TO AVOID CLOSING DELAYS, CONSIDER BRIDGE FINANCING
It is common for people who are selling a house and buying a replacement home to have both deals close on the same day. This can sometimes result in closing delays. Your sale transaction has to be completed before your purchase transaction can close as the funds from the sale are required for the purchase. There is no way for you to know how many other “downstream” transactions have to close as well. If your sale transaction closes late in the day there may not be enough time to transfer funds to the lawyer acting on the other side of your purchase transaction. In that event, your furniture may be stuck on a moving truck and the moving company will likely charge you hefty standby fees.
Consider having your purchase transaction close before your sale. Bridge financing can normally be obtained when you have a sale agreement for your existing property. You will have to pay very little interest on the bridge loan and bank setup fees are usually quite modest.
Feel free to contact us at any point for assistance or advice. We may be reached at 705-435-4339 / 1-877-85LEGAL (1-877-855-3425) or contact us via email.