Your negotiations were a success and you have a legally binding agreement. But before your house is truly sold, it’s time for the vital final steps known as “closing”. Your REALTOR® and lawyer will take care of the many complicated and time-consuming legal maneuvers. That’s why you’ve hired pros.
Canada’s money laundering reporting requirements
By the time you accept an offer, your REALTOR® will also advise you of reporting requirements by FINTRAC, the federal agency responsible for administering Canada’s Money Laundering and Terrorist Financing legislation and regulations.
Your REALTOR® is required by federal law to complete a client identification form, and must ask you as the vendor or seller for verified ID such as a driver’s license or passport. You can find out more on the FINTRAC web site www.fintrac-canafe.gc.ca.
You still have plenty to do. Here’s a comprehensive closing checklist.
- Contact your lawyer and notify them that an Agreement has been signed. Make sure they’re ready to close the transaction.
- Immediately begin satisfying any conditions of the agreement that require action on your part before the set date of completion creeps up on you.
- Notify your lawyer and lending institution if the buyer is assuming your mortgage.
- Contact the utilities, telephone and cable companies about transferring or removing service. Your lawyer will often handle the transfer of utilities.
- Call your insurance agent and arrange cancellation or transfer of your homeowner’s insurance.
- Contact a moving company to arrange your move on or prior to closing date.
- Send out your change of address notices and advise the post office. Notify the Ministry of Transportation about your new address for driver’s license and registration.
- Notify your REALTOR® immediately if anything changes about your property or your situation.
Contact with your lawyer
- If you plan to “discharge” or pay off your mortgage with proceeds of the sale, your lawyer will obtain a statement from your lender showing your outstanding balance on the mortgage, and any penalties you’ll have to pay to discharge the mortgage.
- A few days before closing, your lawyer will ask you to sign the paperwork that enables the title to be transferred to the buyer.
- On closing day, your lawyer will receive and distribute the proceeds from the sale, pay off your mortgage and other costs, and give you a cheque for the net proceeds.