Closing Properties in Alberta
BE PROACTIVE WITH YOUR PURCHASE
1. Get a preapproval – even if you do not need one for the developer
2. Keep your mortgage broker or specialist advised of any financial changes in your life (ex. buy a new house, new car, change jobs etc.)
3. Follow up with the developer on construction updates
4. Keep a mental note of expected possession dates and update your mortgage broker and lawyer
5. Start your final approval with a mortgage broker or specialist EARLY
-90 day assignment provisions so if you are not able to obtain financing, you have time to request an assignment
-if you want to shop rates this is the time to do it.
6. Advise the developer of the lawyer who will be representing you for the closing or if there is someone who will be attending the possession on your behalf
30 DAYS PRIOR TO POSSESSION
1. Should have final approval with lender or have made the decision on which lender you are proceeding with. Rate shopping at this point will cause delays and may risk you defaulting;
2. Mortgage instructions will be sent by your lender to your lawyer’s office
3. The developer’s lawyer will be sending a package of documents to your lawyer’s office
4. Once both have been received, your file will be prepared
5. Ensure your lawyer has your mortgage broker’s contact information and vice versa
7-14 DAYS PRIOR TO POSSESSION
1. Signing appointment should be booked with your lawyer. If not, do not be afraid to follow up.
2. ELECTRONIC signatures are not permitted. Documents will be emailed to you (LARGE PACKAGE) that will be required to be printed. You will meet with the lawyer over Zoom or two-way video conferencing for the lawyer to witness you sign the documents. Originals then need to be couriered to your lawyer’s office to arrive a minimum of 3-4 business days prior to closing.
3. New Condominiums require registration prior to closing. This can take 2-3 business days. We need original documents, cash to close, insurance and confirmation of utilities prior to submitting for registration. Have everything sent early to avoid delays and late interest.
4. Set up your utilities in your name and send confirmations to your lawyer
5. Wire transfer the closing funds to your lawyer’s account (exact amount will be provided by your lawyer once the file is prepared and ready for signatures)
6. Set up insurance and provide your lawyer with proof thereof
POSSESSION DAY – CLOSES AT NOON
1. The lawyer’s office will receive your mortgage funds in their account from your lender
2. Once received, a cheque will be cut and delivered to the developer’s lawyer
3. Once received, keys will be releasable at the possession time
4. Be present at the property at the time on the possession notification or ensure your representative
is;
5. You will complete a certificate of possession and note any deficiencies.
AFTER POSSESSION
1. Title will be transferred and registered in your name;
2. Your lawyer will complete the final report and you will receive copies of your file.
NOTEWORTHY ITEMS:
1. Closing costs will include, legal fees and disbursements, property tax adjustments, title insurance, new home warranty fees (some developers), home owner association fee adjustments.
2. Note: Alberta Land Titles may be increasing fees in the spring 2024
3. Any changes to a name on a contract, removal, addition or amending to a corporation is considered an assignment and requires consent. We are not able to do a “direction re: title” without consent.
4. Assignment consents too close to closing may incur a fee.
5. If during the mortgage approval process, it is determined a party needs to be added or removed, we need to immediately make the request.
6. Corporations from outside of Alberta including federal need to be extra-provincially registered in Alberta prior to closing;
7. Some developers will not permit an extension of the possession date. Onus is on the purchaser to ensure they are ready and able to close when the possession date is set.
8. If a purchaser is unable to close on time they risk losing their deposit and the developer reserves the right to sue for any and all damages associated with the breach of contract.
9. Mortgage brokers need to be licensed in Alberta. Ensure you are working with a person who is familiar with the local markets. This includes insurance brokers.
10. Make sure you are aware of post-closing obligations: Ex: if you are required to send a copy of your property management agreement within a specific time period to qualify for incentives, ensure it is sent in a timely fashion.