What happens after Subjects are Removed?
When subjects are satisfied and you agree to the purchase your new home, you are required to place a non-refundable deposit on the property to remove subjects on the purchase agreement. Once subjects are removed, the purchase agreement is now a binding contract.
It is extremely important you understand the mortgage commitment letter you signed prior to subject removal commits your lender to you based on the information that was provided. Any changes to your credit report or employment could jeopardize your commitment to financing, and should be discussed with your mortgage broker.
From Subject Removal to Completion Day you need to:
- Retain a lawyer or notary (if you haven’t already)
- Arrange home insurance
- Consolidate your down-payment
- Prepare for Completion day
Retain a Lawyer or Notary
Once subjects have been removed it is time to notify your Realtor on who you would like to use as your lawyer or notary to complete the transaction. Your lawyer or notary will facilitate the mortgage signing, transfer property title, register the mortgage and register title insurance. Retain a lawyer or notary as soon as possible.
Arrange Home Insurance
Before your lawyer or notary will release mortgage funds, they require confirmation of home insurance being arranged on the property. Most lenders require you to pre-pay a year’s worth of home insurance. Bring confirmation of arranging home insurance to your lawyer’s office when you sign the mortgage documents.
Consolidate Your Down-Payment
To keep the process moving smoothly, begin consolidating your down-payment into one account as early as possible. If you plan on using your RRSPs in the Home Buyers Plan you will be required to fill out the government form “T1036 – Home Buyers Plan Request to Withdraw Funds from RRSP.” Bring this form, and a copy of your purchase agreement to the institution that issued your RRSP’s so they can arrange the withdraw of these funds. It often takes multiple days to transfer funds out of your RRSPs to your designated account. Consolidating your down-payment into a single account allows for easy withdrawal on completion day.
Prepare for Your Completion Day
Your lawyer will be in contact with you during this process and inform you on what to bring for completing the transaction. You will be instructed to bring confirmation of arranging home insurance, and a cashier’s cheque that will include the following amounts for:
- Down-payment (less the deposit amount)
- Legal fees
- Title insurance fee
- Property transfer tax amount
- Property tax / Utility bill adjustments
Finally, the day has come for you to complete your side of the transaction and take ownership of the property. On this day you will bring the requested cashier’s cheque to the lawyer or notary, and sign the required documents to finalize your side of the sale.
Under the guidance of your lawyer or notary you will be signing your mortgage documents, transferring the title of the property, registering the mortgage charge and registering the title insurance.
After all the required documents are signed and your fees are paid, your side of the transaction is complete!
This is the day you have worked so hard for. Today you pick up the keys to your new home!