Contracts & Closings

Making An Offer

The offer stage of the sale transaction is analogous to laying the foundation for building a house. If the Agreement of Purchase and Sale (the form used in Ontario referred to as the 'offer') is properly prepared, your closing will go smoothly and both the Buyer and Seller will be happy and feel good about the transaction they have concluded. The offer will contain the legal names of seller and  buyer, a description of the location of the property, the purchase price, amount of deposit paid by the buyer, a list of all items (fridge, stove, etc.) included in the sale, a closing date, etc. Also included in the offer will be conditions that have to be met by the seller or buyer before the offer becomes 'firm'. These include the buyer given enough time to confirm financing and having a home inspection completed, to name a few. The buyer may also require a condition giving them enough time to confirm their current home is sold. The seller may also require conditions to protect themselves.

In addition to the contract, it is common for the seller to give to the buyer prior to acceptance of a real estate purchase contract, a Sellers Property Information Statement. This form provides to the buyer the condition of the property, including any material defects know to the owner.

The condition and requirement of each type sale and loan differ and you should utilize and complete real estate contracts WITH CAUTION AND AT YOUR OWN RISK. It is wise to utilize an experienced real estate lawyer to assist you in preparing your Contract or at least reviewing it before signing it.

All of your rights and liabilities are irrevocably established when the Contract is signed.

CLOSING

In Ontario, the buyer and seller each have a real estate lawyer represent them. The buyer's lawyer does the bulk of the work, as they have to search the property to ensure there is not a dark cloud over it. They also register the new mortgage on title and ensure all current mortgages are discharged. Real estate transactions cannot close on a Saturday, Sunday or a holiday. If you want to be popular with your lawyer, close your transaction on any day except Friday. Especially, the last one of the month. Besides, moving can be cheaper in the middle of the week.

CHECK LIST FOR ITEMS THAT WILL BE PERFORMED IN PREPARATION FOR CLOSING BY EITHER BUYER, SELLER OR LAWYER

ON ALL SALES

Give your lawyer a legible copy of signed contract with all revisions.

Sellers give your lawyer the name and address of every mortgage company (including loan number) or individual who holds a mortgage on the property being sold.

Buyers inform your lawyer of the mortgage company that is financing the purchase.

Buyer and seller exchange name and contact information of their lawyer. The lawyers need to know who is representing the other side so they can communicate.

Buyers arrange for a homeowners insurance policy. The insurance company will send a letter to your lawyer confirming the property is insured. Your mortgage company will not allow the transaction to close without this letter.

Buyers call all utility companies that service the property and arrange transfer to your name. Sellers call also to confirm the transfer and inform the utility company of a forwarding address for the final billing.

The buyer will meet with their lawyer a couple of days prior to closing to sign all the paperwork. They will also be instructed how much money to bring in a certified cheque to close the deal.

The seller will meet with their lawyer and sign paperwork. They will also provide a set of keys, which the buyer will pick up from their lawyer on closing day.
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IF YOU HAVE ANY QUESTIONS REGARDING ANY ASPECT OF THE CLOSING, PLEASE CALL AND DISCUSS THIS WITH YOUR LAWYER OR MORTGAGE COMPANY PRIOR TO THE CLOSING!