Even after your bid for the home you decided to buy has been accepted by the seller, there's plenty left to do before you can rightfully move in. In the following article, an experienced realtor from Toronto will identify the most important details of the process.

As soon as the seller has accepted your offer, you should meet with your lawyer and talk about all the liabilities under the contract. One of the important points you should cover is the costs you will be facing regarding the closing procedures, including Land Transfer Tax, disbursements and legal fees.

UTILITIES

It is also necessary to verify the absence of any arrears or outstanding charges, such as gas, water or hydro expenses. Your lawyer does this by sending letters to the municipal or regional utility departments. The utility departments will also be informed if the equipment on the property is rented or owned, and also about the scheduled closing date, the name of the new owner and the seller's lawyer. These letters also request information as to the type of billing and if the billing is metered.

TAXES

Your lawyer will request a Tax Certificate to verify the current year's taxes amount and to find out any arrears and outstanding charges for taxes, both in the current year and in any previous ones.

BUILDING & ZONING

The Building and Zoning Department will need to get involved as to the details of zoning by-laws and restrictions relating to the distance from the street and side and rear lines, type of construction, lot areas and building areas, lot frontage and depth requirements and permitted uses. Another letter is sent by your lawyer to this department, together with a copy of the survey to discover all this.

TITLE & EXECUTION SEARCH

A Search of title to the property is initiated in the appropriate division of the Land Registry Office to determine whether or not the seller is the owner of the property, whether or not he has the right to convey the property, and that the property is not subject to any encumbrances, encroachments, easements, liens, agreements or mortgages that were not revealed in the Agreement or Purchase and Sale. The appropriate Sheriff's Office will manage an execution search to make sure there are no executions against the seller or prior owners of the property. If there were any, they would affect your title.

FINANCING

All the initial searches we have just outlined are done by your lawyer. In the meantime, it is up to you to make all the necessary arrangements concerning the financial side of the business. Already before signing the Agreement of Purchase and Sale, you should have decided the amount of financing you will qualify for and the amount you will require to finish the business. On the day of closing, you might not know of all the expenses related to mortgage financing. Your lawyer can advise you of these expenses when the financial institution that you chose provides you with a Mortgage Commitment Letter.

BEFORE THE DAY OF CLOSING

A few days before the closing, you will need to come to your lawyer's office to sign all the necessary documents and to produce a certified cheque to verify the balance of closing funds.

CLOSING DAY

Yours and the vendor's legal advisers will meet at the appropriate Land Registry Office at a time convenient to both of them. They should subsearch the title and complete the final execution searches. Documents, keys and cheques will be exchanged and your lawyer will attend to the registration of all necessary documents. Once the documents have been registered the vendor's lawyer may release the finances to his clients and your lawyer may release the keys to you.

AFTER CLOSING

After the closing process has been finished, a reporting letter will be prepared by your lawyer. This letter will certify your title and explain all the details of the transaction. After moving in to your new place, it is a good idea to check all items that should be included in the purchase price according to the Agreement of Purchase and Sale, are really left on the property by the seller. In case you find out anything is missing, get in touch with your lawyer as soon as possible.

Filed under: foreclosure homes

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