Wednesday, February 17, 2010

Five steps to buy your home: Step 5 - Closing and Possession

When fulfilled, I will help you to waive the conditions. You and the seller are then fully committed. The offer becomes now the purchase contract. If your conditions are not met, the contract is void and your deposit will be returned. Next you sign the legal papers including the mortgage documents and you present a bank draft with the remaining moneys owed at your lawyer’s office.

There will be additional transaction costs that you should consider. These costs can sometimes be included in the mortgage. They may be:
1. Legal fees
2. Mortgage fees
3. Late interest fees
4. Title insurance
5. Costs of bridge financing
6. Appraisal fees
7. Home Inspection fees
8. Condo Paper reviewer fees
9. Property tax adjustments
10. Utility deposits

These fees can add up to several thousand dollars, so make sure you understand them and realize they may pop up as late as the closing date. When all is checked and dots have been put on the ‘i’s, all funds will be transferred to the seller’s lawyer (excepting ‘hold-outs’) on the closing date.

Possession is when you have been given the keys and are authorized to move-in. Usually it takes some time after closing to register you on title as the owner. Your lawyer will send you the final copy. I will be there to help you to ‘take possession’ as smooth and comfortable as possible – the day you move in should be a happy one – emotions ON.

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