Closing Date on a Weekend or Holiday in Ontario: What Happens

You look at your agreement and see that the closing date falls on a Saturday, a Sunday or a holiday. You may wonder whether the closing moves to the next business day, or the day before.

The answer depends on the wording of your own agreement. This article explains what to look for and what to do so you are not caught out.

Start with your agreement

The closing date and the way a date is adjusted are contract terms. Some agreements say that a closing date on a non-business day moves to another day, and some say nothing. Because wording can differ between forms and versions, read your own agreement and any schedules and amendments.

Do not assume the date moves in your favour. If you are unsure, ask your realtor or lawyer to point to the exact clause that applies.

Why registration timing matters

Electronic registration is mandatory in Ontario, except for complex registrations. Only authorized Teraview account holders and their registered users, such as lawyers and conveyancers, can create and submit documents. Land transfer tax is paid when the conveyance is tendered for registration or before then.

Land transfer tax statements are completed as part of the electronic transfer, so a date when your lawyer cannot complete the electronic registration is a practical problem. Your lawyer will tell you which day the closing can in fact be completed.

What can go wrong

If time is of the essence and neither party is ready to close on the agreed date, the agreement stays in effect. Either party can restore time of the essence by setting a new closing date and giving the other party reasonable notice.

The deposit is security for performance, not damages, so if a buyer repudiates the agreement and fails to close, the deposit is forfeited to the seller without proof of any damage. The exception to this rule is relief from forfeiture: under section 98 of the Courts of Justice Act, a court can grant relief against penalties and forfeitures, and for real estate deposits courts have asked whether the forfeited deposit is out of all proportion to the seller's damages and whether it would be unconscionable for the seller to keep it. Seller's damages when a buyer fails to close are typically the difference between the agreed price and the property's value on the date set for closing.

• Movers, utilities and keys may be booked for a day that cannot work.
• Your lender may fund on a different day than you expect.
• The other side may read the clause differently than you do.

If your bookings, your lender's funding date or the other side's reading of the clause do not match your plans, having the actual closing day confirmed in writing gives you a clear record to work from.

Putting a new date in writing

If the date is unclear, or you would rather choose a different day, the safest approach is a written amendment signed by every buyer and seller that states the new date. It should say whether time remains of the essence. Verbal understandings or casual messages can be hard to prove later.

What to do next

• Check the closing date against a calendar as soon as you sign.
• Find the clause on non-business days, if there is one.
• Ask your lawyer which day closing can actually be completed.
• Get any change to the date agreed by both sides in writing.
• Tell your lender, movers and utility providers only once the date is confirmed.

Frequently asked questions