What Ontario Sellers Need to Know Before Closing
Once your home is sold, attention shifts from marketing and negotiations to getting ready for closing. There are still a number of details to coordinate, but a little planning can make the transition much smoother.
This guide covers some of the practical things Ontario sellers should think about between a firm sale and closing day, from preparing for a pre-closing visit to organizing keys, documents and your move.
What to take care of before closing
- Stay connected with your lawyer and real estate agent
- Plan your move and update your address
- Prepare for the buyer’s pre-closing visit
- Understand the costs associated with selling
- Organize keys, remotes and access information
- Know what to expect on closing day
Stay connected with your lawyer and real estate agent
Once your sale is firm, your lawyer and real estate agent will help guide the transaction through to closing. Your lawyer will let you know what information or documents they require and will handle the legal transfer of the property.
Keep an eye on important dates in your Agreement of Purchase and Sale, including any remaining buyer visits, agreed repairs or other obligations that need to be completed before closing.
If you are also purchasing another home, make sure you understand how the two closing dates work together and have a plan in place if they do not line up perfectly.
Plan your move and update your address
As closing approaches, confirm your moving arrangements and begin transferring the services connected to your home.
Depending on your situation, this may include:
- Electricity, gas and water
- Internet, television and telephone services
- Home insurance
- Banks and credit card providers
- Government identification and records
- Subscriptions and deliveries
- Your mailing address
Avoid cancelling home insurance or essential services prematurely. Your lawyer, insurer and service providers can advise you on the appropriate timing for your particular closing.
Prepare for the buyer’s pre-closing visit
If the Agreement of Purchase and Sale provides for one or more pre-closing visits, the buyer may return to the property before closing.
These visits are generally an opportunity for the buyer to confirm that the home remains in substantially the condition expected, that included fixtures and items remain in place, that major systems and appliances are functioning, and that any agreed-upon repairs or other obligations have been completed.
Before the visit:
- Complete any repairs or work required by the agreement
- Keep the home reasonably clean and accessible
- Make sure included appliances and systems are available to be checked
- Leave fixtures and other items included in the sale in place
- Tell your real estate agent if anything has changed at the property
The property still belongs to the seller until closing, and access before that time is subject to the terms of the transaction and any arrangements made between the parties.
Understand the costs associated with selling
There is no single percentage that accurately represents every seller’s closing costs. The amount depends on the property, the sale and your individual circumstances.
Costs may include:
- Real estate commissions
- Legal fees
- Mortgage discharge or lender-related costs, where applicable
- Adjustments for property taxes or other expenses
- Moving costs
- Other transaction-specific expenses
Your lawyer, lender and real estate agent can help you understand which costs apply to your particular transaction before closing.
Organize keys, remotes and access information
Before moving out, gather the items the new owner will need to access and operate the property.
Depending on the home, this may include:
- House and garage keys
- Garage-door remotes
- Mailbox keys
- Fobs
- Alarm or access information
- Manuals and warranties for items remaining with the home
Your real estate agent and lawyer can confirm how these items should be handled on closing. Keys and access information should not be released to the buyer before the transaction has successfully closed unless specific arrangements have been made.
What happens on closing day?
Your lawyer will manage the legal closing and let you know when the transaction has been completed. Until then, the property remains yours and the buyer should not be given possession or unrestricted access unless specific arrangements have been made.
Once closing has been confirmed, possession can be transferred to the buyer in accordance with the Agreement of Purchase and Sale.
By this point, your belongings should be removed, the property should be left in the condition required by the agreement, and any items included in the sale should remain at the home.
Planning a move?
Every sale is different, and the best preparation begins well before closing day. If you are considering selling, Saunders & Saxton can help you understand your home’s current market position, what may be worth doing before you list and how to approach the move with a clear plan.
This article is intended as general information only. Your lawyer, lender, insurer and other professional advisers should provide guidance specific to your transaction.