Your lender saved the day with a last-minute mortgage, but now the lawyers are talking about an escrow closing.
Will this real estate deal ever be done?
That escrow closing may be out of the ordinary, but trust us, your real estate lawyer has your house closing calmly in hand.
Closing Your Real Estate Transaction
Relax! Real estate lawyers sign joint document registration agreements that take into account what could happen if a late closing is necessary. Financing your purchase for the first time home buyer.
Ontario land registry offices close nightly at 5 p.m. and over weekends. But short of a calamity, as long as both lawyers exchange documents by 6 p.m. on the real estate transaction closing date, your deal goes ahead as usual.
Your lawyer and the seller’s or buyer’s lawyer are working together to get your good faith deposit, mortgage financing, legal documents, and property keys transferred on time. Documents you need for real estate closings.
That’s why, even though the paperwork may not be processed by a local land registry office on closing day, you may still be able to take vacant possession on the day you planned. That is, provided both lawyers met that all-important 6 p.m. deadline.
Your lawyer knows you booked a mover, turned off the utilities, and maybe trekked many miles to take possession of your new home on time. Of course, an unexpected turn of events like a tenant not being out on time, could still get in your way. Making a backup plan can save you unnecessary expenses. Who’s responsible for tenants when you buy a home.
Escrow Closing, Ontario Real Estate
Closing in escrow means your deposit and mortgage financing are transferred to the seller’s lawyer’s trust account on closing day. The title transfer is recorded in the Ontario electronic registration system the next business day. If that’s Monday, you can still be in your new home Saturday morning.
Your lawyer and the seller’s sign an escrow closing agreement verifying:
- What day title will be registered.
- You have permission to move in before then.
- The seller’s lawyer will hold your money in trust until the title is transferred.
As buyer, you are at risk if any damage occurs before the title is formally registered. You may be able to tap your home insurance for property damages. The title insurance your Axess Law real estate lawyer arranges provides coverage on the off chance a surprise lien on property gets registered before title transfer.
Are You ‘Close to Escrow’?
Electronic funds transfers between lenders and lawyers’ offices make it less likely a buyer’s lawyer will miss the 6 p.m. deadline. Fair warning if they do: sellers can cancel, leaving you holding the bag for the lost deposit, plus financial penalties or a potential legal claim. Cons of buying and selling on the same day.
Call your real estate closing lawyer if your mortgage financing or home insurance documents (mandatory for mortgage loans) are coming down to the wire. Let them know if you are working with a private lender or you have a guarantor on your mortgage. Confirm your title insurance includes gap coverage, just in case the unforeseen happens between your move-in and final registration.
They can talk you through what happens on closing day — and where to pick up your house keys after hours. Picking the right home insurance for your property. When to buy home insurance (closing date).
Why You Need a Real Estate Lawyer
Close home purchases or sales quickly and conveniently with Axess Law. Our professional real estate attorneys throughout Ontario go over the fine print in offers to purchase to ensure your legal interests are protected. We explain the real estate closing process and keep your transaction on schedule. Documents your real estate closing lawyer needs.
Our licenced legal team liaises with your realtor and mortgage lender to receive and prepare legal documents required to close your property deal. Your Axess Law real estate lawyer searches title to property for financial claims or construction liens that can block or delay your purchase or sale. Real estate frauds to watch out for.
When you need more time to get mortgage financing, we negotiate with the seller’s lawyer to amend the completion date. What a mortgage lawyer does when you buy or sell.
If the seller declines our request, we review your legal and financial options. Your Axess Law real estate lawyer goes over the agreement of purchase and sale for mutual consent clauses that allow you to end the deal.
We discuss what happens to your good faith deposit if you walk away. Cancelling a real estate transaction can be costly. See the downside risk of losing deposit on house purchases. Why buyers who back out almost always lose their deposit.
Affordable Legal Services, Anywhere in Ontario
Access lawyers for less in the Greater Toronto Area, Ottawa, or anywhere in Ontario when you buy a home in the GTA, sell, or transfer property. Axess Law’s flat fee real estate lawyers are affordable, and our rates are all inclusive (excluding taxes, disbursements, and third-party charges). Axess Law offers you only the legal services you absolutely need. Your final invoice includes no surprises or hidden charges. Your itemized statement of adjustments is explained when we deliver it, and we answer any questions you have about it.
Find a real estate lawyer in Ontario.
Make Online Appointments or Call Us to Book
Make your own legal appointments online using our easy web booking form. Axess Law real estate lawyers can video conference with you 7 days a week. Use any compatible home computer, laptop, tablet, or smartphone to connect. Can’t find online times you like? Speak to our staff by dialing toll free to 1-877-552-9377 or in Toronto, call 647-479-0118. Meet us at any of our Greater Toronto Area or Ottawa law offices. Parking is onsite and transit access is easy.
Axess Law has onsite parking and easy transit access.
Click here to learn more about Axess Law’s real estate law services.