Monday, January 25, 2021 / by Nick Johnston
What are the next steps after subject removal?
There are a few last steps involved before your home purchase is completed!
Before Completion Day, you need to:
Choose a lawyer or notary (if you haven’t already)
Arrange home insurance
Consolidate your down-payment
Prepare for completion day
Choose a Lawyer or Notary
Before subjects have been removed you should have chosen your lawyer or notary. Notify your Realtor on who you would like to use as your lawyer or notary to complete the transaction. Your lawyer or notary facilitates the mortgage signing, transfers property title, registers the mortgage and registers title insurance. This is an important step to complete as soon as possible.
Arrange Home Insurance
You must have home insurance arranged on your property. This is required before your lawyer or notary releases mortgage funds. Bring confirmation of this home insurance to your lawyer’s office when you sign the mortgage documents.
Consolidate Your Down-Payment
To keep the process moving smoothly, begin consolidating your down-payment into one account as early as possible. That means that you need to collect and transfer the amount of your down-payment into one account.
If you plan on using your RRSPs in the Home Buyers Plan, it requires the government form “T1036 – Home Buyers Plan Request to Withdraw Funds from RRSP.” Bring this form, and a copy of your purchase agreement to the institution that issued your RRSPs so they can arrange your withdrawal.
Transferring funds out of your RRSPs often takes multiple days to transfer into your designated account. By transferring your down-payment into a single account, your withdrawal on completion day will be smooth and easy.
Prepare for Completion Day
Your lawyer will be in contact with you during this process and inform you on what to bring for completing the transaction. You will be instructed to bring confirmation of your home insurance, and a cheque that will include the following amounts for:
Down-payment (minus the deposit amount)
Title insurance fee
Property transfer tax amount (if applicable)
Property tax / Utility bill adjustments (if applicable)
What happens on Completion Day?
Completion Day is the day to complete your side of the transaction. Finally, the day has come for you to take ownership of the property. On this day you will bring the requested cheque to the lawyer or notary, and sign the required documents to finalize your side of the sale.
Under the guidance of your lawyer or notary you will be signing your mortgage documents, transferring the title of the property, registering the mortgage charge and registering the title insurance.
After all the required documents are signed and your fees are paid, your side of the transaction is complete!
What happens on Possession Day?
Either Lynn, Nick or a representative from the Lynn & Nick Real Estate Team will meet you at your new home. Possession Day usually happens the next day or two after Completion Day. However, this depends on the agreed upon dates in the purchase contract.