Payment to You of Proceeds After Closing and Spousal Consent
Please be aware that, typically, the net sale proceeds are available by certified cheque payable to the registered owners at about 5:30 pm on the day of closing your sale. Should a purchaser’s deposit, which is being held by the realtor (in trust) until the sale closes, be greater than the realtor’s commission (plus G.S.T.), any excess funds from such deposit will be refunded to you directly from the realtor after the transaction is completed. Be aware that in cases where a power of attorney is being used to complete a sale, the net sale proceeds will still be payable to the registered owner(s) and not to the person holding the power of attorney UNLESS special arrangements are made in writing with our office prior to closing.
If two or more persons are selling a property, we shall require you (prior to closing) to confirm in writing how the net sale proceeds are to be payable if you wish separate cheques to each owner/vendor; otherwise, you will be provided with one certified cheque for the entire net sale proceeds at about 5:30 p.m. on the day of closing payable to all registered owners. Should you prefer separate cheques to each owner, you should consider obtaining independent legal advice before directing our law office in writing as to how such funds are to be divided.
If ownership of the sold property is in only one spouse’s name but the home has been a matrimonial home, the other spouse (who is not a registered owner) must not only attend in our office prior to closing in order to sign a consent for the sale completion (on the deed to the purchaser) but also sign a direction that all net sale proceeds are to be payable to the spouse who is the registered owner (in such an event, we recommend that the consenting spouse obtain independent legal advice prior to signing); otherwise, the net sale proceeds will be paid to both spouses even though one spouse is the registered owner. This rule only applies to a property that is a matrimonial home and does not apply to a property that always was an investment, in which event no spousal consent is required.
Cancellation of Your Existing Fire Insurance and Vacancy Over 30 Days
Please do NOT make any arrangements to cancel your fire insurance policy until after you have confirmed with this office that your sale has, in fact, been completed. Also be aware that if the property you are selling will be vacant for more than 30 days before the closing date (orany extended closing date), you must advise the fire insurance company to cover the increased risk due to any vacancy prior to closing.
Appointment in the Law Office Prior to Closing
You will be contacted about TWO DAYS prior to closing for an appointment to sign the closing documents in the law office (evening and Saturday hours are available). Please be prepared to leave at least one key for the sold property with this office at that time. AT THE TIME OF OUR MEETING TO SIGN THE CLOSING DOCUMENTS, PLEASE BE PREPARED (UPON ARRIVAL IN OUR OFFICE) TO SHOW THE RECEPTIONIST YOUR PERSONAL PHOTO IDENTIFICATION WHICH WILL BE PHOTOCOPIED FOR OUR FILE RECORDS. THIS PROCEDURE IS NOW REQUIRED PRIOR TO FINALIZING EACH AND EVERY TRANSACTION PROCESSED BY OUR OFFICE.
If you are coming to the office for an appointment to sign in the evening or on a Saturday and, if you have difficulty speaking English, you must bring an interpreter with you. If you are relying upon our office to provide an interpreter for normal daytime office hours, please confirm (at the time the closing appointment is arranged) that our office interpreter will be available; otherwise, you should arrange for your own interpreter (perhaps your real estate agent) to attend with you in our law office for the closing appointment.
If Power of Attorney is being Used for Closing
If you are completing the sale by using a power of attorney authorizing another person to sign closing documents for you, all net sale proceeds will still be payable to ONLY the registered owner(s) unless written arrangments (satisfactory to our office) are made with the registered owner(s) prior to closing.
Any power of attorney being used for closing, must be arranged well before closing.
If the Seller is a Non-Resident of Canada
If at the time of closing, you will not be a Canadian resident, please contact our office to discuss the sale processing for non-residents.
Utilities, Cable T.V. and Moving Checklist
YOU MUST NOTIFY (prior to closing) all applicable departments concerned to confirm arrangements for making final meter readings. Any such meters will be read on the date for completing the sale so that you will only be responsible for payment of utility accounts up to the date of closing.
If your property is in the CITY OF TORONTO and if you have NO water meter because you are on a flat rate payable every 6 months, you must immediately advise our office regarding your prepaid water so that the proper adjustment for prepayment can be made.
If you have cable television, please advise the cable company of your move. You must also arrange for telephone service to be disconnected.
If the residence being sold by you is heated by oil, you must inform us in writing and arrange to fill the fuel oil tank as of the date of closing and to pay the cost of filling the tank at that time. A copy of the final fill receipt should be given to our law office when signing your final papers prior to closing. On closing, as indicated in the Statement of Adjustments which we shall prepare, you will be given credit for a full tank of fuel oil. If a full tank is not provided, a dispute might arise as to the actual amount of fuel oil in the tank on closing; by filling the fuel oil tank on closing, such a dispute can be avoided.
For a moving checklist, please click here.
Instalment Payments due Prior to Closing and Postdated Cheques
PLEASE NOTE THAT ANY PROPERTY TAX, COMMON EXPENSE, OR MORTGAGE PAYMENTS FALLING DUE ON A DATE PRIOR TO THE CLOSING DATE MUST BE PAID BY YOU BEFORE CLOSING. ANY NECESSARY ADJUSTMENTS WILL BE MADE BY OUR OFFICE ON CLOSING FOR ANY PREPAID PAYMENTS THAT COVER A TIME PERIOD BEYOND CLOSING.
WARNING REGARDING CANCELLATION OF AUTO PAY OR PRE- AUTHORIZED CHEQUING PLANS OR POST-DATED CHEQUES: It is your responsibility as a vendor to make certain that any such pre-authorized chequing plans or post-dated cheques are stopped at your bank for any payments falling due after the closing date for items such as property tax payments or common area expenses.
Documents Required by the Law Office to Finalize Processing of File for Closing
The following items must be provided to the Law Office by fax or by mail or by delivering photocopies (which our reception can make for you at no cost to you) to our office as soon as possible so that we can prepare the file for closing in advance of the closing date:
- Copy of Transfer/Deed (which is the ownership document to be found in your legal documents which you would have received when you purchased the property);
- Details of any existing mortgages, including:
- Name of mortgage company
- Address and telephone number
- Mortgage account reference number (if applicable)
- Current year’s realty tax bills (including any existing property tax bill and any future bill received prior to closing) as well as details of payments being made by you prior to closing date. (We also require total amount of property taxes paid for the prior year.)
- Copy of survey (if property is not a condominium);
Your forwarding address and future telephone number (if available) after closing your sale.