2025-05-14 28Hse Editor
Buying a property is a major life decision, and many people worry about missing important steps that could lead to the transaction falling through. After the buyer signs the Formal Sale and Purchase Agreement and the bank’s mortgage offer letter, what procedures still need to be completed?
Once the mortgage is approved, the applicant will sign the mortgage offer letter with the bank. The bank will then notify their appointed lawyer in writing. At this stage, it’s advisable for the buyer to proactively inform their lawyer that the mortgage has been approved. This ensures that if the lawyer doesn’t receive the bank’s notification in time, they can follow up directly with the buyer to avoid delays.
The bank’s written notice is used to inform the lawyer to prepare the mortgage deed. Once all documents, including the mortgage deed, property deed, and any other documents requested by the bank, are signed, the bank will release the mortgage funds to the law firm, which will then pass them on to the seller. This enables the buyer to complete the transaction.
Since this process takes time, lawyers will typically arrange for the buyer to visit their office about a week before the closing date to sign documents and settle the final payment. If the closing date is approaching and the buyer hasn’t heard from the lawyer, it’s best to reach out proactively to confirm when the remaining procedures need to be completed, to avoid potential mishandling or even the risk of the transaction being cancelled.
On the day of closing, during office hours (usually before 5 PM on weekdays or before 1 PM on Saturdays), the buyer’s lawyer will transfer the balance of the purchase price to the seller's lawyer. In return, the seller’s lawyer will hand over the signed transfer deed and, if applicable, the keys to the buyer’s lawyer.
Some may wonder why the seller’s lawyer doesn’t always provide the keys on the day of closing. This is because the seller can choose to hand over the keys through their lawyer, the real estate agent, or directly to the buyer in person.
If the seller chooses to give the keys to their lawyer, they must do so in advance. This way, when the seller’s lawyer hands over the signed transfer deed, they can also provide the keys, as they cannot be delivered later. If the seller opts to give the keys to the agent, the agent will only hand them to the buyer once they receive confirmation from the seller or the seller’s lawyer that the final balance has been received.
As a result, the buyer should not expect to receive the keys in the morning on the day of closing. Keys are typically handed over between 3 PM and 5 PM, so it’s best not to schedule any activities that require access to the property—such as renovations, utility setups, or property blessings—until the afternoon, or your plans could be disrupted.
After the transaction is complete, the new owner will need to start making mortgage payments according to the date specified in the mortgage agreement. Additionally, they should handle applications for utilities such as water, electricity, gas, and internet. They will also need to inform the estate management office that the property has changed ownership, so they can issue new resident credentials and complete any other necessary procedures.
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