Tips for a Successful Real Estate Transaction

Whether you are buying, selling or refinancing your home or future home, there are several steps that must take place between the start of your transaction and your closing date.  While many of us rely upon the services of professionals, such as lawyers, realtors and mortgage specialists, in completing these transactions, there are several steps which you as the homeowner or future homeowner can do as part of the process.  As an assistance to you, we have provided the following list of "Things To Do When..." to help you know what steps you should be taking to prepare for your closing day.  

Things To Do When You Are Purchasing

• Inform your lawyer as soon as possible that you have entered into an Agreement of Purchase and Sale to purchase a new property; 
• If possible, have your lawyer review the Agreement of Purchase and Sale while it is still conditional;
• Inform your lawyer of your intended use of the property;
• If it is a condition in your Agreement, contact a qualified Home Inspector and have a home inspection of the property completed prior to the condition date
• Contact your Bank or Mortgage Broker to arrange financing to purchase the property;
• Contact your Bank to arrange Bridge Financing if your purchase is scheduled to close before the sale of your existing property;
• Contact an insurance broker prior to the condition date to arrange for Homeowner's Insurance (also known as Fire Insurance) to be placed on the property as of the date of closing;
• If there is a wood-burning fireplace or stove in the property, arrange to have it inspected by a WETT Certified Inspector;
• If the property is serviced by a Well, make sure that either you or the seller take a water sample and have it tested to ensure that the water is safe for human consumption;
• If the property is serviced by a Septic system, find out whether it is simply a holding tank or a full weeping bed system.  You should also inquire as to when the septic was last pumped out;
• If you are purchasing a Condo unit, obtain a copy of the Status Certificate and provide it to your lawyer as soon as possible;
• If you are purchasing a residence on lease land (such as a modular home or a manufactured home) provide your lawyer with a copy of the lease of land as soon as possible;
• Arrange with your realtor to complete your final inspection of the property prior to the closing date;
• Contact all Utility companies (Hydro One, Enbridge, the City Tax Office, the City Water Department, etc.) to inform them of the closing date of your purchase and to set up new accounts;
• Contact a moving company to make arrangements for your moving day;.

Things To Do When You Are Selling

• Inform your lawyer as soon as possible that you have entered into an Agreement of Purchase and Sale to sell your property;
• If possible, have your lawyer review the Agreement of Purchase and Sale while it is still conditional;

• Inform your lawyer of the current use of the property;
• Inform your lawyer of any mortgage, loan, line of credit, or any other debts which must be paid out as part of the closing;
• if you have a mortgage, loan or line of credit registered against the property, contact your Bank/ Lender and inform them of the sale of the property;
• Contact your Bank to arrange Bridge Financing if your purchase is scheduled to close before the sale of your property;
• Contact your insurance company to inform them of the sale of your property and to cancel your  Homeowner's insurance as of the date of closing;
• if you pay your Property Taxes by pre-authorized debit, contact both your Bank and the Tax Office to inform them of the sale and to cancel the pre-authorized debit as of the date of closing;
• If the property is serviced by a Well, take a water sample and have it tested to ensure that the water is safe for human consumption;
• If the property is tenanted and the purchasers have not agreed to assume the tenancy, provide the tenants with adequate notice in accordance with the Residential Tenancies Act.  It may also be necessary to obtain an Eviction Order from the Landlord and Tenant Board to ensure that the tenant(s) are out of the property before closing;
• If you are selling a residence on leased land (such as a modular home or a manufactured home) inform your Landlord as soon as possible of the sale and the date of closing;
• Contact all Utility companies (Hydro One, Enbridge, the City Tax Office, the City Water Department, etc.) to inform them of the sale of the property, to cancel your accounts as of the date of closing, and to provide them with your forwarding address for the final bill;
• Contact a moving company to make arrangements for your moving day;

Things To Do When You Are Refinancing

* Please note that the above-noted lists should not be considered exhaustive lists of all steps which should be taken as part of a real estate transaction. To ensure that you complete all necessary steps to conclude your real estate transaction, you should contact your lawyer as soon as possible after entering into an Agreement of Purchase and Sale to purchase or sell a property or after arranging new financing to be registered against an existing property. *