WHAT HAPPENS ON THE DAY OF
When can we pick up the key? That is a common question for a home purchaser
and the answer depends on what you are purchasing and whether you have
to sell another home first.
Unless you have bought and
sold several times in the recent past, or you work in the industry, you
may not know what actually happens on the day of closing. There is a great
deal that goes on from a legal and non-legal standpoint on this day. Your
lawyer will complete some variation of the following;
- Obtain certified funds for
the purchase. Some of these probably come from a bank and the cheque
has to be picked up from that bank,
- Deposit these funds into their
trust account, often at a different bank
- Compete and certify the multiple
cheques required for closing,
- Attend at the Land Registry
Office and completes the pre-closing searches,
- Meet with the lawyer for the
builder and exchanges documents,
- Review the documentation for
sufficiency and completeness,
- Register the Transfer (and
usually the mortgage) and then keys are released to you.
If you have a sale to complete your lawyer will have the added step of
completing the sale. That means that the lawyer for the purchaser and
your lawyer will exchange documents and basically all the steps listed
above after the exchange. Your lawyer cannot proceed with the purchase
until the sale has closed. One reason is that the funds from your sale
are usually required for the purchase.
The other factor that can delay your closing is the Land Registry Office
where your land is registered. Some Registry Offices are busier places
than others. At month end your transfer will be one of thousands registered
that day and everyone has to wait their turn.
The practice of how keys are passed to you also differs between builders.
Some builders pass keys between the lawyers on closing which means that
you have to make arrangements with your lawyer to pick up the keys from
them. This can get tricky, as the Land Registry Office may not be near
your lawyers' office. You should discuss these arrangements well in advance
of the closing.
Most builders, however, will release keys at the new home site. Once the
transaction has closed and registered the builders' lawyer contacts the
new home site and the keys are released to you from there. This is the
preferred arrangement, as you needed to go to the site anyway to move
into your new home!
If you have any legal questions about the new home contract you should
speak with your lawyer. Remember that no one but your lawyer is qualified
to give you legal advice.
Bernie Jankowski practices real estate, corporate and estates law in Barrie,
Ontario. If you have questions about this article or real estate law in
general, write to That's The Law, c/o Toronto Sun, 333 King St. E., Toronto,
Barrister, Solicitor & Notary Public
Alliance Blvd., Suite B1,
Barrie, Ontario, Canada,
Phone: (705) 735-6975
Facsimile: (705) 735-4977
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