In Ontario’s fast-paced real estate market, the closing date is one of the most important milestones in a property deal. It’s the day when the buyer pays the remaining balance, the seller transfers the title, and the keys change hands.
But what if something goes wrong?
Whether you’re buying or selling, missing your closing date can lead to serious legal and financial consequences. In this post, we’ll break down the most common reasons closings get delayed, what can happen if you miss your date, and how to protect yourself from costly mistakes.
🔑 What Is a Closing Date?
The closing date is the day both parties agreed to complete the transaction, as outlined in the Agreement of Purchase and Sale (APS). On closing day:
- The buyer pays the balance of the purchase price
- The seller transfers ownership of the property
- Lawyers register the title and any mortgage with the Ontario Land Registry
- The buyer receives the keys
It’s a legally binding date, and both sides are expected to be fully prepared.
⏱ Common Reasons Closings Get Delayed
Even with the best intentions, things can go off track. Here are some of the most common causes of missed closings:
1. Financing Delays
Mortgage approval can hit snags—like appraisal issues, extra documentation requests, or lender delays.
2. Title Problems
Issues like liens, boundary disputes, or ownership errors can hold up registration.
3. Missed Paperwork
Closings involve a lot of documentation. Missed signatures or delayed filings can create serious hold-ups.
4. Logistics and Timing
Wire transfers, courier delays, or even key pickup problems can disrupt closing day.
5. Personal Emergencies
Health issues, job changes, or family emergencies can leave one party unprepared.
⚖️ What Happens If the Buyer Causes the Delay?
If you’re the buyer and you’re not ready to close, here’s what could happen:
🧾 You Could Lose Your Deposit
In Ontario, this is often 5% of the purchase price, and the seller may be entitled to keep it.
📉 You Could Be Sued
If the seller has to sell the home for less, you may be responsible for the difference—plus legal fees and other damages.
💰 You Might Owe Interest
Many agreements include daily interest charges for each day the deal is delayed.
🚫 You Might Hurt Your Reputation
Delays or defaults can make agents and brokers hesitant to work with you in the future.
⚖️ What Happens If the Seller Causes the Delay?
Sellers can also face consequences if they’re the reason for a missed closing:
🏠 You May Owe the Buyer
Temporary housing, storage, or moving costs? You might have to pay.
📑 You Could Be Forced to Close
If the buyer takes legal action for specific performance, you may be ordered to complete the sale.
💼 You Might Be Sued for Damages
This could include interest costs, legal fees, or even bridge financing expenses.
📝 Can the Closing Date Be Extended?
Yes, but only if both parties agree in writing. This is done through an amendment to the APS.
Extensions are common when delays are small and communication is open. But remember: no one is obligated to agree to an extension. If one party says no, the other must be ready to close—or risk default.
👩⚖️ Why You Need a Real Estate Lawyer
A good Ontario real estate lawyer is essential for navigating complex closings. Here’s how they help:
- Review your APS to make sure deadlines are realistic
- Coordinate with lenders to ensure financing is ready
- Resolve any title issues in advance
- Negotiate amendments if delays arise
- Protect your rights if the other party defaults
Your lawyer is the one keeping everything running smoothly behind the scenes.
✅ Tips to Avoid Missing Your Closing Date
Here are some simple ways to keep things on track:
- Get Pre-Approved Early
Don’t wait until your offer is accepted to start financing. - Hire an Experienced Real Estate Lawyer
Choose someone who understands Ontario’s legal landscape. - Confirm Details Ahead of Time
A few days before closing, double-check documents, funds, and logistics. - Stay in Communication
Keep your agent, lawyer, and lender in the loop. - Plan for the Unexpected
Have a backup plan for everything—especially during peak real estate season.
Final Thoughts
Missing your closing date in Ontario can lead to serious stress—and serious costs. But with proper planning and the right legal support, you can stay ahead of potential issues.
At Philer.ai, we help buyers and sellers navigate Ontario real estate law with less stress and more confidence. Whether you’re days away from closing or just starting the process, our digital legal tools make it easier to avoid surprises and close your deal smoothly.
Need help with your closing?
Reach out to our team and take the guesswork out of real estate law.
