Estate agent are presenting home loan to client and discussing to decision signing agreement


Estate agent are presenting home loan to client and discussing to decision signing agreement

Buying a home is exciting and the entire process should be enjoyable. Closing day is the final step in the real estate transaction process. Your real estate agent, lawyer, and mortgage lender all work together to ensure the deal is completed. This article should help you understand what happens on your closing day aka the completion day. Here are some things you can expect throughout the closing process:

Prior to the closing day

1. Signing the paperwork: You’ll need to sign a variety of documents, preferably before your closing day. These documents include the mortgage agreement, legal documents, and deed (transfer document). However, documents vary depending on if you are the buyer or the seller. It is essential to carefully review and understand each document before signing.

2. Downpayment: The buyers are provided with the final closing costs (aka remaining down payment). The lawyer will refer to the statement of adjustments and trust ledger to explain the breakdown of funds in detail. Closing costs include land transfer tax, title insurance, legal fees, the remaining purchase price that your mortgage is not covering, etc. The buyer will deliver a bank draft or certified cheque with this final amount to their lawyer to finalize the purchase at least 24 hours before the closing day to prevent any delays on the closing day.

On closing day

3. Final walk-through: Before closing, it’s necessary to conduct a final walk-through of the property to ensure it is in the agreed-upon condition. For example, are all appliances working properly such as the stove, light switches, and toilets? If not, you should advise your lawyer and they will contact the seller’s lawyer requesting the seller arrange to complete repairs. If a repair cannot be done on closing day, the buyer may request a holdback or an abatement.

4. Funding: Buyer’s lawyer will receive confirmation from the lender that mortgage funds have been advanced. If the buyer did not arrange a mortgage, the buyer’s lawyer would have collected closing funds prior to the closing day.

5. Correspondence: Seller’s lawyer and buyer’s lawyer will exchange and review the seller’s and buyer’s closing documents, and the buyer’s lawyer will then deposit closing funds into the seller’s lawyer’s trust bank account.

6. Transfer of ownership: Upon receipt of funds, the seller’s lawyer will transfer the property’s ownership to the buyer through the deed. The deed will be recorded with the appropriate county or municipal office.

7. Keys and possession: Once the paperwork is completed, funds are distributed, and the title is recorded, you will receive the keys to the property, and possession will officially transfer to you. Keys can be held at the lawyer’s office, in a lockbox at the property, or they can be exchanged between real estate agents. Your lawyer will contact you to confirm the transaction has successfully closed, then you can begin to move in!

8. Potential surprises: The entire process can be completed before noon, however, unexpected issues can arise during closing, such as last-minute changes to the contract, financing problems, or delays due to title issues. Your lawyer will contact you with any necessary updates regarding the status of your closing. It’s essential to have clear communication with your real estate agent and lawyer to address any potential surprises.

Behind the scenes

9. Payment distribution: The lawyer’s will handle the disbursement of funds, making sure that all parties involved receive their respective payments. For sales this includes paying off any existing liens or mortgages on the property, lawyer fees and real estate commission. For purchase files this includes, land transfer tax, title search fees, registration fees, title insurance.

**Remember that the specific procedures and participants involved can vary depending on the location and the property type. It’s recommended to consult with your real estate agent or lawyer for more detailed information based on your specific situation. You do not have to deal with any issues alone, your real estate agent and lawyer are available to provide resources, offer advice and walk you through the entire process.**

Hopefully this article has answered some questions and made you more confident and comfortable with the closing process! Our Team of Real Estate Professionals are here to answer all of your Real Estate Law Questions. Contact us today (519) 980 3476 or at