What is a gap closing and why would my lawyer suggest one instead of closing on time?

A gap closing lets a deal proceed in substance on the scheduled date even though formal registration of the transfer will happen a short time later. The lawyers agree that funds change hands, keys are released, and the buyer takes possession, while the seller's lawyer gives an undertaking to register the transfer, discharge any existing mortgage, and complete the paperwork within an agreed short window afterward.

Lawyers suggest a gap closing when something outside anyone's real control threatens an otherwise-ready deal, such as a registry outage, a document that arrives just after the registration cutoff, or a chain of closings where a related transaction registers slightly later. It avoids forcing everyone to reschedule and potentially breach their own obligations further down a chain. The tradeoff is that the buyer does not yet have registered, confirmed title during the gap, so the buyer's lawyer usually insists on protections such as holding back funds, requiring specific undertakings, and doing a fresh title search once registration finally happens. If your lawyer proposes this, it is worth understanding exactly what is being held back and for how long before agreeing.