Who holds the money if closing gets pushed back a few days?
The buyer's purchase funds normally sit in the buyer's own lawyer's trust account well before the scheduled closing date, precisely so they're ready to be released the moment closing actually happens. If closing gets pushed back a few days, nothing changes about where the money sits — it simply stays in that trust account, under the buyer's lawyer's control, until the conditions for release are actually met on the new date.
The same logic applies to any deposit already paid earlier in the deal: it typically sits in a lawyer's trust account (commonly the seller's lawyer, depending on the agreement) rather than being released to either party until the agreement says it can be. A short delay doesn't put the money at risk, since Ontario lawyers are subject to strict trust accounting rules about how client funds are held. What a delay can raise is a separate question of who bears any costs the delay itself causes, which is worth confirming with your lawyer if the delay stretches on.
Key takeaways
- Buyer's funds typically sit in the buyer's own lawyer's trust account before release.
- A deposit already paid usually sits in trust too, not with either party directly.
- Trust accounting rules protect the money itself during a short delay.
- A delay can raise a separate question about who bears any resulting costs.