Key Steps With Your Lawyer Or Notary After Removing Subjects
Feb 27, 2023
Feb 27, 2023
You remove the subject conditions on your dream home- YAY! But what next?! There are quite a few steps involved until you officially pick up the keys on Possession Day and it’s normal to feel a little anxious! One of the very first steps we tell our clients, is secure a lawyer or notary to facilitate the closing of the sale. Often times there is confusion on the next steps and what to expect once your real estate advisor makes an introduction to a lawyer or notary but rest assured, we have broken down the key steps involved that your lawyer or notary will take prior to closing. Hopefully this will give you a better understanding on the process involved. After all… this is one of the biggest purchases of your life so we want to take away any of the stress!
It’s important that you retain the services of a lawyer/notary as early as possible in the process! Getting in contact with them sooner rather than later avoids any rush fees for last minute closings and will also ensure the lawyer is able to take on the file. In very busy markets, some of the better lawyers in the city won’t necessarily take on a new file. Securing a lawyer or notary early also ensures there aren’t any conflicts between the buyer and seller should they both want to use the same firm. Once you have decided who you want to work with, let your real estate advisor know and they will get their conveyancing team to forward your lawyer or notary all the necessary documents.
If you’re in need of a lawyer, we would be more than happy to send you a list of recommendations. Just get in touch with us in the comment section below.
The lawyer/notary will then gather information from you including how you wish to hold title to the property if you are buying with your spouse or partner- which is either “joint tenants” which means the couple jointly owns 100% of the property, or “tenant-in-common” which means each owner owns a fixed percent which could be 50-50, 70-30 or any combination.
The lawyer/notary will then conduct a title search, obtain municipal tax information and any additional information necessary on the property to prepare the Statement of Adjustments. The Statement of Adjustments is a balance sheet of the transaction showing the total funds required to complete the purchase after accounting for the deposit and mortgage proceeds.It is really important that you work with your notary or lawyer to understand how much money you will need to pay in order to complete on the completion day. You want to make sure you have the sufficient funds available.
The lawyer/notary will then prepare the closing documents including title transfer, mortgage, property transfer tax forms and Statement of Adjustments. Your lawyer/notary will forward the closing documents which outlines all the credits and debits owed in the transaction to both the home buyer and seller.
Typically 1 to 3 days before closing is when you usually meet with your lawyer/notary (in person) to sign documents and deliver the balance of the down payment or equity. The buyers are provided with the amount of funds required to “close” on the property, (such as remaining down payment & closing costs) and then provide a bank draft with the closing amount to the notary/lawyer to finalize their purchase. Keep in mind, if you will not be able to meet in person you will want to let your lawyer or notary know well in advance so you can make the necessary arrangements.
On Completion Day, the title is transferred and is registered at the BC Land Titles office. Typically your real estate advisor will get a registration number from their conveyancing team on the completion day. Once that registration number has been received the property has successfully transferred owners! If you are a seller, the funds arrive shortly after registration depending on how you have it set up with your lawyer/notary but typically, the seller will receive any proceeds they earned from the sale, once their mortgage balance and closing costs (i.e. commission, lawyer fees) have been paid off.
Once your real estate advisor receives confirmation of registration from their Conveyancing team, they will reach out to organize the transfer of the keys on the Possession Date as set out in the Contract of Purchase and Sale. We will always check in closer to the closing date to make sure everything is set & in place for you to ensure you get the keys in a timely manner. This is especially important if you have a move booked as soon as you take possession!
We hope this helps give some clarity and peace of mind by understanding the key steps when working with your chosen lawyer or notary leading up to the completion date. Your real estate advisor should be guiding you through all the steps and working with your lawyer or notary and mortgage broker to ensure everyone has what they need to ensure a smooth closing. After all, this is one of the biggest purchases of your life so it’s best to be kept well informed so there are no surprises.
Have any questions? Reach out and let’s chat! We are always here to help.