"Closing date" is one of those terms that are callously bandied about by real estate agents and market savvy investors. It's clearly important, since from the context of the conversation you can tell that all the components of the deal seem to revolve around it like debris around a black hole. But what is a closing date and how can its location on the calendar affect your move from North Toronto to Kitchener? That is what we will discuss in this article.
What is a closing date?
The closing date is nothing more or less than the day upon which official ownership of the property changes hands. Keys, property title, and financial obligations for the property in question (for instance a Riverdale, Toronto house for sale) which were previously owned by the seller are given over to the buyer in exchange for a cheque amounting to the agreed upon sale price of the house. Sometimes this is done just between the two parties, other times via escrow, where there is a mediating force between them.
What happens on the closing date?
Several things happen on the closing date. First the buyer obtains a cheque (through his or her bank, not drawn on a personal account) for the price he or she has agreed to and delivers it to the seller or the seller's agent. Then the seller signs the title change documents and delivers them, along with the keys to the house, either to the buyer, his Sutton real estate escrow agent, or the lawyer. Then the title documents are notarized by a lawyer and registered with the land registry office.
When should my closing date be?
The date of closing must be agreed upon by both the buyer and the seller and included in the official offer of purchase. Generally the date is set about three weeks from the date that the seller officially accepts the buyers offer. The listing is then taken off of MLS Mississauga. If the closing date is set too early, the buyer may have problems coming up with the full sale price or the seller might have trouble moving his or her things out of the house, and if it is set too late there's a risk of lawyer's fees building up.
How does my closing date affect my sale?
Without a closing date, there is no sale, so when you agree to buy a Burlington, Ontario home for sale or a condo in Kitchener, remember to have a lawyer look over the papers for any loopholes that the seller might use to push back the closing date or draw out the process. If it's not firmly set, the sale might never close and you could end up stuck in a state of limbo.
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