Closing: How does it work?
By Jayson Schwarz

All the delays are over and your builder has sent a letter to your lawyer and/or yourself informing you that closing of your new house will occur in a month, and that 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 advise the appropriate group that you are soon to be the owner of your home. Meanwhile, you should advise these departments (in writing) of your name, new address and 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 a short and certainly not comprehensive list will include: Hydro, Water, Gas or Oil, Phone, Cable, and Tax Departments. 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/she receives the adjustments from the vendor, your lawyer should call you anywhere from two days to a week before the closing and provide you with 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 perform your Ontario New Home Warranty Program Act ("ONHWP") inspection. Here's a short list of what to look out for:

1. Allow yourself enough time to do the thorough inspection, with no engagements to be anywhere else.

2. Don't rush! Do not let the builders rep push you; insist at moving at your own speed.

3. Write or mark down every flaw, no matter how small or insignificant.

4. Do not accept promises of repair during inspection if something is not right, mark it down.

5. Test every light, socket, tap, drain, toilet; every door, lock, window and appliance; everything that could possibly be improperly installed.

6. Watch for stains on carpet, scratches on wood floors, cracks in paint or drywall, and areas where they forgot a second coat of paint, etc.

7. Look for water stains or spots on concrete basement floors or walls; if you see them, insist on knowing why and where they came from.

8. Don't forget the exterior roof, drains, bricks, mouldings, etc.

9. Condominiums: check out the common areas lobbies, garbage rooms, parking areas, lockers, pools, tennis courts, health clubs etc. Remember, you own part of the common area, and if parts are incomplete, wrong or defective, get them on the list!

All right: inspection is done, it's closing day and what happens? Your lawyer or his/her representative goes to the Registry Office, 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 within the next 60 days your lawyer should provide you with his report including all your documents and his final account.

Condominiums are a little different because there are usually two closings involved: the interim occupancy and the final. The difference is simply that when you take possession the first time, you don't actually 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 remember, only a lawyer can give legal advice.

Jayson Schwarz is a senior partner with the firm Schwarz Gillen Barristers and Solicitors. He can be reached at (416) 486-2040.