Closing Day in the GTA: What to Expect

Closing Day Demystified: What to Expect When Finalizing Your GTA Home Purchase

Closing day marks the grand finale of your home-buying journey in the Greater Toronto Area (GTA). It’s the day when you finally receive the keys to your new home—a moment filled with excitement and anticipation. But what exactly happens on this crucial day? Whether you’re a first-time buyer or a seasoned investor, understanding the closing costs is essential for transforming what could be a nerve-wracking experience into a smooth and celebratory milestone.

The Countdown to Closing Day

As the big day approaches, you may feel a mix of excitement and anxiety. This is the day that’s been circled on your calendar for weeks. By now, you’ve likely completed a home inspection, secured your financing, and met all the conditions outlined in your purchase agreement. But before you start packing those final boxes, a few critical tasks remain to ensure everything goes smoothly.

The Lawyer’s Role in the Final Days

About a week before closing day, your real estate lawyer will reach out to schedule a meeting. This step is crucial because it’s when you review all the necessary paperwork to ensure everything is in order. During this appointment, your lawyer will:

• Review the Agreement of Purchase and Sale: They’ll walk you through the terms and conditions, ensuring you fully understand your rights and obligations.
• Discuss Financial Adjustments: Your lawyer will explain any required adjustments, such as prorated property taxes, utility bills, or other costs the seller has prepaid. You will need to reimburse these amounts from the closing date onward.
• Collect the Remainder of the Deposit: If you haven’t paid your full deposit yet, you’ll provide the remaining funds during this meeting. Your lawyer will hold these funds in trust until the transaction is finalized.
• Prepare You for Closing Costs: Your lawyer will outline all the closing costs, including legal fees, land transfer taxes, and title insurance, so there are no surprises on closing day. For a detailed breakdown, you can refer to our blog on understanding Ontario closing costs.

During this meeting, your lawyer will meticulously check that all legal aspects of the transaction are flawless. They’ll confirm that the title is clear, review all documents, and ensure everything is signed and ready for the big day. The role of a real estate lawyer in this process cannot be overstated; they safeguard you against potential legal pitfalls. To learn more, check out our post on the essential role of a real estate lawyer in the home-buying process.

The Final Walk-Through: Your Last Chance to Ensure Everything Is Perfect

Two to three days before closing, it’s wise to schedule a final walk-through of the property. When you work with a seasoned team like Keith and Francoise, you’ll have experts guiding you through this process. Together, you’ll verify that any agreed-upon repairs have been completed, appliances are in working order, and no unexpected issues like water damage or missing fixtures exist.

A Real-Life Example: Why the Final Walk-Through Matters

Let me share a quick story that highlights the importance of this final inspection. Our clients were purchasing a home in Orangeville, and two days before they were set to receive the keys, we conducted the final buyer visit. What we found was alarming—the property was in complete disarray. The seller looked overwhelmed, with garbage strewn all over the house and lawn. I had a gut feeling that the seller wouldn’t be able to clear everything out in time.

I immediately notified the lawyer and the listing agent of the situation. On the morning of closing, I drove by the property again, only to find the lawn still littered with garbage. I took photos and sent them to the lawyer, who then forwarded them to the seller’s lawyer. We requested a $500 holdback to cover the cost of garbage removal.

Thankfully, it didn’t come to that. The listing agent stepped in with a truck and removed all the garbage for his client. He then forwarded photos to both me and the buyers’ lawyer, confirming that the property was in acceptable condition.

The moral of this story? Never skip the final walk-through. You never know what you might find, and once the deal is closed, it becomes incredibly difficult to address issues with the seller.

Don’t Forget to Set Up Utilities

In the whirlwind of closing preparations, it’s easy to overlook the simple yet crucial task of setting up your utilities. To avoid any interruptions, arrange for electricity, water, and other essential services to be transferred to your name at least a week before your move-in date. This proactive step ensures you’ll walk into a fully functional home, free from the stress of dealing with utility companies on move-in day. You can find more information on how to set up utilities before moving in to ensure everything is ready when you arrive.

Common Pitfalls to Avoid

Closing day is not the time for mistakes. Avoid common pitfalls by thoroughly reviewing all documents before signing, confirming your final closing costs in advance, and ensuring your home insurance is in place. A little extra caution now can prevent major headaches later.

What to Expect on Closing Day

On closing day, legal and financial activities occur behind the scenes. Here’s a breakdown of what you can expect:

• Final Paperwork: You’ll meet with your lawyer, either in person or virtually, to sign the final documents. These include the mortgage agreement, title transfer, and other critical paperwork.
• Fund Transfer: Your lawyer coordinates the transfer of funds from your lender to the seller, ensuring the seller receives payment and the title to the property is officially transferred to you.
• Title Registration: The title to the property is registered in your name, making you the rightful owner.
• Key Exchange: Once everything is finalized, you’ll receive the much-anticipated call or email to pick up your keys.

The Moment of Truth: Stepping Into Your New Home

With keys in hand, you’re just steps away from stepping into your new home. But before you get too comfortable, it’s wise to revisit the property immediately after closing. This final visit is your opportunity to check for any issues, such as leftover garbage, damage to the walls, or any other unexpected problems. If you spot anything out of the ordinary, notify your lawyer right away to address the situation promptly.

Once everything checks out, it’s time to celebrate! Whether you throw a housewarming party or simply savour the satisfaction of homeownership, this is a milestone worth cherishing.

Wrapping Up: Your Smooth Transition into Homeownership

Closing day in the GTA marks the end of your home-buying journey, filled with anticipation, a bit of paperwork, and the thrill of stepping into your new home. Stay organized, be aware of your closing costs, and rely on your real estate team’s expertise to ensure a smooth and memorable transition. If you have any questions or need personalized advice as you approach closing day, Keith and Francoise are here to guide you every step of the way, from the first showing to the final key handover.

Ready to embark on your real estate journey or have questions about closing day? Contact Keith and Françoise today to ensure your closing day is as smooth and stress-free as possible.