Blog > What Happens on Closing Day When Buying a Home
Congratulations, you're at the finish line!
Closing day is the culmination of the home buying process when ownership of the property officially transfers from the seller to the buyer. It's an exciting and significant day, but it involves several essential steps to ensure a smooth transition. Here's a breakdown of what happens on closing day when buying a home:
1. Finalizing Paperwork: On closing day, both the buyer and the seller sign the necessary legal documents. These documents include the deed of transfer, mortgage documents, and other agreements related to the sale. Your lawyer or notary public will guide you through the paperwork and ensure that all legal requirements are met.
2. Title Transfer and Payment: During the closing process, funds are transferred from the buyer to the seller as agreed upon in the purchase agreement. This includes the purchase price minus the down payment and any adjustments for property taxes, utilities, and other costs. The seller provides a clear title to the property, confirming their ownership and the absence of any liens or encumbrances.
3. Property Transfer Tax and Fees: Property transfer tax and any other applicable fees are settled on closing day. These fees might include legal fees, land title registration fees, and any outstanding utility bills or strata fees.
4. Disbursement of Funds: Your lawyer or notary will ensure that funds are disbursed as needed. They'll pay the seller, cover any closing costs, and pay off any outstanding mortgages or liens on the property.
5. Key Exchange: Once all documents are signed, funds are transferred, and legal requirements are met, the keys to the property are exchanged. This symbolizes the official transfer of ownership from the seller to the buyer. Typically, the keys are handed over by the seller's real estate agent or the seller themselves.
6. Property Possession: Possession of the property is often granted to the buyer on the same day as closing. This means you can officially move into your new home. However, it's a good idea to coordinate with the seller to ensure a smooth transition, especially if any repairs or cleaning are needed before you take possession.
7. Registration of Title: Once the closing documents are signed and funds are transferred, your lawyer or notary will register the new title in your name with the land title office. This process can take a few days, after which you'll receive confirmation of the updated ownership.
8. Celebrate Your New Home: After all the legal and financial aspects are settled, you can take a moment to celebrate becoming a homeowner! This is the time to enjoy your new property and begin making it your own.
Closing day is the culmination of weeks or months of planning, negotiations, and paperwork. While it's an exciting time, it's crucial to have a qualified legal professional overseeing the process to ensure that all aspects are handled correctly and that the transfer of ownership is smooth and hassle-free. Reach out to Sasha Hahn your North Vancouver Real Estate expert to discuss further.