How does my lawyer transfer funds?
How does my lawyer transfer funds? — The fastest, safest way your closing money moves
What happens to your money on closing?
When you close a real estate deal, lawyers handle the money. They don’t hand you cash. They use trust accounts, certified cheques, or bank wires. The goal: move funds securely, clear the bank, then disburse according to the statement of adjustments.
How lawyers transfer funds — step by step
- Funds received into a lawyer trust account
- Your lender or you provide funds to the lawyer’s trust account. Trust accounts are segregated client accounts regulated by law.
- Verification and hold period
- The lawyer confirms the source, verifies cleared funds or a bank guarantee, and checks identification. Banks may place short holds on deposits.
- Prepare closing instructions and statement of adjustments
- The lawyer prepares a final accounting: purchase price, adjustments, mortgage payoff, fees, taxes, and disbursements.
- Transfer method chosen
- Wire transfer (bank-to-bank): Common for high-value closings. Secure, immediate (same day or next business day), but confirm wiring details in writing.
- Certified cheque or bank draft: Issued from the lawyer’s bank. Used when a physical document is required.
- Interac or electronic transfers: For smaller payouts, where permitted.
- Execution and confirmation
- Lawyer executes transfers to seller, lender, and service providers. Lawyer provides a closing statement and proof of funds transfer on request.
Timing and what to expect
- Most bank wires post same day if sent early. International or weekend transfers take longer.
- Lawyers wait for funds to clear before releasing mortgage payoffs or the seller’s net proceeds.
- Expect final documents and a closing statement by email the day of closing.
Safety: how lawyers prevent fraud
- Trusted procedures: lawyers use verified wiring instructions and confirm new instructions verbally.
- Never accept wiring instructions by email only. Call a known number.
- Confirm the lawyer’s trust account details on their official letterhead or through your lender’s portal.
What you should do before closing
- Confirm wiring details directly with your lawyer’s office—don’t rely on an email from an unknown address.
- Ask for the statement of adjustments ahead of time and review it line-by-line.
- Have certified funds ready (bank draft or wire) and know the cut-off time for same-day processing.
- Request proof of transfer after closing: a transfer receipt or bank confirmation.
Questions to ask your lawyer now
- Which transfer method will you use?
- When will funds be available to the seller or mortgage lender?
- What fees apply for wiring or bank drafts?
- Can I get a receipt or electronic confirmation right after transfer?
Closing funds don’t disappear. They move through regulated trust accounts, controlled wire procedures, and documented disbursements. If you want a stress-free closing, work with a lawyer who follows these steps—and partner with a local expert who knows the market.
Need help navigating the closing process? Contact Tony Sousa, local realtor and closing guide, tony@sousasells.ca | 416-477-2620 | https://www.sousasells.ca
