In the whirlwind of excitement that comes with buying or selling a home, one crucial aspect often overlooked is the closing date. Often thought of as a mere formality in the process, the closing date plays a pivotal role in sealing the deal and ensuring a smooth transition of ownership. So, what exactly are closing dates, why should you be wary of certain dates, and why is being present during the closing period essential? Let’s delve into these questions.

Understanding Closing Dates:

In Canadian real estate transactions, the closing date refers to the date when the sale of the property is finalized, and ownership officially transfers from the seller to the buyer. It’s the culmination of numerous steps, including inspections, negotiations, financing arrangements, and legal paperwork. Typically, closing dates are set anywhere from a few weeks to a few months after the offer is accepted, allowing both parties plenty of time to fulfill their obligations.

Dates to Avoid:

While closing dates may seem arbitrary, there are certain times of the year when scheduling your closing might be more challenging or less desirable. One such period is during holidays, especially major ones like Christmas, New Year’s, or Thanksgiving. The absolute worst day to close is June 30th which coincides with Canada Day and is the busiest closing date of the year. During these times, banks, legal offices, and other essential services may operate on reduced schedules, potentially causing delays in processing paperwork or transferring funds. It’s also best to avoid the 1st, 15th or 30th of any month. We recommend completing your paperwork earlier in the week (on a Monday or a Tuesday) if you would like to close later in the week. Typically, it’s best to avoid Fridays since any potential delays will be extended even longer with the weekend that follows.

Importance of Being Present:

One crucial aspect that cannot be overstated is the necessity for both buyers and sellers to be present and available during the closing period (and surrounding the closing period). While technology has made remote transactions more feasible, there are certain tasks and decisions that require immediate attention and cannot be delegated.

For buyers, being present during the final walkthrough allows them to ensure that the property is in the agreed-upon condition and that any negotiated repairs have been completed satisfactorily. On the other hand, sellers need to be available to address any last-minute issues that may arise, such as providing access to utility meters or resolving outstanding concerns raised by the buyer.

Furthermore, unforeseen complications can arise during the closing process, such as discrepancies in documentation or unexpected repairs. Having both parties accessible ensures that any issues can be swiftly addressed, minimizing the risk of the deal falling through or incurring additional costs.

Conclusion:

Choosing the right closing date and being present during the closing period are essential steps in ensuring a smooth and successful transition of ownership.

By avoiding certain dates prone to delays and prioritizing availability during the closing period, both buyers and sellers can mitigate risks and streamline the process.

To learn more about closing your real estate transaction smoothly, check out S11E2 of the REAL Collective Podcast.

For more valuable real estate related tips, you can check out the REAL Collective Podcast on iTunes, Spotify or YouTube.