Closing Day: What to Expect and How to Prepare

Today is an incredibly special day for me as I close on my own home in Innisfil! Having gone through the process myself, I wanted to share some tips and insights to help you prepare for your closing day. Whether you’re a first-time buyer or a seasoned homeowner, understanding what to expect can make this significant milestone smoother and more enjoyable.

Days Leading Up to Closing

1. Check in with Your Mortgage Broker:

- It’s a good idea to touch base with your mortgage broker a few days before closing. Confirm that all your financing is in order and that there are no last-minute issues that could delay the process.

2. Communicate with Your Lawyer:

- Your lawyer will be a crucial part of the closing process. Ensure you are in regular contact with them to finalize all necessary documents and understand the steps required on closing day.

On Closing Day

1. Vacating the Property:

- Legally, you have until 6 pm to vacate the property you’re selling. Make sure you have the means to clear out the house in time to avoid any penalties.

2. Broom Swept Condition:

- The property must be left in broom swept condition, meaning it should be clean and free of any debris. Leaving the house a mess because you couldn't move fast enough can lead to legal action for damages. The new owners may sue for not fulfilling this obligation, turning it into a costly lesson.

3. Good Working Order of Appliances and Fixtures:

- Ensure all appliances, chattels, and fixtures included in the sale are in good working order. This will be part of the final inspection by the new owners.

4. Key Exchange:

- Discuss the key exchange process with your lawyer before closing day. Due to COVID-19, it's common for keys to be left in a lockbox on the property. Alternatively, you might pick up your keys from your lawyer’s office.

What Happens If You Don't Close on Time

1. Legal Consequences:

- Failing to close on time can have serious legal repercussions. The party who does not fulfill their obligation can be sued for damages. This can be a costly lesson, so it’s crucial to be well-prepared and ensure all aspects of the closing process are handled efficiently.

2. Avoiding Delays:

- Make sure your team, including your realtor and mortgage professionals, are on top of their game. Their organization and preparation can make a significant difference in avoiding any last-minute issues that could delay closing.

Post-Closing Checklist

1. Inspect the Property:

- Once you receive the keys, immediately inspect your new property. Check that everything works and document any issues. Report any problems to your lawyer the same day via email and phone to address them promptly.

2. Timing of Property Closing:

- The exact time of property closing varies, but it typically occurs between 2 pm and 5 pm. This depends on when banks and lawyers finalize the transaction, as they close by 5 pm.

Final Thoughts

Closing day can be a whirlwind, but with proper preparation and clear communication with your mortgage broker and lawyer, you can navigate it smoothly. Ensuring everything is in order will help you avoid any last-minute hiccups and allow you to enjoy your new home without any stress. Congratulations on your new property!