Well, if you are reading this blog, it may be because your offer to purchase a property was just accepted. Congratulations! This is the first of many steps before you get the keys to your new home. In this blog post, we will outline the actions to anticipate prior to closing. Once an offer is accepted and the buyer officially enters the due diligence stage. Buyers of newly constructed condos in Ontario have a 10-day cooling-off period during which they may withdraw from purchase agreements. 

However, after the offer or counteroffer has been officially accepted, the buyer and seller are legally bound by the terms of the contract. This allows you to conduct a property inspection. Depending on the state of the property, you may need to contract a house inspection, a termite inspector, and even a pool or roof inspector. You may be certain that if anything deal-breaking is discovered during your time of due diligence, you can often terminate your contract and obtain a full refund of your deposit.

Down payment, you will be required to pay an earnest deposit to demonstrate to the seller that you are a serious buyer. The earnest deposit is normally 5 percent of the purchase price but may be greater or lower depending on the conditions of your offer.

Technically, your offer becomes legally binding when you submit a deposit, which is often needed within twenty-four hours of an accepted offer. In Toronto, a deposit is typically roughly 5% of the purchase price, however it is sometimes greater for luxury houses. It is delivered in the form of a certified check or bank draft to the listing brokerage, where it is kept in trust, so the brokerage can not use it to pay its bills. Typically, your deposit is distinct from your down payment (which is the difference between the purchase price and your mortgage). 

If you fail to close on the property, the Seller may be entitled to retain your deposit. Deposits demonstrate to the Seller that you are financially stable, have skin in the game, and are eager to take possession.

Once an offer is accepted, the work of your real estate Lawyer starts. He or she will want a copy of the Purchase and Sale Agreement and your identification. Then, he or she will examine the Property’s Title. Your Purchase and Sale Agreement says that you will get free and clear title to the property. Your Lawyer will validate the registered owners and legal description of the property, as well as research any claims or charges recorded against it, such as mortgages, builder’s liens, easements, rights of way, judgments, leases, and more.

There are many contingencies throughout the process that protect your deposit, such as if deal-breaking items are discovered during the inspection or if your lender is unable to approve your loan or if your home fails to appraise, which means Toronto lenders will order a house or condo appraisal before lending you money.

If you are obtaining financing, your lender will arrange a house appraisal; nevertheless, you may be required to pay for this service in advance. A professional, impartial house appraiser will visit the property you recently made an offer on and certify the property’s valuation to the bank. 

The objective of the bank is to establish that you paid market value for the property, so that if you fail on your mortgage, they won’t be left with a $1,000,000 home that you spent $1,200,000 for. The majority of the time, you may terminate your contract for these reasons and obtain a refund of your earnest money deposit, unless you are paying cash or have waived your right to cancel for these reasons.

The appraiser will return to the property to take photos, verify square footage, and write a detailed report. This can take up to a week, and if the home does not appraise for the contract price, your lender may not be able to loan you the full amount. This could require more cash at closing, a smaller down payment, or the seller lowering the price. As the primary tasks have been completed, a large number of buyers may now begin to feel optimistic.

If your offer was contingent on a finance or home inspection condition, you will need to move quickly and take the appropriate actions to waive the restrictions within the allotted period. This allows you to request any necessary repairs from the seller. Upon receiving your repair request, the seller will answer within a reasonable amount of time. The seller may choose to accept, deny, or approve certain things; they may even provide you a credit toward repairs at closing. If you request too many items or a large quantity of little items, the seller may get irritated and refuse all of your requests. If the seller rejects all of your demands, you normally have another chance to terminate the agreement and obtain a refund of your money.

The next stage is obtaining final loan approval. To get final loan approval, your lender will want a variety of papers and signatures. It’s crucial not to make large expenditures like purchasing a new vehicle on credit when you’re attempting to buy a house or open new lines of credit or increase debt. Before making any large purchases, you should always check with your lender. As soon as your lender has granted your final loan approval, you will be able to sign your disclosures, and the title firm will begin preparing your closing paperwork.

Now you will also need to contact the utility companies to begin transferring electricity, water, and gas into your name. These are just a few of the major steps to prepare for when purchasing a home. There’s a lot that goes on behind the scenes, and it’s important to have an experienced team on your side. On closing day, it’s nearly impossible to predict what time your home will close,

The Ontario Real Estate Association Agreement says the deal can close until 6 p.m. Even though the government registration system closes at 5 p.m., so you may not want to schedule movers for that day because we don’t know the time, you will actually get your home keys.