Closing Day: A Complete Guide to a Complicated Day

You outlined your needs and wants for a new home. You looked at endless listings and toured multiple homes.

You finally found the house you were looking for, waited nervously after submitting your bid. Finally, it was accepted. But there’s still one stress left.

Closing day, or the day when the home officially moves from the seller’s ownership into the buyer’s ownership, is a day with many moving parts. 

This will be the day you sign all the final paperwork for your deal and ensure everything is in order for a smooth transition.

Whether you’re the buyer or the seller, there are some essential things you should know for the big day and before moving in or out.

What Happens On Closing Day?

Both homebuyers and sellers need to schedule an appointment with their lawyer a few days before closing. In hot markets like Toronto, having experienced Toronto real estate lawyers will help to make the closing day go as smoothly as possible.

The buyers are required to bring the remaining funds calculated by the lawyer to close on the property and successfully transfer the title. The banks need to transfer funds to the lawyer’s trust account.

Upon the confirmation that all funds have been received to complete the purchase, the lawyer coordinates with the registry office to have the property title transferred from the seller to the new buyer.

The goal is to have all of this completed by the end of the day. 

Tips For Buyers On Closing Day

If you’re moving in on the same day, you may be eager to get your stuff moved in and start unpacking. But before you do, you’ll want to check on a few things.

Moving day can be chaotic, and sellers can forget to leave the items included in your agreement. Make sure to check that these items have been left for you.

A typical mistake buyers make is not testing their appliances right away. A few days later, if you find out that some of these inclusions don’t work, it will be hard to prove whether it was like that when you first received the home or if it broke later.

If anything is wrong with the house, contact your agent immediately. Also, contact your lawyer to show them pictures of any damage or to report any missing items.

How Sellers Should Prepare for Closing

Take a look over your contract and ensure that you know all of the included items you should be leaving behind for the new owners. This could be anything from appliances to light fixtures to drapery.

While some things are legally required, some things are just courtesy. Take out the garbage and recycling and give the floors a mop before leaving.

The new owners will appreciate any manuals, instructions or warranties that have come along with the various appliances, so leave these behind. Extra keys for the doors as well as the mailbox are always appreciated. 

Closing day is always complicated, but by preparing ahead of time and knowing what to expect, you can make it a smoother process.