Are You Selling a Home?

There are a number of things to be taken care of before the deal is closed. Following is a general list of things to be done before the sale is finalized:

Utilities and Fire Insurance

You must inform the concerned utility departments of the intended sale of the property and arrange for a final meter reading. Make sure that all your existing bills are paid prior to the closing date. If there are payments that cover the period beyond the date of closing you must discuss these with your lawyer in order to get a cost adjustment of such payments from the purchaser at the time of closing.

Another important thing to keep in mind is not to cancel your fire insurance before the closing. This will provide protection against any losses in case of an extended closing. Also, if the property is going to be vacant for a period of more than 30 days prior to the closing you must notify your fire insurance company to ensure fire insurance remains intact.

Installments Before and After the Closing

The seller must ensure that all payments due before the closing date are paid, for example, monthly utilities and property taxes. Subsequently, any post-dated cheques or pre-authorized payments for monthly installments that fall after the date of closing must be stopped and the banking institutions must be informed accordingly.

Before the Closing: Appointment at the Law Office

The seller will be required to come to the lawyer’s office to review and sign the necessary documents to finalize the closing. At the earliest appointment you should bring the following documents to yr lawyer’s office:

  • Two pieces of ID
  • Copy of Transfer/Deed or Ownership document of the property
  • Copy of any existing mortgage details
  • Copy of a survey if you are selling a home
  • Copy of the property taxes paid for the current year and any other utility payments you made.
  • Your new contact details following the sale of your home.
Use of Power of Attorney

If you require a Power of Attorney to complete the sale of the property, you must arrange for it in advance. Also, any proceeds from the sale are credited to the original owner and not to the person acting on behalf of the owner unless specified otherwise in writing.

Spousal Consent

If the property being sold was owned as a matrimonial home by a couple but the ownership was held by only one spouse, both spouses are required to come and sign the documents at the lawyer’s office before the time of the closing.

At the Time of the Closing

The final payment from the purchase price is made in the name of the registered sellers of the property unless we are directed otherwise in writing. Closing cost adjustments are made and the seller is credited accordingly by the purchaser for any payments that he or she may have made that cover a period beyond the closing date. If the purchaser’s deposit exceeds the realtor’s commission any excess amount is refunded to the seller directly from the real estate office.

In case there is more than one owner on the title to the property, the proceeds from the sale are divided among the registered owners or as specified in any partnership agreement.

TOP