Why Deals Don't Close in the Morning

On Monday I put out a video walking through what actually happens on closing day: from the morning of closing to the moment the buyer gets their keys.

I made it because closing day is a part of the deal clients find stressful, and most of that stress comes from not knowing what's happening behind the scenes.

When you understand the sequence, the waiting makes a lot more sense.

There's one point in that video I want to go deeper on here, because it's the one your clients sometimes bring to you: why doesn't the deal just close first thing in the morning?

After all, a lot of the closing work is done before closing day. We've collected the funds ahead of time, met with the clients and signed all the documents, ordered the title insurance, and gathered everything the deal needs. There's no meeting to attend and no paperwork left for the client.

So why the wait?

Anyone who's been reading this long enough has heard me say most deals close between 2:00 and 5:00 p.m.

Here's what's actually driving that:

1. Banks

It usually starts with the lender. The mortgage funds have to land in the buyer's lawyer's account, and then be resent out to the seller's lawyer along with any other required funds.

There can be delays in the mortgage funds being delivered, and delays in the subsequent wires. Also sometimes mortgages are being administered by 3rd parties... for example a TD Mortgage is handled differently when it comes direct from them or arranged through a mortgage broker.

Until that money is delivered, and then rerouted to the seller's lawyer, closing can't happen

2. The Other Law Firm

We're never closing alone. Every deal involves another lawyer too. We exchange documents, confirm receipt of funds, and wait for them to release the transfer.

All of that depends on the other side being ready to respond, and most reputable firms are managing several closings in a day. It gets busier at month-end and on Fridays, which appear to line up with buyer's and seller's preferred closing dates.

A lawyer with eight closings on a Friday has many steps to manage on each, which all add up.

3. Same-Day Closings

This is a big one. When a client is selling and buying on the same day, the purchase can't fund until the sale closes first. They need the equity out of the old place to complete the new one.

So your client's closing now depends on a completely separate deal, with its own lender and its own lawyers, closing ahead of it.

And if the buyer of their home is in the same position, waiting on their own sale, you get a domino effect. Each deal waits on the one before it, and any delay affects all the subsequent closings. This is why it's recommended to avoid same-day closings when possible.

4. Possession and Move-Out

Sometimes it's simpler than any of that. The seller hasn't finished moving out. Most deals require vacant possession, so the seller's lawyer holds off on closing until the property is confirmed empty.

The Standard APS allows for 6:00 p.m. as the latest time to close. A good lawyer will ensure that they're not completing closing until they know their client is actually out.

If the movers are running behind, your client's closing may be too.

– – –

None of this is a delay in the real sense. It's just the order things have to happen in. The deal closes when the last piece falls into place, and on most days that happens in the afternoon.

The reason this matters for you: when a client messages at 10:00 a.m. asking why they don't have keys yet, sometimes you're the one who gets that message, not me.

Knowing the sequence is what lets you answer it without missing a beat. You already know the money is probably still moving, or the other firm is working through their deals, or the sale has to close first.

And if you've worked with us before, you know we cover this at the signing meeting with the client... and we make sure you, the agent, hear from us the minute we've closed.

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