Congratulations! Your offer has been accepted, and you’re officially under contract to buy your first home in Ontario. The initial excitement is huge, but you might be wondering, “What happens next?” The period between your offer being accepted and your closing day is crucial, filled with important steps to ensure a smooth transition.
Here’s a breakdown of what to expect and what you need to do:
1. Waive Conditions (If Applicable)
If your offer included conditions (and most first-time buyer offers do), this is the immediate priority. Common conditions include:
- Financing Condition: Your mortgage broker or bank will finalize your mortgage approval. This involves verifying your income, employment, and credit, and often includes an appraisal of the property to confirm its value.
- Home Inspection Condition: You’ll hire a professional home inspector to thoroughly examine the property for any potential issues, from structural concerns to electrical or plumbing problems. Based on the report, you might negotiate repairs with the seller or, in rare cases, decide not to proceed.
Once these conditions are satisfied and you’re happy to move forward, your real estate agent will help you sign a Waiver of Conditions, making your offer firm and binding. This is a big step!
2. Connect with Your Lawyer
Your real estate lawyer is your legal guide through the closing process. If you haven’t already, your agent will recommend one, or you can choose your own. Here’s what they’ll do:
- Review the Agreement of Purchase and Sale: They’ll scrutinize the contract to ensure all terms protect your interests.
- Conduct Title Search: This is critical! Your lawyer will research the property’s history to ensure there are no outstanding liens, undisclosed owners, easements, or other legal encumbrances that could affect your ownership.
- Order Title Insurance: This protects you and your lender against future title defects.
- Obtain Property Tax Certificates: To confirm current property tax status and identify any outstanding amounts.
- Prepare Closing Documents: They’ll draft and review all necessary legal documents for the transfer of ownership.
- Coordinate Funds: They’ll work with your lender to ensure your mortgage funds are ready for closing.
You’ll have meetings (often virtual or in-person) with your lawyer to sign documents and review details. Be prepared to provide identification and answer any questions they have.
3. Finalize Your Mortgage
While your financing condition might be waived, your lender still needs to finalize the mortgage details. This includes:
- Property Appraisal: The lender will arrange for an independent appraisal to confirm the market value of the home, ensuring it aligns with the purchase price.
- Income and Employment Verification: Be ready to provide any last-minute pay stubs, employment letters, or other financial documents your lender requests.
- Sign Mortgage Documents: You’ll sign the final mortgage commitment papers with your bank or broker.
4. Arrange Home Insurance
Home insurance is mandatory! Your lender will require proof of insurance before they release the mortgage funds.
- Shop Around: Get quotes from several insurance providers to find the best coverage and rates.
- Effective Date: Ensure your policy is effective on or before your closing date.
- Policy Details: Your lawyer will need a “binder letter” or “declaration of insurance” from your provider.
5. Utilities and Services Transfer
Don’t wait until the last minute! Contact utility companies and service providers to set up accounts in your name for the closing date.
- Hydro/Electricity:
- Gas:
- Water: (Check with your municipality; sometimes this is handled via property taxes or directly by a municipal service).
- Internet/Cable:
- Home Security (if applicable):
Provide them with your closing date and new address.
6. The Final Walk-Through
Typically a few days before closing, your real estate agent will arrange a final walk-through of the property. This is your chance to:
- Verify Condition: Ensure the property is in the same condition as when you made your offer.
- Check Inclusions: Confirm that all agreed-upon inclusions (appliances, fixtures, etc.) are still there and in working order.
- No New Damage: Look for any new damage or issues that may have occurred since your last visit.
If you find significant problems, notify your real estate agent immediately so they can address it with the seller.
7. Prepare Your Funds for Closing
Your lawyer will provide you with a detailed statement of adjustments, outlining all the funds required on closing day. This includes:
- Your Down Payment (less deposit): The remaining portion of your down payment.
- Closing Costs: Land transfer tax (provincial and possibly municipal), legal fees, disbursements, and property tax adjustments.
You’ll typically need to provide your lawyer with a certified cheque or bank draft for these funds a day or two before closing.
8. Packing and Moving Logistics
While the professionals handle the legalities, you’ll be busy with the practical side!
- Start Packing Early: Seriously, it always takes longer than you think!
- Book Movers: Especially during peak moving seasons (end of month, summer), book your movers well in advance.
- Change Your Address: Update your address with Canada Post, banks, credit card companies, subscriptions, and important contacts.
The period between buying and closing can feel like a whirlwind, but by staying organized and working closely with your real estate agent, lawyer, and lender, you’ll be well-prepared to receive the keys to your new Ontario home!
Find Out More
Find out more about Guthrie Law’s real estate services here.
The information provided on this blog is for general informational purposes only and does not constitute legal advice or a legal opinion. No solicitor-client relationship is created by your use of this site or by any communication sent to Guthrie Law through this website. While we endeavour to keep the information up to date and correct, laws in Ontario change frequently. You should not act or rely on any information on this website without seeking the advice of a qualified lawyer regarding your specific situation.
