Worse Closing of my career!! AND the lessons to learn
If anyone tells you house closing deals are easier because it is done electronically – DO NOT Believe them
Last week I had a domino closing happening on a Friday. One couple from Toronto was buying a bed and breakfast here in Niagara on the Lake and the seller was buying a home in Niagara Falls. The buyers’ closing on their house in Toronto was also on the same day as was the buyer for that one. I do not know how many properties were in the domino going back from the closing here in Niagara on the Lake, fortunately the house in Niagara Falls was the last one going that way.
So to get to the end of the story – the closing did not happen on Friday and one couple was homeless for the weekend with a truck full of Furniture and belongings. What went wrong? Nothing really, the money was transferred from Toronto to Niagara on the Lake – just late, if there had not been another deal all would be fine, but it was only one in a series. By the time the money was received here it was after 4pm, my buyer called and asked if they could get into the house as the moving truck is here. Simple question from me, – “has the money been transferred to the next place?” Answer – momentarily.
Again remember this was only one step of the series and the money did not make it in time to the next place for that lawyer to get to the bank and back in time. Lawyer offices close at 5pm, banks close at 7pm and this lawyer did not work past 5pm.
Lessons to learn
Never close on a Friday. From this day forward I will strongly suggest to my clients not to close on a Friday. If this was any other day – it would have been a delay of less than 18 hours. One night.
If you are in a domino situation – seriously think about bridge financing. When the lawyer’s assistant called to tell the sellers of the Bed and Breakfast that their deal on their purchase was not going to happen that day, the first thing out of the assistants mouth was – told you to get bridge financing. Now you have no home for the weekend. They then stopped the closing on the B&B until Monday.
Before hiring a lawyer ask if their policy is to close at 5pm no matter what on closing day. If so – find another lawyer.
That weekend was extremely stressful for both sides. The sellers of the Bed and breakfast did know that the money was out there and coming, it just that in the organization – friends to move them all was lost. No place to sleep, the beds were in the truck, the house upside down with stuff. As for me, the Realtor, you can imagine that they just needed to take it out on someone.
The informaition on this web page concerning bed and breakfasts is based on knowledge concerning properties in Niagara on the Lake, Niagara Falls, Niagara Region. No warranties or representation concerning properties for other parts of Canada.