Closing Date vs Possession Date – What’s the Difference?

If you’re buying or selling a home in Ottawa, you’ll quickly notice two terms that often cause confusion: closing date and possession date. While they may sound similar, they actually refer to two different milestones in a real estate transaction.

Understanding the difference between the two is key to avoiding stress and making sure the process runs smoothly.

What is the Closing Date?

The closing date is the day when the legal and financial aspects of the transaction are finalized. In Ontario, this is when:

The buyer’s lawyer transfers the purchase funds to the seller’s lawyer.
Title (legal ownership) of the property is registered in the buyer’s name.
Adjustments for property taxes, utilities and condo fees (if applicable) are calculated and settled.
The seller receives their money from the sale.

In simple terms, closing day is the day the buyer officially becomes the legal owner of the home.

Typical closings in Ottawa happen during regular business hours as lawyers, lenders and the Land Registry Office must all be open. Closings are always scheduled for weekdays, never weekends or holidays.

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What is the Possession Date?

The possession date is the day the buyer is given the keys and can physically move into the property. In Ottawa, the possession date often happens on the same day as the closing date but not always.

Possession typically takes place after the closing has been completed, once the lawyers confirm that funds have been transferred and the title has changed hands. The buyer might get the keys at noon, later in the afternoon or occasionally even the following day if there is a delay.

Are Closing Date and Possession Date Always the Same?

Not necessarily. While in most Ottawa transactions the two dates line up, there are scenarios where they differ:

Seller Needs Time to Move Out – Sometimes sellers negotiate a later possession date so they have extra time to vacate the home.
Pre-Closing Access – Buyers may negotiate early access for measuring, renovations or storing belongings before official possession. This requires specific legal wording and the seller’s agreement.
Builder Sales – In the case of new builds, the closing date (when ownership transfers) might happen before the home is fully ready for occupancy. The builder may require a delay before buyers can actually move in.

Because every transaction is unique, your REALTOR® and lawyer will make sure the agreement clearly states when possession will occur.

What Happens on Closing Day?

Closing day is often one of the most exciting (and nerve-wracking) parts of buying or selling a home. Here’s what typically happens in Ottawa:

Morning – The buyer’s lawyer receives funds from the lender and the buyer (down payment, closing costs, etc.).
Midday – Funds are transferred to the seller’s lawyer, and the transfer of title is registered.
Afternoon – Once everything is confirmed, the buyer’s lawyer calls to let them know they can pick up the keys.

It’s worth noting that delays can occur, usually because funds aren’t transferred quickly enough or paperwork takes longer than expected. This is why buyers are often advised not to book movers too early in the day.

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Typical Timeline in Ottawa

Most Ottawa resale homes have the closing and possession dates on the same day. Buyers usually gain access to the home sometime between noon and 5:00 p.m., depending on when the lawyers complete the transaction.

For sellers, this means you should plan to be completely moved out by the morning of closing day unless otherwise agreed. Leaving behind belongings or being late vacating the property can cause legal complications and unnecessary stress.

Key Takeaways

Closing Date = When the legal ownership changes hands and money is transferred.
Possession Date = When the buyer actually gets the keys and can move in.
In Ottawa, they are usually the same day but exceptions exist.
Clear agreements and good communication between buyers, sellers, REALTORS® and lawyers are essential to avoid last-minute surprises.

For both buyers and sellers, knowing the difference between the closing date and possession date helps set realistic expectations. If you’re preparing for a move in Ottawa, make sure you work closely with your REALTOR® and lawyer to confirm both dates are clearly outlined in your Agreement of Purchase and Sale.

That way, when the big day arrives, you can focus on what really matters: celebrating the next chapter in your life!