payment and closing costs.
To keep things smooth, we recommend giving your real estate lawyer a property tax bill from the current or previous year. This goes a long way to confirming their payment status and avoiding unwelcome surprises.
A complete set of keys should be given over before closing. These added steps are directly in line with our mission to make buying and selling real estate as transparent and easy as possible.
After more than 25 years of experience, we’ve honed the process to ensure your interests are protected.
Potential Issues if Seller Is Not Out
When a seller isn’t out of the house by closing, it can create a ripple of challenges for everyone involved. Though buyers may still incur the cost of delayed occupancy, paying for temporary housing or storage, for example. Additionally, this impacts timing for other appointments such as utilities or internet installation.
For sellers, failure to be ready could result in liquidated damages or other remedies specified in the sale contract. Our methodology aims to help these scenarios to be identified and resolved before they escalate into issues. We’ve been in business for more than 25 years with an impeccable title record.
From our experience, we can see that clear communication and comprehensive documentation can go a long way. Peace of mind with fixed closing costs and no last-minute surprises. Seamless experience with virtual signing options.
Once you make that choice, we’re here to guide you through every step. We’re on your side to help protect your interests and make sure the transition goes smoothly.
Can Sellers Stay Post-Closing?
Sellers staying post-closing is unusual, but it is not unheard of. In some instances, sellers may require additional time to relocate because of emotional attachments or logistical difficulties. If all parties are amenable, sellers may be allowed to stay a short time post-closing, often less than 30 days.
This agreement needs to be crafted to honestly reflect all the parties’ interests. Without it, problems can arise, particularly if buyers are under the impression that they will have immediate possession after the final walkthrough.
For example, a seller may want two weeks after closing to move. Buyers and sellers are best served when they enlist a neutral third party, such as an experienced real estate attorney, to write terms. Contracts of sale must address the seller’s obligations, including the amount of rent to be paid and consequences for overstaying.
We work clients through these sets of circumstances proactively and efficiently. Beyond 25 years of experience, competitive fixed closing costs, and remote signing capabilities, it’s our team that makes things easy.
Whether you’re on the buying or selling side, we make every effort to ensure you understand the process with minimal anxiety.
How to Prepare for a Smooth Closing
Another question we get all the time is if the seller needs to be out of the house by closing day. It’s a frequent source of anxiety for buyers and sellers everywhere. The short answer is of course yes.
The buyer is counting on the property being vacant and available for immediate use. That’s what should happen by the time closing occurs and money changes hands. This will require the seller to be prepared and plan accordingly, making sure all of their belongings are removed from the home and it is clean and empty.
Exceeding those expectations is a good goal, yes, but it’s the law! This obligation is linked expressly to the provision of the purchase and sale agreement.
For home sellers, ensuring a smooth closing comes down to being prepared. Plan ahead, starting with movers. Move and settle in on your terms by scheduling movers early to prevent moving day emergencies.
Work with your attorney to make sure all documents are prepared so that any issues are nipped in the bud before closing. Buyers will want to coordinate with their lawyer as closely as possible to ensure all is ready for the transfer.
Clear communication is key for all parties.
Costs Sellers Should Expect at Closing
Closing costs are a fact of life when selling a home and understanding these costs is key when selling your home. As a general rule of thumb, these costs add up to 1.5% – 4% of the home’s sale price. They pay for a plethora of fees required to close the deal.
Legal fees, for example, can quickly add up to $2,500 or higher based on the complexity of the sale. Sellers pay a low, flat-rate closing cost of $999* plus HST and disbursements with us. That way, there are no surprises, and everything remains on budget.
Title insurance, another big expense, can easily run over $300. You make a one-time payment to insure yourself against title defects and fraud. This fee confers a great deal of peace of mind to the buyer and the seller alike.
Sellers with private mortgages need to budget for other expenses as well, including interest penalties equal to three months’ payments. When you work with us, you avoid surprises and confusion, and you have a trustworthy advisor to help you navigate these financial commitments.
Tips to Avoid Common Closing Delays
Closing delays can be a hassle, but they’re usually avoidable if you take action beforehand. The biggest tip to prevent closing delays is to avoid making any major changes to your financial situation before closing. Even something as minor as opening a new credit card to home shopping or financing new furniture can affect your loan approval.
Request closing documents ahead of time to get an idea of fees and terms. That way, you can avoid surprises and be as prepared as possible. Home inspections are one of those important steps that you don’t want to skip. They identify underlying issues that may slow the process down.
Confirming appliances, utilities, and systems work before settlement will mitigate last-minute hiccups. Even a walk-through to check toilets can save last-minute headaches. This makes a title search absolutely necessary. It ensures that no claims or lien exist on the property, protecting your investment.
Reaching out to your lender well ahead of time to clear up any potential problems is a good move too. Finally, learn what natural hazards exist in your region and community.