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…I’m buying or selling a home?
Buying
The most common question asked by someone purchasing a new home is, When can I get my keys? The answer to this question depends on a number of factors.
The closing time of your purchase will be affected by how early in the day your mortgage provider has the funds available. Once your lawyer receives your mortgage funds, the closing cheques must be certified and delivered to the vendor’s lawyer.
Your lawyer then waits for the vendor’s lawyer to release the electronic Deed. Then a search is conducted to make sure no documents have been registered against the property since the title search was performed. Also, a check is done with the Sheriff’s Office to make sure there are no writs against the vendor.
Finally, your Deed can be registered. At this time, the keys are released to you. The deadline for electronic Deed registrations is 5:00 p.m. As you can see, your lawyer only has control over some of these factors.
If you have a firm offer to sell your current property, you can apply to your bank for bridge financing and close your purchase a few days before closing your sale. Your lawyer can provide written assurance to your bank that the funds will be repaid when your sale closes. Bridge financing is an effective way to avoid moving day schedule conflicts and tension.
Selling
Choosing a lawyer to represent you when selling your home is an important decision. If you have a mortgage registered against your home, the purchaser’s lawyer will require a written undertaking from your lawyer to pay off the mortgage from the closing funds, and obtain and register a discharge from the bank.
Electronic registration of deeds and mortgages is now mandatory in the Niagara Region. The conversion of properties to the electronic system has brought to light many technical deficiencies in property title.
A conscientious lawyer will conduct searches prior to closing to bring to light any deficiencies, and will take steps to remedy them in a timely manner. This ensures that the closing will proceed as scheduled, and that your sale funds will be available when you need them.
On closing day, your funds will be released once the electronic Deed to the purchasers has been registered. The time of day that this happens depends almost entirely upon when the purchaser’s lawyer is ready to close the transaction. The purchasers will have to obtain their mortgage funds, and in some cases will have to close the sale of their home first. The deadline for electronic Deed registrations is 5:00 p.m.