How does my lawyer transfer funds?
Who actually moves the money when you sell your home in Milton — and how does your lawyer transfer funds so you get paid fast and safe?
The plain truth about how funds move at closing
You sold your house. You expect the sale proceeds in your bank account — not tomorrow, not maybe. This guide tells you, step-by-step, exactly how your lawyer transfers funds on closing day in Milton, Ontario. No fluff. No legalese. Straight instructions so you know what to expect, when you’ll get paid, and how to avoid wire-fraud traps.
Short overview: the flow of money on closing day
- Buyer’s funds arrive with buyer’s lawyer or lender (often via wire/EFT).
- Seller’s lawyer confirms registration documents (title transfer) through Ontario’s electronic land registry (Teraview).
- Mortgage payoffs and closing costs are paid from trust funds.
- Lender receives payoff and registers mortgage discharge.
- Remaining net proceeds are released to the seller by the seller’s lawyer — usually by EFT, wire, or certified cheque.
Why lawyers handle money, not banks or realtors
Ontario law requires lawyers or licensed paralegals to hold closing funds in a trust account. That trust account protects both parties. Your lawyer is the fiscal gatekeeper: they collect buyer/lender funds, pay off mortgages and liens, adjust taxes and utilities, cover realtor commissions and legal fees, register documents, and then release the net proceeds to you.
Exactly how your lawyer transfers funds — the methods explained
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Electronic Funds Transfer (EFT / Interac e-Transfer): Fast and common. Many Milton law firms use secure EFT to move net proceeds directly into your bank account the same day. You’ll usually provide a void cheque or direct deposit form in advance.
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Bank wire (domestic): The most secure method for large sums. The lawyer instructs their bank to wire funds to your bank account. This clears quickly and is standard for high-value transactions.
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Certified cheque / bank draft: Older method still used by some firms. A certified cheque is drawn on the firm’s trust account and given to you or deposited on your behalf.
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Trust cheques: Lawyers can issue trust cheques from their trust account. These may clear slower than a wire but are still common.
Note: For incoming lender payoffs, buyer funds, and lender wires, banks and lenders often use direct wire/EFT systems. Your lawyer coordinates timing so payoffs and registrations complete before releasing your funds.
The step-by-step timeline your lawyer follows in Milton
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7–10 days before closing: Your lawyer requests closing instructions, identity verification, and your bank details for net proceeds. Provide these immediately.
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48–72 hours before closing: Lawyer orders mortgage payoff statement from the lender and prepares a statement of adjustments (taxes, utilities, condo fees, etc.).
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Closing morning: Buyer’s funds and lender’s wire arrive into buyer’s lawyer’s trust or lender account. Your lawyer confirms funds have arrived.
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Registration: Your lawyer registers the transfer of title and mortgage discharge electronically through Teraview. In most cases, registration and lender instructions must be completed before funds move.
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Disbursement: After registration confirms, your lawyer pays the mortgage(s) off, pays commissions and closing costs, then releases the net proceeds to you via pre-arranged method (EFT/wire/certified cheque).
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After closing: You receive final closing statements and proof of registration and discharges.
What affects timing in Milton? (Real-world causes of delay)
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Lender delays: If the buyer’s mortgage or mortgage discharge is delayed, registration stalls.
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Document issues: Missing signatures, incorrect names, or title problems slow down registration.
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Bank verification: Lawyers often require extra identity checks for large transfers to prevent fraud.
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Wire fraud and security holds: If banks flag movement for review, funds can be delayed for a day or two.
Plan for these possibilities. The faster you deliver requested documents and confirmations, the fewer surprises on closing day.
Security: avoid wire fraud and phone/email scams
Wire fraud is real. Scammers spoof emails and phone numbers to trick sellers and lawyers. Protect yourself in Milton:
- Never send bank details in an email without calling to confirm the recipient.
- Verify the lawyer’s phone number from an independent source (Law Society directory or the law firm’s official site).
- If you get a last-minute change to wire instructions, call your lawyer on a known number — do not rely solely on email.
- Insist on verification for any transfer over $10,000.
Your lawyer should have anti-fraud protocols. If they don’t, ask why and consider switching.
Fees, deductions, and what reduces your net proceeds
Expect these deductions from sale proceeds:
- Mortgage payoff (including prepayment penalties if any)
- Realtor commission
- Legal fees and disbursements
- HST on legal disbursements where applicable
- Property taxes and condo/utility adjustments
- Outstanding liens or judgments
Your lawyer’s statement of adjustments will detail every line item. Review it carefully before signing.
Special situations Milton sellers face
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Closing earlier than expected: If buyer’s lender sends funds early, your lawyer may register early and release proceeds sooner.
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Sale proceeds less than mortgage balance: Your lawyer will confirm shortfall arrangements. You might need to bring additional funds.
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Power of attorney closings: If you’re away, your lawyer can complete the closing with POA, but identification and notarized documents are required.
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Condo vs. freehold: Condo status affects adjustment calculations (common elements fees). Your lawyer handles the math and allocation.
What you must provide to make transfers fast and secure
- A void cheque or direct deposit form with bank transit, institution, and account numbers.
- Photo ID for identity verification.
- Any mortgage documents if you plan to bring funds to close.
- Clear instructions about where you want the net proceeds paid.
Failing to give accurate bank information is the most common reason sellers don’t get paid on closing day.
How Teraview and Ontario’s e-registration system matters
In Ontario, land registration is electronic. Your lawyer uses Teraview to register the transfer and mortgage discharge. Only after registration confirms does the lender allow disbursement of funds. That’s why registration timing controls when you get paid.
Your lawyer will monitor the registration and provide confirmation. In most ordinary Milton sales, everything clears the same day and funds are released without delay.
Practical checklist for sellers in Milton — 24–72 hours before closing
- Confirm lawyer has your bank account details and ID.
- Review final statement of adjustments.
- Confirm mortgage payoff amounts if applicable.
- Ask your lawyer how you’ll receive funds (EFT, wire, cheque).
- Verify contact numbers for buyer’s lawyer and the lender.
- Ask your Realtor to confirm keys and move-out timing.
Follow this checklist and you’ll avoid the most common delays.
Why Tony Sousa is the local expert Milton sellers trust
Tony Sousa has sold dozens of Milton homes and works with top local lawyers every week. He knows the practical steps that get sellers paid on time and how to coordinate lawyers, lenders, and buyers to avoid last-minute holdups. If you want a smooth closing and immediate access to your net proceeds, Tony can connect you with experienced real estate lawyers in Milton and walk you through the timeline.
Contact Tony: tony@sousasells.ca | 416-477-2620 | https://www.sousasells.ca
FAQ — Common seller questions about lawyer fund transfers in Milton
Q: How long after closing will I get my money?
A: If registration completes the same day, many sellers get funds the same day via EFT or wire. In some cases it can be 24–48 hours due to bank holds or verification.
Q: Can my lawyer deposit the funds into someone else’s account?
A: No. Lawyers must follow your written instructions. If you want funds wired to another account, sign a direction in advance and verify the recipient.
Q: Is a certified cheque just as safe as a wire?
A: A certified cheque is safe but slower. Wires and EFTs are faster and preferred for large amounts.
Q: What happens if there’s a lien I didn’t know about?
A: Your lawyer will identify liens during title searches. Liens must be paid or dealt with before registration. If one appears at the last minute, closing could be delayed.
Q: How do I avoid wire fraud?
A: Never change bank details by email. Verify any instruction by phone using a known number. Confirm with both your real estate lawyer and your bank.
Q: Who pays the closing costs?
A: The seller typically pays realtor commissions, legal fees, and any outstanding property taxes or adjustments. The buyer pays land transfer tax and their legal fees.
Q: Can the lawyer hold funds until the title is clear?
A: Yes. Lawyers often wait for electronic registration confirmation before releasing funds.
Q: What documents prove funds were transferred?
A: Your lawyer provides a final statement of adjustments and trust ledger showing disbursement. Keep these for taxes and records.
If you’re selling in Milton and want a closing that runs on time, call Tony. He’ll coordinate with experienced local real estate lawyers and make sure your funds land in your account — fast, secure, and without drama.
Contact Tony Sousa: tony@sousasells.ca | 416-477-2620 | https://www.sousasells.ca
Disclaimer: This article explains common Ontario practices and is for informational purposes. For legal advice about your closing and fund transfers, consult your real estate lawyer.
