Why the Last Week of Buying or Selling a Home Can Be the Most Stressful

It’s easy to assume that if you’re buying or selling a property in Canada, most of the process should be complete by the time your offer has been accepted. With paperwork and financing already underway, there should be little left to do or worry about.

However, this often isn’t the case. In reality, the last week before the closing or possession date of a real estate deal can be the most stressful and time-sensitive, and working closely with a real estate lawyer, if you aren’t already, is highly recommended.

The importance of the final week

When legal ownership of the property is transferred from the seller to the buyer and the necessary funds have been exchanged, this is often referred to as closing or completion. When the buyer has been given the keys and is then able to move in, this is known as possession. For many in Canada, these two parts of the process take place on the same day, but this isn’t always the case.

Those last seven days before possession are when every aspect of the sale or purchase must be finalized, and there is often little room for flexibility, unlike in earlier stages of the process. Involving firm deadlines and various legal requirements, missing or delaying anything can have unwanted consequences for closing.

What happens during the last week:

Let’s take a closer look at what happens during the final week of buying or selling a property in Canada:

• Mortgage instructions and lender requirements
  For those buying with financing, your lawyer will be sent the mortgage instructions by your lender. If everything is in order, the lender should be able to release the funds on time; if not, delays may take place.
• Final title review
  Often taking place close to closing, a clean and accurate transfer of title is crucial. A real estate lawyer will confirm that clear ownership is held by the seller and that there are no unexpected charges, liens, or incorrect legal descriptions.
• Adjustments and the final closing amount
  When a lawyer prepares a statement of adjustments in the final week, it may include calculations for things like:

  · Property taxes
  · Deposits already paid
  · Condo fees, if applicable
  · Land title registration fees
  · Mortgage registration fees, if applicable
  · Other agreed adjustments or closing costs

  At this point, buyers know more precisely what the final amount needed to close will be.

• Transfer of funds
  It’s important to recognize that money transfers don’t always happen immediately, particularly if they’re coming from another bank, an investment, or overseas. Early planning is often essential to avoid delays and cut-off times.
• Signing of legal documents
  Any mistakes when signing the final legal documents can cause frustrating delays. Working with an experienced real estate lawyer can help you avoid errors like missing initials or name mismatches.

Behind-the-scenes coordination

From the buyer and seller to realtors, Edmonton real estate lawyers, lenders, and the Land Titles Office, all parties must coordinate in the final week of a property’s closing, with even the smallest delay from any one party potentially affecting the timeline.

Fortunately, a little preparation goes a long way. By working with a local real estate lawyer, responding swiftly to requests, arranging home insurance early, ensuring the necessary funds are available, and booking your signing appointment in advance, you can keep the wheels turning on the whole deal and get to your closing or possession date with as little stress as possible.