Home Closing Process: What Happens on Closing Day [Buyers & Sellers]

You found the perfect house. Your offer got accepted. But now you're staring at closing day on your calendar. You've never done this before—what actually happens at the closing table?

This guide walks you through the entire home-closing process in Canada, covering both buyer and seller perspectives. You'll learn what to expect, what to bring, what you'll pay, and how to avoid common problems that can delay your big day.

For informational purposes only. Always consult with a licensed real estate professional for advice tailored to your specific transaction.

Quick Closing Day Checklist (Save This)

For Buyers:

• Review your lawyer's statement of adjustments.
• Arrange closing funds (certified cheque or wire transfer).
• Schedule your final walkthrough.
• Bring two pieces of ID to your lawyer appointment.
• Gather documents, including proof of insurance, closing disclosure, purchase agreement, and anything else you're told to bring.
• Have your lawyer's contact info ready.
• Confirm home insurance starts on possession day.
• Set up utilities to start on possession day.
• Book movers (take potential delays into account).

For Sellers:

• Complete all agreed-upon repairs (bring receipts).
• Cancel utilities effective possession day.
• Get final meter readings.
• Remove all personal belongings.
• Gather all keys, remotes, and access items.
• Gather documents: deed, real property report, property tax bills, etc.
• Leave property in broom-clean condition.
• Bring mortgage documents to lawyer for payoff.

What Is Closing Day? (And Why It Matters)

Closing day is when the house officially becomes yours. Or, if you're selling, when you officially hand it over to someone else.

Think of it as the final handoff. Money changes hands. Lawyers transfer the property title. Keys move from seller to buyer. It's the last step after all the negotiations, inspections, and waiting.

In Canada, closing day and possession day are slightly different. Closing is when all the legal and financial work happens behind the scenes. Possession is when the buyer actually gets access to the property.

Most contracts in Alberta and across Canada set possession for noon on closing day. But the actual timing depends on how quickly everything processes (and if there are arrangements like rent-back).

Who Does What on Closing Day

Several people work behind the scenes to make closing happen:

• Real Estate Lawyers: Handle all the legal paperwork, transfer money, register the title change with the Land Titles Office, and confirm when possession can happen
• Real Estate Agents: Arrange final walkthrough, coordinate between everyone, handle the lockbox key, and make sure you have everything you need
• Buyer's Mortgage Lender: Sends mortgage funds to the buyer's lawyer's trust account on closing morning
• Seller's Mortgage Lender: Receives funds from the seller's lawyer for the seller's mortgage payoff.
• Land Titles Office: Processes and registers all the ownership changes (though this can take days to fully complete)

Here's the Typical Closing Day Schedule

• Early morning: Buyer's lender releases mortgage funds to buyer's lawyer. Buyer provides remaining funds (down payment and closing costs) to their lawyer, usually done days before.
• Mid-morning to early afternoon: Lawyers verify all documents are correct. The buyer's lawyer transfers the total purchase funds to the seller's lawyer.
• Around noon: Seller's lawyer confirms they received the money. They use it to pay off the seller's mortgage, cover legal fees and real estate commissions, and then send the rest to the seller.
• After confirmation: The buyer's lawyer registers the property in the buyer's name with the Land Titles Office and tells the buyer's agent that possession is official.
• Afternoon: Your agent uses the lockbox key to let you into your new home. The seller has left all keys and access items inside, usually on the kitchen counter.

The Buyer's Closing Journey

Getting Ready: One Week Before Closing

The week before closing is when everything comes together. Here's what needs to happen:

Confirm Home Insurance: Your insurance must start on possession day. Your lawyer can't release keys without proof of coverage. Call your insurance company at least a week ahead to make sure everything's set up correctly.

Review Your Statement of Adjustments: Your lawyer will send you a document showing exactly what you owe. It includes your remaining down payment (minus the deposit, which is already paid), all closing costs, property tax adjustments, and any other amounts due. Read through it carefully and ask questions about anything that doesn't make sense.

Arrange Your Closing Funds: Your lawyer will tell you exactly how to provide the money needed for closing. This is usually a certified bank draft or wire transfer. Most banks need a day or two to prepare large drafts, so don't wait until the last minute.

Always double-check instructions in person or over the phone, using a number you looked up yourself. Email wire fraud is distressingly common, and wired funds are notoriously difficult to recover.

Set Up Your Utilities: Contact gas, electricity, and water companies to start service on possession day. Book internet installation, too. If a technician needs access to your home, schedule it for later in the day in case possession gets delayed.

Book Your Movers: Confirm your moving date and time. Don't schedule movers for early morning on closing day. Delays can happen.

If possible, consider scheduling your move for the next day or even later; this gives you a buffer for delays and time with an empty house to give it a pre-move-in deep clean or renovations that would be tricky later.

Your Final Walkthrough

The final walkthrough usually happens 24 to 48 hours before closing. Or less—some buyers do the final walkthrough on the way to the closing appointment. This isn't a second home inspection. You're just making sure nothing has changed since you last saw the property.

Check that:

• Agreed-upon repairs were completed properly.
• Nothing broke or got damaged since your last visit.
• All included appliances and fixtures are still there.
• All the seller's stuff has been removed.
• The property is in reasonable condition.

If you find problems, call your agent right away. They'll help you figure out what to do. Options might include asking the seller to fix things before closing, adjusting the price, or, in extreme cases, delaying the closing date.

Don't ignore small problems and hope they'll work themselves out. Address them now while you still have options.

What Buyers Pay at Closing

Closing costs aren't cheap. Budget at least 2–4% of your home's purchase price to cover everything.

Here's what most buyers pay in Canada:

• Legal Fees: Lawyers typically charge between $500 and $1,500 for handling your purchase. This covers their time, document preparation, and registration with the Land Titles Office.
• Title Insurance: This usually costs $200 to $500. This protects you if ownership disputes come up later or if there are problems with the property title that weren't discovered during the search.
• Property Tax Adjustments: You might need to reimburse the seller for property taxes they already paid that cover the time after you take ownership.
• Interest Adjustments: You'll pay mortgage interest for each day between closing and the first full month of your mortgage.
• Home Inspection: Expect to pay $300 to $500. The home inspection is technically a closing cost, but happens well before closing day.
• Appraisal Fee: Your lender will probably require an appraisal to confirm the property's value. This typically costs $300 to $500.
• Status Certificate: If you're buying a condo, you'll typically pay a fee of about $100 to get this from the condo association.
• Land Title Registration Fees: Relatively small fees based on your property value. Alberta doesn't have a traditional land transfer tax like some provinces, which saves you money.
• CMHC Insurance: If your down payment is less than 20%, you'll need mortgage default insurance. The premium is usually added to your mortgage, but it's still part of your total cost.
• Down Payment: The minimum is 5% on the first $500,000 of the purchase price, 10% on anything from $500,000 up to $1.5 million, and a flat 20% if the home costs more than that.

This doesn't include moving costs or any immediate repairs you want to make.

Hidden Costs Buyers Often Miss

• Utility Connection Fees: Some utility companies charge connection fees or deposits for new accounts. Budget $100 to $300.
• Condo Document Fees: If you're buying a condo, there might be fees to obtain status certificates or other condo documents. These can be $50 to $200.
• Moving Expenses: Professional movers aren't cheap. Depending on how much stuff you have and how far you're moving, you could be looking at anywhere from $500 to $5,000+.
• Immediate Repairs or Upgrades: Even if the house is in good condition, you might want to paint or make small upgrades before moving in (and change the locks!). Budget extra for this, especially if you're buying a fixer-upper.

Closing Day Morning (Buyer Perspective)

On closing morning, you'll probably be excited and nervous. Here's what actually happens:

Your lender sends your mortgage money to your lawyer first thing in the morning. You've already provided your down payment and closing costs to your lawyer, either days before or early on closing day.

Now you wait.

Your lawyer is coordinating with the seller's lawyer to make sure all documents are correct and all money is accounted for. This can take a few hours.

Most contracts say possession happens at noon. But possession can't legally occur until your lawyer confirms the money transferred and the paperwork is ready for the Land Titles Office.

Banks have different processing times. Wire transfers can get delayed. Documents might need corrections. All of this can push your actual possession time later in the day.

This is why you shouldn't schedule movers for 9 a.m. or take the day off work expecting to move in by lunch. Give yourself buffer time.

Once everything clears, your lawyer calls your real estate agent and gives the go-ahead. Your agent will contact you and arrange to meet you at the property.

Your agent opens the home using the lockbox key. The seller has left all house keys, mailbox keys, garage remotes, gate fobs, and any other access items inside the home. These are usually on the kitchen counter or clearly visible near the front door.

Congratulations! You own a house!

The Seller's Closing Journey

After Your Deal Goes Firm

"Firm" means the buyer has removed all of their conditions. The deal is now legally binding. No more home inspection contingencies are required. No more financing approvals are needed. You're committed to selling, and they're committed to buying.

Hire Your Lawyer Right Away: As soon as your deal is firm, hire a real estate lawyer. Don't wait. Your lawyer needs time to prepare documents, conduct title searches, and handle all the legal details of transferring ownership.

Your agent can recommend trusted lawyers who specialize in real estate. Interview a couple if you want. Ask about their fees and what's included.

Timeline From Sold to Possession: Most deals close 30 to 60 days after the offer is accepted. This gives the buyer time to finalize their mortgage and gives both sides time to prepare for the move.

You'll meet with your lawyer two to three weeks before closing to sign documents and provide information about your mortgage so they can request a payout statement from your lender.

Preparing Your Home for Handover

Between now and possession day, you have work to do.

Complete Promised Repairs: If you agreed to fix anything as part of the sale negotiation, get it done. Keep receipts. The buyer might ask to see proof that repairs were completed properly.

If you don't finish repairs by possession day, your lawyer might hold back money from your proceeds until you provide proof of completion. This is called a holdback, and it's a hassle for everyone. Just get the work done on time.

Clean the Property: After you move all your stuff out, clean the house. The standard in most contracts is "broom-clean" condition. This means swept floors, empty cabinets, no garbage left behind, and bathrooms cleaned.

You don't need to hire professional cleaners (though many sellers do), but you should leave the place in reasonable shape. Remember, the buyer just paid a lot of money for this house. Leaving it dirty creates a bad final impression and can even lead to disputes.

Understand What Stays and What Goes: Review your purchase contract. It lists exactly what's included in the sale. Appliances, light fixtures, window coverings, and anything else that was negotiated should stay.

If you're tempted to take something that was supposed to stay (like that expensive chandelier), don't. It's a breach of contract. The buyer can come after you for it.

On the flip side, don't "forget" to take things you don't want to bother with. That's also a breach of contract.

Cancel Utilities: Schedule final readings for gas, electricity, and water for possession day. You're responsible for utilities until possession actually happens, so don't cancel them too early.

Forward Mail to Your New Address: Update your address with banks, credit cards, and anywhere else important.

Understanding Your Payout

Your lawyer will prepare a Statement of Adjustments. This document shows what you're getting paid and what's being deducted.

Here's what typically comes off your sale proceeds:

Your Remaining Mortgage Balance: If you still owe money on your mortgage, the buyer's money pays that off first. Your lawyer requests a payout statement from your lender showing the exact amount owed on closing day.

Real Estate Commissions: Your agent's commission (and the buyer's agent's commission if applicable) gets paid from your proceeds. This is usually 5–6% of the sale price, though it's negotiable.

Your Lawyer's Fees: Your legal fees get deducted too, typically $500 to $1,500, depending on the complexity of your sale.

Property Tax and Utility Adjustments: If you prepaid property taxes or condo fees beyond the closing date, the buyer reimburses you for that time. If you owe property taxes, those get deducted.

Any Holdbacks: If repairs aren't complete or there are other outstanding issues, your lawyer might hold back money until everything is resolved.

After all these deductions, the remaining money is yours. Your lawyer will send it to you, usually within one business day after closing.

What Sellers Pay at Closing

Here's a breakdown of typical seller closing costs:

• Legal Fees: $500 to $1,500 for your lawyer's services.
• Real Estate Commissions: Usually 5–6% of your sale price. On a $400,000 sale, that's $20,000 to $24,000. This is by far your biggest cost.
• Mortgage Payout: Whatever you still owe on your mortgage.
• Mortgage Prepayment Penalties: If you're breaking a fixed-rate mortgage before the term ends, your lender might charge a penalty. This can be three months of interest or an Interest Rate Differential (IRD), whichever is higher. The IRD can be tens of thousands of dollars.
• Real Property Report Update: If you made changes to your property since your last RPR and need an updated property survey, expect $500 to $1,500.
• Outstanding Property Taxes: Any unpaid property taxes get deducted from your proceeds.
• Capital Gains Tax: If your home wasn't your principal residence for every year you owned it, you'll owe some tax on your profit.

Closing Day Morning (Seller Perspective)

Your part of closing day is simpler than the buyer's, but it's still important.

Early Morning: If you haven't already signed your documents, you might need to do that this morning (though most sellers sign days before).

Mid-Morning: The buyer's lawyer transfers all the purchase funds to your lawyer's trust account.

Around Noon: Your lawyer confirms they received the money. They immediately pay off your mortgage, send commissions to the real estate agents, pay their own fees, and calculate what's left for you.

Afternoon: Your lawyer tells your agent that possession is confirmed. If you're still in the house on closing day, you need to be completely moved out by now. All your belongings should be gone. The property should be clean. Keys and access items should be left inside (usually on the kitchen counter).

Next Business Day: Your lawyer sends you the remaining proceeds, either by cheque or direct deposit. They can sometimes do it the same day, but most send money the following business day.

Key Documents You'll Sign

For Buyers

• Transfer of Land Document: This legally transfers ownership from the seller to you. Your lawyer registers this with the Land Titles Office.
• Mortgage Documents: If you're getting a mortgage, you'll sign a pile of documents with your lender. These outline your loan terms, interest rate, payment schedule, and all your responsibilities.
• Statement of Adjustments: This shows your final costs broken down in detail. Review it carefully before you sign.
• Title Insurance Policy: If you're buying title insurance (recommended), you'll sign documents for that coverage.

For Sellers

• Transfer of Land Document: You sign this to confirm you're transferring ownership to the buyer.
• Discharge of Mortgage: This releases your lender's claim on the property once your mortgage is paid off.
• Statement of Adjustments: This form shows what you're receiving and what's being deducted from your proceeds.
• Any Required Disclosures: Depending on your province and contract, you might need to sign additional disclosure forms about the property's condition.

Smart Timing: When to Schedule Your Closing

Just like the best time to apply for a mortgage, not all potential closing days are created equal. Some days are much better than others.

Days to Avoid:

• Fridays: If something goes wrong on a Friday, you're stuck waiting until Monday to fix it. Banks close. Lawyers' offices close. The Land Titles Office closes. A small issue that could be resolved in an hour on Tuesday becomes a weekend-long nightmare on Friday.
• Month-Ends: Every buyer wants to close at the end of the month. (Less prepaid mortgage interest.) This means lawyers are swamped, banks are processing tons of transfers, and the process takes longer. If your closing is at the end of the month, expect delays.
• Before Long Weekends: Long weekends present the same problem as Fridays, but worse. If something goes wrong before a long weekend, you might be waiting three or four days to resolve it.
• Holiday Periods: Many business supporting real estate, such as law offices and title search companies, and specific individuals relevant to your transaction, such as underwriters and mortgage specialists, may be unavailable or backlogged during late December.

Why Timing Matters

• Banking Hours: Banks process wire transfers during business hours. If the buyer's lender sends mortgage funds late in the day, it might not clear in time for same-day possession.
• Land Titles Office Processing: While registration happens after possession, the Land Titles Office needs to be open for your lawyer to complete the legal transfer.
• Lawyer Availability: If your lawyer is juggling 10 closings on the same day, yours might get delayed.
• Moving Company Schedules: Popular moving days (month-ends, Fridays, first of the month) book up fast. Give yourself flexibility.

Frequently Asked Questions

What time do I get keys on closing day?

Typically after noon, once your lawyer confirms funding has cleared. But it can be later, depending on bank processing times and how quickly everything comes together. Many buyers get keys in the early to mid-afternoon.

Can closing day be delayed?

Yes. Many things can delay closing, including funding issues, missing documents, title problems, and problems found during the final walkthrough. This is why you should avoid scheduling closing on Fridays or before long weekends. If something goes wrong, you can fix it sooner if your closing is on a Tuesday or Wednesday.

Do I need a lawyer, or can I use a notary?

In most provinces, you’re pretty much required to use a lawyer. (It’s technically possible to prepare and register your own documents in some provinces, but it’s rarely practical due to how the registry systems are designed—not to mention the extra legal risk.)

British Columbia is a notable exception. Notaries Public, licensed by the Society of Notaries Public of British Columbia, are allowed to prepare and register land title transfers.

In Quebec, you’re actually required to use a notary, since executing the deed requires a notarial deed of sale. However, Quebec’s civil-law notaries are a distinct legal profession from the common-law notaries in other provinces—they’re functionally very specialized lawyers.

Saskatchewan has non-lawyer conveyancers, but only inside law firms and under lawyer supervision. Independent notaries can’t transfer real estate.

Outside of these provinces, notaries who aren’t also lawyers can’t legally practice law, which registering real estate transfers counts as.

What if the seller hasn't moved out by possession time?

Your contract should cover this situation. Your lawyer can delay releasing funds until the seller vacates, or you might have legal recourse for breach of contract.

How much cash do I actually need on closing day?

The amount shown on your Statement of Adjustments. This includes your down payment and all closing costs. Your lawyer will tell you the exact amount and how to provide it (certified cheque or wire transfer). Bring a blank cheque just in case there are any unexpected last-minute adjustments.

Can I do my final walkthrough on closing day?

You can, but it's better to do it 24 to 48 hours beforehand. This gives you time to address any problems before closing. If you find issues during a closing-day walkthrough, you might have to delay closing to resolve them.

What happens if my mortgage funding gets delayed?

Your lawyer will work with the lender to get the funds as quickly as possible. Possession can't happen until funds clear, so you might not get the keys until later in the day or even the next day.

For informational purposes only. Always consult with a licensed real estate professional for advice tailored to your specific transaction.

Your Path to a Smooth Closing

Closing on a home is a big deal. It's the finish line of a long journey. With the right preparation, it doesn't have to be stressful.

Start early. Hire your lawyer as soon as your deal is firm. Keep good records of everything. Ask questions when something doesn't make sense. Budget for all your closing costs plus a buffer for unexpected expenses.

On closing day itself, be patient. There's a lot happening behind the scenes. But when the deal is done, all that waiting and paperwork will be worth it.