TERANET’S AUTOMATED CLOSURE^® SERVICE IS FAST, SIMPLE AND ACCURATE.

The domino–effect that is caused by closing a real estate deal requires synchronized timing to ensure the entire process runs smoothly. Historically funds have been transferred between the purchasing and selling sides of the deal, and to financial institutions, municipalities, utility companies and other 'payees' by certified cheque. Long a tradition when buying a new home, the real estate closing process is considered cumbersome and inefficient at best, and nerve–racking at worst.

Teranet has a strong affiliation with the legal profession and, after considerable consultation with real estate practitioners, decided to further streamline the closing process by creating an automated funds management and exchange service for residential real estate closings in Ontario.

“We approached all major Canadian financial institutions and Scotiabank was the most eager to do business, coming back with a very good proposition,” says Grant Goldrich, Teranet’s Product Manager – Legal Line of Business. “There was a willingness to work together – it felt more like a partnership – to create the ideal solution for our mutual clients instead of an attitude of ‘… here’s our list of canned services and you can fit into one of these.’”

Scotiabank’s technical team worked closely with Teranet to build efficient and secure electronic wire payments integration with the Closure service to facilitate the movement of funds. One of the more recent add-ons to Teranet’s suite of innovative technology products, the Closure service reduces the costs and hassles associated with obtaining certified cheques, bank drafts, direct deposits and courier deliveries. Other manual administrative efforts such as paying out mortgages can now be handled conveniently online – right from the lawyer’s desktop. Lawyers maintain control over the funds throughout the process, providing instructions on forwarding payment to the vendor's lawyer and to other payees like financial institutions.

Funds are transferred using electronic wire services provided by Canada's leading financial institutions. Once in transit, the funds are irrevocable, meaning they cannot be stopped or reversed.

“Lawyers get real time information and deals typically close earlier in the day because there is no wait to get the funds,” says Cheryl Norsworthy, Scotiabank’s Senior Manager, Core Payments & Remittance Products. In most cases, she says, payments made between the Closure service and lawyers can be completed in as little as 10 minutes.

“The Closure service is the type of product we have been waiting for. The transactions are easy, secure and integrate well with my business processes. The service has been excellent. It saves my practice both time and money,” says Douglas Downey, of Lewis Downey Tornosky & Lassaline. “We use the Closure service in every deal possible.”

For all participants involved in Ontario residential real estate transactions, the Closure service now provides a secure means by which deals are done like clockwork.