How does my lawyer transfer funds?

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, [email protected] | 416-477-2620 | https://www.sousasells.ca