You signed an offer on your dream home and take possession in 30 days. It is an exciting time, but it can also feel overwhelming because most buyers are unsure of what happens next.
This article will provide a brief overview of what happens after the offer is signed up to when you first receive your home and your final reporting letter.
Immediately After Signing the Offer
Once the offer is signed, your real estate agent (if you have one) will ask which law office you would like to use. The agent will then send the offer to the law office and provide your contact information so the firm can contact you directly.
Most offers contain conditions that must be satisfied before the possession date. If the conditions are not met or waived, the purchase cannot proceed.
Common conditions include:
- Repairs to part of the property;
- Financing approval from your lender, broker, bank, or credit union; and
- Completion of a satisfactory home inspection.
During the period when conditions are still outstanding, the offer is considered a “soft” offer because either party may still be able to terminate the agreement if conditions are not met. Once all conditions are satisfied, the offer becomes “firm” or “goes hard.”
Once All Conditions Have Been Met
After all conditions have been satisfied, the lawyer will begin preparing the transaction by:
- Reach out to you to address any preliminary concerns and answer questions;
- Completing a title search;
- Ordering a tax certificate;
- Requesting mortgage instructions from your lender, if they have not already been received.
Ideally, conditions should be completed at least two weeks before possession. This provides sufficient time for both the lender and the law firm to prepare the mortgage and transfer documentation.
Meeting with the Lawyer
Once the documents have been prepared, the law firm will contact you to schedule a signing appointment. The firm will also advise you of the balance required to complete the purchase, which may include:
- Land transfer tax;
- Your down payment (the amount not covered by your mortgage);
- Legal fees; and
- Applicable taxes, disbursements and adjustments.
After all documents have been signed, the law firm will request mortgage funds from the lender and notify the seller’s lawyer that they are in a position to close the transaction.
Once the seller’s lawyer confirms that all requirements have been satisfied, arrangements will be made for the keys to be released on the possession date.
Possession Day and Beyond
On possession day, you will typically meet your real estate agent at the property to receive the keys and complete a final walkthrough. This walkthrough helps ensure the property is in substantially the same condition as when you agreed to purchase it and that any agreed-upon conditions or repairs have been completed.
Your lawyer will then complete final searches, transfer title into your name, and register your mortgage. Land Titles processing can take up to two weeks, depending on processing times.
Once registration is complete, your lawyer will send you a final reporting package containing copies of all important closing documents for your records.
