Law offices are approaching the last business day of June, which is traditionally the busiest closing day of the year. 

As our members are well aware, successfully closing any transaction on time requires meticulous logistical coordination. The pressure on law offices is particularly intense on the busiest closing day, which is Friday, June 28 this year.

Falling just before the July long weekend, the volume of work on this day can pose potential challenges. Any closing issues identified on possession day may face delays in resolution until lawyers return to their offices after the Canada Day long weekend.

Despite the collaborative efforts of sellers, buyers, and their REALTORS^®, unexpected issues can arise, such as tenants not vacating or sellers leaving behind or taking items that were part of the sale. Once they occur, these issues can be difficult and time-consuming to resolve, leading to delays in closing.

Tips to prep for a smooth closing

Listing agents should remind sellers that it is their responsibility to have the property ready for possession, as agreed to in the contract.

• Remind sellers of the items that should remain at the property, especially if buyers negotiated specific chattels as part of the transaction. Additionally, if sellers commit to removing certain items from the property, providing that reminder ahead of the possession date is also helpful.
• If a seller has committed to repairing or professionally cleaning the property, listing agents can collect copies of receipts from sellers before possession. Listing agents can then provide proof of the work being completed to the buyer’s agent ahead of the closing day.

Buyer’s agents should schedule any pre-possession walk-throughs as agreed to in the contract. This is a helpful way to identify any potential issues before the day of closing; the sooner an issue is known before closing, the more time there is to try and fix it.

Both agents should refamiliarize themselves with the property listing and purchase agreement to ensure the property meets the agreed terms upon possession.

It's crucial to remember that many issues can be avoided by ensuring well-written terms in the purchase contract. Your expertise in drafting effective clauses is a key factor in the smooth closing of transactions. Check out our webinar on Drafting Effective Clauses to further enhance your skills in this area.