After weeks or even months of searching, negotiating, and planning, the final milestone in your home-buying journey is on the horizon: the closing date. This is the day you’ve been working towards, the culmination of the entire home buying process. It’s the day the property legally becomes yours.

But what actually happens on the closing date? For most buyers, it can feel like a mysterious process that happens behind the scenes. It’s not a single moment but a carefully orchestrated sequence of legal and financial transactions handled by professionals. Understanding this process will help you prepare and ensure a smooth, stress-free transition to homeownership.

What is the Closing Date?

The closing date, also known as the completion date, is the day specified in your Agreement of Purchase and Sale when the ownership of the property is officially transferred from the seller to you. On this day, the financial transaction is completed, the property title is registered in your name, and you finally get the keys to your new home.

Contrary to what some may think, the buyer and seller do not typically meet. The entire process is managed by their respective lawyers, your mortgage lender, and the provincial electronic land registry system. While you don’t need to take the day off work, it’s wise to be easily reachable by phone or email in case your lawyer needs to contact you.

The Key Players Behind the Scenes

Several parties work together to make your closing happen:

  • Your Lawyer: They are your legal representative. Their job is to receive the mortgage funds from your lender, collect the rest of the down payment and closing costs from you, transfer the total payment to the seller’s lawyer, and legally register the deed in your name.
  • The Seller’s Lawyer: They represent the seller’s interests. They receive the funds, pay off the seller’s existing mortgage and any other property debts, and then authorize the release of the keys to you.
  • Your Mortgage Lender: The bank or financial institution that provides your mortgage. On the morning of closing, they wire the mortgage funds to your lawyer’s trust account.
  • Teranet: This is the company that operates the Ontario Electronic Land Registration System. It’s the digital registry where your lawyer will officially record you as the new owner of the property.

The Sequence of Events on Closing Day

The closing day follows a specific, step-by-step timeline.

1. Morning: The Funds Arrive Your mortgage lender will wire the approved mortgage funds to your lawyer’s trust account. In the days leading up to closing, you will have already met with your lawyer to sign the final documents and provide them with a certified cheque for the remainder of your down payment (less your initial deposit) and all your closing costs for a buyer in Ontario.

2. Early Afternoon: The Money is Transferred Once your lawyer has all the necessary funds in their trust account, they will wire the full purchase amount to the seller’s lawyer.

3. Mid-Afternoon: The Registration After the seller’s lawyer confirms they have received the funds, they give your lawyer the electronic “keys” to register the deed. Your lawyer then accesses the Teranet system and electronically registers the Transfer/Deed of Land in your name.

4. Late Afternoon (The Magic Moment): The Keys are Released Once the property title is successfully registered in your name, the transaction is officially “closed.” Your lawyer will be notified by the registry system. The seller’s lawyer is then informed and will authorize the release of the keys. Your lawyer will then call you with the exciting news and tell you how and where to pick them up—usually from a lockbox on the property or at the seller’s brokerage office.

CRUCIAL TIP: The release of keys is almost always in the late afternoon, typically between 3:00 PM and 5:00 PM, and can be later on busy closing days (like Fridays or the end of the month). Do not schedule your movers to arrive at the property at 9:00 AM on the closing date. Plan for a late afternoon move-in to avoid paying movers to sit and wait.

Your Pre-Closing Checklist

To help ensure a smooth closing day, complete these tasks beforehand:

  • The Final Walk-Through: Conduct your final walk-through 24-48 hours before closing to confirm the property is in the agreed-upon condition.
  • Meet Your Lawyer: You will have a final meeting with your lawyer a few days before closing to sign documents and provide your closing funds.
  • Set Up Home Insurance: Your lender will require proof of property insurance, effective as of the closing date.
  • Arrange Utilities: Contact the utility companies (hydro, gas, water) to set up your accounts to start on the closing date.

When Things Go Wrong

While most closings go smoothly, delays can happen. The electronic registry can be slow on high-volume days, or a lender might be delayed in sending funds. Being prepared and having all your own ducks in a row ensures you are not the cause of any delay, which could have serious consequences and, in a worst-case scenario, lead to a situation where a real estate deal falls through in Ontario.

The closing date is a well-rehearsed dance performed by a team of professionals. By understanding the timeline, preparing in advance, and managing your expectations (especially around the timing of getting your keys), you can look forward to a successful closing and the incredible feeling of stepping into your new home.