Real Estate Investing Canada
Closing on your Property
Ok, so you just signed all the paperwork and your closing date is a month away... what exactly do I do now to be prepared?
Financing
Secure your financing with your lender. If you are using a bank, they will set up an appraisal to be completed. Let your real estate agent know that an appraisal is required. With an appraisal the bank is checking to see what the current value of the property is that you are buying.
If you plan to purchase it for $300,000 - the bank wants to know that they are lending against something of equivalent value. If for some reason it is appraised at $220,000 - then you will have to come up with the difference since the bank will only lend up to a certain value on the building. ($300,000-$220,000= $80,000 you are required to come up with)
Lawyer
Contact your lawyer and let them know that you have just came to an agreement to purchase a property. Don't wait much longer than a day after you've signed that document with your realtor. *Note: you can contact your lawyer to search the title of a property prior to or during your negotiations to purchase in order to speed up the process*
Your lawyer will conduct a search on the property and get the wheels in motion for your closing date.
(Budget for the lawyers fees at closing date, this includes land transfer tax owed to the Government, title search, etc.)
Insurance
*Your Lawyer will request this early on and want to know who your insurer is*
You will be required to obtain insurance on your new property. Be sure to contact your insurance company and advise them of the closing date.
Be prepared to give them information regarding the property such as:
Square footage
Outbuildings
Source of Heat ( Any wood burning fireplaces? Oil tanks? )
Age of wiring
Age of roof
Age of plumbing and plumbing type (Copper, cast iron, pex)
Etc.
Utilities
You will want to contact the utility companies to advise them of your move-in date. If you are renting the property out immediately and will have the tenants be placing the utilities in their names - you still need to do this. Make sure you tell the utility companies this information, you will likely not be charged the initial fees!
Contact:
Electrical (Hydro) Company
Gas company
Township for water/sewer