Offer to Keys

After Your Offer is Accepted

Once the seller accepts your offer, the purchase agreement becomes binding (assuming conditions are met). Several critical steps follow to prepare for closing. The typical timeline is 30-60 days from offer acceptance to closing.

Immediate Actions (Within 24-48 Hours):

Real estate lawyer: A lawyer is typically retained promptly to begin title search and prepare mortgage documents. Delays at this stage cascade into closing delays.
Schedule home inspection (if conditional): If your offer is conditional on inspection, schedule within the inspection timeframe (typically 5-7 days).
Confirm mortgage pre-approval deadline: If a financing condition exists, ensure your lender receives the contract and begins underwriting.
Order status certificate (if condo): For condo purchases, request the status certificate from the condo corporation immediately.

During the Conditional Period (First 5-10 Days):

Complete home inspection and review findings
Request seller's response to inspection results (repairs, credits, or withdrawal)
Confirm mortgage pre-approval; address any lender questions
Review status certificate and request seller's response to defects
Satisfy all conditions or formally waive them

Lawyer's Role and Title Search

Your lawyer plays a critical role in validating the seller's right to sell and protecting your title. The lawyer conducts a title search, examines the property's ownership history, and resolves any defects before closing.

Title Search Process:

The lawyer searches public land registry records to confirm:

Ownership: The seller is the legal owner with the right to sell. Title is in their name.
Liens and mortgages: Any mortgages, liens, or claims registered against the property. These must be paid from sale proceeds.
Easements and covenants: Rights granted to utilities or neighbors; restrictions on use (e.g., no commercial use).
Tax arrears: No outstanding property taxes or assessments that would transfer to you.
Survey issues: Boundary disputes or encroachments (neighbors' structures extending onto your property).

Resolving Title Issues:

If the lawyer discovers title defects:

Unpaid mortgages: Seller must pay from sale proceeds. Lawyer holds closing funds until satisfied.
Easements or covenants: Lawyer reviews to ensure they don't materially affect your use. Title insurance covers disputes.
Boundary disputes: May require a new survey or title insurance to protect against claims.
Tax arrears: Seller must satisfy before closing.

If defects cannot be resolved, you may withdraw from the purchase (in some circumstances). Your lawyer advises whether defects are acceptable or deal-breakers.

Mortgage Funding and Final Approval

Your lender conducts final underwriting and appraisal inspection before releasing mortgage funds at closing. This is a critical checkpoint where lenders can still decline or reduce the loan amount.

Underwriting Process (2-4 Weeks Before Closing):

Appraisal: Lender orders professional appraisal to verify property value. If appraised value is below purchase price, lender may reduce the loan.
Final credit check: Lender re-checks credit to ensure no new debts or missed payments have occurred.
Employment verification: Lender confirms you are still employed (if income was key to qualification).
Title insurance review: Lender reviews title insurance commitment to ensure coverage is acceptable.

Final Mortgage Commitment:

If all underwriting items are satisfied, the lender issues a final mortgage commitment (a binding promise to lend). The commitment specifies the loan amount, interest rate, and conditions (e.g., title insurance required, property in insurable condition).

Common Issues at Final Approval:

Appraisal shortfall: If appraised value is below purchase price, you must pay the difference or renegotiate the price.
New debt: If you took on significant new debt (car loan, credit card balance), lender may reduce the mortgage.
Employment change: Changing jobs or reducing hours may trigger re-qualification.
Property condition: If inspection reveals significant damage, lender may decline until repairs are made.

Final Walkthrough

The final walkthrough occurs 24-48 hours before closing. You inspect the property to confirm:

All negotiated repairs have been completed
Property condition matches the purchase agreement
Included items (appliances, fixtures) are present
No new damage or defects have appeared
Utilities are functioning

What to Check:

Test all light switches and outlets
Turn on faucets and check water pressure
Test heating and air conditioning systems
Confirm negotiated repairs are complete and professional
Verify all appliances, fixtures, and items in the contract are present
Check for new damage (broken windows, water stains, structural cracks)
Verify property is in "broom clean" condition (if required by contract)

If issues arise: Immediately notify your lawyer and realtor. If significant problems are discovered, you may request additional repairs, credits, or delay closing. Closing cannot proceed if the property condition materially differs from the agreement.

Closing Day Timeline and Process

Closing day involves multiple parties coordinating the final transfer of funds and title. The process typically spans several hours and involves your lawyer, the seller's lawyer, your lender, and the title registry office.

Typical Closing Day Timeline:

Morning (8-10 AM): Your lawyer confirms all conditions are satisfied. Your lender provides a mortgage commitment letter confirming mortgage funds are ready to be transferred.

Mid-morning (9-11 AM): You arrange wire transfer of your down payment and closing costs to your lawyer's trust account. This is typically 2-4 business days before physical closing.

Your lawyer contacts the seller's lawyer: Both lawyers confirm funds are in trust. The seller's lawyer provides a payoff statement detailing all payouts from sale proceeds (outstanding mortgage, property taxes, realtor commissions, legal fees).

Document execution: Both parties sign all closing documents (mortgage, title transfer, deed, affidavits, tax clearance documents). These are typically signed electronically or at your lawyer's office.

Funds distribution: Once all documents are signed, funds flow:

Your lender wires mortgage funds to seller's lawyer
Seller's lawyer distributes funds (pay off seller's mortgage, realtor commission, property taxes)
Seller receives net proceeds

Title registration: Your lawyer registers the deed and mortgage with the land titles office (same day or next business day). This officially transfers title to your name and registers your lender's mortgage.

Closing complete: Title is in your name; you own the property. Keys are released to you.

Key Pickup and Registration

Once closing documents are signed and funds are transferred, the seller releases property keys to your lawyer or realtor. You typically receive keys the same day as closing or the following business day.

Key Handover Coordination:

Your lawyer or realtor arranges key pickup from the seller's lawyer or a designated location (realtor's office, property manager for condo).
Confirm how many keys you receive. Request additional copies if needed; they are usually inexpensive but sometimes not available after closing.
Ask for information on security systems, garage door openers, or other access devices.

Title Registration:

Your lawyer registers the deed and mortgage with the provincial land titles office within 2-5 business days of closing. Once registered:

Title is official; you are the registered owner
Your lender's mortgage is registered and protected
You receive official title documents (property transfer, mortgage registration)

Request certified copies of your title documents from your lawyer. You will need these for future refinancing, insurance claims, or selling the property.

Moving In Checklist

Once you have keys and own the property, coordinate the move and handle administrative tasks:

Before Moving Day:

Arrange utility connections (hydro, gas, water, internet, phone)
Set up address changes with Canada Post
Notify banks, insurance, employer, and service providers of address change
Book moving company or arrange help
Deep clean your previous residence for the move-out inspection (if renting)

Move-In Inspection:

Test all utilities (lights, outlets, heating, cooling, water pressure)
Confirm appliances and fixtures are operational
Check for any damage missed during walkthrough
Take photos documenting condition of all rooms for insurance and future reference
Test all locks and security systems

Administrative Tasks Within 30 Days:

Change address with CRA (Canada Revenue Agency)
Update driver's license and provincial ID with new address
Contact insurance providers (auto, home) with new address for coverage
Register new address with property tax office
Get homeowner's insurance quote and purchase coverage (required by lender)
Schedule property tax and assessment review (if applicable)
Join condo association or HOA (if applicable)
Locate property documents: deed, mortgage, title insurance, survey, home inspection report

Common Issues at Closing

Despite careful planning, closing delays and issues sometimes arise. Here are the most common problems and solutions:

Appraisal Shortfall

Problem: Property appraises below purchase price. Lender reduces mortgage amount.

Solution: Pay the difference from your savings, renegotiate purchase price with seller, or walk away (if closing date allows).

Title Issues (Liens, Mortgages Not Paid)

Problem: Seller's outstanding mortgage or tax liens are not paid from sale proceeds. Title cannot be transferred.

Solution: Your lawyer holds closing funds in trust until seller provides payoff confirmation. Closing is delayed until liens are satisfied.

Missing Utilities or Damage

Problem: During final walkthrough, you discover heating/AC does not work or new damage (broken window, water damage) exists.

Solution: Notify your lawyer immediately. Request repairs or a credit from the seller. If significant, delay closing pending repairs. Do not close without addressing major issues.

Incomplete Repairs

Problem: Seller was supposed to repair roof or foundation issues but work is incomplete or not to agreed standard.

Solution: Your lawyer can hold funds in escrow (third-party trust) pending completion. Alternatively, negotiate a credit toward the repair cost that you will handle yourself.

Lender Withdraws Commitment

Problem: Lender declines mortgage funds hours before closing due to credit issue or property defect.

Solution: Immediately contact your lender to understand the reason. If resolvable (e.g., error in credit check), request expedited reconsideration. If mortgage is withdrawn, consult your lawyer about legal options; closing cannot proceed without financing.

Missing Keys or Lockouts

Problem: Seller does not provide all keys, or garage/security systems cannot be accessed.

Solution: Obtain copies immediately from a locksmith (cost: $50-$150 per lock). Request reimbursement from the seller or deduct from any holdback amount.

Key Takeaways

After your offer is accepted, immediately hire a lawyer, schedule inspections, and confirm mortgage underwriting. The first 5-10 days are critical.
Your lawyer conducts title search to verify ownership and identify liens, mortgages, easements, and other title defects. Title insurance protects against undiscovered issues.
Your lender orders appraisal and conducts final underwriting. If appraised value is below purchase price, you must pay the shortfall or renegotiate.
Final walkthrough (24-48 hours before closing) confirms repairs are complete and property condition matches the agreement. Report issues immediately to your lawyer.
Closing day involves coordinating funds transfer, document signing, title registration, and key release. The process typically completes within 24-48 hours.
Title registration with land titles office occurs within 2-5 business days of closing. Request certified copies of your deed and mortgage documents from your lawyer.
Upon move-in, arrange utilities, update address with CRA and service providers, purchase homeowner's insurance, and take photos documenting property condition.
Common closing issues include appraisal shortfalls, title liens, missing utilities, incomplete repairs, and lender withdrawals. Address problems immediately with your lawyer; do not close without resolving major issues.