Closing day for a home buying family represents in many ways, a
new beginning. It can also be extremely stressful. Here are 10 helpful
hints, to make your closing day a success story.
1. Know in advance how much money you will need to bring in on
closing. Buyers need to understand the balance owing on closing will not
only include what is stated in their purchase agreement, but will also include
land transfer tax, legal fees, disbursements and any closing adjustments.
Have this discussion with your lawyer well in advance of closing to ensure that
you have sufficient funds available. If you are using funds from your RRSP to
complete the purchase, make sure you start the process at least one month
before closing so that the funds will be available.
2. Make sure your lender has completed their appraisal well in
advance of closing. If their appraisal indicates that your home is not
worth as much as you paid for it, then they may advance a lesser amount than
you are expecting on closing.
3. Arrange insurance coverage well in advance. Your insurance
company will have to conduct a separate inspection on your home before agreeing
to provide insurance. If the home has out-dated wiring, it may result in
a much higher insurance premium. Make sure you have completed this well
in advance of closing.
4. The agreement provides that you may not be given possession of
the property until 6 pm. Most closings take place later in the day.
Do not plan to arrive at the home earlier or else you may end up paying more to
your movers.
5. If you are selling your home and buying at the same time, you
should consider buying your home a few days before your sale. Your bank
should be able to provide you with a bridge loan to complete your purchase, so
you only pay interest for a few days, until you complete the sale of your
existing home. This will give you time to clean, paint and prepare your
new home before moving in. Those who attempt to sell and buy on the same date
invariably have damages done to their home and their furniture as a result of
being rushed with their moves.
6. If your seller is going to remove any chandeliers prior to
closing, make sure that they replace any light fixture with a cheaper version,
to make sure you have light in the home when you move in. Bring extra
light bulbs with you as some sellers have been known to remove all light bulbs.
7. Pack your valuables and important documents separately and take
them with you personally to your new home. Do not put these into a box while
you are packing everything else as you will likely need some of these papers
when you visit your lawyer just before closing, and may not be able to find
them.
8. Arrange a pre-closing inspection of all appliances, heating,
plumbing and electrical systems as close as possible to closing, to make sure
that everything the seller promised will be given to you on closing. Try and
make sure that the seller removes all junk from the basement and garage prior
to your inspection, so that nothing is hidden from view.
9. Inform all utility, newspaper, cable, phone, alarm system and
internet suppliers of your upcoming move, in advance of closing. You may have
to provide security deposits for hydro or gas accounts at your new home before
service is provided. After closing, inform any credit card companies, doctors’
offices, and government departments such as for example your driver’s license.
Consider preparing and sending “just moved “cards, with all of your new
information, for your friends, relatives and service providers.
10. Check all appliances and home systems as soon as you move
in. Most agreements say that the seller warrants that everything will be
working on closing, not one week after closing. If there are any
problems, you need to notify the seller immediately after you move in, to be
able to bring a claim later for repairs.
Mark
Weisleder is a Toronto real estate lawyer. Contact him at mark@markweisleder.com or direct at
(416) 702-2499.
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