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This practical guide demystifies the process. We’ll explain the legal and financial steps, clarify who does what, and provide clear checklists so you can navigate your closing with confidence. While the article is detailed, it’s organized with quick-jump links to the sections that matter most to you.
The big picture: what “closing” actually means
A closing is the legal transfer of ownership and money, and the registration of rights and obligations. In every province, lawyers or notaries coordinate funds, confirm title, register transfers and security, and release keys or possession. There is usually no in-person ceremony. Most actions occur between law offices, lenders, and registries. Quebec typically uses notaries. Ontario, B.C., Alberta, and others use lawyers and electronic land registration systems.
Your Closing Team: Who Does What?
A successful closing is a coordinated effort. Here are the key players and their primary roles:
- Your Lawyer or Notary (The Quarterback): This is your primary representative. They review all documents, conduct title searches, coordinate with the lender, calculate the final flow of funds, register the transfer, and ensure your legal interests are protected.
- The Lender (The Funder): The bank, credit union, or private lender provides the mortgage funds. Their lawyer or internal department sends the funds to your lawyer’s trust account only after all funding conditions are met.
- The Real Estate Agents (The Coordinators): Your agent (and the other party’s agent) are the logistical hubs. They coordinate the final walkthrough, manage the physical key handover, and are the first point of contact for any last-minute property condition issues.
- The Title Insurer (The Protector): (This is often arranged by your lawyer). This company provides a policy that protects you and your lender from future title-related issues, such as fraud, survey errors, or unknown municipal work orders.
- The Seller & Buyer (The Principals): Your main job is to sign the documents, provide the necessary funds (for the buyer), and provide vacant possession (for the seller) as agreed.
(For income property, tenants and property managers may also be involved through notices, estoppels, and rent directions.)
Following the Money: The Statement of Adjustments & Closing Costs
The financial core of the closing is the Statement of Adjustments. This is the official ledger prepared by the seller’s lawyer and verified by the buyer’s lawyer. It balances the books between both parties, ensuring everyone pays their fair share up to the exact closing date.
How the Statement of Adjustments Works
The statement starts with the purchase price and then adds or subtracts costs.
Typical Closing Costs (The ‘Costs to Close‘)
These are the expenses you pay in addition to the purchase price. Your lawyer will provide a final “trust ledger” showing exactly how much money to bring in.
Risk controls that prevent last-minute problems
- Title insurance to backstop registration defects or certain frauds
- Bringdown searches on closing morning to catch new liens or writs
- Clear, written key release conditions to avoid possession disputes
- Bridging or extended funding windows if there are back-to-back sales
- Holdbacks where there is unfinished work, missing documents, or measured environmental or construction risk
Special note on tenant-occupied purchases
If a buyer will keep tenants, expect tenant notices, estoppel certificates, and rent direction letters, plus proration of rent, deposits, and last month rent credits. If the buyer requires vacant possession, the seller must deliver it as per contract and local law, which often requires specific notices and lead times.
Documentation you will see, regardless of property type
- Statement of Adjustments
- Direction re Funds and undertakings between law firms
- Transfer/Deed and mortgage or charge
- Title insurance policy or solicitor’s opinion on title
- Tax certificates, utility confirmations, or condo status documents
- Proof of insurance effective on closing
Identification attestation, anti-money-laundering verifications.
Residential Closing
This section covers freehold houses, townhomes, condos, and resale vs pre-construction.
What changes in residential compared with commercial
Residential focuses on consumer protection, mortgage funding predictability, and possession logistics. Commercial focuses more on leases, environmental risk, and corporate documents. Residential buyers usually care about keys, utilities, and fixtures. Commercial buyers care about income continuity, estoppels, and operational risk.
Residential buyer checklist
- Final lender conditions satisfied and insurance binder dated to completion
- Down payment and closing costs in liquid form, typically a bank draft or wire to your lawyer’s trust
- Title insurance or title opinion selected
- Final walkthrough booked within 24–48 hours to confirm condition, inclusions, and removals
- Utilities transfer requests submitted with possession date
- Keys pick-up instructions confirmed with your Realtor and lawyer
- If tenant-occupied, rent proration, deposit handling, and notices are in the closing package
Residential seller checklist
- Mortgage payout statement and discharge authorization delivered to lawyer
- Keys and fobs collected and labeled, remote controls and codes prepared
- Proof of repairs or compliance promised in the agreement, including permits or receipts
- Forwarding address for final utility bills and property tax reconciliation
- Condo sellers: status certificate supplied and any special assessment details disclosed and reflected in adjustments
- Vacant possession delivered if contracted
Common residential hiccups and fixes
- Late lender wire. Fix with a temporary key escrow instruction or bridge financing if there is an onward purchase.
- Walkthrough surprise. Resolve by amendment and a monetary holdback for incomplete items.
- Undisclosed rentals or hot water tank contracts. Cure through payout, assignment, or price credit on closing.
Commercial Closing
This section covers income-producing or business-use property, including multi-residential, retail, office, and industrial, and distinguishes asset purchase vs share purchase.
Commercial closing deliverables
- Assignment and assumption of leases, notices to tenants, and rent direction letters
- Non-disturbance agreements where lenders require them
- Bill of sale for chattels and equipment schedules
- Environmental reliance letters and representations
- Vendor declarations, corporate resolutions, bringdown certificates
- Holdback or escrow agreements tied to environmental, construction, or vacancy risk
Key Concept: The SNDA Agreement
When you buy a tenanted commercial property with a new mortgage, your lender will often require SNDA Agreements from key tenants. This stands for Subordination, Non-Disturbance, and Attornment.
- Subordination: The tenant agrees their lease is subordinate (secondary) to the new mortgage.
- Non-Disturbance: The lender agrees not to disturb the tenant (i.e., won’t evict them) if the landlord defaults on the mortgage, as long as the tenant keeps paying rent.
- Attornment: The tenant agrees to recognize the lender as their new landlord if the lender takes possession of the property.
Securing these from major ‘anchor’ tenants is a critical part of commercial closing diligence.
Typical commercial adjustments and money flow
- Base rent and additional rent prorations to the minute of completion
- Security deposits and prepaid rents credited to buyer
- Realty taxes and local improvement charges prorated
- Utilities, service contracts, and maintenance credits or debits
- Brokerage fees according to the listing or commission agreement
- Structured holdbacks for unresolved items, for example pending roof work or Phase II confirmation
Common commercial hiccups and fixes
- Estoppels not returned. Solve through seller certificates, targeted holdbacks, or rights to terminate if critical anchors are missing.
- Environmental flags. Insert conditional releases, indemnities, or price adjustments, and escrow for remediation.
- Rent roll mismatch. Require reconciliation of arrears with a price credit or tenant-by-tenant statement.
- Title gap. Cure with undertakings, corrective registrations, or insured over with specific endorsements.
You Have the Keys! What Happens After Closing?
Congratulations, you’re officially a property owner! However, the closing process isn’t quite finished.
What Your Lawyer Does Post-Closing
In the weeks after closing, your lawyer’s office is busy finalizing your file. They will:
- Pay Out Holdbacks: If any money was held back (e.g., for a repair), your lawyer will manage its release once conditions are met.
- Settle Final Undertakings: Complete any remaining administrative promises made to the other lawyer.
- Issue the Title Insurance Policy: You will receive the final, official policy document.
- Send a Final Report: You will receive a complete reporting package with copies of all registered documents, your statement of adjustments, and a final trust ledger. Keep this for your records.
Your New Homeowner Checklist
- Update Your Address: Immediately update your driver’s license, health card, banking, and any subscription services.
- Set Up Mail Forwarding: Arrange with Canada Post to forward mail from your old address.
- Review Your First Bills: Double-check your first property tax and utility bills to ensure the accounts were transferred correctly and the prorated amounts match your closing statements.
- Secure Your Home: Change the locks. You don’t know who the previous owner gave a spare key to.
Final walk-through on expectations
- Closings are document-driven and mostly handled between professionals.
- Possession usually occurs after registration and confirmation of funds. Plan for an afternoon key release.
- Accurate adjustments and clear key release instructions prevent the most common disputes.
- For residential, focus on insurance, walkthrough, utilities, and inclusions.
- For commercial, focus on leases, estoppels, environmental, operating statements, and strategic holdbacks.
FAQs
Usually after registration and confirmation of funds, commonly mid to late afternoon. Your lawyer releases keys to your Realtor once undertakings are satisfied.
Typically no. Your signing and ID verification can be completed in advance, in person or by approved virtual methods, depending on province and lender.
Lawyers can use escrow instructions, short extensions, or bridging to avoid a failed chain, subject to contract terms.
Only if the contract allows early possession or rental-style occupancy, which is rare for resale and more common for pre-construction condos during the interim period.
Through lease assignments, estoppels, rent directions, and adjustments. If vacant possession is promised, the seller must deliver it in accordance with law and the agreement.