What is closing, and what stages does it involve?

Closing a real estate deal in Calgary is the final stage of the transaction, when the buyer finally becomes the owner of the property and the seller receives all the funds due. This process combines legal, financial, technical, and administrative steps, each of which requires careful adherence to deadlines and formalities. Failure to comply with any clause can cause damage and delay the transfer of keys, so every detail is extremely important.

Prerequisites: from acceptance of the offer to closing

It all starts when the seller accepts your offer and officially confirms all the terms and conditions — price, deadlines, deposit, financial and inspection conditions. From this moment, the due diligence period begins, during which the buyer ensures that all conditions precedent have been met:

  • mortgage financing has been finalized;
  • the inspector's report has been received;
  • your own home has been sold (if this was a condition of the agreement).

This stage usually lasts 5 to 15 business days, depending on the complexity of the transaction and the agreed terms.

Legal preparation

At the same time, lawyers from both sides (in Alberta, they are called lawyers or real estate attorneys) prepare the documents for the final stage. This includes:

  • checking the title of the property in the Alberta Land Titles Office registry;

  • preparing a “Statement of Adjustments” — a document detailing all financial transactions and adjustments (taxes, utility payments, interest, etc.);

  • preparing instructions from the bank for the transfer of funds and a letter of guarantee for the seller confirming the availability of financing.

The role of the lawyer and agent at the closing stage

Buyer's lawyer:

  • monitors the deposit into the trust account;
  • obtains a bank draft for payment of the balance;
  • agrees with the insurance company on a title insurance policy;
  • verifies that the property is insured prior to the transfer of title.

Seller's lawyer:

  • coordinates the removal of all liens from their mortgage limit if the house was mortgaged;
  • prepares a check for payment to the seller.

Role of agents:

  • work closely with clients, remind them of key dates;
  • collect documents;
  • organize the final walkthrough;
  • ensure clear communication between all parties.

Final Walkthrough: the last check before closing

Usually, a day or two before Closing Day, the buyer and agent conduct a final walkthrough of the property. The purpose is to make sure that the condition of the property has not changed since the inspection, all agreements have been fulfilled, all keys and remote controls are in place, and appliances are working.

If new damage or unfulfilled obligations are discovered (e.g., door repairs or removal of the seller's belongings), the buyer may request a delay in closing or indicate them in the protocol for resolution before the funds are transferred.

Closing Day: details of financial and legal procedures

On the designated Closing Day, the lawyers of both parties meet (in person or remotely) to perform key actions:

  • The buyer's lawyer confirms receipt of full payment (deposit + bank draft) to their trust account.
  • The seller's lawyer confirms that all encumbrances have been removed and is ready to sign the title release.
  • Official registration of the transfer of ownership at the Alberta Land Titles Office: documents are submitted online, and a new entry with the buyer's name is created in the state registry.
  • After registration, the bank transfers the funds from the trust account to the seller, and the seller's lawyer pays the agent's commission and other applicable fees (transfer tax, tax and utility arrears).

All these steps usually take place within one business day. As a standard, the keys are handed over to the buyer at 12:00 local time, although another time can be agreed upon by the end of the day.

Post-closing steps and paperwork

After the formal closing, the buyer's lawyer sends the client a final “Closing Statement” with a breakdown of all payments. The buyer receives copies of:

  • the purchase agreement with all signatures;
  • Statement of Adjustments;
  • title insurance documents;
  • confirmation of registration of ownership.

Within 1–2 weeks:

  • the lending bank sends the final mortgage payment schedule;
  • the Alberta government mails an updated copy of the land title certificate with the new owner's name.

Potential complications and how to avoid them

The closing of the transaction may be delayed if:

  • the bank does not have time to check the documents or delays the transaction;
  • the Land Titles Office registry reveals unrecorded encumbrances or discrepancies in the title documents;
  • there are inaccuracies in the Statement of Adjustments that need to be resolved;
  • the final walkthrough reveals new defects and the parties cannot quickly agree on a solution.

How to avoid problems:

  • open a mortgage file in advance;
  • prepare all necessary documents in a timely manner;
  • clear communication between lawyers and agents;
  • conduct a final inspection of the property a few days before closing.

Closing a deal in Calgary involves thorough preparation, coordination between lawyers, banks, and agents, a final inspection, and formal registration at the state level. Compliance with all stages and deadlines guarantees the timely transfer of ownership, minimizes legal risks, and ensures a smooth transition to ownership of your new home.