Share article
Share article
Summary: Extending a closing date in Ontario means both the buyer and seller sign an amendment to the agreement of purchase and sale (APS) that moves the completion date. Neither side can extend on its own, and a signed amendment is what makes the new date binding. Financing delays are the most common reason.
Closing dates move more often than most first-time buyers expect, usually for practical reasons rather than a dispute. The key thing to understand is that a closing date in a signed APS is a firm commitment, so changing it takes agreement from both sides in writing, not just a phone call.
What does it mean to extend a closing date?
Extending a closing date means the buyer and seller agree to complete the transaction on a later day than the one set in the APS, and record that change in a signed amendment. Until both sign, the original date still governs.
The closing date is a core term of the contract, so it cannot be changed by one party alone. An amendment — a short document both sides sign — is the mechanism that moves the date and keeps the rest of the agreement intact. Your lawyer prepares or reviews it so the wording protects you.
Why do closings get extended in Ontario?
Most extensions come from timing problems in the mechanics of the deal, not from anyone trying to back out. Knowing the common triggers helps you flag a risk early with your lawyer and agent.
Financing not funded in time. The lender's final approval or the mortgage instructions arrive late, so the money is not ready on closing day.
A linked sale did not close. A buyer relying on the proceeds from selling their current home cannot close if that sale slips.
Title issues. A problem found on title, such as an outstanding lien or an unregistered discharge, needs time to clear.
The seller is not ready. The home is not vacant, a tenant has not moved out, or the seller's own purchase is delayed.
Document or signing delays. A power of attorney, corporate documents, or a signature from an out-of-country party takes longer than expected.
How do you extend a closing date in Ontario?
Extending a date is a short, cooperative process when both sides agree. Move quickly, because the closer you are to the original date, the fewer options you have.
Tell your lawyer and agent early. As soon as a delay looks likely, raise it. The earlier the request, the more room there is to negotiate.
Agree on the new date. Both sides confirm a realistic new completion date, allowing enough time to fix whatever caused the delay.
Sign an amendment to the APS. Your lawyer prepares or reviews an amendment that both buyer and seller sign. This is the step that makes the new date binding.
Re-confirm the financing. Tell your lender the date changed so the mortgage instructions and funding line up with the new day, and check whether your rate hold still covers it.
Coordinate any linked closings. If your purchase and sale are tied together, both amendments need to move in step so the funds still flow in the right order.
Can one side force an extension?
No. Because most Ontario agreements say time is of the essence, neither the buyer nor the seller can unilaterally push the date, and the other side is not obligated to agree to an extension. An extension is a mutual decision.
If one party simply cannot close and the other will not grant more time, the transaction is in breach rather than extended, and the remedies are very different.
Agreed extension | No agreement to extend | |
How it happens | Both sides sign an amendment | One side misses the date |
Legal status | New binding closing date | Breach of contract |
Typical outcome | Deal proceeds on the new date | Remedies, damages, possible termination |
Your deposit | Stays in trust, applied on closing | Depends on who defaulted |
If you are on the receiving end of a missed date rather than a mutual delay, our guide to what actually happens on closing day shows where the timing pressure comes from.
What does extending a closing date cost in Ontario?
An extension itself has no government fee, but a later date can carry real costs, and who absorbs them is part of the negotiation. Build these into the conversation before you agree to a new date.
A lost or re-priced rate hold. Mortgage pre-approval rate holds typically last 90 to 120 days; if the new date falls outside yours, you may face a higher rate.
Per diem interest. Some amendments require the delaying party to pay the other side daily interest on the balance for each day of delay.
Bridge financing. If your related sale and purchase no longer line up, you may need short-term financing to cover the gap.
Extra carrying and living costs. Additional storage, accommodation, movers rebooking, or overlapping mortgage and rent.
Legal administration. Preparing the amendment and re-coordinating the file may add a modest amount to your legal costs.
Frequently asked questions
How late can you extend a closing date?
There is no fixed limit; the buyer and seller can agree to almost any new date. In practice, extensions run from a day or two to a few weeks. The limits are usually the lender's funding timeline and each side's own linked transactions.
Does extending the closing date change my deposit?
No. Your deposit stays in the trust account and is credited toward the purchase price when the deal closes on the new date. An extension amendment moves the date; it does not change the deposit or the price unless you specifically negotiate that.
Can the seller charge me interest to extend?
Sometimes. If the delay is on the buyer's side, a seller may ask for per diem interest on the outstanding balance as a condition of agreeing. Whether it applies, and the rate, is negotiated and written into the amendment.
What happens if we cannot agree on a new date?
Then the closing date does not move. The party who cannot complete is in breach of the agreement, and the other side can pursue remedies such as damages or terminating the deal. This is very different from a mutual extension.
Do I need a lawyer to extend a closing date?
Yes. The amendment is a binding change to your contract, and the wording affects your rights, your financing, and any linked closing. Your real estate lawyer prepares or reviews it and makes sure the new date works with your mortgage.
About the author
Joel Fox is a co-founder and COO at Ownright. He helps run the firm's day-to-day work on Ontario residential closings, refinances, and sales, and writes regularly to demystify the parts of a transaction that most homeowners only encounter once or twice in their lives.
At Ownright, we focus entirely on Ontario residential real estate law. We help buyers and sellers with purchase closings, refinances, sales, and status certificate reviews, combining a simple digital platform with a licensed in-house legal team you can reach by chat, email, or video call. If your closing date is at risk or you need an amendment reviewed, you can start your closing online or get in touch with any questions.
Important note: This article is not legal advice. No one should act, or refrain from acting, based solely on the information in this post or any linked materials without first seeking appropriate legal or professional advice.
