What Actually Happens on Closing Day? (For Sellers)

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A few weeks ago, we broke down what closing day looks like in a lawyer’s office for purchase transactions.

Today, we're going to break down what our day looks like from the Selling side...

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By the time closing day arrives, we’ve already:

✅ Reviewed the APS and Amending Documents
✅ Prepared and Confirmed the Statement of Adjustments
✅ Completed Title and Writ Searches
✅ Drafted Vendor Closing Documents
✅ Requested Payout Statement(s) from the Mortgage Lender
✅ Signed Closing Documents with the Client
✅ Confirmed Commission Payable
✅ Provided Payment Details to the Buyer's Lawyer

Now, here’s what we actually do on closing day:

1. Receive and Review Closing Funds – The buyer’s lawyer sends closing funds to our office via direct deposit or wire transfer.
2. Exchange Closing Documents – Closing documents are exchanged with the buyer’s lawyer, to ensure both parties have met their obligations under the contract.
3. Settle Outstanding Balances – From the sale proceeds, any remaining mortgage, line of credit, property taxes, or other outstanding obligations are paid in full.
4. Release the Transfer and Keys – Once all funds have been received and payouts completed, the Transfer (Deed) is released to the buyer’s lawyer, officially transferring ownership. Key handover is confirmed—whether via lockbox, direct pickup, or another agreed method.
5. Pay Listing Brokerage Commission – If additional commission is payable beyond the deposit held in trust, payment is sent to the listing brokerage. Alternatively, a Direction to Release Deposit is provided to the seller if the deposit exceeds the commission owed.
6. Distribute Sale Proceeds – After all obligations have been settled, the net sale proceeds are issued to the seller by wire transfer or direct deposit. At the same time, we notify the client that the deal is complete and provide confirmation of closing.
7. Update the Realtor – A final confirmation is sent to the realtor once the transaction has closed. Many firms skip this step, but we prioritize this communication to ensure you can coordinate with you client accordingly.
8. Update Municipality – The municipality is notified of the ownership change to ensure property tax records are updated.
9. Provide Final Closing Report – The file is wrapped up in a Final Closing Report, which includes all key transaction documents for the client’s records and future reference.

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Why This Matters for You

Understanding what happens on closing day helps set the right expectations and avoid unnecessary stress. If there’s a delay in receiving funds, knowing the process makes it easier to pinpoint the cause—whether it’s a late mortgage discharge, a wire transfer issue, or a final document review.

A smooth closing isn’t just about signing paperwork—it’s about clear communication, ensuring all payouts are handled correctly, and keeping sellers informed every step of the way.

Working with a legal team that proactively updates all parties helps prevent last-minute surprises and makes the entire process seamless.

Got a sale closing soon? Let’s make sure it’s a smooth one.