Congratulations on successfully selling your home! Now, as you embark on the next steps, such as packing, reorganizing, and notifying others of your move, it's crucial to remain mindful of certain considerations to ensure a smooth transition.
While packing, refrain from including items you've sold, unless specified in the contract, as fixtures must remain in place to avoid breaching the agreement.
As the seller, it is your responsibility to ensure the home's condition matches that at the time of closing. Adhering to the terms of the agreement is vital. If any damage occurs post-closing, it must be communicated to the purchaser, who may choose to walk away, receive the deposit back, or proceed with the sale and claim insurance proceeds. Before making any repairs, consult with your lawyer, real estate agent, and the purchaser if there are changes before the possession date.
Once the offer to purchase agreement is signed, both the buyer and seller are legally obligated to close. Changing your mind may prompt legal actions from the buyer, who can, in turn, claim the deposit or seek damages. If the purchaser decides to withdraw from the deal, you, as the seller, have the right to claim the deposit or pursue damages.
Closing the sale involves several key aspects, including communication, adjustments, net proceeds, and the possession date, each carrying potential substantial costs.
Communication:
Depending on the nature of the sale you may have been in direct contact with the buyer. Once conditions have been satisfied it is imperative that you DO NOT communicate with the buyer directly. Any ongoing discussion about the sale is either done between the 2 agents as designated in the contract or between the 2 lawyers identified by each party.
Adjustments:
Credits or debts regarding financial costs are settled to conclude the home sale. This covers expenses or income, such as city property taxes, school taxes, monthly condominium fees, utilities, and insurance. Prepaid expenses are pro-rated, and the buyer reimburses you for the period post-closing. Any unpaid expenses applicable during your ownership are also pro-rated, with reimbursement by you to the buyer. If the buyer assumes your mortgage, adjustments for the outstanding principal, accrued interest, tax fund, and rent on rental premises are made.
Net Proceeds:
While you've agreed on a selling price, the net price involves considering closing costs. Generally, the buyer covers most closing costs, such as legal/notarial fees, disbursements, property tax adjustments, and land transfer taxes. As the seller, you discharge certain debts, including real estate commissions, certificate of location or survey fees, legal and discharge fees, outstanding adjustments to the buyer, and any municipal/school taxes or public service assessments.
Possession Date:
According to the contract Possession is awarded to the Buyer at 'noon' on the date specified in the contract provided the seller and the buyer have satisfied the terms of the Contract. Several things can cause a delay in possession the most common item being a delay in the transfer of funds.
Your lawyer will not release keys to the buyers agent until funds have been received in their account and have been verified.