Eliminate Outstanding Debt
It is estimated that the total household debt of Canadians is in excess of $2.5 trillion, with mortgage debt representing more than 68 per cent of this total figure.
Honour Leases
If the property has tenants, the buyer is legally obligated to honour the original leases.
Maintaining Home Insurance
This will be a condition listed by the lender and set up before the closing day. Once ownership of the home is transferred, the buyer is responsible for maintaining home insurance after closing to protect against potential damage or loss. Review the insurance policy carefully to ensure that it meets the buyer’s needs and covers potential risks associated with the property.
Recording the Deed
Recording the deed establishes the buyer’s legal ownership of the property and ensures that the property is correctly transferred from the seller to the buyer.
Close the Deal
Even if the financing falls through, the buyer is still obligated to close. There is no backing out of the deal once the paperwork is signed.
Maintaining Home Insurance
This will be a condition listed by the lender and set up before the closing day. Once ownership of the home is transferred, the buyer is responsible for maintaining home insurance after closing to protect against potential damage or loss. Review the insurance policy carefully to ensure that it meets the buyer’s needs and covers potential risks associated with the property.
Recording the Deed
Recording the deed establishes the buyer’s legal ownership of the property and ensures that the property is correctly transferred from the seller to the buyer.
Close the Deal
Even if the financing falls through, the buyer is still obligated to close. There is no backing out of the deal once the paperwork is signed.
Repay RRSP Funds
If the buyer purchased the house as part of the First-Time Homebuyers Program, they are legally obligated to replace the funds they took out of their RRSP for the down payment. These payments can be spread over several years, and failure to repay will result in the amount being considered additional income on their taxes.
Honour Leases
If the property has tenants, the buyer is legally obligated to honour the original leases.
