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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.

Closing Statement

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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

Additional Terms

Public Realm Improvements

Public realm improvements are enhancements to public spaces such as sidewalks, parks, plazas, and streetscapes, often funded or contributed by. more

Mortgagee in Possession

A mortgagee in possession is a lender who takes control of a property after borrower default, but before foreclosure or power of sale. The lender. more

Lease Surrender Agreement

A lease surrender agreement is a negotiated contract between a landlord and tenant that ends a lease before its scheduled expiration. Terms may. more

Green Infrastructure

Green infrastructure refers to natural or engineered systems that manage stormwater, reduce heat, and improve sustainability in developments.. more

Escrow Holdback

An escrow holdback is a portion of funds withheld at closing and held in escrow until specific conditions are met, such as completion of repairs,. more

Underused Housing Tax

The Underused Housing Tax (UHT) is a federal annual 1% tax on the value of vacant or underused residential property owned by non-resident,. more

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