What You Should be Prepared For on Closing Day and How To Avoid Problems

Closing day in real estate is when the title of the property is officially transferred over from the seller to the buyer.

While there is a lot that goes on behind the scenes at the law firm handling the transaction, this blog post, detailed by Mariko Baerg from Bridgewell Real Estate Group, will help to answer what exactly is happening and how to best prepare for the big day!


The Day of Closing:

· The buyer will sign a final signing package consisting of numerous documents prepared by the lawyer relating to the mortgage loan, land transfer tax, title on the property, title insurance, etc.
· The buyers are provided with the final amount of funds required to “close” on the property, such as remaining down payments and closing costs. The buyer will provide a bank draft with this final amount to their lawyer to finalize the purchase.
· Upon confirmation that all funds have been received, the purchasers’ lawyer will register the purchase with the Land Registry Office which officially confirms that the new purchasers are on title of the property.
· The seller will receive the proceeds earned from the sale once items such as mortgage balances and closing costs have been paid off.


Preparing For closing day

Costs of Closing on a House

It’s important that you have a thorough understanding of exactly how much money you will need to pay in order to complete the closing. Around closing day, the law firm will be preparing your statement of adjustments, which explains all of the total costs (down payment, closing costs, etc.) that are required in order for the purchase to be finalized.

This amount owing will not only include what is stated in the purchase agreement as the selling price, but also other payments and adjustments such as property transfer tax, legal fees, disbursements, maintenance fee & property tax adjustments, and more.

Make sure to have this discussion with your realtor and lawyer well in advance of closing to ensure that you have sufficient funds available.

Make Sure Your Down Payment Funds Are Ready

In the case that you are using funds from your RRSP to complete the purchase, make sure that you’ve informed your bank representative at least one month prior to closing on the house so that the funds will be available.

If you are wiring funds from out of country or receiving money from family as a gift, then you’ll want to discuss with your mortgage broker in advance as to how long that money may be required to sit in your account for the lender to consider it towards your down payment.

If you’re just in the starting period of purchasing, your mortgage broker should be able to provide you with a rough estimate for your closing costs as well so that you know how much you will have left over for your down payment.

Review Your Contract Again

Review your contract to ensure that you are aware of all of the included items that the seller should be leaving behind, as well as any additional terms that were agreed to for closing.

Is the microwave included? Are there any fixtures that are going to be removed? Your realtor should have reviewed this with you at the time that you wrote the contract, but refresh your memory before closing so that you can keep track of anything that may be missing when you move in.

Complete Your Final Walk Through

Your realtor should have added a term in your purchase agreement that you can go back to see the property prior to closing, as well as warranted all of the appliances to ensure that they will be working upon possession.

You’ll have to arrange with the seller for a pre-closing inspection of all the appliances, heating, plumbing, and electrical systems as close as possible to the closing date. Make sure that the seller has completed, or has scheduled to complete everything that they have promised will be given to you on closing.

Refer to your home inspection that you would have had done during subject removal and cross-reference with the current state of the home. If there has been any damage between contract and closing then you’ll want to negotiate any necessary repairs with the seller and let your lawyer know.

Meet with your Lawyer typically 1-2 Days Before Closing

The lawyer will prepare a statement of adjustments outlining what has been paid, and what is owing on each side of the transaction.

It is normal to go in and sign the documents and hand in the bank draft BEFORE the official closing day, as the lawyer will want to ensure that everything is in order for the title to transfer smoothly by end of the official closing day. Final closing on the property can take place anywhere in between the hours of 2:00pm-6:00pm.


How to avoid closing day problems

Avoid an End of Month or End of Week Closing

There are certainly things that can go wrong at completion, and the above information will help to avoid this. However, many lawyers often see the following issues arise at completion:

  • Not having the proper funds to complete;

  • Failing to complete a walk through & realizing there are issues with the home;

  • Lender pulling out because your financial situation has changed.

If something goes wrong, you’ll want a day or two to resolve the problem. If you close on a Friday, then that means that you’ll have to wait until Monday to get the issue resolved as lawyers and lenders are not open on the weekends.

Furthermore, an end of month close can be a busy time for a lot of lawyers and lenders because prepaid interest due at closing accumulates throughout the month. If a closing scheduled on the last day of the month is not completed that day, you will have increased closing costs, beginning at the start of the next month. but it can be avoided or reduced if the closing is near the end of the month.

Make Sure the Appraisal Has Been Satisfied

Make sure that you mortgage broker has satisfied the lender’s requirement for an appraisal well in advance of the closing date. If you have a long close, they may require an updated appraisal.

Ideally, the appraisal should occur within the 7 day subject removal period immediately after you have received an accepted offer so that you can guarantee that the bank agrees that the home is worth what you agreed to pay for it.

If the appraisal comes in low, you will be required to come up with the difference – which you will definitely want to know before the closing date.


As seen, there are a lot of moving parts leading up to and day of closing.

Carson Law can help you to further understand the closing day process or walk you through all the backend items that are completed prior.

contact us today!