Closing day is the climax of your home-buying journey. While you are busy coordinating movers and imagining where your furniture will go, a high-stakes, behind-the-scenes legal process is unfolding in real-time.
In the Toronto and Greater Toronto Area (GTA) market of 2026, closing day is a digital-first operation, but it remains a complex relay race between buyers, sellers, lenders, and the Land Registry Office. At Sarkaria Sethi LLP, we ensure that this final hurdle is cleared smoothly, protecting your investment until the moment the keys are in your hand.
Buying property in Ontario—especially in a high-value zone like the GTA—requires a level of due diligence that extends far beyond the initial offer. The “closing” is not just a single moment; it is a series of interconnected legal and financial events that must occur in a specific order.
1. The Pre-Closing Foundation: Setting the Stage
Long before the actual closing day arrives, your legal team at Sarkaria Sethi LLP is hard at work. The process technically begins the moment your Agreement of Purchase and Sale (APS) is finalized.
Reviewing the Agreement of Purchase and Sale
Your lawyer meticulously analyzes the APS to identify potential risks. This includes checking for:
- Correct Legal Descriptions: Ensuring the lot and plan numbers match the physical address.
- Condition Deadlines: Monitoring the “Sold” status to ensure all conditions (financing, inspection, status certificate) are met.
- Chattels and Fixtures: Clarifying exactly what stays with the house (e.g., appliances, smart home systems, or light fixtures) to avoid disputes on moving day.
The Title Search and Requisition Letter
One of the most critical duties is the title search. We investigate the property’s history to ensure the seller has the legal right to sell it. If we find an old mortgage that wasn’t discharged, a lien from a contractor, or an undisclosed easement, we send a Letter of Requisitions to the seller’s lawyer. This letter legally demands that these issues be cleared before the closing date.+1
2. The Morning Surge: Mortgage Funding and Escrow
The closing day officially begins when your lender releases the mortgage funds. In 2026, this is almost exclusively done via secure wire transfer or electronic funds transfer (EFT) directly to your lawyer’s trust account.
Why Your Lawyer Is the Financial Hub
Your lawyer acts as the “escrow agent.” We don’t just receive the bank’s money; we combine it with the balance of your down payment (which you would have provided a few days prior) to create the total purchase price.+1
- Verifying Funds: We verify the exact amount received from the lender. Sometimes, banks deduct their own fees (like appraisal or administrative fees) from the mortgage advance. We ensure the math aligns with the Statement of Adjustments.
- Satisfying Lender Conditions: Before the bank releases funds, they often require “proof of insurance” or a “signed personal covenant.” Your lawyer coordinates these final checkboxes so the money arrives on time.
3. Managing the Balance: The Statement of Adjustments
Before any money moves, your lawyer performs a final check of the Statement of Adjustments. This is essentially the “pro-rated” balance sheet of the transaction.+1
In the GTA, property costs are often pre-paid by the seller. The Statement of Adjustments ensures that you only pay for the days you actually own the home. Common adjustments include:+1
- Property Taxes: If the seller paid the full year of taxes in January and you buy in July, you must reimburse them for the remaining six months.
- Condo Fees: If the monthly maintenance fee was paid on the 1st and you close on the 15th, you owe the seller half of that month’s fee.
- Fuel/Utility Refills: In some older GTA homes or rural areas, oil or propane tanks are filled by the seller, and the buyer reimburses them for the remaining fuel.
At Sarkaria Sethi LLP, we review these calculations to the penny, ensuring you aren’t overpaying for the seller’s pre-paid expenses.
4. The Digital Exchange: Documents and Deliveries
While the funds are being organized, your legal team is communicating with the seller’s lawyer through a secure provincial portal. Gone are the days of lawyers meeting in person to trade paper files; in 2026, the entire GTA legal community operates through the Teraview system.
Electronic Document Registration
Your lawyer prepares and reviews:
- The Transfer/Deed: The legal document that officially moves ownership from the seller to you.
- The Charge/Mortgage: The document that registers the bank’s interest in the property as security for the loan.
- Direction regarding Title: This confirms exactly whose name will appear on the deed (e.g., joint tenants vs. tenants in common).
- Undertakings: Promises made by the seller’s lawyer (such as a promise to pay off the old mortgage once they receive your funds).
5. The Final Due Diligence: Title and Writ Search
Right before the “button is pushed” to register the sale, your lawyer performs a final title search and a writ search.
Why the Final Search is Vital
In a fast-moving market, things can change in the 24 hours leading up to closing. We check for:
- New Judgments: Ensuring the seller hasn’t had a legal judgment or bankruptcy filing against them that could block the sale.
- Last-Minute Liens: Verifying no new tax liens or construction liens have been registered against the property.
- Title Fraud Protection: This “up-to-the-minute” due diligence is your primary defense against sophisticated identity theft in real estate.
6. The Closing Moment: Registration and Completion
Once both the buyer’s and seller’s lawyers are satisfied that the funds are ready and the documents are correct, they “release” the file for registration.
When the Land Registry Office receives the electronic filing, the property officially changes hands. At this precise moment:
- Ownership Transfers: You are legally and officially the owner of the property.
- Funds are Disbursed: The seller’s lawyer receives the money to pay off the old mortgage and give the seller their net proceeds.
- Title Insurance is Triggered: Your policy goes into effect, protecting your new title against future claims.
7. The Final Step: Key Release in the GTA
In the Toronto market, “closing” usually happens between 2:00 PM and 5:00 PM. Many buyers are surprised to learn they cannot get their keys at 9:00 AM.
The Evolution of Key Exchanges
In 2026, many GTA homes use smart locks, digital codes, or lockboxes. Your lawyer will receive the code or the “digital key” from the seller’s counsel only after the registration is confirmed by the Land Registry.
- The Notification: Once we receive confirmation, we notify you and your Realtor immediately.
- The Timing: Because banks and land registries have daily cutoff times (often 5:00 PM), any delay in wire transfers can push the “key release” to the very end of the business day.
8. Potential Hurdles: What Can Go Wrong?
Despite everyone’s best efforts, “Closing Day” can sometimes involve surprises. Understanding these helps you prepare:
- Banking Delays: Large wire transfers can sometimes get flagged for manual review, delaying the arrival of funds.
- Insurance Gaps: If the lender discovers your home insurance policy isn’t active until the day after closing, they will refuse to release the funds.
- Condition of the Home: If your final walk-through (usually done 24 hours before) reveals the seller has caused damage or left significant trash, your lawyer may need to negotiate a “holdback” of funds.
At Sarkaria Sethi LLP, we are experienced in handling these last-minute negotiations to ensure the deal doesn’t fall apart.
9. Post-Closing: The Final Reporting Letter
Your lawyer’s job doesn’t end when you get the keys. A few weeks after closing, you will receive a Reporting Letter. This document is your permanent record of the purchase and includes:
- A copy of the registered Deed.
- A copy of your Title Insurance policy.
- A detailed “Trust Ledger” showing exactly where every dollar of your money went.
- Proof that the seller’s old mortgage has been discharged.
Comparison: Buying vs. Selling — The Lawyer’s Priorities
| Lawyer’s Task | For the Buyer | For the Seller |
| Financials | Collects down payment & mortgage funds. | Receives sale proceeds and pays off old debt. |
| Registration | Registers the Deed and the New Mortgage. | Confirms the discharge of the old mortgage. |
| Due Diligence | Performs title searches & gets insurance. | Ensures all “requisitions” are answered. |
| Adjustment | Reimburses the seller for pre-paid costs. | Provides proof of tax and utility payments. |
| Final Goal | Secure ownership and get the keys. | Ensure the client gets their money safely. |
Why Timing Matters: The “GTA Friday” Risk
As experienced GTA practitioners, Sarkaria Sethi LLP often advises against closing on a Friday or the last day of the month.
- The Risk: If the banking system experiences a delay or the Land Registry system slows down at 4:30 PM on a Friday, the deal might not close until Monday. This leaves you with a moving truck full of furniture and no house to put it in.
- The Solution: We aim for mid-week closings (Tuesday or Wednesday) to provide a “buffer” for any technical glitches or banking delays.
Conclusion: Peace of Mind at the Finish Line
The role of a real estate lawyer on closing day is to be the calm in the center of the storm. While you handle the logistics of moving, we handle the complex web of wire transfers, legal registrations, and title protections. At Sarkaria Sethi LLP, our goal is to ensure that the moment you walk through your new front door, you do so with the absolute certainty that your home is legally and financially secure.
The 2026 Toronto market requires a legal team that is not only well-versed in traditional property law but also comfortable with the high-tech, fast-paced nature of modern GTA transactions. From the initial contract review to the final key release, we are your advocates every step of the way.
Experience a Seamless Closing with Sarkaria Sethi LLP
Closing day shouldn’t be a source of stress. Our team specializes in Toronto and GTA residential law, providing proactive communication and tech-forward solutions to get you into your new home on time and on budget.
Are you approaching your closing date? Let us handle the legal heavy lifting. Contact us to review your agreement and start your closing process with confidence.
