Before Closing

Before Closing

If necessary, and if the buyer makes it a condition of sale, you may be asked to:

  • provide a current survey, or a "real property report," showing the location of the house is on the property owned by you and that there are no encroachments
  • prove that you have title to the property (the buyer’s lawyer will check this out when he or she conducts a title search to see if there are any liens on the property, easements, rights of way or height restrictions)
  • provide a health inspection certificate, if there is a septic system, stating the system meets local standards

 

The buyer may also make the purchase conditional on an inspection by a qualified engineer. You may be asked by the buyer to cover this cost. 

Closing the Sale

On or before closing day, this is what happens:

  • the lawyers representing you and the buyer will set up a trust account for the money coming from the sale and will pay off any mortgages you owe on the property. After these are paid, you will receive any money you have coming from the sale
  • you must deliver the property deed or transfer documents, mortgage details and keys to your lawyer. Your lawyer will register the mortgage discharge and transfer the deed at closing
  • your lawyer will ensure that you receive compensation for prepaid expenses such as, property taxes, electrical or gas bills, or if applicable, any heating oil left in your tank


Some lenders will make it possible for your mortgage to be portable, so you can take your mortgage with you when you move to your new home. 

Finally, two things to remember:

    1. the capital gain from selling your home is tax exempt. This means the profits from selling your home are not taxable.
    2. protect your investment and the deal by keeping your insurance policies in force up until the date of closing.

 

Here, your responsibilities under the listing agreement end. You’ll have paid your listing agent the agreed-upon compensation. This can be done by your lawyer who can arrange the payment from the proceeds of the sale. 

Posted By:Cindy

 
 
 
 
 
 
Share