What is a Completion Date in Canada?

If you’ve ever wondered what a complete date is, you’ve come to the right place!

The completion date in Canadian real estate marks the day when the legal ownership of a property is transferred from the seller to the buyer. On this day, all terms outlined in the sale agreement are finalized.

Legal Transfer of Ownership

On the completion date, the property’s title is officially transferred to the buyer. Lawyers or notaries representing both parties facilitate this process. At this point, the purchase funds are exchanged, making the buyer the legal owner.

Payment and Settlement of Obligations

The buyer settles all financial responsibilities associated with the sale on this date. These include the purchase price, closing costs, and any outstanding amounts outlined in the agreement. All contract conditions, such as securing financing, inspections, or appraisals, must be satisfied by this day.

Legal Liability Associated with the Property

From the completion date onward, the buyer assumes legal responsibility for the property. Any issues, damages, or liabilities occurring after this day are the buyer’s responsibility. Buyers are often advised to activate property insurance on this date to mitigate any risks.

Completion Date and Possession Date Relationship

Typically, the completion date precedes the possession date by at least one day. This ensures the seller receives full payment before the buyer takes possession of the property. In some cases, the dates may coincide, provided adequate arrangements are made.

Practical Scheduling of the Completion Date

Completion dates are generally scheduled on weekdays, from Monday to Thursday. This minimizes the risk of unresolved issues carrying over into weekends, when banks and legal offices may have limited hours.

Adjustment Date in Relation to Completion Date

The adjustment date is used to calculate final financial adjustments. On this date, expenses like property taxes, utilities, and maintenance fees are prorated between the buyer and seller, ensuring each party pays their share up to the completion date.

Consistency Across Canadian Regions

While real estate practices may vary between provinces, the completion date remains a key milestone across Canada. It signifies the official point of ownership and financial responsibility transfer between the seller and buyer.