What Exactly Happens on Closing Day?
So, you’ve found “the one” and your offer has been accepted. Now it’s time to pop the champagne and celebrate! When you tell family and friends of your exciting news, the first question they’re going to ask is when the closing date is.
Remember that line in the offer paperwork that read “completion date” ? In most cases, the completion date is going to be 30/60/90 days from when the offer was accepted. This is your closing date.
What is a Closing Day?
So, what exactly is a closing day?
This is the day in which the property transfers from the sellers to the new buyers. It’s also the day that you finally get the keys to your new home and can officially begin the process of moving in. When you begin your property countdown, this is the day you’re going to countdown to.
In all the excitement that surrounds the impending closing, there’s also going to be a mixture of nerves and anxiety. In fact, most people that have bought and sold property before will tell you that their closing day was one of the most exciting and stressful days of the entire process.
How to Prepare for Closing Day
As with most things in life, it’s always best to prepare yourself well in advance.
In reality, the bulk of the closing process starts about a week prior to your actual closing date. While the “official” closing doesn’t happen until that very date, there is plenty to do beforehand.
A Week Prior to Closing
About a week prior to closing date you’re going to receive an “estimated statement of funds” from your lawyer. In short, this is a document that outlines a breakdown of the funds. This includes the purchase price of the property itself as well as each and every cost that is associated with your purchase.
This includes anything from legal fees and land transfer taxes to utility and property tax adjustments. It’s safe to say that you’re going to discover some very entertaining costs throughout this statement.
$65 in photocopying charges? Sure!
$50 in postage charges? Not a bad gig.
While this final number does have the ability to change before closing, it provides you with an estimated final amount owing for the transaction. From here, you want to ensure that this amount of money is going to be available in your account a few days before closing. When it comes to having the funds available, you can never be too prepared.
A Few Days Prior to Closing
A Few days prior to your official closing date, you will meet with your lawyer. Coming into this meeting, you’re going to want to be prepared to sign a lot of paperwork. This is all of the paperwork that is essential to transferring and taking ownership of your new property.
You will also need to provide your lawyer with a copy of your identification, a copy of your home insurance and confirmation that your utility accounts have been set up.
Most importantly, it’s time for the money! This is when you’re going to provide your lawyer with the official cheque. This is typically a certified cheque that is made out in the amount owning as detailed above.
The Day of Closing
Finally, it’s the day you’ve been waiting for!
Once your deal officially closes, you’re going to get a call from your lawyer stating that the property has successfully closed and that ownership has officially been transferred. Once you receive this phone call, it’s time to pick up your keys from the lawyer’s office!
The real fun in closing is you never know when exactly the property is going to close. Generally speaking, you can expect your property to close anywhere between 9 am and 5 pm. However, the majority of properties close sometime in the late afternoon.
The Key to a Happy Closing
The key to have a smooth and stress-free closing is to be as prepared as possible beforehand. When you ensure that each and every detail is taken care of on time, it’s all the more likely that your closing day will be a positive one!
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