Closing day refers to the date mutually agreed to by the seller and buyer for the transfer of funds, title, keys and of course the day the buyer can move in! 

This can be a stressful time for both parties considering this is usually the largest sale or purchase of a lifetime. A few essential preparations can make the transaction flow smoothly.

The buyer must review the closing statements they sign at their lawyers office carefully and double-check the calculations for their mortgage. Buyers should review the mortgage details, title and fees to ensure that what was discussed is accurately reflected in the documentation. (Visit our Buying a home section for more details.)

Sellers should sign their paperwork at their lawyers a few days prior to closing also. 

Buyers should also review the exact legal description of the property and any liens, encumbrances or other items which may have been discovered in regard to the property. Also ensure that the title is correct on the deed.

Buyers usually arrange a re-visit of the property they have purchased just prior to the closing. This short walk through is just to be sure the home is in the same condition as when they last viewed it.

Some lawyers will contact the local water, electricity and gas companies to have the meters read and changed over for the closing day. However, we recommend buyers and sellers double check, just to be sure! Sellers cannot disconnect their services until the buyers have called to take over that particular service.

Most other services that have to be changed are the responsibility of the seller and the buyer. At least 3 weeks before the closing date, contact your cable television, telephone and Internet service providers and review your After The Sale Checklists For Sellers and Buyers we emailed you.

There are also several adjustments to consider. These are designed to settle any expenses incurred (or income earned on rental properties) by either the seller or the buyer as of the day of closing - which is what both parties want. Municipal property taxes and monthly condominium fees are all common expenses that need to be adjusted at closing by your lawyer. 

Your lawyer will prepare a statement of adjustments prior to closing so you will know well in advance what extra expenses, if any, you may incur.

Any expenses a seller has prepaid before closing day are pro-rated, with the buyer reimbursing the seller for the period during which they no longer own the property.

If the buyer assumes the seller's mortgage, the outstanding principal plus accrued interest and any funds held in the tax account are also adjusted for, as are first and last month's rent on rental properties.

Closing day need not be worrisome if both parties plan ahead and review all paperwork carefully. In fact, with enough preparation closing day should be the beginning of a new chapter for both the buyer and seller.