What is Closing?

August 29, 2009

                            

Your negotiations were successful and you have a legally binding agreement. But, is the house truly sold? Not quite yet. It’s time for the vital final steps known as “closing”.

Your REALTOR® and lawyer will do most of the work

Thank goodness. Closing a deal involves many, many complicated and time-consuming legal maneuvers. That’s why you’ve hired pros.

Canada’s Money Laundering Reporting Requirements

By the time you accept an offer, your REALTOR® will also advise you of reporting requirements by FINTRAC, the federal agency responsible for administering Canada’s Money Laundering and Terrorist Financing legislation and regulations. Your REALTOR® is required by federal law to complete a client identification form, and must ask you as the vendor or seller for verified ID such as a drivers licence or passport. You can find out more on the FINTRAC web site www.fintrac-canafe.gc.ca/

Your closing checklist.

You still have plenty to do yourself, and here’s a comprehensive list.

  • Contact your lawyer and notify them that an Agreement has been signed. Make sure they’re ready to close the transaction.
  • Immediately begin satisfying any conditions of the agreement that require action on your part. They have definitive dates for completion and failure to do so can result in a lot of hassles, or even spoil the whole deal.
  • Notify your lawyer and lending institution if the buyer is assuming your mortgage.
  • Contact the utilities, telephone and cable companies about transfer or removal of service. Note: Your lawyer will often handle the transfer of utilities.
  • Call your insurance agent and arrange cancellation or transfer of your homeowner’s insurance.
  • Contact a moving company to arrange your move on or prior to closing date.
  • Send out your change of address notices and advise the post office. Notify the Ministry of Transportation about your new address for driver’s license and registration.
  • Notify your REALTOR® immediately if anything changes about your property or your situation.

Contact with your lawyer.

  • If you plan to “discharge” or pay off your mortgage with proceeds of the sale, your lawyer will obtain a statement from your lender showing your outstanding balance on the mortgage, and any penalties you’ll have to pay to discharge the mortgage.
  • A few days before closing, your lawyer will ask you to sign the paperwork that enables the title to be transferred to the buyer.
  • On closing day, your lawyer will receive and distribute the proceeds from the sale, pay off your mortgage and other costs, and give you a cheque for the net proceeds.

Congratulations!I hope this was helpful. For more information on the Brampton real estate market or selling your Brampton house drop me an email


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Laddi Dhillon
Sales Representative
dhillonladdi@hotmail.com

RE/MAX Gold Realty Inc.Brokerage
Brokerage
Independently owned and operated

2980 Drew Rd Unit 231
Mississauga, Ontario L4T 0A7


Ph: 905-598-0725
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