Real Estate Closing in Ontario: Step-by-Step Process

Once a deal is firm, the weeks before closing can feel like a blur of forms, calls and deadlines. Knowing the order of events helps you see what is yours to do and what your lawyer handles.

This article walks through the usual sequence for a buyer and a seller in Ontario. Timelines and many details depend on your own agreement of purchase and sale, so treat this as a map, not a substitute for reading your contract.

Step 1: The deal becomes firm and the deposit is held

A closing starts with a signed agreement of purchase and sale with its conditions satisfied or waived. Send the signed agreement and any waivers to your lawyer right away so they can start work.

If a brokerage holds the buyer's deposit in trust, it first deducts the commission owing. The balance owing to the seller can be released only when the transaction is completed, or with the mutual written consent of both parties.

Step 2: Lawyer work before closing day

In the weeks before closing, the lawyers review the agreement, search title and deal with any issues that come up. The periods for raising title concerns are set by the agreement, usually the standard form, so check your own document for the dates.

• Buyers: arrange your mortgage, confirm insurance and give your lawyer identification and your funds details.
• Sellers: tell your lawyer about any mortgage to be discharged, since sellers' costs include a mortgage discharge fee and may include a prepayment penalty.
• Both: read the statement of adjustments your lawyer prepares. It adjusts items such as property tax and utilities between buyer and seller, and the rules come from the agreement.
• Non-resident sellers: tell your lawyer early, because special tax steps apply.

Step 3: Signing, funds and the money side

Before closing day you will sign documents such as the transfer and, for buyers, mortgage papers. Your lawyer will explain what to sign and when.

Closing funds are delivered by non-cash methods in practice. A lawyer or paralegal may not accept more than $7,500 in cash for any one client file, including on a purchase or sale of real property, except 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.

Buyers should also budget for closing costs. The Financial Consumer Agency of Canada suggests 1.5% to 4% of the purchase price.

Step 4: Closing day and registration

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.

Land transfer tax is payable when the transfer is tendered for registration, or before then. The fee to register an instrument electronically was $85.00 as of November 3, 2025, and government fees can change, so ask your lawyer for the current amount.

When your lawyer confirms the transfer is registered and funds are released, the sale is complete. Keys are then handed over under the arrangements in your agreement, often through the realtors.

What can go wrong between firm deal and closing

• Damage to the property: under the standard OREA insurance clause the property stays at the seller's risk until completion. If there is substantial damage, the buyer may terminate and recover money paid, or take the insurance proceeds and complete. Damage that is not substantial does not give that right.
• Not ready on the date: if time is of the essence and neither side is ready 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 the other party reasonable notice.
• Buyer fails to close: if the buyer repudiates and does not close, the deposit is forfeited to the seller without proof of damage. A court can sometimes grant relief from forfeiture.

What to do next

• Put your closing date and every condition date in your calendar.
• Send your signed agreement and waivers to your lawyer promptly.
• Gather identification, mortgage details, insurance and a plan for closing funds.
• Review the statement of adjustments before closing day.
• Ask your lawyer who will hand over keys and when.

If the date is slipping, a problem appears on title or the property is damaged, speak to a lawyer before you act.

Frequently asked questions