Closing Day Terminology You Should Know

24 Jul

You have an accepted offer on your new home, completed the home inspection and received your clean letter of finance.  Now what?

Sometimes it’s just a simple as waiting for the all important closing day to arrive.

Closing day should be an exciting time for you. After all, you’re moving into your new home! The last thing you need is to be confronted with something you don’t understand to make the day stressful.

So here is a quick list of common closing day terminology you should know.

Final Walkthrough – On closing day you and your REALTOR® will do one final walkthrough the house just to make sure it’s in the same condition as the day you wrote your offer. This is typically done first thing in the morning and the house will generally close closer to 5pm

Disbursements –  This is the allocation of funds to the appropriate parties, such as the Vendor. Your lawyer will take care of this for you.

Possession – This is the moment on closing day when you are legally able to take possession of your new home. It’s usually when your REALTOR® or lawyer hands you the keys.

Title –  This is a legal document that identifies the property and its owner.

Closing costs –  These are expenses, excluding the selling cost of the property, that are due on closing day, such as legal fees, reimbursement for pre-paid utilities, utility deposits, insurance, and taxes.

Closing adjustments –  These are expenses pre-paid by the seller that need to be reimbursed on closing. Typical examples of this would be your property taxes or oil remaining in an oil tank.

Remember this is your important day.  Relax and embrace the huge milestone in your life!

Having a good lawyer, mortgage professional and REALTOR® will help make the day go smoothly for you and your family.

Speaking of a good REALTOR®, you have three here at your disposal?

Contact us today for all your St. John’s Real Estate needs.

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