This page covers closing on a home in Canada: the lawyer’s or notary’s work, the statement of adjustments, and closing day itself.
The statement of adjustments
The statement of adjustments is the most important document you will review before your mortgage closes. It is the final accounting of every dollar in the deal — the purchase price, your deposit credit, the mortgage funds, property tax adjustments, prepaid utilities, land transfer tax, and your lawyer’s fees. At the bottom is one number: the exact amount you need to bring to close.
Almost every home purchase in Canada produces a statement of adjustments. This guide breaks down every line so you know exactly what you are paying for and why.
What a Statement of Adjustments Looks Like
The document is split into two sides: credits to the buyer (money the buyer receives or is credited) and debits to the buyer (money the buyer owes). The difference is what you owe at closing.
Buyer’s Statement of Adjustments — Example
Purchase Details:
| Detail | Information |
|---|
| Property | 123 Maple Street, Toronto, ON |
| Purchase price | $750,000 |
| Closing date | July 15, 2026 |
| Annual property taxes | $5,400 |
Credits to Buyer (Reduces Amount Owed)
| Item | Amount |
|---|
| Deposit held in trust | $37,500 |
| New first mortgage | $600,000 |
| Property tax adjustment (seller owes for Jan 1–Jul 14) | $0 |
| Total credits | $637,500 |
Debits to Buyer (Amount Owed)
| Item | Amount |
|---|
| Purchase price | $750,000 |
| Ontario land transfer tax | $11,475 |
| Toronto municipal land transfer tax | $11,475 |
| Property tax adjustment (buyer reimburses seller for Jul 15–Dec 31) | $2,515.07 |
| Interest adjustment (7 days) | $517.81 |
| Title insurance | $375 |
| Legal fees + disbursements (incl. HST) | $2,486 |
| Registration fees (deed + mortgage) | $170 |
| Total debits | $779,013.88 |
Balance Due on Closing
| Calculation | Amount |
|---|
| Total debits | $779,013.88 |
| Less: Total credits | ($637,500.00) |
| Balance due from buyer | $141,513.88 |
This is the certified cheque or bank draft you deliver to your lawyer before closing.
Every Line Item Explained
Credits to the Buyer
Credits reduce the amount you need to bring to closing.
1. Deposit
| Detail | Explanation |
|---|
| What it is | The earnest money you paid when the offer was accepted |
| Typical amount | Negotiated; often a few percent of the price |
| How it appears | Full deposit credited to buyer |
| Example | $37,500 deposit on a $750,000 purchase |
The deposit is held in the listing brokerage’s trust account or the seller’s lawyer’s trust account. On closing, it is released and applied against the purchase price. See deposit vs down payment explained for the full breakdown.
2. Mortgage Proceeds
| Detail | Explanation |
|---|
| What it is | The mortgage funds your lender sends to your lawyer |
| How it appears | Full mortgage amount credited |
| Example | $600,000 first mortgage |
Your lender sends the mortgage funds directly to your lawyer’s trust account, usually the morning of closing.
3. Property Tax Credit (if seller underpaid)
If the seller has not paid their property taxes up to the closing date, the amount they owe is credited to you. You then owe the municipality for the full year and will pay it going forward.
Debits to the Buyer
Debits are amounts you owe.
4. Purchase Price
| Detail | Explanation |
|---|
| What it is | The agreed sale price in the offer |
| Always the biggest item | Yes |
| Example | $750,000 |
5. Land Transfer Tax (LTT)
| Province | LTT on $750,000 Purchase |
|---|
| Ontario | $11,475 |
| British Columbia | $13,000 (+ 20% foreign buyer if applicable) |
| Quebec (transfer duties) | Depends on the municipality’s brackets; see the Quebec calculator |
| Alberta | $0 (Alberta has no LTT) |
| Manitoba | $12,650 |
| Nova Scotia (Halifax, 1.5%) | $11,250 |
| New Brunswick | $7,500 |
| PEI | $7,500 |
| Saskatchewan | $0 (no LTT; only titles registration fee) |
Additional taxes: Toronto charges a second municipal LTT on top of Ontario’s. In BC, a further 2% applies to the residential value above $3 million, and foreign buyers pay an additional 20% in designated regions such as Metro Vancouver (both are provincial taxes).
First-time buyer rebates: Ontario refunds up to $4,000 of LTT; Toronto rebates up to $4,475 of municipal LTT. BC exempts the first $500,000 of value (worth up to $8,000) on homes up to $835,000, phasing out to $860,000.
6. Property Tax Adjustment
This is where most confusion occurs. The adjustment ensures each party pays property taxes for the days they own the property.
| Scenario | Who Pays Whom |
|---|
| Seller has prepaid taxes past closing date | Buyer reimburses seller |
| Seller has not paid taxes up to closing date | Seller credits buyer |
Calculation method:
| Step | Example |
|---|
| Annual property tax | $5,400 |
| Daily rate | $5,400 ÷ 365 = about $14.79/day |
| Seller owns Jan 1 – Jul 14 (195 days) | $5,400 × 195 ÷ 365 = $2,884.93 |
| Buyer owns Jul 15 – Dec 31 (170 days) | $5,400 × 170 ÷ 365 = $2,515.07 |
If the seller paid the full year ($5,400), the buyer reimburses the seller $2,515.07 for the portion covering the buyer’s ownership period. If taxes were billed but not yet paid, the credits flow the other direction.
Watch for the billing cycle: In most Ontario municipalities, property taxes are billed twice a year (interim in February, final in June). The adjustment depends on what the seller has already paid at closing.
7. Utility Adjustments
| Utility | How It Is Handled |
|---|
| Water/sewer | If billed in advance, seller gets credit for prepaid portion |
| Oil tank | If property has oil heat, buyer reimburses seller for oil remaining in tank |
| Propane | Same as oil — buyer pays for remaining fuel |
| Hydro/gas | Not adjusted — seller closes account, buyer opens new one |
| Condo fees | Adjusted if seller prepaid for the month |
Oil tank adjustment example:
| Detail | Amount |
|---|
| Oil remaining | 600 litres |
| Current price | $1.55/litre |
| Buyer reimburses seller | $930 |
8. Interest Adjustment
| Detail | Explanation |
|---|
| What it is | Prepaid interest from closing date to your first regular payment date |
| When it occurs | If you close mid-month (most closings) |
| Calculation | Daily interest rate × mortgage balance × number of days |
| Example | $600,000 × 4.50% ÷ 365 × 7 days = $517.81 |
See mortgage interest adjustment date explained for a full breakdown of how to calculate and minimize this cost.
9. Title Insurance
| Detail | Explanation |
|---|
| What it is | Insurance protecting you and your lender against title defects |
| Typical cost | $250–$500 for residential purchases |
| Who requires it | Most lenders require lender’s title insurance; buyer’s coverage is optional but recommended |
| Alternative | An up-to-date survey (more expensive, $1,500–$2,500) |
10. Legal Fees and Disbursements
| Component | Typical Cost |
|---|
| Lawyer’s fee | $1,000–$2,000 |
| Disbursements (searches, couriers, registration) | $400–$800 |
| Title search fee | $50–$100 |
| Tax certificate | $50–$100 |
| Utility certificate | $50 |
| Status certificate (condos) | $100–$200 (usually paid earlier) |
| Total legal costs (without a condo status certificate) | about $1,550–$3,050 |
11. Registration Fees
| Fee | Amount (Ontario) |
|---|
| Transfer/deed registration | $86.42 electronic registration fee |
| Mortgage registration | $86.42 electronic registration fee |
These are flat per-document fees set by the province (the statutory part is adjusted each November by half of CPI; from November 2, 2026 an electronic registration costs $86.42 ($72.75 statutory fee, plus $12.10 ELRSA service fee and $1.57 HST)) — they do not scale with the purchase price or mortgage amount. Registration fees vary by province. Your lawyer includes them as a disbursement.
The Trust Ledger Statement
Your lawyer also provides a trust ledger statement showing all money flowing through their trust account:
| Item | In | Out |
|---|
| Your certified cheque (balance due on closing) | $141,513.88 | |
| Mortgage funds from lender | $600,000.00 | |
| Deposit released from listing brokerage | $37,500.00 | |
| Payment to seller | | $750,000.00 |
| Land transfer tax — Ontario | | $11,475.00 |
| Land transfer tax — Toronto | | $11,475.00 |
| Legal fees + HST | | $2,486.00 |
| Title insurance | | $375.00 |
| Registration fees | | $170.00 |
| Property tax adjustment to seller | | $2,515.07 |
| Interest adjustment to lender | | $517.81 |
| Balance in trust | | $0.00 |
Every dollar in equals every dollar out. The balance should be zero.
Common Mistakes and What to Watch For
Review Checklist
| Item to Verify | What to Check |
|---|
| Purchase price | Matches your offer exactly |
| Deposit amount | Matches what you actually paid |
| Mortgage amount | Matches your mortgage commitment letter |
| Property address | Correct legal description |
| Closing date | Matches agreement |
| Property tax amount | Matches municipality’s current assessment |
| Land transfer tax | Calculated correctly; first-time rebate applied if eligible |
| Lawyer’s fees | Match the quoted amount |
Common Surprises
| Surprise | Why It Happens |
|---|
| Amount due is higher than expected | Closing costs (LTT, legal fees, adjustments) were not budgeted separately from down payment |
| Property tax adjustment is large | Closing early in the year when seller has prepaid; or property tax reassessment |
| HST on legal fees | Lawyers charge HST on their fees — many buyers forget |
| CMHC premium not on statement | The premium is usually added to the mortgage balance rather than paid at closing |
| PST on CMHC premium | Ontario, Quebec and Saskatchewan charge provincial sales tax on the premium, and it is paid at closing |
Seller’s Statement of Adjustments
The seller gets their own statement of adjustments, showing proceeds from the sale minus their obligations:
| Item | Amount |
|---|
| Purchase price | $750,000 |
| Less: outstanding mortgage (paid out) | ($320,000) |
| Less: real estate commission (example: 4% + 13% HST) | ($33,900) |
| Plus: property tax adjustment (reimbursement) | $2,515.07 |
| Less: discharge fee (existing mortgage) | ($300) |
| Less: legal fees + HST | ($1,800) |
| Less: mortgage penalty (if applicable) | $0 |
| Net proceeds to seller | $396,515.07 |
Timeline: When to Expect the Statement of Adjustments
| Day | Event |
|---|
| 30–60 days before closing | Mortgage commitment confirmed; lender sends instructions to lawyer |
| 10–14 days before closing | Lawyer begins preparing documents |
| A few days before closing | Lawyer sends statement of adjustments to buyer for review |
| 1–2 days before closing | Buyer delivers the funds (certified cheque, bank draft or wire) to lawyer |
| 1 day before closing | Lawyer confirms all funds received; prepares for registration |
| Closing day | Mortgage registered, deed transferred, keys released |
How to Minimize Your Closing Costs on the Statement
| Strategy | Potential Savings |
|---|
| Close at the end of the month | Reduces interest adjustment |
| Claim first-time buyer LTT rebate | Up to $4,000 (ON) + $4,475 (Toronto) |
| Request title insurance instead of survey | Save $1,000–$2,000 vs new survey |
| Shop for a competitive legal fee | $500–$1,000 difference between lawyers |
| Close on a date aligned with property tax billing | Reduces property tax adjustment complexity |
The real estate lawyer or notary
A real estate lawyer (or notary in Quebec) protects your legal interests in a purchase or sale: they check the title, handle the transfer of funds and register the mortgage. This guide explains what they do at each stage, what it costs, and how the process differs by province.
What a Real Estate Lawyer Does: Step by Step
When Buying
| Stage | What the Lawyer Does |
|---|
| Before the offer | Reviews the Agreement of Purchase and Sale (APS); advises on conditions, clauses, and legal risks |
| After the offer is accepted | Opens the file; orders a title search; contacts the lender’s lawyer for mortgage instructions |
| Title search | Searches the land registry to confirm the seller owns the property, identifies any liens, encumbrances, easements, or issues on title |
| Title insurance | Arranges title insurance (protects against title defects, survey issues, fraud) — typically $250–$500 |
| Review of documents | Reviews status certificate (condos), survey/RPR, property tax account, utility accounts, condo bylaws |
| Mortgage documentation | Receives mortgage instructions from the lender; prepares mortgage documents for your signature |
| Closing preparation | Prepares the transfer/deed, statement of adjustments, statutory declarations |
| Signing appointment | You meet the lawyer to sign all documents (typically 1–5 days before closing) |
| Closing day | Registers the transfer and mortgage on title; releases funds to the seller’s lawyer; you receive the keys |
| Post-closing | Sends you a reporting letter with copies of all registered documents; remits land transfer tax |
When Selling
| Stage | What the Lawyer Does |
|---|
| Before closing | Receives the APS and verifies terms; requests mortgage payout statement from your lender |
| Closing preparation | Prepares the transfer/deed; statement of adjustments (prorated taxes, rent, utilities) |
| Signing | You sign the transfer documents |
| Closing day | Receives funds from buyer’s lawyer; pays off your mortgage; remits commissions and fees; deposits net proceeds to your account |
| Post-closing | Sends reporting letter; confirms mortgage discharged |
Key Legal Tasks Explained
Title Search
| What It Checks | Why It Matters |
|---|
| Current registered owner | Confirms the seller actually owns the property |
| Mortgages / liens on title | Any existing mortgages, tax liens, construction liens, or court judgments must be cleared before closing |
| Easements | Right of way, utility easements — these survive the sale and may restrict how you use the property |
| Restrictive covenants | Rules on title about what you can and cannot build (e.g., height restrictions, usage) |
| Property tax status | Confirms taxes are paid; any arrears become your problem |
| Zoning compliance | Confirms the property’s use matches municipal zoning |
| Encroachments | Structures crossing property lines (fences, garages, decks) |
Statement of Adjustments
The statement of adjustments calculates the final amount the buyer pays, accounting for prepaid or owing items.
| Adjustment | Who Pays | Example |
|---|
| Property taxes (prepaid by seller) | Buyer reimburses seller for the portion from the closing date | Seller prepaid the full year ($4,800); closing July 1, buyer owns 184 days: $4,800 × 184 ÷ 365 = $2,419.73 |
| Property taxes (in arrears) | Seller credits buyer | Seller hasn’t paid current year taxes; buyer gets credit |
| Condo fees (prepaid) | Buyer reimburses seller | Seller paid current month; closing mid-month = proportional credit |
| Fuel/oil tank | Buyer reimburses seller | Seller filled the oil tank; buyer pays current value |
| Rent (if rental property) | Seller credits buyer | If tenant already paid rent for the closing month, buyer gets the post-closing portion |
| Deposit | Credited to buyer | Deposit held in trust is applied against purchase price |
Title Insurance
| Feature | Details |
|---|
| Cost | $250–$500 (one-time, at closing) |
| What it covers | Title fraud, forgery, liens discovered after closing, survey defects, zoning violations, encroachments |
| What it doesn’t cover | Issues you knew about before closing; future environmental contamination |
| Who provides it | FCT, Stewart Title, Chicago Title, TitlePLUS |
| Is it required? | Not by law; many lenders require it (or a survey and lawyer’s opinion) |
| Alternative | Survey / Real Property Report, usually costing more and covering different risks |
Legal Costs by Province
| Province | Legal Fees (Typical Range) | Disbursements | Land Transfer Tax | Total Legal Cost (Excl. LTT) |
|---|
| Ontario | $1,000–$2,000 | $300–$700 | Marginal rates 0.5–2.5% (+ Toronto municipal LTT) | $1,300–$2,700 |
| BC | $1,000–$2,000 | $300–$700 | Property Transfer Tax: 1–3% marginal rates, plus 2% more on residential value above $3 million | $1,300–$2,700 |
| Alberta | $800–$1,500 | $200–$500 | No land transfer tax (registration fees only) | $1,000–$2,000 |
| Quebec (notary) | $1,000–$2,000 | $300–$600 | Welcome tax (droits de mutation): progressive rates, with higher top rates in Montreal and some other cities | $1,300–$2,600 |
| Manitoba | $800–$1,500 | $200–$500 | 0–2% | $1,000–$2,000 |
| Saskatchewan | $800–$1,500 | $200–$500 | No LTT (registration fees only) | $1,000–$2,000 |
| Nova Scotia | $800–$1,500 | $200–$500 | Municipal deed transfer tax (the rate varies by municipality) | $1,000–$2,000 |
| New Brunswick | $800–$1,500 | $200–$500 | 1% | $1,000–$2,000 |
| PEI | $800–$1,500 | $200–$500 | 1% | $1,000–$2,000 |
| Newfoundland | $800–$1,500 | $200–$500 | No LTT (registration fees only) | $1,000–$2,000 |
Common Disbursements
| Item | Cost |
|---|
| Title search | $50–$150 |
| Title insurance premium | $250–$500 |
| Registration fees (transfer + mortgage) | $100–$300 |
| Courier / delivery | $30–$100 |
| Software / e-registration | $50–$100 |
| Tax certificate | $30–$75 |
| Name search (if applicable) | $20–$50 |
| Photocopies / administration | $25–$75 |
How to Choose a Real Estate Lawyer
| Factor | What to Look For |
|---|
| Specialization | A practice focused on real estate |
| Volume | Regular experience with both standard and complex deals |
| Availability | Responsive to calls/emails; can meet your closing timeline |
| Fees | A written fee quote upfront, including estimated disbursements |
| Location | Licensed in the province where the property is located |
| Reviews | Google reviews, referrals from your agent or mortgage broker |
| Communication | Explains things clearly; doesn’t rush you at the signing appointment |
| Red flags | Won’t provide a fee estimate; unreachable by phone; not familiar with your type of transaction |
When You Need a Lawyer vs When You Don’t
Outside Quebec a lawyer usually handles the closing (in BC, a notary public can too), and in Quebec a notary (notaire) does, since a mortgage (hypothec) there must be a notarial deed.
| Situation | Lawyer Required? |
|---|
| Buying a home (any province) | Yes in practice (lenders require it) |
| Selling a home | Yes |
| Refinancing | Yes (new mortgage registration on title) |
| Mortgage renewal (same lender) | Usually no — same mortgage continues |
| Mortgage switch/transfer (new lender at renewal) | Often handled by the new lender’s legal or title service, sometimes at no cost to you |
| Private sale (no agent) | Yes, and the lawyer often drafts the agreement |
| New construction / pre-build | Yes — additional complexity with builder agreements, Tarion warranty (ON), deposit protection |
| Buying a condo | Yes — additional status certificate review required |
| Buying an investment property | Yes — may need additional lease reviews |
| Selling and buying simultaneously | Yes: two closings have to be coordinated |
Common Legal Issues That Can Derail a Closing
| Issue | What Happens | How the Lawyer Helps |
|---|
| Title defect (lien, judgment) | Seller can’t provide clear title | Lawyer identifies the issue early; seller must clear it or deal may collapse |
| Survey shows encroachment | Neighbour’s structure crosses your property line (or vice versa) | Title insurance covers most survey issues; lawyer advises on risk |
| Mortgage not funded on time | Lender hasn’t released funds by closing | Lawyer coordinates with lender; may need to delay closing |
| Seller can’t close on time | Seller’s purchase falls through; seller needs an extension | Lawyer negotiates extension or enforces the contract |
| Condo status certificate issues | Special assessment pending, litigation, or reserve fund issues | Lawyer reviews and advises whether to proceed or walk away |
| Missing discharge of previous mortgage | Seller’s old mortgage still shows on title after they paid it off | Lawyer arranges discharge before or at closing |
| Fraud | Someone impersonating the seller; forged documents | ID verification and the title search catch much of it; title insurance covers losses within its terms |
Lawyer’s Role in Different Transaction Types
| Transaction | Additional Lawyer Tasks |
|---|
| First-time buyer | Confirms eligibility for land transfer tax rebates; ensures FHSA/HBP requirements are met |
| New construction | Reviews builder’s APS (often non-negotiable but lawyer explains risks); Tarion enrollment; occupancy vs closing |
| Private sale | Drafts or reviews APS (normally prepared by agents); additional advisory role |
| Investment property | Reviews existing tenancy agreements; advises on rent assignment at closing |
| Separation / divorce | Handles title transfer between spouses; mortgage assumption or refinance |
| Estate / probate sale | Verifies executor authority; estate trustee documentation |
| Rent-back agreement | Drafts the post-closing occupancy agreement; advises on tenancy law implications |
Closing day
Closing day is when the home officially becomes yours: the legal and financial transfer of ownership. Here is what happens, and what can hold it up.
The week before closing
Most of the critical work happens before closing day, not on the day itself.
| Task | When | Who Handles It | Your Action |
|---|
| Sign mortgage documents | 5–10 days before closing | Your lawyer sends them for review and signature | Review carefully, sign where indicated |
| Sign closing documents with your lawyer | 2–5 days before closing | Your lawyer’s office | In-person or virtual appointment (30–60 minutes) |
| Provide closing funds | 2–3 days before closing | You wire or bring certified cheque to lawyer | Your lawyer tells you the exact amount on the statement of adjustments |
| Confirm home insurance | 1–2 weeks before closing | You arrange, provide proof to lawyer | Insurance binder sent to lawyer by your insurer |
| Set up utilities | 1 week before closing | You call/set up online | Hydro, gas, water, internet — set start date for closing day |
| Arrange movers | 1–2 weeks before closing | You | Many buyers book for late afternoon or the day after closing |
The statement of adjustments
Your lawyer prepares a statement of adjustments a few days before closing. This is the final accounting of what you owe.
| Line Item | Typical Amount | Debit (You Pay) or Credit (You Receive) |
|---|
| Purchase price | $500,000 | Debit |
| Deposit (already paid, held in trust) | $25,000 | Credit |
| Mortgage proceeds (from lender) | $475,000 | Credit |
| Land transfer tax (Ontario example) | $6,475 | Debit |
| First-time buyer LTT refund (if eligible; Ontario maximum $4,000) | ($4,000) | Credit |
| Legal fees + disbursements | $2,200 | Debit |
| Title insurance | $450 | Debit |
| Property tax adjustment (seller prepaid 6 months) | $2,500 | Debit |
| PST on CMHC premium (Ontario: 8% of a $19,000 premium, 4% on a $475,000 insured loan) | $1,520 | Debit |
| Net amount due from you | $9,145 | Certified cheque or wire |
The key number is the net amount due — this is what you bring to your lawyer. It accounts for your deposit already in trust, the mortgage funds coming from the lender, and all closing costs and adjustments.
Closing day: roughly how it goes
The order and timing vary by province and lawyer; this is a typical sequence.
| Stage | What Happens | Who Does It |
|---|
| Day before or morning | Mortgage funds arrive in your lawyer’s trust account, with your own closing funds | Lender, you |
| Morning to midday | The lawyers exchange closing documents and your lawyer sends the balance of the price to the seller’s lawyer | Your lawyer → seller’s lawyer |
| Once funds are confirmed | The transfer and mortgage are registered with the land registry (electronically in most provinces) | Your lawyer |
| Afternoon | The seller’s lawyer authorizes key release | Seller’s lawyer → listing agent |
| Keys released | Your real estate agent picks up keys from the listing office or lockbox | Your agent → you |
Month-end closings are busier. Many deals close on the last business days of the month, so lenders and law offices are stretched and delays of a few hours are more likely. Some buyers choose a mid-month or mid-week closing date for that reason.
The final walkthrough
You have the right to do a final walkthrough of the property before closing. This is typically done 24–48 hours before closing.
| What to Check | Why |
|---|
| All included appliances are present and working | Confirms nothing was removed after your offer |
| No new damage since your last visit | Seller is responsible for the property until closing |
| Agreed-upon repairs were completed (if negotiated) | Verify work was done as promised |
| All fixtures included in the offer are present | Light fixtures, window coverings, shelving, etc. |
| Utilities are functioning (turn on taps, flush toilets, check electrical) | Ensures nothing has been disconnected or damaged |
| Property is in broom-clean condition | Standard expectation — not deep cleaned, but cleared out |
| Garage door openers, keys, alarm codes are available | You will need these on possession day |
If you find a problem during the walkthrough:
- Minor issues: Document them and notify your lawyer. The closing proceeds but you may negotiate a small holdback.
- Major issues (appliances removed, new damage, unauthorized changes): your lawyer can negotiate a larger holdback in trust, or the parties can agree to delay the closing.
Documents you sign before closing
| Document | Purpose | When You Sign |
|---|
| Mortgage commitment | Your agreement with the lender — rate, term, conditions | 5–10 days before closing |
| Transfer/deed of land | Transfers ownership from seller to you | At lawyer’s office, 2–5 days before closing |
| Mortgage charge | Registers the lender’s security interest on the property | At lawyer’s office |
| Statement of adjustments | Final financial accounting | Reviewed and approved 2–5 days before closing |
| Statutory declaration | Confirms identity, citizenship/residency, intended use | At lawyer’s office |
| Direction regarding funds | Instructs your lawyer how to handle the money | At lawyer’s office |
| Undertaking to lender | Your lawyer promises to register the mortgage and provide documents to the lender | Your lawyer handles this |
Common closing day delays and how to handle them
| Delay | Cause | What Happens | How to Prepare |
|---|
| Month-end volume | Many closings on one day, system issues | Delays of hours | A mid-month closing if possible |
| Lender funding delay | Missing documents, underwriting backlog | Funds arrive late | Documents submitted well before closing |
| Title issue discovered | Lien, encroachment, boundary problem | Closing may be postponed | Your lawyer does a title search well before closing — issues usually surface early |
| Chain closing (seller is also buying) | Seller’s purchase falls through or is delayed | Your closing depends on their closing | Ask about the seller’s situation before choosing a short closing date |
| Insurance confirmation not received | Insurer did not send binder to lawyer | Lender will not fund without proof of insurance | Insurance arranged early, with the binder confirmed |
| Funds not received | Buyer’s certified cheque or wire not processed in time | Closing cannot proceed | Funds sent a few business days before closing |
What to do on closing day itself
Since you signed everything days earlier, closing day is mostly about waiting:
| Time | Your Activity |
|---|
| Morning | Your lawyer is handling the legal work. |
| Midday | A status check with your lawyer or agent. |
| Afternoon | A call from your agent when keys are ready. |
| Late afternoon | Keys picked up; into your new home. |
| Evening | Many owners change the locks right away. |
After closing: First week checklist
| Task | When | Details |
|---|
| Change locks | Day 1 | You do not know who has copies of the previous owner’s keys |
| Set up mail forwarding | Day 1 | Canada Post mail forwarding (4 months: $66.50 within a province) |
| Property tax account | Week 1 | Check that the municipality has you as owner (your lawyer usually notifies it) |
| Update address everywhere | Week 1 | Driver’s licence, bank, CRA, employer, insurance, subscriptions |
| Test smoke and CO detectors | Day 1 | Replace batteries, verify placement meets code |
| Locate water shut-off and electrical panel | Day 1 | Know where these are before an emergency |
| Review your mortgage payment schedule | Week 1 | Confirm first payment date, amount, and payment method |
| Start a home maintenance file | Week 1 | Store appliance manuals, warranties, contractor contacts, paint colours |
Closing costs you pay at or before closing
| Cost | Typical Amount | Paid To |
|---|
| Net closing funds (per statement of adjustments) | $5,000–$25,000+ | Your lawyer (trust) |
| Land transfer tax | $0–$30,000+ | Provincial/municipal government (via lawyer) |
| Legal fees | $1,500–$3,000 | Your lawyer |
| Title insurance | $300–$500 | Title insurer (via lawyer) |
| Property tax adjustment | $0–$3,000 | Seller (via lawyer) |
| PST on CMHC premium (ON, QC, SK) | $0–$2,500 | Provincial government (via lawyer) |
Everything is handled through your lawyer’s trust account. You provide one payment — the net amount due — and your lawyer allocates it to all the correct parties.
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