Closing day is an exciting time. You are moving into your new home! However, it can be stressful as well. The last thing you need is to be confronted with something you don’t understand. So here is a quick list of common “closing day” terms.
Disbursements - This is the allocation of funds to the appropriate parties, such as the seller. Your lawyer will take care of this for you. Your lawyer will also charge disbursements along with their fee for service. This will cover out-of-pocket expenses they have had to pay ahead of time. Disbursements may include faxing, photocopying, carrier fees, and any searches you have asked your lawyer to complete.
Possession - This is the moment on closing day when you are legally able to take possession of your new home. It’s usually when your lawyer hands you the keys.
Title -This is a legal document that identifies the property and its owner.
Title insurance - may be purchased to protect your ownership in the event that an undetected title defect is found. Possible defects may include; violations of municipal zoning by-laws, existing work orders, encroachments on adjoining property or realty tax arrears. Title insurance protects you from having any liability should something come up.
Land transfer tax - varies by province and even municipality and needs to be given to your lawyer before closing day. You can calculate how much land transfer tax you’ll need to pay and arrange to bring that to your lawyer. On closing day, your lawyer will submit your land transfer tax to the appropriate government office on your behalf.
Closing costs - These are expenses, excluding the selling cost of the property, that are due on closing day, such as legal fees, utility deposits, land transfer tax, insurance, and taxes.
Closing adjustments - These are expenses pre-paid by the seller that need to be reimbursed on closing. These adjustments could include property taxes, utilities and condo fees.
A real estate lawyer will ensure all of your paperwork and transactions are filed accordingly. This includes reviewing your offer to purchase, conducting a title search, registering the home name and making sure all payments are made in full and on time.
Along with finding you a great home or seamlessly selling your current home, we will make the closing day go smoothly for you and your family.
Call us!
Richard Thyssen, Broker of Record
Colleen Thyssen, Sales Representative
Direct: 519-495-1541
Office: 519-438-8000
Email: richardthyssen@kw.com
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