Your offer was accepted on your new condo - congrats! While you’re definitely in the home stretch, there's still work to do before you cross the finish line. Closing is the final step in the process, but it’s more than just picking up the keys to your new kingdom - you’ll need to sign a bunch of documents, settle up any conditions, deal with any potential legal complications, transfer funds, and get final mortgage approval. Check out this list of to-dos for closing on your new property:
Closing costs.
This is a big one. Closing costs can be 1% - 4% of the purchase price, so it’s important to be prepared for that additional expense. You’ll need to pay your down payment, your mortgage loan insurance, land transfer taxes (local and provincial), legal fees, title insurance and other stuff you may not have thought of, like insurance, moving expenses, fees to set up utilities, your first maintenance fees, cable and internet hookups, etc. Learn more about closing costs.
First-time home buyers may be eligible to save with the Ontario Land Transfer Tax Rebate, receiving a maximum refund amount of $4,475 on their Municipal Land Transfer Tax and up to $4,000 on their Provincial Land Transfer Tax.
Remove any conditions.
If you have any conditions in your purchase agreement like home inspections, finalizing financing or reviewing the status certificate, get those satisfied and out the way. More on making an offer (and conditions) here.Clear the title.
Before you can own a condo, you need to “take title.” Basically, this happens when a title search (examining public records) is performed to confirm a property’s legal ownership to see if there are any claims on the property. If there are, they may need to be resolved before the sale can proceed. Your real estate lawyer can recommend a good title company. You’ll pay a small amount for this service (usually less than $100) but it’ll give you peace of mind, which is worth a lot.Closing day.
Congratulations, you made it!. This is the day you officially take possession of your home. On closing day, you’ll sign oodles of documents and finalize all the legalities. Your new condo will be registered in your name and you’ll be given the deed. After that, it’s time to collect your keys and pop the champagne!
Once you’ve made it through those four steps, you’re officially a homeowner. It’s time to move in, make it yours - and start enjoying that amazing condo life!