How does it work on closing

Lawyers have a tendency to forget that people do not know what to expect as they move closer to their closing, so I hope this helps.

All the delays are over and your builder has sent a letter to your lawyer and/or yourself that states the closing of your newly built house will occur soon, and the closing date is firm. By now your lawyer has completed all necessary searches and arranged for title insurance. The first thing you need to do is advise the utility companies in writing — water, hydro, gas or oil, phone, cable etc.— and the city tax department, of your name, new address, phone number. Make sure you set up your accounts with these providers or clarify with your lawyer whether he is doing this for you (it is often an extra charge).

There are plenty of books and manuals published on this topic and I suggest you check around. After you set up your accounts, take note of who you can call in an emergency or when you need service. Also take the time to identify the closest police and fire stations as well as the nearest hospital.

Since you have a new home, ensure you complete your Tarion pre-delivery inspection. See my article on-line at schwarzlaw.ca as what to look out for.

Subject to when he or she receives the adjustments from the builder’s lawyer, your lawyer should call you anywhere from two days to a week before the closing and provide you with the exact figures you need to close the deal. Your lawyer is as anxious as you to get you the right numbers and receive your money, but sometimes the other side is slow in providing the final figures. Remember, generally all cheques need to be certified as they go through the lawyer’s trust account. Ensure that your financial institution has provided your lawyer with mortgage instructions at least a week before closing. Your lawyer cannot close your deal without this, and it is your obligation to ensure he/she has these instructions in a timely manner. So follow up with your broker, bank, trust or private lender.

Usually a day or two before closing, you will come to your lawyer’s office and you will need to bring with you any extra money needed to close, a copy of the Tarion inspection report and two pieces of ID, one with a picture; this cannot be an OHIP card. At the office, you will sign all of the documents necessary to close the deal. These documents are mostly delivered to the other side as a ‘closing package’.

Now it’s the day of actual closing, so what happens? Your lawyer delivers the certified cheques and ‘closing package’ to the builder’s lawyer and then both lawyers sign off on the documents through the Government of Ontario’s electronic registry system, called Teraview. All documents are registered, and you own the house! So how do you get your keys? Keys are either handed over at the site, through your real estate agent, or your lawyer will have them. Your lawyer should phone you with this information.

Now what?Move in and enjoy and sometime in the next 60 days, your lawyer should provide you with his report with all your documents and his final account.

Related reading

Five things to know about closing costs when investing

Make sure you’re prepared for all closing costs

Real estate lawyers and legal fees