Once you have found the home of your dreams, you need to know a little about how to close the deal on your new home.
Making the Offer
The offer to purchase or what is also known as an agreement of purchase and sale is what is given to the seller once you find your home. An offer to purchase is a legally binding contract that is prepared by either a lawyer or a real estate agent. In Quebec, you will use a notary. Here are a few to keep in mind that are most important because only after these needs are met is the contract valid. You should also keep in mind that negotiations are important. This is so that you get the very best deal possible. There are a few things your offer needs to have:
- Address of the property, your name, and the seller name.
- The price of the home that you are paying.
- Your deposit amount.
- Extras included in the buy.
- Closing date. This is when you want to move into the home or take possession of it, usually 30 to 60 days after everything is signed for an existing home. If you are having one built, this will be longer.
- Current land survey request.
- Offer expiration date.
- Other conditions not included. These may include things like lender approval of the financing or a satisfactory home inspection that was needed.
After the Offer is Accepted
After your offer is accepted, you will need to take care of a plethora of things. You will meet with your broker or lender to verify everything and finalize everything that has to do with your mortgage. You will need to look over all of the conditions that were included in the offer and although your broker or lender will let you know what you need to bring to the meeting, here are the basics that you will need to have with you:
- Home inspection report
- Current land survey request
- Estimates on improvements or renovations that you plan to do
- Heating and utility costs
- Condo fees, if applicable
- Signed offer to purchase
- Legal description of property
- Building specs
- The Realtor.ca listing (if there is no listing, photos will suffice)
- Latest property tax assessment
- Change your address and make sure that government agencies, healthcare officials, service providers, and anyone else that is important knows the new address.
It’s finally the day you’ve been waiting for – closing day. You finally get your new home but there are a few things that happen first on closing day before you are handed the keys.
- Mortgage Money. The lender gives the mortgage money to your notary or lawyer.
- Down Payment. Minus the deposit, you give the down payment to your lawyer or notary plus the closing costs. All of this covers things like land transfer fees and legal fees. The typical amount is 1.5% to 4% of the purchase price.
- Deed and Keys. The notary or lawyer will now pay the seller, register the home in your name, and you will then be given the deed to the house and the keys.
There is plenty to know about closing on a home but having the knowledge of what to do will take some of the pressure off and prepare you for one of the most important days of your life.
Oakville Real Estate Law is one of the top firms in Canada for real estate transactions. The firm’s team led by Robert Rose has worked on thousands of transactions the years and have the knowledge and experience you need. For more information, please contact us and we will be glad to help.