CLOSING DAY

You are rapidly approaching the last phase of your new home buying adventure.

Here's what you can expect to happen on closing day.

By the time you arrive at your lawyer's office, he or she will have completed much of the necessary documentation. The Agreement of Purchase and Sale was, in all likelihood, reviewed by your lawyer prior to your signing it and, along with any conditions, attachments or waivers, has been in his/her hands from the actual day your Offer to Purchase was accepted and signed. He/she may also have asked you for a copy of your home insurance policy. He or she will have prepared all the documents for your signature.

In the interim, your lawyer will have arranged for title and other searches and a land survey of your property. Your financial institution may require copies of some of this information before release of the funds are completed. Check with your lawyer to ensure he/she is familiar with your bank's requirements.

Your lawyer will verify all the closing figures. Together you'll review the Statement of Adjustments detailing the exact amount you owe the builder/vendor on closing. This will include the balance of the purchase price, closing costs, an estimate of the disbursements including land transfer / purchase tax and any other applicable taxes.

Often the cost of the Ontario New Home Warranty Program (ONHWP) warranty protection is not included in the purchase price but is passed along to you at closing. It should be identified on the statement of adjustment as a separate item on a separate line. This is a one-time fee to cover the entire warranty period. Legal fees will also be included on closing.

Even with this helpful information, it's a good idea to get an estimate of actual closing costs from your lawyer well in advance of the closing date so you won't have any surprises.You should be prepared to have a cheque or draft payable to the lawyer to cover these costs.

In the meantime, your financial institution will have arranged to make the mortgage funds available to your lawyer. Interest due on your mortgage for the period up to the interest adjustment date (IAD) is due on closing. The lawyer will issue payment to the builder/vendor on your behalf and register the property in your name. He/she will also obtain the keys to the house and the deed for you.

By the time all of this takes place, it may be late afternoon. You should confirm with your lawyer how long this process can take. You will then need to discuss with your builder/vendor on the timing for entry into your new home. The worst thing that can happen is to have the moving truck show up too early and not being able to move in because the deal hasn't closed yet.

That's it! The property is legally yours!