Real estate law
The closing process, step by step
What happens between an accepted offer and the keys in your hand, what you will be asked for, and the five things that actually cause delays.
Every deal is different, but the shape is the same
Most Ontario transactions follow a consistent workflow. Knowing it in advance makes the process far less opaque, and makes it obvious which parts depend on you.
If your closing date is short, nothing here is skipped. The steps are compressed and the order of priority changes, which is another reason to tell your lawyer early when a deal is closing quickly.
The timeline
Step 1
Day 0 to 2: file opened and dates confirmed
Your lawyer receives the Agreement of Purchase and Sale, confirms the price, deposit, conditions and closing date, and sends you a checklist of what to provide. Communication opens with the other side and, if you are financing, with your lender.
Step 2
Day 2 to 7: information and documents collected
Identification, legal names, contact details and the specifics of your side of the transaction. Buyers: financing contact and deposit details. Sellers: mortgage details, property tax information, utilities and condominium information where it applies.
Step 3
Day 7 to 15: title search and due diligence
Confirming ownership, the legal description and any registered interests. This is where liens, encumbrances and restrictions surface, and the point of doing it now is that there is still time to deal with them.
Step 4
7 to 10 days before closing: documents prepared
Lender instructions and conditions are reviewed, closing documents are prepared, your signing appointment is arranged, and the statement of adjustments is drawn up covering taxes, utilities and condominium fees.
Step 5
3 to 5 days before: funds confirmed and final checks
A buyer's balance due and the method of payment are confirmed; a seller's mortgage payout and closing undertakings are settled. Signatures, identification and any outstanding lender requirements are completed.
Step 6
Closing day: registration, funds and keys
The transfer is registered, along with the mortgage where there is one. Funds are sent and received, completion is confirmed, and the keys are released once the transaction has actually completed.
Step 7
After closing: reporting and follow-ups
You receive a reporting letter and your closing documents, registration details and final adjustments are confirmed, and any outstanding undertakings or discharges are tracked to completion.
What you will be asked for
Buyers are asked for identification, the signed agreement, deposit confirmation, lender details, insurance and a plan for the closing funds. Sellers are asked for the agreement, mortgage and property tax details, utilities, condominium information and a direction for the proceeds.
Both lists are set out in full, as printable checklists, on our checklists and guides page. If your closing is fast, send identification, your lender contact and the deposit confirmation first; the rest can follow.
What actually causes delays, and how to avoid them
Closings rarely go wrong because something is fundamentally amiss with a property. They go wrong because information arrives too late to act on. These are the five usual causes.
Late client responses
Missing documents are the single most common cause. Send what you can as soon as your file opens rather than waiting to assemble everything, and reply quickly to requests even when they seem minor.
Lender conditions arriving late
Mortgage instructions sometimes reach the lawyer only days before closing, occasionally with new conditions attached. Giving us your lender's contact details at the outset lets us chase the instructions rather than wait for them.
Title issues
Liens, easements and restrictions take time to clear. They are found by searching early, which is exactly why the search is not left until the final week. If you know of anything registered against the property, say so now.
Condominium document timing
A status certificate can take up to ten days to arrive, and the corporation sets that pace, not you. Order it as soon as your condition period starts.
Funds delivery
Bank cut-off times, transfer limits and certified-funds requirements all catch people out. Confirm the amount, the method and the timing with your bank several days ahead, not on the morning itself.
The one habit that prevents most problems
Provide your documents early and respond quickly to requests. Almost every closing issue traces back to missing information or a last-minute lender condition, and both are far easier to absorb with a fortnight in hand than with two days.
After closing: buyers
A short list, but worth doing in the first week:
- Set up hydro, gas and water effective your possession date
- Confirm your home insurance continues beyond closing
- Store your reporting package and key documents somewhere you will find them again
- Update your mailing address and your important accounts
- For a condominium, review the rules and by-laws and note the management contact
After closing: sellers
- Cancel or transfer utilities after possession, with final readings where they apply
- Confirm the mortgage discharge process is underway
- Keep copies of the closing statements for your records and for tax purposes
- Update your address with banks, the CRA and other services
What you receive from us
After closing you should receive a reporting package containing the key documents and confirmations relating to your transaction. Where follow-ups are needed, such as outstanding undertakings or a discharge, those are tracked through to completion.
Keep it somewhere accessible. You will want it again when you refinance or sell.
This page is general information about how closings usually proceed in Ontario, and it is not legal advice about your own transaction. Speak to Gurpreet about your specific situation.
Printable checklists
The full buyer and seller lists, laid out to print and tick off, along with a glossary of the terms above and links to the official Ontario sources.
Open the checklists
Questions about your closing?
Gurpreet can explain how this applies to your own transaction, and what he needs from you to keep it on schedule.
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