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Real estate closings are a huge milestone that buyers and sellers alike look forward to. It’s the day when all the preparation, paperwork, and negotiations are finalized, and a new chapter in life begins! The documents exchanged at closing are some of the most important legal documents you’ll ever sign, so it’s vital to understand what will take place and which documents will be exchanged.

The most crucial document involved in a real estate closing is the purchase agreement. This document outlines the terms of the purchase as well as all conditions that must be met for the sale to be completed. Once the purchase agreement has been signed and all conditions have been met or waived, they can move on to signing additional closing documents.

At real estate closings, buyers and sellers typically exchange five key documents:

  1. A Transfer of Land Document, which transfers ownership of the property from the seller to the buyer.
  2. A Statement of Adjustments outlines how property taxes, utility bills, or other charges will be shared between the parties. 
  3. Mortgage Documents, specifying the amount borrowed by the buyer from the lender that is used to purchase the property and the terms of such loan.
  4. Dower Affidavit (Alberta), is used to ensure that a spouse is aware of the sale and has agreed to it.
  5. A Real Property Report (Alberta), which outlines any encroachments, easements, or other restrictions on the property.

Beyond these core documents, buyers may also need to provide proof of homeowners insurance coverage at closing if they are borrowing money from a lender – this ensures that in case something happens to the home due to natural calamities like fire or hurricane then the lender’s investment will still remain secure even though the house itself may get destroyed.

Upon signing all necessary paperwork at closing, the buyer’s law firm will arrange for the delivery of funds to the seller’s law firm on the closing day. Once these steps are completed, the buyer can make arrangements to pick up the keys.

In conclusion, though a daunting process & plenty of paperwork is involved in real estate closings, it isn’t as intimidating once you understand what needs to be done & know specifics about your own transaction. Being aware of all key documents needed for exchange can give peace of mind that things will go smoothly & help ensure the successful completion transaction without any hassle!!

If you are looking for help with real estate law, contact us today to speak with one of our experienced lawyers. hello@passgo.ca