- Land transfer tax is paid through your lawyer when the transfer is submitted for registration, so funds need to be in place before then.
- Electronic registration runs on set days and hours, so a late advance can push registration to the next registration day.
- If a buyer repudiates and fails to close, the deposit can be forfeited without the seller proving loss.
- Whether a late advance puts you in default depends on your agreement of purchase and sale, so speak to your lawyer right away.
It is closing day. You have signed everything, the movers are booked, and your lawyer tells you the lender has not sent the mortgage money yet. Nothing feels more stressful than watching the clock while strangers decide whether your deal closes.
Delays happen, and many are resolved the same day. This article explains why lender funds can run late, what your lawyer can do, and what is at stake if the money does not arrive in time.
Why your lawyer needs the money before registration
On a purchase, the transfer is registered electronically by your lawyer. The person who tenders a conveyance for registration pays land transfer tax, and it is payable when the conveyance is tendered or before. Land transfer tax is therefore paid on closing through the buyer's lawyer, not later. An electronic conveyance is tendered when it is submitted under Part III of the Land Registration Reform Act.
In plain terms, your lawyer generally wants the full closing amount in hand, including the mortgage advance, before submitting the transfer. The money comes from your own funds plus the lender's advance. If the lender's portion is missing, there is a gap, and your lawyer cannot safely complete the registration until it is filled.
Common reasons the advance is delayed
Every lender has its own process, so the exact cause depends on your file. These are the general kinds of problem that tend to hold up an advance:
- The lender has not yet received all the documents or instructions it requires from your lawyer.
- A condition on your mortgage commitment is still outstanding, such as a document or confirmation the lender asked for.
- An error or mismatch in names, amounts or dates that the lender's staff must review.
- Internal processing or wire timing at the lender, which can run later than expected on a busy day.
- Lender cut-off times for releasing funds, which can leave money in transit when the day is nearly over.
Ask your lawyer which of these, if any, applies to you. Often the answer is a matter of hours, but sometimes it needs a call from you to your lender contact to move things along.
Registration hours matter
Electronic registration is not available around the clock. According to a 2012 ministry bulletin, document registration is Monday to Friday, 8:30 a.m. to 5:00 p.m. local time, and is not allowed on statutory or government holidays, while Teraview searches remain available outside those hours. That bulletin is old, so your lawyer will confirm the current hours.
On September 30, 2026, for example, Teraview and OnLand continued to operate as usual for electronic registrations and searches, while paper submissions and inquiries were handled the next business day. Teraview also publishes a yearly holiday schedule showing when registration is unavailable.
The practical result is that if the lender's money arrives after the registration window has closed, the transfer may not be registered until the next day registration is available. Money arriving late in the day can therefore feel like a one-day delay or longer, such as over a weekend.
Be careful with the idea that a deadline automatically moves to the next business day. Ontario's Legislation Act, 2006 extends certain time limits that would expire on a holiday to the next day that is not a holiday. That applies to statutory time limits. Whether it extends a closing date in your contract depends on the wording of your agreement of purchase and sale.
What your lawyer can do, and what it means for the deal
| Option | What it involves |
|---|---|
| Chase the lender | Your lawyer confirms the status of the advance and what the lender is waiting for. |
| Fix the cause | Supplying a missing document or correcting an error so the lender can release funds. |
| Contact the seller's lawyer | Explain the delay and ask whether the seller will agree to close later in the day or the next registration day. |
| Put an agreement in writing | If the seller agrees to wait, your lawyer can record the terms, including any extra cost or interest, so everyone knows where they stand. |
| Arrange other funds | If you can cover the shortfall yourself for a short time, the deal may close, but this depends on your finances and the lender's rules. |
Whether the seller has to agree to a delay depends on your contract and your situation, so it is worth confirming with a lawyer. Many sellers cooperate when a closing is clearly going to complete shortly, but it is a request, not a right.
The risk if you cannot close on time
If a buyer repudiates and fails to close, the deposit is forfeited without the seller needing to prove loss, because the deposit stands as security for performance. Relief from forfeiture is possible in some cases. It uses a two-part test: whether the forfeited deposit is out of all proportion to the damages suffered, and whether it would be unconscionable for the seller to keep it.
A short delay caused by a lender is not the same as a buyer walking away. Still, what happens if you miss a closing time depends on your agreement of purchase and sale, including whether time is stated to be of the essence, and on what the seller does next. Whether a seller can claim more than the deposit depends on the facts, so it is worth confirming with a lawyer. This is why it is worth involving your lawyer the moment you suspect a problem, rather than waiting for the end of the day.
What to do next
- Keep your phone on and be reachable all day, since your lawyer may need a quick answer or signature.
- Ask your lawyer exactly what the lender is waiting for and who at the lender is handling it.
- Call your lender or mortgage contact yourself if your lawyer asks you to.
- Do not tell movers or the seller anything final until your lawyer confirms the plan.
- Read your agreement of purchase and sale for the closing time and any wording about delay, and bring it to your lawyer.
- If you have not yet closed, ask your lawyer well ahead of time what documents the lender will need so nothing is left to the last day.
If closing is already slipping, get advice from a real estate lawyer straight away. Early, calm communication with the other side often makes the difference.
Frequently asked questions
Can I close if the lender's money arrives after 5 p.m.?
It depends on the timing and the agreement. A 2012 ministry bulletin set electronic registration at Monday to Friday, 8:30 a.m. to 5:00 p.m., so late funds may mean registration the next available day. Your lawyer can confirm current hours and ask the seller's side to agree to a later closing.
Do I lose my deposit if my mortgage funds are late?
Not automatically. A deposit can be forfeited if a buyer repudiates and fails to close, and relief is possible under a two-part test. A short lender delay that you work out with the seller is different, but the outcome depends on your agreement and the facts.
Does a holiday or weekend extend my closing date?
Ontario's Legislation Act, 2006 extends certain statutory time limits that would expire on a holiday to the next day that is not a holiday. Whether this affects your contractual closing date depends on your agreement of purchase and sale. Registration is also not allowed on statutory or government holidays.
When is land transfer tax paid on closing?
It is payable when the conveyance is tendered for registration or before, and it is paid through the buyer's lawyer on closing. This is one of the reasons all your funds need to be available before the transfer is submitted.
Sources
- Land Transfer Tax Act, R.S.O. 1990, c. L.6 (e-Laws, Word version) — Ontario e-Laws
- Legislation Act, 2006, S.O. 2006, c. 21, Sched. F (e-Laws, Word version) — Ontario e-Laws
- Ontario.ca – 2012-02 Teraview Extended Hours — ontario.ca
- Ontario.ca – 2026-05 National Day for Truth and Reconciliation — ontario.ca
- Ontario Court of Appeal – Azzarello v. Shawqi, 2019 ONCA 820 — ontariocourts.ca
Links go to official government, court and regulator pages. The law changes — confirm you are reading the current version.
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