Your closing day is fast approaching; perhaps its your first home, or its been a long time since you purchase a new home and forget what the process is and what to expect on closing day.
The most common question that we receive from clients is “ When Do We Get The Keys To Our New Home?”
Closing Day Key Possession
On the day of closing, the lawyers will have the keys on or before 5:00 pm. The actual time depends on the following factors:
- -the time the seller’s lawyer is prepared to close;
- -the time the mortgage funds arrive at your lawyer’s office (some banks wire the funds only after 12:00 noon);
- -high volume of closings on-line (mid-month and month-end are particularly busy); and,
- traffic for couriers delivering funds, keys, etc. to and from the other lawyer’s office involved
Since Covid, there has been some minor changes when it comes to the exchange of keys, which in my opinion makes it that much easier for home buyers for their move. In previous years, the buyers would have to run to the lawyers office before it closes to run and grab the keys, but now, once the deal has closed, the lockbox code gets released to the buyers & they can just turn up to their new home any time after the deal has closed even if they can’t make it until after 7pm when lawyers offices are closed, and take possession. Usually the lockbox gets removed by the listing agent the following day.
Another very common question we hear is ” When Do We Have To Give Our Downpayment?
Meeting With The Lawyer To Sign Documents & Give Downpayment
Typically, your lawyer will require you to bring your downpayment including all the closing costs fees a few days before your official closing date and at that time, they will have you sign all the closing documents.
A few days prior to the appointment, your lawyer will contact you in case they require any additional information for the file and at that time they will also discuss the final amount you will be required to bring to close the transaction & to whom the bank draft or certified cheque will be payable to.
The amount payable will cover the following: Land Transfer Tax and registrations of your deed and mortgage(s); balance due to close; legal fees and disbursements; financial institution’s wire free (if applicable); and, builder’s lawyer fee to prepare deed (for new construction purchases only).
Always remember that your closing costs are subject to adjustments. An example for why this occurs is if the current owners have paid their property tax for the year in full and its November, then you will have to pay them back for the extra days that they paid the taxes and so there is no set amount for adjustments.
Before you close – quick reminder
Before you take possession of your home, make sure to do a final walk thru to make sure that everything is left that is supposed to be left and that the home is in the same condition as you expect it to be.
Congratulations on the purchase of your new home & Best wishes settling in!
Do you have any questions specific to buying or selling? Contact us & we would love to answer & create a blog to help others as well!
Your Local Barrie, Angus & Area Real Estate Team,
Heather Beauchesne & Mariale Schrobback.
