7 things to remember when choosing a closing date

7 things to remember when choosing a closing date

  • Do not choose a Friday at the end of a month. This is typically the busiest day in most real
    estate law offices, especially in the summer. This results in many deals not being able to close
    until late in the day, close to 5 or 6 pm. Worse, if the deal has to be extended, you don’t get keys
    until the following Monday, or maybe Tuesday if it is over a long weekend.

 

  • Close your deal on a Wednesday, if possible. If there are delays, it is much easier to manage a
    one day extension than an extension over a weekend.

 

  • Sellers, you need to plan to be out of your home by 3 pm on the closing day. Under most real
    estate contracts, sellers must turn over possession as soon as the deal is registered
    electronically. In normal practice, when the closing is not at the end of a month on a Friday, the
    deal will likely be registered by 2 – 3 pm. Vacant possession must be given to the buyer at that
    time. There was a case where a seller had to compensate a buyer for increased moving costs
    when they were late getting out of the home.

 

  • If you are buying and selling a home in the same time period, close your purchase 2 days early
    and get bridge financing to assist you. You will close your deal without pressure and have a few
    days to move in while you wait until your sale closes. This will also make it much easier to
    negotiate an extension, if you have to, as you will not be dependent on the money from your
    sale to close your purchase.

 

  • Sellers, remember that you must turn the house over in broom swept condition, which means
    no garbage. Buyers, make sure you schedule you schedule your final visit 2 days before closing
    to make sure that the seller is properly cleaning up.

 

  • Buyers should not plan to move in until late in the day or the day after closing, as you do not
    want to have to pay extra to your movers if the closing does not happen until late in the day or
    the deal has to be extended.

 

  • Even if you are not moving in on the day of closing, buyers must make sure to get in and check
    the condition of the home on the day of closing, to make sure that nothing has been broken or
    damaged since the date that you signed your contract to buy. The seller typically only warrants
    that everything will be working on the closing date, not afterwards, so find out right away if you
    need to make a claim about anything after closing.

    By doing your homework before choosing a closing date, you should be able to avoid pitfalls later.

Information provided by
Mark Weisleder
62 Hillmount Ave. Toronto, Ontario,M6B 1X4
(416) 702-2499

170 Wilkinson Rd., Brampton, Ontario, L6T 4Z5
(905) 454-9606

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