Whether you’re buying a new house or selling your current place, making it through closing day is super important. Between you, your agent, the other party and their agent, plus the lawyers, it’s all hands on deck to finalize the sale and officially hand the house from one person to the other.
If you haven’t experienced a closing date before (or it’s been a while since you have), it helps to know what you can expect. As real estate agents who’ve experienced countless closing days, we’re here to help!
In this blog post, we’ll go over what happens on closing day and what you can do to ensure it goes off without a hitch.
Closing Day: The Basics
In a real estate transaction, closing day is when all the loose ends get finalized and wrapped up. Including the payment and the official transfer of the property title. Certain aspects of the closing process can be completed in the weeks leading up. However, the official closing date is when everything is signed, sealed, and delivered, so to speak.
Although it’s all part of the same process, the specific ins and outs of closing day will look different for buyers and sellers. Next, we’ll break down what you can expect from your closing date based on which side of the transaction you’re on. Let’s break it down.
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What Happens on Closing Day For a Buyer?
Confirm the Condition of the Home
If you’re the buyer, a few days before closing, will be a front-to-back walk-through of the home. You and your real estate agent will inspect every room and make sure everything looks good in terms of condition. If you asked for any changes or repairs to be made as part of your purchase agreement, now is the chance to double-check that they’ve been completed.
Submit Your Payment
After the walkthrough is finished, you will meet with your lawyer usually a few days before closing and the financial and legal parts of closing will commence. Starting with payment, your lender will transfer your total loan amount to your lawyer. From there, they will transfer the money to the seller.
Finalizing the Legal Details
Once your payment goes through, there will be a small mountain of documentation and paperwork to take care of. Luckily, your agent and lawyer will do most of the heavy lifting in this step. As soon as the title transfer is completed, the house is officially yours!
What Happens on Closing Day For a Seller?
On the flip side of the coin, sellers have fewer closing day steps to complete compared to buyers, but the process can be just as nerve-racking.
Signing Paperwork
As your real estate agent and lawyer finalize the paperwork regarding the sale of your home, you’ll be on standby to sign critical documents and confirm details.
Hand Over the Keys
Once the title of the home is officially transferred, you’ll hand over the keys to your agent, who will then pass them on to the buyer.
Cancel Insurance and Utilities
A few weeks before closing, it’s a good idea to cancel any contracts related to the property. This includes things like insurance, various home services, and utilities.
When Does the Seller Get Their Money?
Because real estate transactions are so significant, money (usually) gets moved around electronically. In other words, there’s no big briefcase full of cash that needs to be taken to the bank and manually deposited. This makes the transaction far safer and far more secure, but it also means that payment isn’t instantaneous.
If everything closing-related goes according to plan, it is technically possible for sellers to get their funds by the end of the day. However, most transfers usually take somewhere between 1 and 3 business days.
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How Long Does it Take to Close on a House?
Keep in mind that closing day is, in many ways, the finish line of your home purchase or sale.
Closing on a house takes time, and there’s a lot that goes on behind the scenes before closing day comes along. On top of that, the actual closing date of any real estate transaction will vary based on the needs of the buyer and seller, along with any complexities or surprises that may come up.
Be prepared for a potential late closing on closing day, especially if your property’s closing is contingent on multiple transactions that need to be finalized before yours. Schedule your movers accordingly, anticipating this possibility.
In Ontario, the typical closing date on a house is usually around 30 to 60 days from when the purchase or sale agreement is signed. But again, this will depend on the unique circumstances of your transaction.
Buy or Sell With Puckrin & Latreille
Buying or selling? We can help! At Puckrin & Latreille, we’re a family-led team of real estate professionals who are proud to live and work in Durham Region and the Kawartha Lakes.
Having bought and sold virtually every type of home, in every kind of market condition since the ‘70s, few teams boast the same real-world experience and expertise as we do. Whatever your goals may be, our team has the insights, know-how, and connections to make your real estate dreams a reality.
Start your real estate journey today. We have the experience and insights to make your dreams a reality! Call 905-985-7300 or send an email to hello@liveplayinvest.com to reach out.
Book a Meeting
Whether buying or selling a home in Port Perry and the surrounding area, our team has you covered. Book a call with us today to get started.
