Closing procedures (including legal details)

Once you have completed your home inspection, you will need to obtain a lawyer. Your lawyer will discuss the option of title insurance with you and will then conduct a title search prior to closing. He or she will check public records to determine the previous ownership of the property, as well as prior dealings related to it. The search will look for existing mortgages, liens for outstanding taxes, utility charges, etc., registered against the property. At closing the buyer expects property that is free of such claims, so normally they must be cleared up before closing. For example, the seller’s mortgage will be discharged and outstanding monetary expenses (such as taxes and utility charges) will be paid for (or adjusted for) at closing.

The completion date (also called the closing date or possession date) is the official day when you become the official owner of your home. Typically you visit your lawyer and review and sign all documents pertaining to the mortgage, the ownership of the property and the conditions of the purchase. Your lawyer will ask you to bring a certified cheque to cover the adjustment costs, legal fees and any other outstanding charges.

Once your mortgage and the deed for the property are officially recorded, you become the official owner of the property and the lawyer will make arrangements with you to pick up your keys to your new home.