What Happens After Signing? Understanding the Timeline and Next Steps After Putting in an Offer on a Property

So, you have decided to put in an offer on a home and signed the purchase and sale contract. You would then have your realtor work with you together in the negotiation process within a specific time frame specified in the offer. Once both parties are satisfied with the terms of the offer, it’s officially accepted. So, what’s next after the acceptance? Here are the following steps in a typical process for closing on a home. 

1. Offer Acceptance and Binding Contract

After both parties agree to the terms and sign, you have a legally binding Contract of Purchase and Sale. This agreement outlines the transaction details, including the purchase price, terms and conditions, and dates. Time is of the essence from here, so it’s critical to be aware of key dates like subject removal deadlines, the deposit date, and the closing date.

2. Subject Removal Period

Most offers include “subject to” conditions, essentially contingencies that must be satisfied before the sale can proceed. In British Columbia, common subjects include mortgage approval, a satisfactory property inspection, and reviewing property-related documents. You’ll typically have a specific timeframe (often 7-10 days) to meet these conditions.

During this period, you’ll need to:

• Secure Financing: Ensure your mortgage approval is in place by submitting the necessary documents to your lender. Your mortgage broker or bank will appraise the property to confirm that the value is worth the purchase price.
• Conduct a Home Inspection: A professional inspection provides insights into the property’s condition, helps you assess any potential issues, and can help determine whether you want to move forward with the home.
• Review Documents: If purchasing a strata property, you’ll review strata documents (e.g., bylaws, meeting minutes, financial statements) to understand the building’s management, potential issues, and long-term maintenance plans. In addition, title and property disclosure would need to be reviewed for non and stratified homes. 

If you’re satisfied with the property and can secure financing, you can move to the next step: subject removal.

3. Removing Subjects and Paying the Deposit

Once all subjects are removed, the contract becomes unconditional, and you’re officially committed to buying the property. At this point, you’ll provide a written notice that all conditions have been satisfied or waived. Then, it’s time to pay the deposit, which is typically a percentage of the purchase price (usually between 5-10%). 

The deposit is usually due within 24 hours of subject removal. It’s usually held in trust by the buyer’s agent or the real estate brokerage and will later be applied to the purchase price. This is a critical milestone as it solidifies your commitment to the transaction.

4. Finalizing Financing and Preparing for Closing

With subjects removed and the deposit paid, it’s time to finalize the financing and prepare for closing day. Your lender may require additional documentation, such as confirmation of insurance or final income verification. Once the mortgage is fully approved, your mortgage lender and legal representative will work together to prepare the necessary documents.

5. Legal Process and Title Transfer

In British Columbia, the closing process involves a lawyer or notary who will help facilitate the title transfer, mortgage registration, and final financial adjustments. About a week before the closing date, you’ll meet with your lawyer or notary to review and sign documents, including the property transfer, mortgage agreement, and a statement of adjustments that details the final purchase amount, fees, and credits.

6. Closing Day

On closing day, the funds are transferred from your lender to the seller’s lawyer along with the deposit amount held by the brokerage office, and ownership of the property officially changes hands. The lawyer or notary registers the property transfer with the Land Title Office. Once registration is complete and the sellers have confirmed funds, the keys are released, and you can take possession.

7. Post-Closing Tasks

After closing, there are a few final steps to complete:

• Arrange Moving and Setup Services: Coordinate your move and set up utilities, internet, and other essential services. If it’s a strata property, it’s ideal to notify them at least 1-2 weeks in advance as they need to book an elevator for you to move.
• Update Address and Insurance: Ensure all your address details are updated and your homeowner’s insurance is activated as of the possession date.