Closing Day

Dear Rebecca
We are selling our first home and I am feeling nervous about the closing day. What can I do to make it go smoothly? What kinds of things can go wrong? I am worried the buyers will change their mind.
Anne

Anne
Closing day refers to the date mutually agreed to by the seller and buyer for the transfer of funds and title. For many of us this may be the largest sale or purchase of a lifetime and it can be stressful. Your concern about the purchaser getting cold feet is a common worry however the “Agreement of Purchase and Sale” is a legally binding contract and someone cannot just “change their mind” without risking a law suit. Although it has happened that buyers have walked on closing day, it is not a common occurrence and it is usually due to a serious issue such as; an encumbrance, the garage on the neighbour’s property, the deck on a hydro easement or the property not being as viewed when purchased for example -flooded basement.
. Whether you are on the selling side or the buying side of the sale of a property you should review the “Agreement of Purchase and Sale” a week before closing day.
As a seller you should check to make certain that you are leaving all agreed upon chattels and confirm that you have fulfilled any requests for cleaning, repairs or documentation. Many buyers’ agents include a schedule with the offer which lists items to be completed prior to closing. This usually encompasses such things as removing all debris, mowing that lawn or having walkways cleared of snow. One piece of advice -is to make your home cleaner than you think it should be- closings do get delayed because of level of cleanliness(or lack thereof). If you are not the greatest housekeepers then hire a professional cleaner. Also if you say you are going to replace something – then replace it!- you are only asking for trouble if you try to cut corners. Do not take any fixtures that were not excluded from the agreement – you do risk losing the sale.
I asked a local real estate lawyer for his opinion on “what was the biggest snag with closings?” and he was quick to answer” mortgage lenders not being prepared”. As the seller, this is out of your hands however for buyers it is a good idea to meet with your lender a few days prior to closing to make sure everything is properly set up. Make sure the mortgage instructions have been delivered to the lawyer and that the amount of the mortgage is correct. When negotiating the offer on your home, try to avoid a closing date that falls on a Friday or before long holiday weekend. Although many as people like to have the weekend to organize their home, if anything goes wrong and the transaction is delayed the banks will be closed and you may have to wait several days to complete the transaction.
For the majority of home sales, closing day is an exciting day for both parties and you can help to make it a smooth transition by being prepared and fulfilling the terms and conditions set out in the offer.
Good Luck Selling
Rebecca