The seller closing process
Accepting an offer feels like the finish line, but there are a handful of steps between that signature and the day you hand over the keys. Here is the whole sequence in plain language, so nothing surprises you on closing day.
You accepted an offer. Now what?
Signing back an offer is a big moment, but it is not the end of the story. What follows is a tidy sequence, and once you can see it laid out, the whole thing feels a lot calmer. Let me walk you through it in order.
First, the conditions come off
Most offers arrive with conditions attached, things like the buyer arranging financing or completing a home inspection. Those conditions have deadlines. As each one is met, it gets waived. Once the last condition is waived, the deal goes firm, which means it is now binding on both sides and the sale is really happening.
Your lawyer takes over
With the deal firm, your lawyer steps in and does the quiet heavy lifting. They prepare the closing documents, they handle the statement of adjustments, and they discharge your existing mortgage so the property can change hands with a clean title.
The statement of adjustments is the final tally of who owes what at closing. It squares up the details between you and the buyer, so everyone leaves the table settled.
Watch for a mortgage break penalty
Here is the part that catches sellers off guard. If you are ending your mortgage early, your lender may charge a mortgage break penalty when it is discharged. It is far kinder to yourself to estimate that number in advance rather than meet it for the first time at closing. A few minutes with the calculator now can save a real jolt later.
Picture a seller who is caught off guard by a mortgage discharge penalty. Had they seen it only at closing, it would have stung. Because they estimated it before listing instead, there was no surprise at all, just a number they had already planned around, and they were glad they ran it early.
Closing day
On closing day the finish line finally arrives. Title transfers through Teraview, Ontario's electronic land registration system, and the funds are exchanged between the two sides. Once that is done, the home is officially the buyer's.
Your duty to disclose latent defects
One responsibility is worth stating plainly, because it matters. As a seller, you have a duty to disclose known latent defects. These are hidden problems you are aware of that a buyer could not reasonably discover on their own. Being upfront about them is not just the right thing to do, it protects you too.
A latent defect is a hidden problem you know about that a buyer could not reasonably find on a normal viewing or inspection. If you know of one, it should be disclosed rather than left for the buyer to stumble on later.
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