What happens if the lender's solicitor withdraws or delays mortgage instructions on the morning of closing?

If the lender's lawyer withdraws or delays acting on mortgage instructions, your mortgage funds are effectively unavailable for closing, even though your own lawyer and the seller's side may be fully ready. This can happen for reasons like an unresolved condition the lender wants satisfied, a last-minute concern about the property or your file, or simple scheduling problems within the lender's legal process.

Your lawyer will typically contact the lender's lawyer directly to understand exactly what is missing and how quickly it can be resolved, since the fix might be as simple as a missing document or as involved as the lender wanting more information before releasing funds. If it cannot be resolved same day, your closing may need to be delayed, which can put you in a difficult position with the seller if this causes you to miss the scheduled closing time, potentially triggering a notice of non-compliance against you even though the lender's process, not you personally, caused the problem. Staying in close, direct contact with both your lawyer and your mortgage broker or lender the moment you sense a problem gives you the best chance of a quick resolution.