Completion to Keys – Keys to Completion
Keys to Completion
From this point on it will seem like the only thing you are doing is signing your name, to what may seem more than necessary. Do not let all the legal paperwork get you confused. Ask questions. Do not pretend to understand, ask questions. It is both the lawyer and finance brokers obligation to make sure you understand in full what you are obligating yourself to by signing any and all documents and payouts of all moneys. Remember this; it is your money they are handling – on your account.
The bank or mortgage company will send the mortgage instructions, confirmation of deposit and property details to your lawyer, along with the purchase agreement if he/she hasn’t already received it. You will probably be asked to pay the courier fee. No, they won’t let you deliver them yourself. Your lawyer will then conduct the appropriate searches to determine liens and charges that may be listed against the property. These must be satisfied by the vendor before title of the property can be transferred to you.
It is surprising what can turn up on property searches. Very often a contractor may place a lien on a home to ensure payout when the work is complete. Sometimes they don’t bother to take the time to remove the lien after they have been paid. I once had an inquiry on a lien for siding for my first house some 6 years after I had sold it. Somewhere someone failed in due diligence.
You will be required to have your new home insured against fire loss and perhaps other losses depending on area. This damage and loss insurance will be payable to the mortgage lender. It is always wise to insure your house according to what it would cost to replace the house in the event it is destroyed. Replacement cost is different from the market value of your home or the tax assessment value of your home. In conjunction with the house insurance, purchase liability and content insurance as well. It is a tragedy how many renters do not carry content insurance, it costs less than insuring their car and is worth at least twice the value.
It is your lawyer’s responsibility to evaluate and work out all the fees and payments to be made and to whom. There may still be some down payment owed. Your proportion of the property taxes will still need to be paid. Any other fees that are still owing e.g. the land or property transfer tax, courier fees, appraisal, survey and inspection fees and of course, the legal bill, the lawyer fees.
The Real Estate Commission is always paid by the vendor, right? No! In some occasions the commission responsibility has been split between the agencies. That is why your real estate agent should have had all the forms available for preview before you are required to sign. See – Choosing a Realtor.
After all the fees have been paid, the balance is the amount that you will have to pay to the seller’s lawyer ‘in trust’ which will then complete the sale transaction. You will probably sign a bank draft or certified cheque for this amount. Your lawyer will forward that cheque or draft on the completion date to the seller’s lawyer ‘in trust’ It is then the responsibility of the seller’s lawyer to provide clear title of the home to you.
Hand You the Keys
Then comes the exiting part, when the seller’s lawyer gives the OK, your real estate agent will be advised and he/she will hand you the keys to your new home. Let me be the first to say, “Congratulations“.
Oh #!”#@*, here comes the dreaded part, -Moving. You are soon to learn who your true friends are.