Moving Time and Keys on Closing
Before keys can be released by the lawyer for the purchaser on the date of closing, the mortgage lender must provide closing funds, closing cheques must be certified, documents must be exchanged between the lawyers for the buyer and seller, and the land registry office
registrations must be completed.By the time all of those things happen on the closing date (so that the key can be released to the purchaser), it will usually be late in the afternoon and often be about 5 p.m. on the date of closing.THEREFORE if you are moving on the closing date or arranging for work to be done on your purchased residence, we suggest that you consider arranging your movers to arrive at the property late in the afternoon on the closing date in order to avoid unnecessary moving costs if you are paying movers on an hourly basis. If you are moving into a condominium requiring the use of an elevator, contact the management office well in advance of the closing date to reserve an
elevator. It is best to complete the purchase at least one day before moving since, if you try to schedule your move on the same date as the purchase completion, you will likely not receive a key until late in the day
(about 5 p.m.) on the closing date.
Fire and Contents Insurance
Purchases of residences (that are NOT condominiums) CANNOT be completed without a FIRE INSURANCE BINDER being provided to the purchaser’s lawyer prior to closing the purchase. Make sure your insurance agent faxes to the lawyer the fire insurance binder for GUARANTEED REPLACEMENT COST prior to closing if you are buying a residence that is not a condominium.
If the residence is a condominium, although the condominium corporation will have insurance for the entire project, it is necessary for the unit owner to arrange insurance for the contents of the unit purchased and for public
liability. Make sure that such insurance is placed before closing to be effective on the closing date and that such insurance covers any deductible
that might become payable to the condominium corporation for a claim under its insurance. In some cases, some mortgage lenders and builders require such condominium unit insurance for contents and liability to be in place prior to finalizing the occupancy closing.
Closing Cheques and Appointment in the Law Office Prior to Closing
About TWO DAYS prior to closing (or as soon as our office has been able to complete the accounting for the closing funds after the seller’s lawyer provides the statement for closing adjustments and any mortgage lender confirms
the net mortgage funds to be provided for closing) you will be contacted for an appointment to sign the closing documents in the law office (we have evening and Saturday hours) and, at the time of making the appointment, you will be advised about the cheques required for closing. Cheques required for closing must be by CERTIFIED CHEQUE or by BANK DRAFT payable to “S. SHUB, IN TRUST” and be received in this law office at least 24 HOURS PRIOR TO THE CLOSING DATE so that we can be prepared to complete your purchase on the scheduled date of closing. Cash amounts over $500.00 will not be accepted since we do not have security for cash transactions. When meeting to sign the closing documents, all closing adjustments and expenses will be completely reviewed with you.
Please note that, even if a property is being registered in one spouse’s name, if you are married and if the home being purchased will be a principal residence, both spouses must usually attend to sign documents for closing.
NOTE: AT THE TIME OF THIS MEETING TO SIGN THE CLOSING DOCUMENTS, PLEASE BE PREPARED (UPON ARRIVAL IN THE LAW OFFICE) TO SHOW THE RECEPTIONIST YOUR PERSONAL PHOTO IDENTIFICATION (UNEXPIRED PASSPORT, DRIVER’S LICENCE AND SOCIAL INSURANCE CARD) WHICH WILL BE PHOTOCOPIED FOR THE
FILE RECORDS PRIOR TO FINALIZING EACH AND EVERY TRANSACTION PROCESSED. IF ONE PERSON (WHO MUST SIGN ON CLOSING) WILL NOT BE AVAILABLE, YOU MUST ARRANGE A POWER OF ATTORNEY WELL BEFORE CLOSING.
Closing Adjustments to the Purchase Price
The certified cheque you will be asked to bring for closing will include any closing ADJUSTMENTS to the purchase price.Your Agreement of Purchase and Sale states that the balance of the purchase price on the closing
date will be paid by certified cheque subject to the usual adjustments.On a resale home, adjustments include items already prepaid beyond the closing date by the seller that benefit the purchaser after the closing date, and a credit is given to the seller as an adjustment on closing.
Some examples of closing adjustments on a resale home are for prepaid
realty taxes, prepaid condominium fees (if the property purchased is a condominium), and fuel oil (if the property has an oil furnace). On a new home purchased from a builder, closing adjustments are greater than on a resale home since adjustments (when buying from a builder) can include hydro and water meter installation costs, Ontario New Home Warranty Enrolment Fee and many other items not normally adjusted when one buys resale property.
BE AWARE THAT IF YOU ARE ARRANGING AN INSURED MORTGAGE (where your cash down payment is less than 20% of the purchase price), the mortgage lender (on closing) will deduct certain costs from the mortgage advance. PLEASE CONFIRM with the mortgage lender as to what costs will be deducted. (For Example: 8% provincial sales tax on the mortgage insurance premium, appraisal fee, property tax holdback or interest adjustment, if any). If a power of attorney is being used for closing the transaction, written pre-approval for the use of the power of attorney must be obtained from the mortgage lender.
It is your responsibility to arrange any mortgage financing which you might require to complete the purchase.Once you arrange the mortgage, it will be your responsibility to:
- Satisfy any special requirements by the lender (e.g. – proof of income, proof of cash down payments, payment of other debt obligations, if required by the mortgage lender, etc.) in order to avoid financing problems on closing day;
- Please confirm with the mortgage lender that mortgage instructions have been sent to our office so that we can finalize processing your mortgage financing for closing.
Informal Loans from Friends or Relatives
In order to complete the purchase, if you intend to borrow any funds (on an informal basis) from a relative or friend, you should encourage such arrangements to be in writing in order to avoid any future misunderstandings
and the funds should be protected by registering a security against the property being purchased. Any such lender is encouraged to obtain independent legal advice when making such a loan.
If Closing Funds are Being Provided by One Partner
If a partner to the transaction is providing a greater portion of the cash down payment (than the other partner), whether or not the partner providing such funds will be registered on title, it is highly recommended that you provide
written instructions for our office to prepare a partnership agreement (typically $50.00) and that each partner to the transaction obtain independent legal advice.
Names for Ownership Registration
Please advise as to how you wish to take title to the property. Please note that you may not use initials of given names in Land Registry documents. The birthdate of each person who will be taking title to the property is required.
Please note that, even if a property is being registered in one spouse’s name,if you are married and if the home being purchased will be a principal residence, both spouses must usually attend to sign documents for closing.
Where title is held as “joint tenants” and one of the owners dies, the surviving joint tenant automatically becomes the owner of the property no matter what a last will and testament might state. This is the manner of holding title most commonly used by spouses.However, where title is held as “tenants in common” and one of the owners dies, the deceased owner’s interest passes to a beneficiary according to any last will and testament made by the deceased.
If more than one person will be shown on title as owner (not being a married couple) and if only one person is providing all, or a substantial portion, of the funds needed for the purchase, you may wish to consider entering into a special written agreement to avoid any future misunderstanding with respect to your shares of ownership, your respective obligations regarding monthly carrying costs and distribution of net proceeds upon an eventual resale of the property.Should you wish such an agreement to be prepared for signatures when you sign final closing documents, please inform this office (our fee for such a typical agreement is $50.00). It is also advisable for each purchaser to consider obtaining independent legal advice before entering into such an agreement.
We recommend to all purchasers a title insurance policy which will provide title protection against title defects, survey issues, liens, work orders, frauds, forgery, etc. as provided by the PLATINUM TITLE INSURANCE POLICY issued by FIRST CANADIAN TITLE INSURANCE COMPANY. The title policy ordered will be sent to you after closing the purchase and such policy will exist for your entire period of ownership of your residence, no matter how many years you own the property. Should you not want title insurance to be ordered, you must inform our office in writing at least one week before closing.
If Your Purchase is from a BUILDER
If you have bought a newly constructed residence, you should attend at the property prior to closing to inspect and prepare a list of matters requiring the attention of the builder.The inspection appointment time must be arranged
by you with the builder’s representative. At that time, you will complete the Certificate of Completion and Possession for delivery by the builder to the TARION Warranty Program. All items outstanding must be noted.
The Warranty Certificate issued should be received by you and a copy should be provided to our office prior to closing.
As a purchaser of a newly constructed home, you have various rights pursuant to the Warranty Program and, in particular, there are provisions by which you may compel the completion or rectification of prescribed items of
construction. To familiarize yourself with your rights as well as the procedures and times within which they must be enforced, refer to www.tarion.com or contact 5150 Yonge St., concourse level, Toronto, Ontario, M2N 6L8 (corner of Yonge Street and Park Home) Tel. 1-800-668-0124.
BE AWARE that most hydro departments (or meter check services) no longer accept a lawyer’s letter for purchaser information and for arranging to read an electrical meter on the closing day so that a seller is billed up to closing
day with purchaser billed after closing day. As a purchaser, you must make such arrangements.Although our office will be notifying some departments to read any meters, YOU MUST contact any such departments concerned in order to confirm arrangements for making final meter readings. Any such meters will be read on the date for completing the purchase so that you will only be responsible for payment of utility accounts after the date of closing. For most telephone numbers (in the area around Toronto) for water, hydro and gas, click on “UTILITIES” on our home page of this website.
If you have cable television, please advise the cable company of your move. You must also arrange for telephone service to be connected.
Should the water supply for the property you are purchasing be from a well (rather than from a city water supply system) it will be your responsibility to obtain a water sample kit from your local heath department (416-235-5952); to attend on the property you are buying and get a water sample; to attend on the local health department and confirm the water is free
For a moving checklist, click on MOVING CHECK LIST on our home page of this website.
If You are Purchasing a Condominium
This is a warning about the types of rules that affect many condominiums.Should you be concerned about what rules are imposed by the Condominium Corporation in which your purchased unit is located, we suggest you immediately speak with the property management office.
Some types of rules relate to the following kinds of items:
- carpeting on various types of floors to reduce sound transmission; or no hardwood floors (unless management consent is obtained in writing)
- barbequing on balconies
- no satellite dish (use of common area cable T.V. system is required)
- no parking of commercial or recreational vehicles
- use of elevators for moving sometimes have restrictive hours, require reservations and/or security
IF YOU ARE PURCHASING A CONDOMINIUM WHERE AN ELEVATOR must be used for your move or a LOADING AREA, contact the management
office as soon as possible to book an elevator for moving.
- no office, business or commercial uses within condominium units
- pet restrictions (including sometimes maximum weight of a pet)
- types and colour of window coverings, (white or off-white) as can be seen from exterior of building
- plantings and other uses of exterior patios
- unit owner’s liability for damaged exterior doors, including garage doors and/or added items such as central air, fireplaces, etc.
- noise generated by musical instruments
- restrictions on short term rentals and
other tenancy requirements if you intend to rent the unit.
If you do not comply with a specific rule affecting your condominium, the Corporation has the right to get a court order directing compliance and ordering payment of legal costs by the unit owner. If you intend to rent your unit, insert a clause in the tenancy agreement that the tenant will comply with all rules and by-laws of the Condominium Corporation.
CONDOMINIUM COMMON AREA CHANGES AND INTERNAL UNIT CHANGES
The Condominium Act of Ontario states that no changes may be made to the common areas, including exclusive use common areas, without consent of the Board of Directors and without first obtaining the consent of at least a majority of the unit owners. Accordingly, if you notice that there have been any changes made to the common areas of your specific unit, such as installation of a central air conditioning unit, the construction of a deck, garden shed or fence, or the enclosure of a balcony, please make direct contact with the management of the condominium prior to closing to verify whether any such changes have been consented to or were originally installed by the builder when the property was originally built. Similarly, if you intend to make any exterior changes to the common areas, you must first obtain the consent of the Board of Directors (in writing) and fulfil the requirements of the Condominium Act as to the consent of the other unit owners. Should you wish to arrange for Condominium management to inspect the unit to confirm that a seller or a prior owner has made no unauthorized changes, please contact management directly.
If it appears to you that the seller has made internal changes to the unit or common area changes, we recommend that you ask management whether or not such changes were approved by management. Should a purchaser wish to make changes, written approval must be obtained from management.
As you are purchasing real estate, you should consider preparing a will at this time. It is normal for people to delay in preparing a will; however, the extra cost of $75.00 per person (if a couple) or $88.00 (if single) is small in comparison to the additional costs that can be incurred in administering an estate where there is no will. For further information as to instructions and cost, please refer to WILLS on our website’s home page
or contact our office at 416-222-1882.