Agreement of Purchase and Sale

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I’ve signed my Agreement of Purchase and Sale, what’s next?

Now that you have signed your Agreement of Purchase and Sale (“APS”), it seems like there is a never-ending list of things that pop up for you to do. 

Below is a checklist of items that usually occur in real estate transactions that should assist you in navigating your way from signing your APS to getting your keys.

 

1.   Fulfill the conditions on your APS- if you have agreed to conditions that are time-sensitive, ensure that you fulfill these conditions on time as failing to do so could result in a termination of the APS. These could include the following:

-financing

-inspection

-sale of current home/notice period to end tenancy

-insurance

-other, discuss with your real estate agent to see what other conditions you have

 

2.   Confirm financing

-If you are getting a mortgage, make sure that you advise your lender of the Closing Date (the day you will own the house) and that you have signed the APS and provide them a copy of the APS so that they will be able to assist in delivering funds on time.

-Ensure that you have enough available funds to cover your down payment, legal fees and disbursements and any other costs that may arise.

 

3.   Discuss your home insurance needs with your insurance broker.

 

4.  Retain a real estate lawyer- be sure to choose a lawyer that you are comfortable with and one who has experience in real estate. Do your research.

-Discuss the costs of hiring a real estate lawyer- this includes legal fees and disbursements. Be sure to ask for an estimate of both, as the disbursements can often be more expensive than the legal fees. Discuss government fees such as Land Transfer Tax and any possible exemptions you may be entitled to.

-Provide your real estate lawyer with the following:

-A copy of your APS

-Legal names and dates of   birth of purchasers

-Address of property

-Date of Closing

-Name of insurance   company/broker

-Mortgage company and agent,   if any

 

5.   Contact the utility providers (see suggested list) for your property to advise of your Closing Date and sign up for utilities to ensure that they are all in place for your Closing Date.

-hydro electricity

-water

-gas, propane, or oil, if   any

-rental equipment (hot water   tank, furnace, etc)

-security, if any

-confirm with your lawyer that they will contact your Municipal Tax Authority, on your behalf

 

6.  Do a final inspection.  In Ontario, you are entitled this inspection even if you did not negotiate it in your APS (discuss this with your lawyer). The inspection should be done as close to your Closing Date as possible.

 

7.  Maintain contact with your real estate lawyer throughout the process to ensure he or she has all the necessary information and you are aware of what date you will be required to attend at his or her office to sign the legal documentation.

 

**** Items 3, 4, 5, & 7 above can also apply to sale transactions. If you are selling your property, you can use this list as a guide of who to contact and what to do before your Closing Date****

 

The above list is for information purposes only. Other items may arise depending on your specific situation.

Author:

 Rosa Carlino

Real Estate Law Contacts:

Doug Shanks

Thunder Bay, Lawyer

Phone: 807.625.7133

Email: cheadles%23com|shanksj

 

Ken Ritson

Thunder Bay, Lawyer

Phone: 807.625.6620

Email: cheadles%23com|ritson

 

Rosa Carlino

Thunder Bay Lawyer

Phone: 807-625-6612

Email: cheadles%23com|carlino