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When Do You Get Your Keys on the Closing of a Real Estate Purchase?
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Jonathan A. Hacohen
November 26, 2020
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Whether it is a first-time purchase or the 20th purchase of a home, a person will usually have the same question for their real estate lawyer. When am I getting my keys?
If only we were able to book a specific time for when keys will be ready on closing. But alas, real estate closings are not so simple. There are several factors that go into the completion of a real estate transaction. Until the deal is actually closed, lawyers cannot release the keys they hold in escrow (or codes for the lockbox, as most transactions today are closed virtually without the release of physical keys to purchasers).
For the majority of real estate purchases, people obtain mortgages to assist in funding. Depending on several factors, including the lender procedures and timing of the closing day, lawyers may not be funded for a purchase until the afternoon of closing- sometimes even after 4:00pm! Only when a purchaser’s lawyer receives funds from a lender, can this lawyer forward the funds to the seller’s lawyer to close.
The purchaser and seller also have to exchange documents and resolve any outstanding issues and requirements before the purchase can be completed. Did the seller complete all the work they were supposed to? Were the old mortgages found to be registered against title resolved? Construction liens? Executions? The potential list of issues that can be faced up to the date of closing can be quite lengthy.
So as long as a transaction is completed, then keys will be released to the purchaser on closing. When will the keys be available? Sometime potentially between 10:00am and 5:00pm. So, if you are one of those purchasers that plan to move on your actual closing date, note that the movers may have the moving truck loaded and ready by noon—but you may not get into your new home that quickly. A better course of action is to plan to clean the property by the evening and move the next day. Otherwise, predicting the timing on the closing date requires a crystal ball—which I have yet to find in my years of practice.
Jonathan (aka “The Chosen Lawyer”) was called to the Ontario Bar in 2002, graduated from Osgoode Hall Law School in 2001 and completed his Bachelor of Business Administration at The Schulich School of Business (York University) in 1998. In addition to being a Partner at Kormans LLP, Jonathan’s journey in law started as an Associate with a large Bay Street law firm, as well as enjoying a secondment working in-house at Tim Hortons (TDL Group) for almost a year!
Jonathan was an Instructor with OREA, teaching the Real Property Law course to future realtors in Ontario. The Chosen Lawyer is a sought-after lecturer at seminars, team meetings and conferences—often speaking to groups including realtors and mortgage brokers on a variety of legal topics including real estate, corporate/commercial and wills/estates law. He also speaks on non-legal topics including Organization, Productivity, Motivation, Work/Life Balance and Mindfulness. Jonathan adopts a zen-like approach to the practice of law and shares his real-life experience with others in order to help them achieve success and happiness! In order to book The Chosen Lawyer for your next session, please email Jonathan at info@kormans.ca
Before entering the legal field, Jonathan chose to study business as he envisioned having a background in all aspects of business (including accounting, economics, finance, marketing and HR) would prove to be very useful as a lawyer—in understanding and communicating with business clients on their respective businesses and industries. Jonathan has a diverse client base, including many first-time home purchasers, residential clients (purchases, sales, refinances, assignment transactions), corporate/commercial clients (real estate transactions, leases, incorporations, shareholder agreements), as well as assisting clients with preparing wills and powers of attorney.
When he is not in the office or in front of a computer, Jonathan can either be found in the gym, boxing ring, learning a new recipe in the kitchen or on a yoga mat. Jonathan has competed with UFE (Ultimate Fitness Events) and is a double medal winner in the physique category! Jonathan is also an avid animal lover and can usually be found with his trusted pal Ollie (Shih-tzu dog) by his side.
Don’t forget to watch episodes of Podcasts/Docuseries hosted by Jonathan “The Chosen Lawyer”TM on the Kormans LLP YouTube channel or listen to it across all podcast players, including Apple Podcasts and Spotify!
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