What Happens on Closing Day

Closing day is the day you officially become a homeowner. It is the day the property’s title transfers from the seller to you, the mortgage is registered, funds are exchanged, and you receive the keys to your new home. It is exciting — but it is also a day with a lot of moving parts happening behind the scenes.

Understanding the closing day process helps you prepare properly, set realistic expectations, and avoid unnecessary stress. This page walks you through every step, from the weeks leading up to closing through the moment you unlock your front door for the first time.

The Weeks Before Closing

Closing day itself is the culmination of weeks of preparation. Here is what happens in the lead-up:

2-4 Weeks Before Closing

• Your lawyer contacts you to begin the closing process. They request copies of your purchase agreement, mortgage commitment letter, and government-issued identification.
• Your lawyer conducts the title search, examining the property’s ownership history, checking for liens, encumbrances, and other issues.
• You arrange home insurance. Your mortgage lender requires proof that your home is insured before they will release the mortgage funds. Contact your insurance broker or company and have your policy set to take effect on the closing date. Send the proof of insurance (also called a binder) to your lawyer and your lender.
• You set up utility accounts. Contact your local utility providers (electricity, gas, water, internet, etc.) to set up accounts in your name starting on the closing date. The seller will cancel their accounts for the same date.

1-2 Weeks Before Closing

• Your lawyer sends you the statement of adjustments. This is the key financial document of the closing process. It shows the purchase price, your deposit (already paid), the mortgage amount, and every adjustment and closing cost — resulting in the exact amount of cash you need to deliver to your lawyer. Review it carefully and ask about any line items you do not understand.
• You sign mortgage and closing documents. You will typically visit your lawyer’s office to review and sign the mortgage documents, the transfer documents, and any other required paperwork. Bring two pieces of government-issued photo ID. Some lawyers offer virtual signing for certain documents, but an in-person meeting is still common.

2-3 Days Before Closing

• You deliver your closing funds to your lawyer. The statement of adjustments shows the total amount you owe. You must deliver this amount by certified cheque or wire transfer — personal cheques are not accepted because they can bounce, and the funds must be guaranteed.
• Your mortgage lender sends the mortgage proceeds directly to your lawyer’s trust account. This is the mortgage amount your lender is lending you.
• Your lawyer confirms all documents are in order and that both your funds and the lender’s funds are in their trust account.

Caution

Wire transfers can take 24 to 48 hours to process, and bank certified cheques may require an appointment. Do not leave this to the last day. Deliver your funds at least two to three business days before closing to ensure they clear in time. A missed deadline here can delay your entire closing.

The Final Walkthrough

Most purchase agreements give you the right to do a final walkthrough (also called a pre-closing visit or a verification of condition) of the property before closing. This is typically done the day before or the morning of closing day. The purpose is to verify that:

• The property is in the same condition as when you made your offer
• The seller has not removed any fixtures or items that were included in the purchase (appliances, light fixtures, window coverings, etc.)
• Any repairs the seller agreed to make have been completed
• The property is empty and clean (unless you agreed otherwise)
• There is no new damage

The walkthrough is not a second home inspection. You are not looking for hidden defects — you are confirming that the property matches the condition you agreed to purchase.

Tip

Bring your purchase agreement to the walkthrough so you can check the list of inclusions and exclusions. Take photos and videos of every room, including the basement, garage, and exterior. If you find an issue, contact your lawyer immediately — they can hold back funds to address the problem or negotiate a resolution before closing proceeds.

Closing Day Step by Step

Here is what happens on the actual closing day, typically in this order:

Morning (9:00 AM - 12:00 PM)

Your lawyer registers the title transfer. Using the province’s electronic land registration system, your lawyer submits the transfer of title from the seller to you. This is the legal moment when ownership changes hands.

Your lawyer registers the mortgage. The mortgage is registered on the property’s title, giving your lender a legal claim on the property as security for the loan.

Funds are transferred. Your lawyer transfers the purchase funds from their trust account to the seller’s lawyer’s trust account. This is done electronically and typically takes a few hours to confirm.

Midday to Afternoon (12:00 PM - 4:00 PM)

The seller’s lawyer confirms receipt of funds. Once the funds are received and the title registration is confirmed, the seller’s lawyer authorizes the release of the keys.

Keys are released. Your realtor typically picks up the keys from the listing brokerage office or a lockbox and delivers them to you. In some cases, you may pick up the keys from the listing brokerage directly.

You receive the keys. This is the moment — you are officially a homeowner. The property is yours.

Typical Timeline

On a smooth closing day, you can expect to receive your keys between 2:00 PM and 5:00 PM. However, this is not guaranteed. Registration delays, funding delays, or issues with the seller’s side of the transaction can push key release later in the day — sometimes as late as 6:00 PM or 7:00 PM.

Caution

Do not schedule your movers to arrive at 9:00 AM on closing day. Keys are almost never available in the morning. Schedule your move for the afternoon or, better yet, the day after closing. This gives you a buffer and avoids the stress of movers waiting outside while you wait for the keys.

The Wire Transfer Process

Understanding how money flows on closing day helps demystify the process:

1. Your funds (down payment minus deposit, plus all closing costs) were delivered to your lawyer’s trust account two to three days before closing.
2. The mortgage funds were sent by your lender to your lawyer’s trust account, also a day or two before closing.
3. On closing day, your lawyer combines your funds and the mortgage funds, deducts the closing costs they are handling (land transfer tax, their fees, title insurance, etc.), and transfers the net purchase price to the seller’s lawyer.
4. The seller’s lawyer receives the funds, deducts the seller’s costs (their own legal fees, realtor commissions, and any outstanding mortgage balance the seller has), and distributes the remainder to the seller.

All of this happens electronically through the lawyers’ trust accounts. You will not physically see money changing hands — your lawyer handles everything.

What Can Go Wrong

While most closings proceed smoothly, delays and complications do happen. Here are the most common issues:

Funding Delays

If there is a problem with the wire transfer — for example, your bank sends the funds to the wrong account, or the lender’s mortgage advance is delayed — the entire closing can be pushed back. This is why delivering your funds early (two to three days before closing) is so important.

Title Issues

Occasionally, a last-minute title search reveals a new lien or encumbrance that was not present during the earlier search. For example, the seller may have had recent work done and the contractor filed a lien. Your lawyer will work to resolve this before proceeding.

Seller Delays

If the seller is buying another property with the proceeds of your purchase, and their own closing is delayed, it can create a chain reaction. The seller may not be able to deliver the property on time because they have not yet moved out.

Document Errors

Missing signatures, incorrect legal descriptions, transposed numbers, or typos in mortgage documents can delay registration. These are usually resolved within hours, but they add stress and push back key release.

Moving Logistics

In some cases, the seller has not fully vacated the property by closing day. This is a breach of the purchase agreement, and your lawyer can negotiate holdbacks or other remedies, but it creates a practical problem if you were planning to move in immediately.

What to Do if Closing Is Delayed

If your closing is delayed, here is what to expect and how to respond:

Stay calm and communicate. Your lawyer and your realtor have dealt with delayed closings before. Let them handle the situation while keeping you informed.

Short delays (hours to one day) are usually resolved without major consequences. The most common cause is a slow wire transfer or a registration backlog. You may receive your keys later in the day than expected, or in rare cases, the next business day.

Longer delays (multiple days) may entitle you to compensation from the party causing the delay. If the seller is the cause, your lawyer can negotiate for the seller to cover your additional costs — hotel accommodation, storage fees, additional moving costs, or per diem compensation.

Extended delays or deal collapse are rare but possible. If the closing cannot proceed at all, your lawyer will advise you on your legal options, which may include suing for specific performance (forcing the sale to complete), suing for damages, or in extreme cases, terminating the agreement and getting your deposit back.

Tip

Do not schedule your move for the exact closing date if you can avoid it. Try to leave a buffer day — close on a Thursday, move on Friday or Saturday. This protects you against delays and gives you time to clean, change locks, and handle any immediate issues before your furniture arrives.

Closing Day Checklist

Use this checklist to make sure you are prepared for closing day:

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Before Closing Day:

• Home insurance arranged and proof sent to lawyer and lender
• Utility accounts set up in your name for the closing date
• Closing funds delivered to your lawyer (certified cheque or wire transfer)
• All documents signed at your lawyer’s office
• Final walkthrough completed
• Movers booked (for closing day afternoon or the following day)

On Closing Day:

• Phone charged and available — your lawyer and realtor may need to reach you
• Keep the day as free as possible
• Wait for confirmation from your lawyer or realtor that keys are ready
• Pick up keys or meet your realtor for key handover

After Receiving Keys:

• Do a quick walk through the empty home
• Test all light switches, outlets, and faucets
• Locate the electrical panel, water shut-off, and furnace
• Check that all included appliances and fixtures are present
• Change the locks (or have a locksmith scheduled)
• Take photos of all meter readings (electricity, gas, water)

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