Buying or Selling a Home – What Time Of Day Will Your Deal Close?
When Do You Get Your Money If You’re Selling?
When Do You Get The Keys If You’re Buying?
According to the standard Ontario Real Estate Association Forms & Documents, the Buyer & Seller have until 6:00 pm to complete their Purchase & Sale Agreement.
Of course (and hopefully) it can be completed earlier.
The completion of the transaction is official when the Seller’s Lawyer receives all of the closing funds from the Buyer’s Lawyer and when the property deed / property title is registered with the Land Registry Department.
That’s officially when ownership transfers from the seller to the buyer.
Most often both of these steps are complete by some time between 2:00pm to 4:00pm on the day of closing.
That is also when the keys are allowed to be given to the Buyer.
Until 2020 and Covid-19, the buyers would typically wait for a call from their Real Estate Lawyer saying the deal has closed, and they can come pick up the keys (from the Buyers’ Lawyer).
However, due to the unique conditions during pandemics, many professionals have had to evolve and innovate.
As a result it is now becoming more common for the keys to be left in a lockbox at the home that is sold.
Once the property deed is registered and the transaction is complete the lockbox code can be given to the Buyer.
Occasionally I’ve seen deals completed earlier, depending on when the funds are transferred to the Seller’s Lawyer.
Other times I’ve seen funds delayed and/or delays in transferring property title (registering the deed), which ultimately can cause the closing to happen as late as 5:59pm.
Of course, that makes it difficult to book an elevator in advance if you are moving into a condo.
If your movers are ahead of schedule (moving out of your prior home) it can also mean you’re paying movers to sit around with a truck full of furniture, waiting for you to get the keys.
That’s why I never recommend a same day or simultaneous closing.
I have a great short video that elaborates on why you should never close a sale & purchase on the same day, along with some great options for you to split your moving days.
Check it out “Should Your Purchase & Sale Occur On The Same Day?”
NOTE, even if you’re not intending to move in on the day of closing, you should always go into the new property once you get the keys, just to make sure everything is in the same condition it was when you previously were in the home.
If you want to know more about the process of buying or selling a home and how to do it safely & smoothly I’m always happy to chat.