Closing Statement
Learn what a closing statement is in Canadian real estate, what it includes, and how it ensures all transaction funds are accounted for on closing day.
Shutterstock
May 22, 2025
What is a Closing Statement?
A closing statement is a detailed, itemized summary of all the financial transactions and costs associated with the finalization of a real estate sale.
Why Closing Statements Matter in Real Estate
In Canadian real estate, the closing statement outlines who pays what, and confirms that funds are properly distributed between buyer, seller, legal representatives, and lenders.
The closing statement typically includes:
- Purchase price and deposit
- Adjustments for utilities, taxes, or rent
- Legal fees and disbursements
- Land transfer tax and title insurance
- Mortgage advances and balance owing
Prepared by the buyer’s lawyer or notary, this document ensures transparency and prevents disputes by confirming all amounts have been calculated and paid appropriately.
Understanding the closing statement helps both buyers and sellers verify costs, track payments, and ensure a smooth and accurate closing process.
Example of a Closing Statement in Action
The buyer’s lawyer prepares a closing statement showing the final balance due after deducting the deposit, calculating legal fees, and adjusting for prepaid property taxes.
Key Takeaways
- Lists all financial details of a property transaction.
- Ensures accurate disbursement of funds.
- Prepared by legal representatives.
- Clarifies adjustments and final payments.
- Vital for transparency and accountability.
Related Terms
- Closing Costs
- Disbursements
- Title Transfer
- Legal Fees
- Trust Account
National average resale-price growth and housing-starts growth, smoothed over three months. The comparison illustrates the cycle; it does not establish how much a price change causes construction to change.
Trailing 12-month starts in centres of 50,000 or more remove the usual monthly seasonality. Ownership combines the homeowner and condominium categories; rental is shown separately.
Six-month averages of provincial starts, expressed at annual rates. The smoothing reduces the influence of individual apartment projects.
The same August benchmark compared with two different starting points. Three-month changes are not annualized.
Average sale prices show the difference in purchase costs across markets. They do not measure affordability relative to local incomes or construction costs.
Newfoundland and Labrador remains above its pre-pandemic sales pattern, but August activity was below last year. Historical lines retain their original release vintages.
Average and median describe different aspects of the same month’s transactions. Both are affected by the mix of homes sold.
Category averages compare different homes and locations; the gaps are not estimates of the cost to upgrade an otherwise identical property.
The five categories shown account for 5,000 of the board’s 5,057 sales. The remaining 57 transactions were in other housing categories.
Monthly observations are not seasonally adjusted. Active listings count properties available at month-end; they are not construction inventory.
Average and median prices share one dollar axis. These unadjusted transaction measures do not control for changes in the homes sold.
TRREB’s 416/905 categories compare the apartments sold in each area. The difference does not isolate a location premium for equivalent units.
5680 Oak Street in Vancouver and its surrounding context. (MCMP Architects)
Ground-level renderings of the tower proposed for 5680 Oak Street in Vancouver. (MCMP Architects)
