Buying a New Home

NEW CONSTRUCTION/FREEHOLD

THE PROCESS

I JUST SIGNED A LONG CONTRACT WITH THE BUILDER. WHAT NOW?
STEP 1

INITIAL CONTACT & COMMUNICATION

You sign the purchase contract with the builder.  It’s best to ensure there is a condition for financing and lawyer’s approval because OR have us review the draft contract before you sign it.

You send the purchase contract to us for review.  We review the contract and provide you with our comments (by phone, email or in person).

You confirm that you wish to proceed with the purchase and engage us to handle the purchase.

We send you a detailed letter covering the following:

  • Confirmation of the major terms of the purchase contract
  • Explanation of the anticipated expenses and other costs for budgeting purposes
  • Explanation of the steps involved including our tasks and your tasks and the anticipated timing for completing the various steps
  • Information we need from the you
  • Other information we want you to know about
  • Often the closing is many months away so little activity occurs until closer to the closing date.
STEP 2

LAWYER’S SEARCHES


  • We obtain a full search of title to the property which is reviewed by the lawyer personally.  This is to ensure that you will obtain valid legal title to the property, free of legal defects and claims against the title.  Any problems are brought to the attention of the seller’s lawyer for them to rectify.  We notify you about any utility easements, restrictive covenants and rights of way affecting the property (unusual items and title problems that cannot be rectified are brought to your attention immediately; standard items are communicated at the pre-closing meeting)
  • We order title insurance OR secondary searches such as zoning compliance, outstanding building permits and work orders, encroachments (if there is a survey), fire department work orders, property tax and water arrears, etc.

STEP 3

DOCUMENT PREPARATION AND COORDINATION


  • We receive mortgage instructions from your lender and prepare mortgage documentation for you to sign
  • We arranges for mortgage funds to be sent to the our law firm’s trust account on the day of closing
  • We prepare other documentation for the transfer
  • We receive confirmation of house insurance from your insurance agent
  • We notify the tax and water departments of the closing so they can arrange for a meter reading and changeover of accounts. You notify the other utilities (gas, electricity, cable, etc.)

STEP 4

PRE-CLOSING MEETING


  • Once everything is ready, we contact you to notify you how much money to bring in, who to make it payable to, other things to bring and scheduling a meeting (usually a few days before closing when the amount becomes known)
  • We meet with you before closing either in person or via video meeting (usually a few days before closing).  The meeting is with the lawyer and the following is done:
    • Photocopy your ID (a legal requirement)
    • Review the financial documents (detailed summary of money coming in and going out of the law firm’s trust account)
    • Review, explanation and signing of transfer documents
    • Explanation of the closing process and when you might expect to get keys

STEP 5

CLOSING AND REPORTING


  • The mortgage funds and your money is deposited to our law firm’s trust account
  • We transfer funds  and send other documents to the seller’s lawyer / receive keys and other documents from the seller’s lawyer
  • Electronic registration of transfer and mortgage in the Land Registry system, making the transfer of ownership complete
  • We contacts you immediately; keys become available for you to pick up (usually at our office but some builders release keys at the site)
  • We send our  final reports with related documents to you, the lender and title insurance company (a few weeks after closing)

BUYING A HOME IS ONE OF YOUR BIGGEST DECISIONS IN LIFE. LET US GUIDE YOU THROUGH THE PROCESS.