Closing Tips from Toronto Real Estate Transactions Lawyer
December 2, 2020
Buying or selling a home is a significant milestone in anyone's life, so, understandably, you want to do your due diligence before finalizing the deal. However, you also don't want the process to drag out once you reach the closing phase. If you're ready to start the next chapter of your life, the Toronto real estate transactions lawyers at Atlas Law Group recommend doing the following to efficiently close your real estate transaction.
Tips for Buyers
Don't wait to schedule the home inspection.
Once the seller has accepted your offer, you are officially under contract and can have the property inspected. The home inspection is imperative because it allows you to identify any issues with the home and request repairs or renegotiate the price before closing. Most real estate transactions lawyers in Toronto recommend having this done earlier rather than later. That way, you and your realtor can review the inspection report and avoid being blindsided by significant problems so late in the process.
Clear the title.
Before any binding paperwork is signed, a real estate title search must be performed. This is an examination of pertinent documentation such as deeds, court records, and property and name indexes, and it verifies the seller has the right to sign the property over to you. If you don't clear the title, you're leaving yourself exposed to the possibility of someone like a distant relative or ex-spouse saying the property is rightfully theirs. After clearing the title, you can proceed with the final closing.
Arrange insurance ahead of time.
Start shopping around for homeowners insurance as soon as your offer is accepted. The lender you choose will require coverage to protect their investment, and they'll notify you of the requirements you must meet. The deal cannot close until you have the necessary policy, but you don't want to wait too long. Starting early lets you shop multiple providers and ensure you're getting the best value possible.
Expediting the Process as a Seller
Confirm the property value.
Your buyer is most likely financing the purchase through a lender, so they'll need an appraisal confirming the property's fair market value. Typically the assessment will come in at or above the agreed-upon contract price of the initial offer. However, if it comes in under the offer, either the buyer makes up the difference, you lower the cost, or you can challenge the appraisal. By scheduling the examination soon after accepting the offer, you avoid time-consuming hurdles down the road.
Stay proactive throughout the process.
Numerous people are involved in selling a home, which can cause confusion and frustrating slowdowns. Whether it's waiting for a contractor to make repairs, scheduling the appraisal and final walkthrough, or failing to receive critical legal documents, things might not go as quickly as you want. By taking charge of the process and maintaining consistent communication with all the other parties, you can keep things moving along at a satisfying speed.
Prepare the home for the final walkthrough.
If the final walkthrough isn't satisfactory to the buyer, it can prolong the process even longer. You'll either have to remedy the problems they have or restart negotiations, so make sure the property is ready before the buyer arrives. Completing the agreed-upon repairs, making sure all fixtures are still present, and cleaning the entire premise helps avoid any potential issues.
Need help closing a real estate deal efficiently?
Atlas Law Group's team of Toronto real estate transactions lawyers have the experience needed to ensure your deal goes as smoothly as possible. We bring decades of collective experience to the table for each of our clients, and we'll help you navigate the complex process of buying or selling a home. Visit us online to learn more about how we can help you.