I don't need to tell you that buying a new home involves a lot of important details. As your real estate lawyer, I am here to make sure you don't forget a detail that could cost you some of your hard-earned cash and cause you untold headaches on moving day! That's why I'm writing to remind you to iron out all the details of your mortgage and house insurance sooner, rather than later.
Based on the information you have provided, I understand that your agent will be helping to arrange the financing for the purchase of your new property. As the closing date of your purchase draws near, it is vital that I receive all the instructions and documents I need from your lender and insurance agent without delay. At a bare minimum, both your mortgage specialist and insurance agent need to provide these documents to me at least 48 hours before the closing date. If either of them fails to do so, you will be charged a premium of $250. Not providing these documents in a timely manner may also jeopardize our ability to finalize the purchase of your property on the desired date. Such a delay could potentially:
- Expose you to litigation (on the part of the seller).
- Render your contract to purchase void.
- And, in a worst case scenario, cost you your new home (if the seller is looking to get out of the deal).
How you can avoid costly delays on closing day?
As your solicitor, I will do everything in my power to ensure that things go smoothly on your closing date. However, you can also play an important role in avoiding last-minute delays by:
- Informing your lender (if you have not already done so) that I am acting on your behalf and providing the lender with my firm's contact information.
- Responding as quickly as possible to any request from your lender for information or documents (e.g., tax documents, notice of assessment, pay slips, employment letters, etc.).
- Finalizing all details of your financing with your lender as soon as possible.
- Arranging for home insurance that covers your new property as of the closing date.
- Asking your insurance agent to fax me a Binder Letter or Certificate of Insurance demonstrating your coverage. Most lenders will not release the mortgage funds until I am able to produce this documentation confirming that the property is insured and that the lender is named as an insured party. If you do not have an insurance broker, click here for a list of local companies that I work with and recommend.
I strongly urge you not to wait till the last minute to take care of these very important details!
If you have any questions about your financing or insurance, please don't hesitate to contact me or have your lender and/or insurance agent contact me directly by e-mail: email@example.com or phone: 519-824-7100.
I look forward to making your closing date headache-free!
Mark F. Graham
Mark F. Graham
Barrister, Solicitor, Public Notary
Mark Graham Law Office Professional Corporation