Real Estate Closing in Ontario: Steps From Firm Offer to Keys

Once an offer is firm, the weeks that follow can feel like a blur of paperwork. Buyers and sellers both want to know what is happening behind the scenes and what they need to do before the keys change hands.

This article walks through the general order of events in Ontario. The exact dates, search periods and conditions are set by your own agreement of purchase and sale, so treat this as a map and not a substitute for your contract.

What closing actually means

Closing is when the transfer of the property is registered on title. Land transfer tax is payable on every conveyance of land tendered for registration, so it is paid when the transfer is registered on closing, or before then.

Electronic registration is mandatory in Ontario, except for complex registrations, and land transfer tax statements are completed as part of the electronic transfer. Only authorized Teraview account holders and their registered users, such as lawyers and conveyancers, can create and submit documents in the system.

The general timeline after a firm offer

The order below is typical. Your agreement decides the specific deadlines.

• Deposit: if a brokerage holds your deposit in trust, it first deducts the commission owing. The balance owing to the seller may be released only when the transaction is completed, or with the written consent of both parties.
• Lawyer review: your lawyer reviews the agreement, confirms the closing date and conditions, and starts the file.
• Title search and requisitions: the buyer's lawyer searches title and raises questions or requests, called requisitions, about anything that needs to be fixed or explained.
• Financing and insurance: the buyer finalizes the mortgage and arranges home insurance. Under the standard Ontario Real Estate Association insurance clause, the property stays at the seller's risk until completion.
• Statement of adjustments: the lawyers work out who owes what as of closing, such as property tax and utilities. Sellers' legal fees include preparing this statement.
• Closing funds and documents: the lawyers prepare the transfer and arrange for funds to move on closing day.

Title search, requisitions and title insurance

A title search shows who the registered owner is and what is registered against the property, such as mortgages. Requisitions are written questions or requests that come out of that search. How they are handled depends on your agreement of purchase and sale, so it is worth confirming with a lawyer.

Title insurance is not required by law in Ontario. A standard owner's policy generally covers hidden defects in ownership, existing liens, encroachments, survey and public-record errors, and title fraud. A lender's policy is a separate product that protects the mortgage lender.

A standard policy generally excludes defects the buyer knew about before buying, environmental hazards, native land claims, zoning violations from later renovations, and problems unrelated to title.

What happens on closing day

On closing day, the lawyers confirm that funds and signed documents are in order, register the transfer electronically, and then release the keys once the transaction is complete. Effective November 3, 2025, the fee to register an instrument electronically, such as a transfer or a discharge of charge, was set at $85.00. This amount may have changed since then, so confirm the current fee before your closing date. Land transfer tax is paid at registration, or earlier.

A lawyer or paralegal in Ontario may not accept more than $7,500 in cash for any one client file, including on the purchase or sale of real property, under Law Society of Ontario By-Law 9, s. 4. By-Law 9, s. 6, allows cash above that cap in limited cases, such as cash received to pay a fine, a penalty or bail, or cash for fees and disbursements where any refund is also made in cash. In practice, closing funds are delivered by non-cash methods. Ask your lawyer well ahead of time how and when to send your funds.

When closing does not go to plan

• If time is of the essence and neither party is ready to close on the agreed date, the agreement stays in effect, and either party can restore time of the essence by setting a new closing date and giving reasonable notice.
• If a buyer repudiates the agreement and fails to close, the deposit is forfeited to the seller without proof of damage. A court can grant relief against forfeiture in some cases, for example where the deposit is out of all proportion to the seller's damages and keeping it would be unconscionable.
• If the property is substantially damaged before closing, the buyer may either terminate and recover the money paid or take the insurance proceeds and complete the purchase. If the damage is not substantial, there is no right to terminate under the clause, and trying to terminate can amount to repudiation.
• Courts do not order a sale to close as a matter of course. The party asking must show the property is unique and that damages would be inadequate.

These disputes turn on the wording of the contract and the facts, so speak with a lawyer early if closing is at risk.

What to do next

• Read your agreement of purchase and sale and mark the closing date and any deadlines.
• Book a real estate lawyer or conveyancer as soon as the offer is firm.
• Ask about title insurance and what it will and will not cover.
• Arrange home insurance before closing.
• Ask how your closing funds should be delivered, since cash is not practical.
• Review the statement of adjustments with your lawyer before closing day.
• Raise any problem with the closing date immediately, not on the day.

Frequently asked questions