What Happens on Closing Day as a Seller in Ontario
Understanding what happens on closing day as a seller in Ontario — who does what, in what order, and what you’re responsible for — is one of the most practical things you can know before the day arrives.
You’ve accepted an offer. The conditions have been waived. Closing day is on the calendar. And now — if you’ve never sold before — you might be wondering what closing day actually looks like from the seller’s side.
Here’s the honest answer: for most sellers, closing day is less of an event and more of a process that your lawyer handles while you move. But understanding what’s happening behind the scenes — and what you need to do — takes the anxiety out of it.
The Week Before Closing: Your Lawyer’s Work Begins
Closing day itself is primarily a legal transaction. For the full arc from listing to this point, the seller’s guide covers every stage. Your real estate lawyer is the central player — coordinating with the buyer’s lawyer, discharging your mortgage, and transferring title. Most of the substantive work happens in the days leading up to closing, not on the day itself.
In the days before closing, you’ll typically visit your lawyer’s office to:
- Sign the transfer/deed and any other required documents
- Review and approve the Statement of Adjustments (a financial summary showing all proceeds, deductions, and credits)
- Confirm your banking details for the proceeds transfer
- Hand over all keys, garage openers, and access fobs (or coordinate this through your agent)
“By the time closing day arrives, most of the legal work is already done. Your job as a seller is to be out — on time, with the property in the condition the buyer saw it.”
What Happens on Closing Day Itself
- 1Lawyers exchange documents and funds
The buyer’s lawyer sends the purchase funds (minus any adjustments) to your lawyer’s trust account. Your lawyer pays out your existing mortgage from those funds and prepares to release the net proceeds to you.
- 2Title is registered at the Land Registry Office
Your lawyer registers the transfer of title at the Land Registry Office. In Ontario, this is now done electronically through Teraview. Once registration is confirmed, the transaction is legally complete — the buyer owns the property.
- 3Keys are released to the buyer
Once title has registered, keys are released — either through your real estate agent to the buyer’s agent, or directly through whatever arrangement was coordinated. This is the handover moment.
- 4You receive your proceeds
After title registration and all deductions have been processed, your lawyer transfers your net proceeds to your bank account — typically by the afternoon of closing day. Your lawyer will confirm the timing with you.
What Gets Deducted from Your Proceeds
Your gross sale price is not what you walk away with — for a full breakdown of every cost that comes off before you see a dollar, see the complete cost of selling a home in Toronto. Your lawyer’s Statement of Adjustments will show you exactly what’s being deducted. Common deductions include:
Typical Seller Deductions at Closing
- Existing mortgage payout: Your mortgage balance is discharged from the proceeds — this is handled by your lawyer and the lender. Depending on the type of mortgage, there may also be a prepayment penalty or discharge fee.
- Home equity line of credit (HELOC): If you have a HELOC secured against the property, it must be discharged at closing.
- Real estate commission: Your listing agent’s commission is paid from proceeds at closing.
- Real estate lawyer’s fees and disbursements: Your legal costs come out of proceeds.
- Property tax adjustment: If you’ve prepaid property taxes beyond the closing date, the buyer credits you for that portion. If there are taxes owing for the period before closing, they’re deducted from your proceeds.
- Utility and condominium fee adjustments: Condo sellers will also see an adjustment for prepaid condo fees to the closing date.
- Any other agreed deductions or credits from the APS
Your Obligations on Closing Day
From a practical standpoint, your job as a seller on closing day is straightforward — but it matters.
- Be fully moved out — not in the process of moving, but done. The buyer is entitled to possession in the condition they last viewed the property.
- Leave all inclusions — everything listed in the Agreement of Purchase and Sale must remain. This includes appliances, window coverings, light fixtures, and any items specifically agreed to.
- Remove all exclusions — anything you told the buyer you were taking should be gone before handover.
- Leave the home in broom-swept condition — clean, not necessarily professionally cleaned, but tidy and not full of debris.
- Leave all keys and remotes — every set, including any spares.
- Leave manuals and documentation — appliance manuals, HVAC service records, home alarm codes, and anything similar.
Build a buffer into your moving plan. If you’re still preparing to list, the 30-day prep checklist is the place to set your move-out date early. If your moving company is running late, if something needs a second trip, if a friend gets stuck in traffic — you don’t want those problems happening on closing day with a new owner expecting possession. Complete your move the evening before if at all possible.
What If Something Goes Wrong?
Closing delays and complications are rare but they do happen. The most common issues involve the buyer’s financing, documentation gaps, or the buyer requesting a short extension. If a delay arises, your lawyer will manage the situation and advise you on your options and rights.
If the buyer fails to close entirely — a much rarer scenario — this constitutes a breach of contract with serious legal and financial consequences for the buyer. What you can do in that situation depends on your agreement, the circumstances, and immediate legal advice.
Your agent and lawyer both play active roles in keeping your closing on track and managing complications if they arise. Their job doesn’t end when the offer is accepted. If you’re still choosing an agent, the agent interview guide covers what to ask before you sign.
Legal disclaimer: This blog is for educational purposes only and does not constitute legal or financial advice. Real estate closings in Ontario involve legal contracts and obligations. Always work with a qualified real estate lawyer for guidance specific to your transaction. The Law Society of Ontario maintains a directory to help you find one. Details around your mortgage payout, adjustments, and proceeds will vary based on your specific circumstances.
Frequently Asked Questions
What time do I need to be out on closing day?
The APS specifies the closing date, not a time. Keys are typically released once title has registered — which can happen at various times depending on how quickly lawyers complete their work. In practice, sellers should aim to be fully out by midday to avoid any issues. Your lawyer will advise on the expected timing for your specific closing.
When do I get my money after selling?
You receive your net proceeds on closing day — after title has registered and all deductions have been processed by your lawyer. This typically happens in the afternoon. Your lawyer will usually transfer the funds electronically to your bank account. If you’re simultaneously buying another property, your lawyer coordinates both closings.
What gets deducted from my sale proceeds?
Common deductions include your existing mortgage payout, any HELOC balance, real estate commission, your lawyer’s fees, and property tax or condo fee adjustments. Your lawyer will provide a Statement of Adjustments before closing day showing all items and your expected net payout.
What happens if the buyer can’t close on closing day?
A buyer who fails to close on the agreed date is typically in breach of contract. Sellers may have the right to terminate, keep the deposit, and potentially seek additional damages — but the specific options depend on your agreement and circumstances. This requires immediate contact with your real estate lawyer; do not assume what your rights are without legal advice specific to your situation.
Do I need to be present at the closing?
You don’t need to be at the Land Registry — that’s your lawyer’s job. You will need to visit your lawyer’s office in the days before closing to sign documents. On closing day itself, your primary job is to be out of the property on time with keys ready for handover through whatever process your agent and lawyer have coordinated.
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