Condo closing checklist
Once you've put in the legwork and found the perfect condo, it's easy to think that the hard work is over. Closing costs and contingencies still need to be addressed, however, with this process often fraught with anxiety for first-home buyers. While you might be on the home straight, there's still work to do before you cross the finish line. Let's take a look at the closing process and create the ultimate condo closing checklist.
What is closing?
Closing a property deal is the final stage of the transaction process. It's not simply a matter of handing over the keys, you also need to sign a number of documents, deal with potential legal complications, transfer funds, and get final mortgage approval. It's also important to make sure the condo itself is in good shape, with a professional home inspection and final walk-through both advised.
Do you understand the process?
The overall closing process can take as long as one or two months, so make sure you're ready to wait.
There are significant costs involved with the closing, so make sure you have funds available.
Closing typically includes a lot of paperwork, so it's best to use the services of a lawyer.
Most purchase agreements have contingencies, which are the things you must do as a buyer before the transaction is complete.
Home inspection contingency, or the right to have a professional inspection
Appraisal contingency, or the right to back out if the home is worth less than the sale price
Financial contingency, or the right to back out if the mortgage approval fails
Clearing the title
Before you can own a condo, you need to "take title". This will provide you with legal ownership of the home and prevent potential problems down the road if a relative of the seller makes a claim. While you can choose a title company yourself, it's normally a good idea to get recommendations from your lawyer or realtor.
Typical closing costs
the statement of adjustments
municipal charges for pre-construction condos
land transfer taxes
Final closing day
While the overall closing process can take many weeks, the final closing day is when everything really happens. You will need to bring the following documents to closing day to make everything run as smoothly as possible.
proof of homeowners insurance
a copy of the contract
your home inspection reports
home approval paperwork
appropriate ID to prove your identity, such as a passport of drivers license
When closing day arrives, you will officially take possession of your home, sign lots and lots of documents, and finalize the legalities of the sale through a lawyer. Once you provide proof that you have given the deposit to your attorney or notary, they will register the home in your name and give you the deeds. Once all of this has taken place, all you have to do is collect the keys, move your belongings, and start enjoying your new home.