Closing Day Best Practices

Closing day marks the culmination of the efforts of REALTORS®, brokerages, lawyers, inspectors, appraisers, mortgage brokers, and other professionals. It’s the day when funds are transferred, and keys are exchanged. While often referred to as “closing day,” it may also be called possession day or completion day. Regardless of the terminology, following these best practices will ensure a smooth experience for all parties.

Choosing the Right Completion Day

The AREA purchase contract defines completion day as the date when the buyer pays the purchase price, and the seller provides vacant possession. Choosing the right date is critical to avoiding unnecessary complications. Consider the following:

Avoid Weekends and Holidays: Most offices are closed, making it difficult to resolve last-minute issues.
Steer Clear of Mondays and Fridays: These are the busiest days for lawyers, mortgage companies, and land titles offices.
Avoid First and Last Week of the Month: These are peak times for closings. Mid-month dates (Tuesday to Thursday) are ideal.
Provide a 2-3 Week Buffer: Especially for condos, new construction, or complex transactions, leaving ample time after condition removal can prevent delays.
Consider Interim Financing: If a buyer is selling their previous home, interim or bridge financing can allow for a stress-free move without same-day closings.

Closing Day Timing Expectations

While the standard completion time in AREA contracts is noon, it’s essential to set realistic expectations. Closing does not always happen precisely at 12:00 PM. Lawyers need time to complete fund transfers, document verification, and communication. Most buyers receive keys in the early to mid-afternoon.

To manage expectations:

Advise buyers to schedule movers for later in the day.
Prepare sellers for a delay if unforeseen issues arise.
Maintain communication with lawyers to stay informed on progress.

Key Release Protocol

The release of keys is contingent upon the confirmation that the funds have been received and all legal documents are processed. Here is how it typically works:

Buyer Pays the Purchase Price: Funds are transferred to the seller’s lawyer.
Seller's Lawyer Confirms Receipt: Upon confirmation, they authorize the key release.
Seller’s Brokerage Releases Keys: Keys are generally held by the seller’s brokerage and can only be released once the lawyer confirms closing.

Some sellers may authorize early key release in trust if both parties are confident the closing will proceed without issues. This is done with caution and at the seller’s discretion.

Follow-Up After Closing

Closing day is not the end of the client relationship. Following up after the move ensures a positive client experience and strengthens your relationship. Best practices for follow-up include:

Call or email your client a few days after possession to check in.
Offer assistance if any issues arise.
Gather feedback on their experience.
Request testimonials or referrals if appropriate.

For REALTORS® Representing Sellers

Preparation Prior to Possession Day

Client Check-In: Confirm clients have completed all legal paperwork with their lawyer.
Key Release Confirmation: Coordinate with the buyer’s agent regarding how keys will be exchanged.
Property Preparation: Remove signage and lockboxes unless otherwise agreed.

On Possession Day

Morning Lawyer Check-In: Call the seller’s lawyer by 10:30 AM to ensure the process is on track.
Monitor for Delays: Communicate promptly with the buyer’s agent in case of issues.
Provide Support: Offer assistance if legal or logistical challenges arise.

For REALTORS® Representing Buyers

Preparation Prior to Possession Day

Client Check-In: Ensure the buyer has signed all necessary documents with their lawyer.
Manage Expectations: Confirm the buyer understands the process and timing on possession day.

On Possession Day

Morning Follow-Up: Call the buyer around 10:00 AM to confirm their readiness.
Stay Informed: Maintain communication with the lawyer and the seller’s agent.
Coordinate Key Pickup: Confirm key release timing and logistics.

General Notes

Proactive communication reduces stress for all parties.
Let lawyers manage the legal aspects but remain available to provide assistance.
Keep clients informed, managing expectations without adding unnecessary worry.

By following these best practices, REALTORS® can ensure a positive closing day experience that leaves a lasting impression on their clients.

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