Share article
Share article
Summary: On closing day, your down payment and mortgage funds arrive in your lawyer's trust account, your lawyer sends certified funds to the seller's lawyer, and the Transfer is registered on Teraview. Only when that Transfer is registered do you legally own the home and get the keys, which often happens late morning or into the afternoon.
Closing day is the last step of a purchase or sale, and it makes a lot of first-time buyers and sellers anxious because so much happens behind the scenes in a single day. Here is the order things actually happen in an Ontario closing, and where delays tend to creep in.
What happens on the buyer's side on closing day?
On the buyer's side, closing day is a sequence of funds moving and documents being signed, managed by your lawyer. In a typical purchase it runs like this:
Funds arrive in trust. Your down payment should be in your lawyer's trust account before closing day, and your lender's mortgage funds usually arrive first thing in the morning. Major banks almost always send funds at or before 9:00 a.m.; credit unions and some corporate lenders review documents last-minute and may not fund until late morning or early afternoon.
Certified funds go to the seller's lawyer. Once everything needed is in trust, your lawyer sends certified funds to the seller's lawyer. "Certified" means the bank has verified the funds are in the account with no hold, so they can be used right away to pay off any mortgages or liens.
The wire is confirmed and documents exchanged. Funds usually move by wire transfer, which both banks have to process, so timing varies. While it clears, your lawyer sends the wire confirmation and your signed closing documents to the seller's lawyer.
The Transfer is registered. Once the seller's lawyer confirms the funds and reviews your documents, both lawyers sign the Transfer on Teraview and your lawyer registers it. The Transfer is the document that puts title in your name.
For a fuller picture of your lawyer's role across the whole purchase, see our guide on what a real estate lawyer does in a purchase closing. If everything goes smoothly the Transfer may register by late morning, but delays at any of the steps above commonly push closing into the afternoon.
What happens on the seller's side on closing day?
On the seller's side, the lawyer mostly waits to receive the funds and signed documents from the buyer's lawyer, then signs for release of the Transfer. Once it is registered, the seller's lawyer releases the keys. If funds have not appeared by late morning or early afternoon, the seller's lawyer will check in with the buyer's lawyer for an update.
After the Transfer registers, the seller's lawyer uses the proceeds to pay out any mortgages or liens, settle outstanding property taxes, pay the real estate commission, pay the legal fees, and forward the balance to the seller. If the sale closes late in the day, the lawyer may not be able to release funds until the next business day, which can trigger additional per-diem interest. Note that banks do not always discharge a paid-off mortgage right away; many route discharges through a central processing centre, and it can take weeks or months to clear from title. Our guide on what a real estate lawyer does in a sale closing and the statement of adjustments explain the seller-side money flow in more detail.
When do you legally own the home and get the keys?
You legally own the property only once the Transfer is registered, not when funds are sent. Do not count on registration happening by a specific time, and do not start moving in until your lawyer confirms the Transfer is registered. After that, the seller's lawyer authorizes the release of the keys, which your lawyer may already hold by mail or which may sit in a lockbox whose code the seller's lawyer provides. Your lawyer then calls to tell you the deal has closed and where to pick up the keys.
What happens if the deal can't close on time?
Most Agreements of Purchase and Sale require funds to reach the seller's lawyer before 6:00 p.m. on closing day, but Teraview will not register a Transfer after 5:00 p.m., and many banks close before 6:00 p.m. That narrow window is why timing matters. A few things can happen near the deadline:
Closing in escrow. If funds arrive after 5:00 p.m. but before 6:00 p.m., the parties may agree to close "in escrow": the buyer releases funds, the seller releases keys, and the lawyers register the Transfer the next morning. Many title insurers offer gap coverage for the short period before title changes.
Extending the closing. If the deal cannot close by 6:00 p.m., the parties negotiate an extension. The innocent party usually asks the breaching party to cover their reasonable costs, such as mortgage per-diem interest, extra legal fees, or a buyer's moving and accommodation costs.
A deal that falls through. If one side truly cannot close, the innocent party must act to minimize damages by re-listing or resuming their search. If a seller later sells for less, the original buyer is liable for the difference; if a buyer must pay more for a comparable home, the seller is liable for the extra cost, and litigation may follow if the breaching party will not pay.
Last-minute disputes also surface here. A buyer's final inspection may turn up an issue, and the buyer's lawyer may seek an abatement (a reduction in the price to cover the fix). If the problem was obvious all along, the principle of caveat emptor ("let the buyer beware") applies and an abatement is not appropriate. Having a real estate lawyer on your side matters most in exactly these moments.
Should you close your sale and purchase on the same day?
It is generally unwise to schedule a sale and a purchase for the same day, because a problem on your sale can cascade into your purchase. If both are already booked for the same date, consider moving one closing to relieve the pressure of back-to-back transactions and the risk that a delay on one leaves you unable to complete the other.
Frequently asked questions
What time does a real estate closing happen in Ontario?
There is no fixed time. Lender funds often arrive around 9:00 a.m., and a smooth closing can register by late morning, but delays commonly push registration into the afternoon. Teraview will not register a Transfer after 5:00 p.m.
When do I get the keys on closing day?
After the Transfer is registered and the seller's lawyer authorizes release. Your lawyer will call to confirm the deal has closed and tell you where to collect the keys, often from a lockbox or the lawyer's office.
Can I move in before the Transfer is registered?
No. You legally own the home only once the Transfer is registered. Do not begin moving in until your lawyer confirms registration, because the deal is not complete until then.
What are certified funds?
Certified funds are funds the bank has verified are in the account with no hold, so they can be used immediately. Your lawyer sends certified funds to the seller's lawyer so any mortgages or liens can be paid off right away.
Why do closings get delayed?
Funding is the most common cause: a lender may fund late or request last-minute corrections. Wire-transfer processing, last-minute inspection disputes, and registration backlogs can also push a closing into the afternoon.
What is an escrow closing?
If funds arrive after Teraview's 5:00 p.m. registration cut-off but before the 6:00 p.m. deadline, the parties may close in escrow: funds and keys change hands and the lawyers register the Transfer the next morning, often with gap coverage from a title insurer.
About the author
Benjamin Berry is a co-founder and principal lawyer at Ownright. He works on Ontario residential purchases, sales, and refinances, and writes to make the legal side of a real estate transaction clearer for the people going through it.
At Ownright, we focus entirely on Ontario residential real estate law, and we walk clients through closing day so they know exactly what to expect and when. You can start your closing online or get in touch with any questions.
Legal references: Land Titles Act (Ontario) (electronic registration of the Transfer); the common-law principle of caveat emptor; standard Ontario Agreement of Purchase and Sale closing-time provisions.
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.
