What Happens Between Offer Acceptance And Closing?

By: Thomas Cook

What Happens Between Offer Acceptance And Closing?

Once your offer has been accepted by the seller there’s often a rush (and a timeline) to complete a series of tasks.  Let’s review what needs to be done.
 
Deliver Your Deposit Money To The Listing Broker’s Office
Once your offer has been accepted, we need to deliver that bank draft deposit immediately to the listing agent’s office to secure your purchase.  If we don’t do that immediately it may put your offer in jeopardy.
 
Our team will arrange to pick up the bank draft from you the very next day if we don’t have it already.  In some instances we have arranged to have our buyer wire transfer the deposit funds directly into the listing broker’s trust account so that will work as well.
 
Choose A Lawyer To Represent You
You need a lawyer to handle the closing process for you.  If you have a real estate lawyer that your family has used in the past - terrific.  Otherwise we can recommend two names to you and you can call them to see if you’re comfortable with them.
 
We will email a copy of the offer and the listing to your lawyer right away so they can start doing their part of the transaction.
 
Send Offer Documents To Your Mortgage Lender
Your banker or mortgage broker need a copy of the offer and a copy of the MLS listing right away to finalize your mortgage financing.  We will arrange for that to happen.
 
Your lender will submit your mortgage application along with all your supporting paperwork (proof of income and down payment plus a printout of your credit bureau) in to the bank.  
 
Satisfy Any Conditions In Your Offer
If you have any conditions in your offer, we will help you work to get them satisfied. The home inspection will be booked within the limited time frame we’ve specified in the offer. 
 
If your condo offer is conditional upon a satisfactory review of the Status Certificate, we will call the listing agent to either get it right away or make sure it’s ordered immediately.  Once we’ve received it, our team office will forward it on to your lawyer for his or her review.
 
Once any home inspection or financing conditions have been satisfied, or a review of the condominium Status Certificate has been completed and all is OK, you will sign individual waivers to remove each of those conditions out of the offer to make it firm and binding. 
 
After any waivers are signed, your offer is now considered to be firm and binding.
 
Meet With Your Mortgage Lender
Once they’ve processed it you will need to go to the bank branch or mortgage broker’s office to sign the final mortgage commitment documents.
 
Be sure to check over the terms contained in the mortgage document (interest rate, amortization period, mortgage term, discharge penalties, etc) to make sure they match what you expect.
 
Deliver The Money & Sign Documents At Your Lawyer’s Office
A few days before the closing or completion date for the change of ownership to you, you’ll arrange a visit to your lawyer.  He or she will have told you the total amount of money that you’ll need to complete the transaction.  This will include the balance of your down payment plus all your legal and disbursement costs.  These funds need to be provided by way of a bank draft, a certified cheque or a wire transfer into the lawyer’s trust account.
 
While you’re there, the lawyer will provide all the documents for your signature that are necessary to change the title over to your name.
 
Your lender will wire transfer their mortgage funds into the lawyer’s trust account as well - usually the evening before or the morning of the closing.  Once that’s done your lawyer has all the funds they need to complete the transaction.
 
Final Property Visit
One of the clauses we commonly include in our buyer’s offers is a request to have one or two visits to the property between the time the offer has become firm and the closing day.
 
We typically suggest that we reserve one visit for the day before closing.  Once at the premises we’ll check to confirm that the premises have been satisfactorily cleaned, that all the appliances are in the same condition as when your offer was accepted and that there has been no damage to the house or condo suite since you saw it last.
 
Get Your Keys
The big day has arrived… sometime during the day your lawyer and the seller’s lawyer get together virtually and exchange funds and switch the title over from the seller’s name to your name.
 
Usually your lawyer will arrange to have the property key(s) couriered over to his or her office either the day before or the day of closing.  Once funds and title have been transferred, your lawyer will release the keys to you and you’re now the happy new owner of that house or condo suite.

Thomas Cook
Thomas@LivingInToronto.com
647-962-1650


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