The True Cost of Owning a Home in Richmond Hill
Closing Day in Ontario: What Happens When You Buy or Sell a Home
Closing day is the day ownership transfers from seller to buyer. It is the finish line of the transaction, but it is not as simple as handing over a key and receiving a cheque. Behind the scenes, lawyers exchange documents, lenders advance mortgage funds, land transfer tax is paid, title is registered, adjustments are calculated and keys are released, sometimes smoothly and sometimes with last-minute complications. This guide covers what happens on closing day for both buyers and sellers in Ontario, what to prepare and what can go wrong.
Written by a Richmond Hill and Markham Real Estate Expert
At Kirby Chan & Co. Real Estate Team, we walk Richmond Hill and Markham clients through closing day on both sides of the transaction. We have seen a buyer book movers for nine in the morning and spend the day sitting in a loaded truck waiting for keys that arrived after five. Knowing how the day actually unfolds is the difference between a calm closing and a stressful one.
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Quick takeaway: As a buyer, you deliver a certified cheque or bank draft for the balance of your down payment and closing costs to your lawyer one to two business days before closing. As a seller, you vacate the home by the closing date, leave it in the condition the agreement specifies, and your lawyer prepares the deed and discharges the mortgage. Keys are typically released between 3:00 p.m. and 6:00 p.m. once the buyer's funds have been received and title has been registered. Plan around that: do not book movers for the morning of closing day if you are the buyer.
Table of Contents
- Before Closing Day
- What Happens for the Buyer
- What Happens for the Seller
- Closing Costs for Buyers
- Closing Costs for Sellers
- What Can Go Wrong
- When You Get the Keys
- Frequently Asked Questions
Before Closing Day
Both buyers and sellers meet with their lawyer to review and sign closing documents. For buyers that means the mortgage documents, the statement of adjustments showing the exact amount owed on closing, the title insurance binder and the land transfer tax forms. For sellers it means the deed, the mortgage discharge authorization and any holdback arrangements. Your lawyer will tell you the exact amount you need to bring, or the exact net proceeds you will receive.
Buyers bring a certified cheque or bank draft for the balance of the down payment and closing costs to the lawyer's office. Personal cheques are not accepted, and wire transfers may be, so confirm with your lawyer first. The amount covers the remaining down payment less the deposit already held in trust, the land transfer tax, legal fees, title insurance and adjustments. Do not leave this to closing day, because any delay in clearing funds delays the closing.
The buyer has the right to a final walkthrough before closing. It confirms the home is in the condition the contract requires, that all included items such as appliances, fixtures and window coverings are present, that any agreed repairs are done and that the home is vacant unless otherwise agreed. If you find problems, tell your agent and lawyer immediately. In many cases a holdback can be arranged to cover outstanding items. I attend every final walkthrough with my buyer clients and photograph the condition of the home.
What Happens for the Buyer on Closing Day
Your mortgage lender sends the funds to your lawyer's trust account. This usually happens in the morning, though it can run late. Your lawyer combines those funds with the down payment and closing costs you already delivered to assemble the full purchase amount.
Your lawyer sends the purchase funds to the seller's lawyer. The transfer of title is registered on the land registry and the signed closing documents change hands. Your lawyer registers the mortgage on title. Once title is registered in your name and the mortgage is registered against it, the transaction is legally complete.
Once the seller's side confirms receipt of funds and registration is complete, the keys are released. That typically lands between 3:00 p.m. and 6:00 p.m. Keys may come from the listing agent's office, a lockbox on the property or the lawyer's office depending on the arrangement. I coordinate key release for every client so you know exactly when and where to collect them.
What Happens for the Seller on Closing Day
Closing Costs for Buyers
| Cost | Typical Amount on a $1.4M Home |
|---|---|
| Provincial land transfer tax | $24,475 |
| Toronto municipal LTT | $24,475, and not applicable in Richmond Hill or Markham |
| Legal fees and disbursements | $2,000 to $3,500 |
| Title insurance | $300 to $500 |
| Home inspection, where applicable | $500 to $700 |
| Property tax and utility adjustments | Varies with the closing date |
| Approximate total in Richmond Hill or Markham | $27,500 to $29,500 |
Buying the same home in Toronto adds roughly $24,475 in municipal land transfer tax, taking the total closer to $52,000. That single line is one of the strongest financial arguments for buying in York Region rather than the city.
Closing Costs for Sellers
| Cost | Typical Amount on a $1.4M Sale |
|---|---|
| Real estate commission plus HST | $63,280 to $79,100 at 4% to 5% |
| Legal fees and disbursements | $1,500 to $2,500 |
| Mortgage discharge or prepayment penalty | $0 to $15,000 or more, depending on your mortgage terms |
| Staging, where applicable | $3,000 to $6,000 |
| Property tax adjustments | Varies with the closing date |
| Approximate total | $68,000 to $103,000 |
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What Can Go Wrong on Closing Day
When You Get the Keys
Keys are not released until funds have been received and title has been registered. That confirmation usually comes mid to late afternoon. At month-end, or when there are banking or registration backlogs, it can run past six.
Plan around it. Book movers for the afternoon or the following day rather than the morning. If you are selling one home and buying another on the same date, the timing needs to be coordinated carefully between both lawyers and both agents. I manage same-day closings regularly and keep the two transactions synchronized so there is no gap in housing.
Recognition
Kirby Chan Awards and Achievements
🏆 #1 Individual Producer in Ontario for eXp Realty 2023
🏆 Top 3 Best Rated Real Estate Agent in Richmond Hill
🏆 Toronto Star Platinum Award for Best Real Estate Agent
🏆 Top Real Estate Agent Award in Markham
🏆 2X ICON Agent Award with eXp Realty
🏆 2025 Community Votes Platinum Award, Thornhill
🏆 2024 Community Votes Platinum Award, Thornhill
🏆 2025 Gold Award for Real Estate Brokers in Markham
🏆 2024 Community Votes Bronze Award, Richmond Hill
🏆 2023 Community Votes Platinum Award, Thornhill
Frequently Asked Questions
What time do I get the keys on closing day?
Typically between 3:00 p.m. and 6:00 p.m., once the seller's lawyer confirms receipt of funds and title registration is complete. Do not book movers for the morning.
How much are closing costs for buyers in Ontario?
On a $1,400,000 home in Richmond Hill or Markham, roughly $27,500 to $29,500 covering land transfer tax, legal fees, title insurance and adjustments. Buying the same home in Toronto adds about $24,475 in municipal land transfer tax.
How much are closing costs for sellers?
On a $1,400,000 sale, roughly $68,000 to $103,000 covering commission plus HST, legal fees, any mortgage discharge or prepayment penalty and staging. Commission is by far the largest component.
What is a statement of adjustments?
A document prepared by the lawyers that prorates property tax, utilities, condo fees and other prepaid expenses between buyer and seller based on the closing date. It sets the exact amount the buyer pays and the seller receives.
What happens if closing is delayed?
Where closing cannot complete on the scheduled date, the party responsible for the delay may owe the other compensation for costs such as interest, temporary accommodation or storage. Your lawyer negotiates the terms. Often the closing simply moves to the next business day by mutual agreement.
Do I need a lawyer to close?
Yes. Both the buyer and the seller need a lawyer to close a real estate transaction in Ontario. The lawyer handles the transfer of title, the mortgage registration, the statement of adjustments and the exchange of funds.
Who can help me navigate closing day?
Kirby Chan and the Kirby Chan & Co. Real Estate Team manage every closing in Richmond Hill and Markham from accepted offer through key release. We coordinate between your lawyer, your mortgage broker and the other side, attend the final walkthrough, manage the key release timing and stay reachable throughout the day. Reach me at (416) 305-8008.
Contact Kirby ChanBuying or Selling Soon?
Closing day should be the calm end of a well-managed process rather than a source of stress. I manage every detail from the accepted offer through key release, so you can focus on the part that matters: moving into the new home or finishing the sale of the old one.
Kirby Chan | Kirby Chan & Co. Real Estate Team
kirby@kirbychanandco.com
https://kirbychanandco.com
Dedicated Real Estate Hotline
416-305-8008Note: Closing procedures, legal fees, land transfer tax rates, commission structures and title registration processes described in this guide reflect standard Ontario residential transactions as of mid-2026 and are subject to change. The cost figures shown are illustrations based on a $1,400,000 price and will differ for your transaction. This guide is for general information only and does not constitute legal advice. For advice specific to your transaction, consult a licensed real estate lawyer.
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