If you’re selling your home in Toronto or anywhere in Ontario, closing day is a big deal. It’s the finish line of your real estate transaction. The day everything officially wraps up and you get paid.
For first-time sellers especially, this part of the process can feel a little mysterious. I often get questions like:
What happens on closing day? What do I need to do? What does my lawyer handle?
This post breaks it all down for you in a simple, step-by-step way so you know exactly what to expect.
Your Responsibilities as the Seller
As the seller, your closing day tasks are pretty straightforward. Here’s what you’re responsible for:
1. Leave the Property in the Right Condition
Your Agreement of Purchase and Sale outlines the condition in which you need to leave the property. Typically, this means “broom swept” condition, with all personal items, garbage, and debris removed.
That said, always double check the agreement. Sometimes sellers agree to patch holes in the walls, repaint, or even have the property professionally cleaned. Make sure you’re clear on what you committed to before walking away.
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2. Handle the Keys and Fobs
If it’s a freehold home, you’ll need to leave one front door key in the lockbox for the buyer’s agent to retrieve. All other keys should be left inside the property, typically on the kitchen counter.
If it’s a condo, be sure to include at least one fob in the lockbox and leave the rest inside the suite as well.
3. Vacate the Property in Time
Closing can occur any time before 6 PM, but technically, the minute the transaction is registered with the land registry, the buyer becomes the legal owner. That could happen in the morning or early afternoon.
So if you’re still moving out, you need to plan to be out as early as possible on closing day to avoid complications.
What Your Real Estate Lawyer Will Do
While you’re wrapping up on the property side, your lawyer will be busy finalizing the legal and financial side of things. Here’s what they’re responsible for:
1. Receive Funds from the Buyer’s Lawyer
Your lawyer will wait for the buyer’s lawyer to send over the purchase funds by direct deposit or wire transfer. This is the first step before anything else can proceed.
2. Exchange Legal Closing Documents
Both lawyers will ensure that all conditions have been met under the Agreement of Purchase and Sale. These documents include things like title transfer, mortgage discharge instructions, and confirmation that the deal is ready to close.
Did you know you need a real estate lawyer when buying a house, too? Watch our video: Why You Need a Real Estate Lawyer When Buying a Home
3. Pay Out Any Outstanding Balances
Before sending you the net proceeds, your lawyer will use the incoming funds to pay off any outstanding mortgage, line of credit, unpaid property taxes, or other obligations tied to the property.
4. Release the Deed to the Buyer
Once funds are in and all financial obligations are settled, your lawyer will release the deed to the buyer’s lawyer. This is when the home officially changes ownership.
5. Confirm the Key Exchange
They will also confirm with the buyer’s lawyer that the keys and any access devices are in place and ready for pick-up.
6. Transfer the Net Sale Proceeds to You
After the deal is registered and all the payments are made, your lawyer will notify you that closing is official, and they will send your net proceeds to your bank account by direct deposit or wire.
7. Notify Your Realtor
Your lawyer should let your real estate agent know that the transaction has officially closed.
8. Notify the Municipality of the Ownership Change
Lastly, they’ll inform the city that the ownership has changed. This ensures property tax records are updated and you are no longer responsible for the home.
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Final Thoughts
Closing day can feel like a whirlwind, especially when you’re selling your first property. But with a great lawyer and a knowledgeable Realtor in your corner, it can go very smoothly.
Have questions about selling your home in Toronto? Want expert advice on how to navigate your closing day?
Reach out anytime – I’m always happy to help! Give me a call at 416-909-9235, email info@yaelandco.com, or fill out the form on this page to get in touch.
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