Buying process after winning the offer

As soon as the owner has accepted your offer, you should meet with your lawyer and talk about all the responsibilities under the contract. Your solicitor should help you to understand all the expenses connected to the closing procedures, including Land Transfer Tax, disbursements and legal fees.

UTILITIES
The lawyer will also send letters to all the concerned municipal or regional utility departments, in order to verify there are no arrears or outstanding charges for gas, water or hydro expenses. These letters also verify if the equipment on the property is rented or owned and they also advise the various utility departments of the scheduled closing date, the new owner's name and the name of the seller's lawyer. Information about the billing type and whether the billing is metered, all this is also asked for by these letters.

TAXES
Your lawyer will require a Tax Certificate to confirm the current year's taxes amount and to find out any arrears and outstanding charges for taxes, both in the current year and in any previous ones.

BUILDING & ZONING
Your lawyer will also send a letter to the Building and Zoning Department, together with a copy of survey for the property. The purpose of this is to discover all the particulars of zoning by-laws and restrictions concerning the distance from the street and side and rear lines, construction type, lot and building areas, lot frontage and depth requirements and permitted uses.

TITLE & EXECUTION SEARCH
The appropriate division of the Land Registry Office will start a Search of title to the property in order to find out whether or not the seller is the owner of the property and whether or not he has the legal right to convey the property. The search also reveals if the property is not a subject to any encumbrances, encroachments, easements, liens, agreements or mortgages that were not specified in the Agreement or Purchase and Sale. It is also necessary to make sure there are no executions against the seller or previous property owners that would affect your title. This is managed by an execution search in the appropriate Sheriff's Office.

FINANCING
Buying a real estate property is one of the most important financial decisions in life. All the initial searches we have just outlined are taken care of by your lawyer. In the meantime, it is up to you to make all the necessary arrangements concerning the financial side of the business. You should have decided, prior to signing the Agreement of Purchase and Sale, the amount of financing you will qualify for and the amount you will require to complete the business. There are always some expenses connected to mortgage financing that you haven't known about on the day of closing. Your lawyer will tell you more about these expenses when you get the Mortgage Commitment Letter from your chosen financial institution
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BEFORE THE DAY OF CLOSING
You will also need a certified cheque to verify the balance of closing funds to your lawyer. Bring this with you when you come to sign all the documents needed a few days before the closing.

CLOSING DAY
Your lawyer will agree to meet with the vendor's lawyer at a mutually convenient time at the appropriate Land Registry Office where he will sub-search title and complete final execution searches. They will exchange documents, keys and cheques and your lawyer will manage that all the necessary documents are registered. As soon as this has been completed, you can get the keys and the seller will get the finances.

AFTER CLOSING
After the closing process has been finished, a reporting letter will be prepared by your lawyer. This letter will certify your title and explain all the details of the transaction. After moving in to your new house, it is a good idea to check all items that should be included in the purchase price according to the Agreement of Purchase and Sale, are really left on the property by the seller. In case you find out anything is absent, get in touch with your lawyer as soon as possible.
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About the Author
Elli Davis has been real estate professional in Toronto for 26 years