When Do You Get Paid After Selling a House in Ontario? | Modern Solution Realty

When Do You Get Paid After Selling a House in Ontario?

Selling your home is one of the largest financial transactions you’ll ever make — and timing matters just as much as price.

A common question we hear at Modern Solution Realty is:

When do I actually receive the money after selling my house in Ontario?

The answer is usually on closing day or within 1 business day — but here’s how the process really works.

When Does the Seller Receive the Deposit?

After an offer is accepted, the buyer typically provides a deposit within 24 hours, as outlined in the Agreement of Purchase and Sale.

In Ontario:

  • Deposits are commonly around 5%, though not legally required
  • The money is held in the listing brokerage’s Real Estate Trust Account
  • Funds are regulated by RECO to protect both parties

The seller does not receive the deposit immediately. It remains in trust until closing.

If the buyer fails to complete the transaction without a valid reason, the seller may be entitled to the deposit.

When Do You Get the Money After Closing?

There are two important dates sellers should understand:

Closing Date

  • Legal ownership transfers to the buyer
  • Keys are usually released
  • Buyer becomes the registered owner

Disbursement Date

  • Your lawyer releases the net proceeds to you
  • Often the same day as closing
  • Sometimes next business day, depending on timing

In most Ontario real estate transactions, sellers receive their money within 24 hours of closing.

Where Do the Sale Proceeds Go First?

On closing day:

  • Buyer delivers funds to their lawyer
  • Buyer’s lawyer transfers funds to the seller’s lawyer
  • Funds are deposited into the seller lawyer’s trust account
  • Your lawyer pays:
  • Outstanding mortgage
  • Lines of credit registered on title
  • Real estate commission
  • Property tax adjustments
  • Remaining balance is sent to you by:
  • Wire transfer (fastest)
  • Direct deposit
  • Bank draft

What Can Delay a Seller Getting Paid?

While rare, delays may occur if:

  • The transaction closes late in the day
  • Closing occurs before a weekend or holiday
  • Buyer funds arrive late
  • Title issues or encumbrances exist
  • Payment method is not electronic

In most cases, delays are minor — typically 1 business day.

Ontario Home Sale Timeline (Quick Summary)

Offer Accepted → Deposit within 24 hours

Closing Day → Ownership transfers

Same Day or Next Business Day → Seller receives proceeds

How to Maximize What You Walk Away With

Knowing when you get paid is important — but knowing how much you keep matters even more.

At Modern Solution Realty, we help Ontario sellers retain more equity by offering:

 Full-service marketing

 Professional negotiation

 Maximum MLS & online exposure

1% listing fee

Same service. Less commission. More money in your pocket.

Thinking of Selling Your Home in Ontario?

Before listing, it’s critical to know:

  • Your true market value
  • Your estimated net proceeds
  • Your timeline from listing to payout

Book your complimentary home evaluation with Modern Solution Realty today.

Selling your home shouldn’t be confusing — or expensive.