Closing the deal

Seven stages from firm deal to closed sale

Typical gap is 30–90 days after acceptance. Closing and possession dates are in your APS.

1. 1

   Confirm what firm means for you

   Day conditions waived

   When the buyer waives all conditions, you cannot back out without legal grounds — doing so may expose you to a lawsuit and damages. Mark the closing date and possession time on your calendar — often 6:00 p.m. on closing day unless you negotiated rent-back or early buyer occupancy.

   Send the accepted APS to your lawyer if not already done. Order your mortgage discharge statement from your lender — processing can take weeks.

   • Closing date — when title transfers and funds move
   • Possession time — when buyer gets keys; usually same day, often 6:00 p.m.
   • Agreed repairs from inspection — deadline before buyer's final walkthrough
   • MLS status — conditional sale becomes firm; discuss whether showings stop
2. 2

   Lawyer work and mortgage discharge

   Weeks 1–4 after firm

   Your lawyer clears title issues, prepares the statement of adjustments, and coordinates with the buyer's lawyer. They pay out your existing mortgage from sale proceeds on closing day and transfer net funds to you.

   Respond quickly to ID requests and questions about liens, spousal consent, or estate authority if applicable. Discharge fees and prepayment penalties appear on your net proceeds — confirm amounts with your lender early.

   • Discharge statement — order from lender as soon as deal is firm
   • Spousal consent — required on title if applicable
   • Line of credit or second mortgage — must be discharged at closing
   • Sign closing documents — often remote; confirm timing with lawyer
3. 3

   Complete repairs and prepare for walkthrough

   Before buyer's final walkthrough

   If inspection negotiations required repairs or credits, complete repairs before the buyer's final walkthrough — usually 24–48 hours before closing. Keep receipts and allow re-inspection if the APS requires it.

   Leave included appliances and fixtures in place per the APS. Removing items the buyer paid for is a closing-day dispute you do not want.

   • Document completed work — receipts and photos for your agent
   • Credits vs repairs — if you agreed a credit, it appears on adjustments, not cash at door
   • Do not strip light fixtures, window coverings, or appliances listed as included
   • Buyer walkthrough — cooperate; blocking access delays closing
4. 4

   Review the statement of adjustments

   3–5 days before closing

   The statement of adjustments splits costs between you and the buyer as of closing day. Property taxes you prepaid are credited back to you — the buyer reimburses their share. Condo fees and utilities work the same way. Your commission and legal fees come off the sale price before you receive net proceeds.

   Read every line with your lawyer. Your expected net should match what you budgeted when you listed — minus any repair credits or unexpected adjustments.

   • Sale price minus commission, legal fees, discharge, and credits equals net to you
   • Tax adjustment — prepaid property tax credited to seller pro rata
   • Condo fee and utility adjustments — prorated to closing date
   • Deposit already in trust — applied against purchase price at closing
5. 5

   Move out and deliver vacant possession

   Before possession time on closing day

   Unless rent-back or early occupancy was written into the APS, the home must be vacant and broom-clean at possession time. Plan movers for the day before or morning of closing — keys often release late afternoon after registration.

   Cancel or transfer utilities effective closing date unless rent-back says otherwise. Forward mail through Canada Post and update address with bank, CRA, and subscriptions.

   • Broom-clean — swept floors, empty cupboards, garbage removed
   • Vacant — all occupants and belongings out unless rent-back agreed
   • Winter — do not shut heat off before possession if buyer takes utility same day
   • Garage and storage — empty unless items were excluded in APS
6. 6

   Closing day — signing and key handover

   Closing day

   Your lawyer signs on your behalf or with you depending on arrangement. When the buyer's funds arrive and the transfer registers, your mortgage is paid and net proceeds transfer to your account — often same day or next business day per your lawyer's process.

   Keys, garage remotes, fob access, and alarm codes go to the buyer as agreed — usually through lawyers or your agent after registration confirms. Do not hand keys early unless the APS explicitly allows early occupancy.

   • ID ready if your lawyer requires a signing appointment
   • Key set — all keys, fobs, remotes, and mailbox keys collected
   • Garage door openers — programmed remotes left as included
   • Registration delay — possession may slip past 6:00 p.m.; lawyers communicate timing
7. 7

   After closing — proceeds and records

   Closing day onward

   Confirm net proceeds hit your account. Keep the APS, statement of adjustments, and lawyer closing letter for tax purposes — capital gains on non-principal residences require reporting; principal residence exemption may apply if it was your main home.

   Cancel home insurance effective after closing. Remove lockbox and for-sale sign per agent instruction. Notify property management on condo sales so fobs and records transfer.

   • Principal residence — discuss tax reporting with accountant if unsure
   • HST — resale homes generally exempt; new builds and substantial renovations differ
   • Keep closing documents indefinitely
   • Review agent and lawyer invoices — commission and fees as expected