You will want to remove your old grass. This is going to suck, the best way to do this is to rent, i think this is the name, a sod trimmer from Rona or somewhere like that. It essentially cuts about 1" down into the ground and you can roll up you old lawn in strips.
What you will want to do to get your new sod to take quicker will be to get some Loam, it is a mixture of soil and animal crap that can be bought in pretty much any area that is being developed. They will have signs up or just look for the huge pile of dirt. This soil is really nutrient rich and will help the sod take quickly so it is healthy by the time winter rolls around.
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