Are You Purchasing a Home?

Before closing the deal there are a few things that a purchaser should keep in mind.

  • Arranging Insurance
    Purchasing Insurance goes hand in hand with purchasing a home. There are three main types of insurance that should be considered by a purchaser including Title Insurance, Fire Insurance and Life Insurance. For a detailed discussion check our website by clicking the link below: (LINK TO BE INSERTED for “Types of Insurance” page).
  • Arranging the Mortgage
    Financing for the purchase of a home is an important consideration, especially if you are a first-time home buyer. Mortgage funds can be financed through a financial institution such as a bank. It is the purchaser’s responsibility to meet all the requirements of the lender including identification and income proof documents, pre-written approval and a power of attorney if needed. The purchaser should have the power of attorney prepared by the lawyer’s office. A mortgage can also be arranged through friends and relatives. It is advised that a written mortgage be prepared and that the lender seeks independent legal advice.

    Where there is more than one owner on title, and one partner provides a greater sum of funds than the other partner or partners, it is advised that a legal partnership agreement be entered into to avoid future misunderstandings regarding future distribution of the proceeds from the sale of the property or any related issue.

    For a detailed discussion please click the link below: (INSERT LINK FOR “Arranging for a Mortgage” page).

  • Appointment to Review And Sign Documents
    The purchaser will be required to attend at the lawyer’s office to review and sign the closing documents after the documents from the mortgage lender have been prepared. The purchasers should keep in mind that they must have two pieces of identification each and provide certified cheques or bank drafts as required on closing.
    If you are married and the house will be a principal residence then both spouses must attend to sign all documents, even if only one of the spouses is intended to be the registered owner.
  • Closing Adjustments
    The Agreement of Purchase and Sale is conditional upon adjusting certain costs that might have been paid by the seller but that will benefit the purchaser beyond the closing date. For example, closing adjustments may include any property taxes that might have been paid by the seller or fuel oil charges. You are required to bring a certified cheque for any closing amounts. For further information contact our office at (INSERT PHONE NUMBER AND EMAIL) and check our website for a detailed discussion on Closing Adjustments at: (INSERT LINK FOR “Closing Adjustments” page)
    The purchasers are also advised to settle any utility costs before closing and inform the concerned departments of the purchase of the property to ensure that the billing information is changed to the new owner’s name. For further information please see our website at: (INSERT LINK FOR “Utilities Settlement” page)
  • Inspection and TARION New Home Warranty Enrolment for New Home Buyers
    Prior to the closing an inspection must be arranged between the purchaser and the builder. Any defects must be noted and the Certificate of Completion and Possession is signed and given to the builder to be sent to TARION. The purchaser is covered for losses due to various defects and damages as specified in the Warranty plan purchased. For further details on the Tarion New Home Warranty Program check our website at: (INSERT LINK for “Tarion New Home Warranty Program”)
  • Moving and the Release of Keys- The release of keys on the day of closing is one of the final steps towards moving into your new home. There are a number of things to be taken care of before the keys can be released. For example, mortgage funds have to be arranged by the purchaser and the lender must be ready to provide such funds. Land registry forms must be executedand all the other documents must be ready to be exchanged between lawyers for the purchaser and the seller.
    If you plan to move on the same day as the closing date, it is advised that you do so later in the day, preferably after 5 p.m. It is advised that you move one day after the closing to avoid any extra moving costs if for some reason the release of keys is delayed.
    If you are moving into a condominium it is advised that you book the elevator in advance with the management to ensure it is available to you.