For many homeowners, their home is the most valuable asset they own. Selling it isn’t just an emotional experience; it’s also a critical financial decision. How much a house ultimately sells for is understandably a high priority as it determines what options a seller has for their next steps.

This concern is followed closely by questions about timing. When exactly will you get the money once your sale closes and ownership changes hands?

This extremely specific question doesn’t always have a simple answer. Today, we’ll outline the closing process in more detail, including when you can expect to receive the money after selling your home.

Is there a change on the horizon and you’re not sure where to start? Getting an accurate, unbiased assessment is a positive first step toward a successful home sale. Book your complimentary home evaluation here.

When Does the Seller Get the Deposit?

The buyer pays a deposit once the seller accepts an offer according to the agreed-upon terms in the Agreement of Purchase and Sale, usually within 24 hours. Like everything else, that money does not go directly to the homeowner.

Instead, it’s held by the listing brokerage in their Real Estate Trust Account, which is strictly regulated by the Real Estate Council of Ontario to protect both buyers and sellers. This procedure assures the buyer that the seller won’t receive the funds prematurely before any conditions are met. The buyer typically gets their deposit back if there is a valid reason to cancel the transaction (such as inspection not being satisfactory to the buyer).

This policy also provides security for the seller. If the buyer ends up backing out for a non-legitimate reason, the seller may be entitled to keep the deposit as compensation.

What happens if your home sale is less straightforward than you hoped? One of the resources below can help:

• What Are the Secrets to Selling a Home Discreetly?
• Why Did My Neighbour’s House Sell but Mine Didn’t?
• Can You Successfully Sell a House With a Stigma?

When Does the Seller Get the Money After Closing (Ontario)?

The timing of when a buyer delivers the funds for a house is far more straightforward than when a seller actually receives the proceeds. After you accept an offer, the buyer pays a deposit within 24 hours. There is no set amount by law, but approximately 5% is standard.

On the closing date, the buyer provides the rest of their down payment and the lender covers the rest. The seller will still need to wait patiently for the entire closing process to be completed.

Real estate is more complicated than most transactions. Unlike buying groceries or paying for gas, the money for a house doesn’t change hands right away. The homeowner doesn’t even receive the funds directly. During the closing process, all funds go to the seller’s lawyer’s trust account until the disbursement date.

Earning the highest amount possible will make waiting for the proceeds easier to bear. For that, you need a well-executed marketing plan. Here’s Our Full-Service Real Estate Team’s Guide to Marketing Your Home.

Disbursement Date: Meaning

When does the seller get paid after closing? Often, it’s the same day. Just be aware that there is a distinction between the closing day and the disbursement date.

The closing date is the day the transfer of ownership officially takes place and the buyer legally becomes the new owner. Usually, this is the same day the buyer gets the keys and takes possession, but not always.

The disbursement date is also when you will receive any proceeds from the sale of your house. It can happen on closing day or a day or two later depending on how complex the sale is.

Stunning presentation is one of the most important factors for a successful home sale in any market. The posts below can help you attract maximum attention from buyers:

• How to Stand Out in a Changing Real Estate Market
• Does Curb Appeal Still Matter When Selling A House Today?
• The Power of Staging When Selling Your Home

What to Expect When Selling Your Home in Ontario

In Ontario, funds from a real estate transaction are released concurrently with the closing process after all legal requirements have been completed. Usually, it happens fairly quickly. However, there can also be minor delays depending on the situation.

What Can Delay Disbursement of Funds?

• If your transaction closes late in the day, after business hours, you will not likely receive funds until the next day. The same goes for holidays or weekends.
• The buyer’s method of payment can also be a factor.

Direct deposits or wire transfers are generally faster than waiting for a certified cheque. On rare occasions, there could also be encumbrances or other hurdles that affect the timing of disbursement.

Your real estate lawyer will first use the proceeds to cover any outstanding mortgages or lines of credit against the property. They’ll also pay out any real estate commissions and any property tax adjustments. The remaining balance goes to the seller, typically by wire transfer or direct deposit. It may not happen immediately, but the process is straightforward and seamless in most cases.

Do you have questions about selling your home or what the process might look like? Our top agents in Hamilton & Burlington are here for you every step of the way. Reach out today with any questions you have, or call 905-332-9223 to connect with our office.