Buying a West Edmonton home can be a complex experience in and of itself, even when things roll smoothly. While the term ‘closing' would seem to be the easiest part of the process, there's quite a bit of paperwork and back-and-forth negotiations that take time and experience to streamline. As a buyer, here are a few aspects of the home closing process that should be expected.
Know Your Home Closing Team
Be prepared to work with a number of individuals throughout both the home buying and closing procedures. Specific parties typically involved will include:
- Real estate agents or solicitors for both parties.
- Legal representatives or lawyers.
- Notary or designated closing agents.
- Lender or titling insurance company representatives.
At some point, buyers may be faced with appointments to meet with these individuals unless the province one is buying in predominantly utilizes an electronic document and signature system.
What to Expect Before Home Closing Day
Prior to the actual day of closing, meetings between the buyer/seller and the solicitor or agent will take place to discuss the status of the transaction. How this phase works will depend on whether the plan is to utilize an online electronic system for documents and such, or if in-person meetings are necessary to handle physical exchanges of paperwork.
That being said, there will be a time for the client to sign an “Authorization and Direction” permitting the release of any transfer documents for proper registration. This also give the solicitors permission to continue proceeding with the transaction. Once this is complete and as long as all the paperwork goes through as planned, buyers move onto the next phase.
Entering Into an Escrow Agreement
If all the documents are deemed acceptable by all solicitors, lenders, and parties involved, an escrow agreement—or a document registration agreement (DRA)—is formed. This allows for non-registered supporting documents and specific funds to be exchanged before the official registration in order to continue with the buying process.
On or just before closing day, parties will review all documents one final time to make certain that all paperwork is satisfactory and ready to be registered. This will include the agreements between seller and buyer to transfer the property's ownership. It will also include the terms between the buyer and lender to confirm the details and conditions of any mortgage arrangements.
Closing Day and Taking Possession of the Home
On closing day, all draft transfers are personally or electronically signed and registered, and non-registered documents along with funds are submitted to the seller's solicitor. Buyers should bring along any closing costs via a certified cheque or arrange for a proper transfer of agreed-upon funds if this aspect has not been handled. At this time, the keys to the new home may be released to the buyer, and they can move in when ready.
What Happens Now?
Buyers should not have to deal with much more at this point beyond moving in, unpacking and settling into their new home. However, lawyers and other agents may have to handle a few more tasks such as:
- Registering and transferring the mortgage.
- Arranging for closing funds to be delivered to the seller's legal representative.
- Noting the release of keys to the seller and solicitor.
With these things in mind, it's important to be ready to tackle the tasks involved with closing on a home, which is why having the right professionals backing you is just as important as loving your new abode.
By Justin Havre