How does it all come together at closing time?

This issue's article is a response to one of our readers asking a very simple question that at first bite we would think is very obvious; not so! Lawyers have a tendency to forget that people do not know what to expect as they move closer to their closing. The very good question asked was basically HOW DOES IT ALL WORK???

All the delays are over and your builder has sent a letter to your lawyer and/or yourself that closing of your new house will occur in a month and the date is firm. By now your lawyer has sent letters to water, hydro, gas or oil, building and tax departments. Apart from requesting amounts, clearances and compliances, these letters have advised the appropriate group that you are soon to be the new owner. You, however, should be advising in writing the various departments mentioned of your name, new address, phone number as soon as you move in. There are plenty of books and manuals published on this topic and I suggest you check around, but as a short and certainly not comprehensive list at a minimum you have the following: Hydro, Water, Gas or Oil, Phone, Cable, and Tax Department. Set up your account and learn who to call in an emergency or when you need service; identify your closest police and fire departments and hospital.

Subject to when he receives the adjustments from the vendor your lawyer should call you anywhere from two days to a week before the closing and provide you the exact figures you need to close the deal. Remember generally all cheques need to be certified as they go through our Trust Accounts. Just before the closing you will do your Ontario New Home Warranty Program (ONHWP) inspection. I will repeat the list of what to look out for during this inspection from a previous article:
1. Insist on having enough time to do the inspection and allow yourself enough time with no need to be anywhere else.
2. Don't rush!!! Do not let the builder's rep push you, insist at moving at you own speed.
3. Write or mark down everything, no matter how small or insignificant.
4. Do not accept promises of repair during inspection - if something is not right mark it down.
5. Try every light, socket, tap, drain, toilet , every door, every lock, every window, every appliance, every thing that could be or go wrong.
6. Watch for stains on carpet, scratches on wood floors, cracks in paint or drywall, areas where they forgot a second coat of paint, etc.
7. Look for water stains or spots on concrete basement floors or walls and if you see them insist on knowing why and where they came from
8. Don't forget the exterior and roof, drains, bricks, mouldings, etc.
9. Condominiums - go check out the common areas, lobbies, garbage rooms, parking areas, lockers, pools, tennis courts, health clubs etc. And remember you own part of the common area and if parts are incomplete, wrong or defective, get them on the list!

All right, inspection done, it's closing day and what happens? Your lawyer or his representative goes to the Registry Office and hands over your money and gets a deed in return. All documents are registered and you own the house! What about the keys? - Keys are either handed over at the Registry Office or the builder releases them at the site. Your lawyer should phone you with this information.

Now what? Move in and enjoy! Sometime in the next 60 days your lawyer should provide you with his report with all your documents and his final account.

Condominiums are a little different because usually there are two closings. The interim occupancy and final. The difference is simply when you get possession the first time you do not own the unit until the final closing and registration of documents. In addition you need to determine what is included in your monthly maintenance fees and what you pay for directly. Speak to your lawyer to resolve those issues and then once you know, all of the same things listed above apply.
Hope this helps and remember only a lawyer can give legal advice.

Jayson Schwarz is a senior partner with the law firm Schwarz, Gillen Barristers and Solicitors. He can be reached at (416) 486-2040, toll free at 1-888-609-8888 and by fax at (416) 486-3325.

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