Closing the deal

Seven stages from firm deal to keys

Typical gap is 30–90 days after acceptance. Closing date is in your Agreement of Purchase and Sale.

1. 1

   Understand what changes when you go firm

   Day conditions waived

   When all conditions are waived, the deal is binding. You cannot back out without legal grounds — doing so may mean losing your deposit and facing a lawsuit from the seller. Your deposit stays in the listing brokerage's trust account and forms part of your down payment at closing.

   Notify your employer's HR if relocating, book movers early for popular dates, and tell your landlord if you rent. Your agent sends the waiver confirmation to all parties; your lawyer opens your file formally.

   • No new debt, job changes, or large purchases until closing — lender may re-verify
   • Confirm closing date and possession time in the APS — often 6:00 p.m. on closing day
   • Agreed repairs from inspection — calendar verification before walkthrough
   • Condo buyers: confirm fob and parking transfer process with property management
2. 2

   Your lawyer searches title and prepares closing documents

   Weeks 1–4 after firm

   Your real estate lawyer searches title for liens, easements, and encumbrances. They prepare the statement of adjustments, coordinate with the seller's lawyer, register your mortgage, and transfer funds. You chose this lawyer before you waived conditions — if not, retain one immediately.

   Respond quickly to your lawyer's requests for ID, insurance binder, and source-of-funds documentation. Anti-money-laundering rules require proof of where your down payment and closing cash came from.

   • Title search — confirms seller can convey clear title
   • Mortgage instructions from your lender — lawyer registers the charge on title
   • Requisitions — your lawyer may ask the seller's lawyer to clear title issues
   • Sign closing documents — often remotely; confirm whether in-person signing is required
3. 3

   Lender completes underwriting and funds the mortgage

   Parallel with lawyer

   Your broker or lender finalizes underwriting on the property. They may require a satisfactory appraisal, home insurance binder naming the lender, and updated pay stubs. Funds arrive at your lawyer's trust account on closing day — not before.

   If rates were locked, confirm the lock extends to your closing date. Rate holds expire — an expired hold at closing can mean a higher payment or delayed funding.

   • Insurance binder — effective 12:01 a.m. on closing day; lender and lawyer require proof
   • Appraisal — if value is below purchase price, resolve gap before closing
   • Fire insurance for freehold; condo corporation insurance plus your unit policy
   • Do not cancel your current home insurance until the new policy is bound
4. 4

   Review the statement of adjustments

   3–5 days before closing

   The statement of adjustments splits costs between buyer and seller as of closing day. Property taxes the seller prepaid are credited to the seller — you reimburse your share. Condo fees, utilities, and rent-back arrangements appear here. Land transfer tax is typically paid through your lawyer.

   Read every line with your lawyer. Surprises on closing day are almost always visible on the statement beforehand — if something looks wrong, ask before you deliver funds.

   • Purchase price minus deposit already paid equals balance due on closing
   • Adjustments — property tax, condo fees, utilities, oil tank fill if applicable
   • Land transfer tax — provincial; Toronto municipal LTT if buying in the city
   • First-time buyer rebates — applied at registration if eligible; confirm with lawyer
   • Legal fees and disbursements — title insurance, registration fees, courier
5. 5

   Final walkthrough — before closing, not after

   24–48 hours before closing typical

   Walk through the home one last time. Verify agreed repairs are complete, appliances and fixtures listed in the APS are present, the home is vacant unless rent-back was agreed, and there is no new damage since inspection. Test major systems if utilities are still on.

   If something is wrong — missing fridge, incomplete repair, seller still occupying — tell your agent and lawyer immediately. Do not close until resolved or credited in writing.

   • Compare to APS inclusions — washer, dryer, window coverings, light fixtures
   • Check for water stains, broken windows, or damage from seller's move-out
   • Ensure garage openers, keys, and fobs will be at lawyer or on possession
   • Photo document any issues — your agent sends to seller's agent same day
6. 6

   Closing day — funds, registration, and signing

   Closing day

   You deliver the balance of down payment and closing costs to your lawyer's trust account — usually bank draft or wire, never cash. Wire fraud is real: verify wire instructions by phone using a number you look up independently, not from an email alone.

   Your lawyer transfers funds to the seller's lawyer, registers the transfer and your mortgage, and confirms registration. Keys are released once the deal registers — often late afternoon on closing day. Possession time in the APS is usually 6:00 p.m.

   • Bank draft or certified funds — confirm payee name and amount with lawyer day before
   • Many closings are remote — ID ready for signing appointment if required
   • Keys from seller's lawyer, lockbox, or agent per APS — confirm pickup location
   • If registration delays, possession may slip — your lawyer communicates timing
7. 7

   Possession and first-week setup

   Closing day onward

   Once you have keys, change locks if prudent, test smoke and CO detectors, and locate the main water shut-off and electrical panel. Transfer utilities into your name effective possession date — hydro, gas, water, internet.

   Condo buyers: register with property management, pick up fobs and parking passes, and review corporation move-in rules. Keep closing documents indefinitely — you need them for taxes, insurance claims, and future resale.

   • Utilities — start service for possession date; avoid gap where heat is off in winter
   • Home insurance — confirm policy active; photograph belongings for records
   • Mail forwarding — Canada Post; update address with bank, CRA, and employer
   • Property tax — confirm billing will come to you; pre-authorized payment if desired
   • Keep APS, statement of adjustments, and insurance policy in a safe place