Why a signed home deal can still change
THE HOME GUIDE
51 / THE CLOSING PROCESS
Why a signed home deal can still change
The agreement is signed. The deposit may be paid. Everyone has started planning their move. So what could still happen before closing?
ABOUT 8 MINUTES TO READ
THREE IMPORTANT STAGES
01
AcceptedThe parties have entered an agreement, which may still contain conditions.
02
FirmThe agreement is no longer subject to outstanding purchase conditions.
03
ClosedThe legal transfer and required financial arrangements have been completed.
A firm deal is legally binding, even though work remains before closing.
An accepted offer is a major moment. Buyers begin making moving plans. Sellers start arranging their next steps.
But the days or weeks between acceptance and closing can still involve important decisions.
There may be financing approvals to complete, conditions to satisfy, documents for lawyers to review and funds to arrange.
Understanding what remains open can help both parties protect the agreement they've made.
01 / BEFORE THE DEAL BECOMES FIRM
Start with the conditions in the agreement.
Some purchase agreements include conditions intended to give one party time to complete an important check.
Examples include mortgage financing, a home inspection, condominium status-certificate review or the sale of the buyer's existing property.
COMMON CONDITIONS
Allows for a financing review according to the wording and deadline in the agreement.
Provides an opportunity for the specified property assessment and related decision.
May permit a lawyer to review the status certificate and related information before the condition deadline.
May make the purchase subject to the buyer completing a specified sale, within the agreed terms.
Conditions have contractual wording and deadlines. The agreement may require a written notice, waiver or other document.
If a condition is not fulfilled, the outcome depends on how the agreement is written and what the parties have done. The deposit and legal consequences also depend on the circumstances.
Have your lawyer explain the relevant terms before assuming that a condition automatically allows you to cancel the purchase.
02 / THE LENDER'S FINAL REVIEW
The bank may still need to approve the property.
A mortgage preapproval gives a buyer useful information about potential borrowing capacity. It is not a final promise that the lender will fund any home the buyer chooses.
After an offer is accepted, a lender may need an appraisal, updated financial documents or confirmation that the property meets its lending requirements.
A change in income, debt or the lender's valuation could affect the amount of financing available.
HYPOTHETICAL FINANCING SCENARIO
AGREED PURCHASE PRICE
$800,000
LENDER'S APPRAISAL
$760,000
POTENTIAL ADDITIONAL CASH REQUIRED
$32,000
Illustration assuming the lender finances 80% of its appraised value instead of 80% of the purchase price.
Show how the $32,000 difference is calculated
80% of $800,000 = $640,000.
80% of $760,000 = $608,000.
Difference in available mortgage funding = $32,000, under these assumptions.
This scenario does not describe every lender's rules. Financing limits, insurance requirements and underwriting decisions vary.
The important question is whether the buyer has a workable way to complete the purchase if financing changes.
If the deal is already firm, a lower appraisal does not automatically give the buyer the right to withdraw. The buyer should contact the lender and lawyer promptly.
03 / THE WORK BETWEEN ACCEPTANCE AND CLOSING
What happens after everyone signs?
The exact sequence depends on the contract and transaction, but these are common stages.
THE CLOSING TIMELINE
Confirm the deposit requirements, contractual deadlines and any conditions requiring action.
Complete the required investigations, obtain advice and deliver any necessary documents on time.
The lender finalizes funding requirements while lawyers address title, documents, adjustments and transfer arrangements.
Required funds and documents are exchanged, the transfer is registered and possession is handled under the agreement.
Some stages overlap. The purchase agreement and your lawyer's instructions determine which tasks and dates apply to your transaction.
04 / PROPERTY AND LEGAL ISSUES
The paperwork may reveal something new.
Before closing, a lawyer may investigate title-related matters and review the documents needed to complete the transfer.
Depending on the property and agreement, concerns might involve an outstanding mortgage discharge, an easement, a condominium document or an issue requiring clarification about ownership or permitted use.
QUESTIONS THAT MAY NEED ANSWERS
Can the seller provide the title and satisfy the legal obligations required by the agreement?
Have any agreed repairs been completed? Has a new issue appeared since the last visit?
Are the appliances, fixtures and other items specified in the contract still present?
When an issue is discovered, the response depends on the contract and legal facts. Ask your lawyer to assess the available remedies before assuming the closing can be cancelled or delayed.
05 / THE LAST WALK-THROUGH
A pre-closing visit can reveal a problem.
Suppose a buyer returns to the property shortly before closing and discovers that the refrigerator included in the agreement has been removed.
The buyer may also notice new damage or repairs that haven't been completed as promised.
PRE-CLOSING VISIT CHECK
Look for new damage or material changes since your earlier visit.
Confirm that contracted appliances and fixtures remain, and assess their operation where appropriate.
Confirm whether repairs or other obligations specified in the agreement have been completed.
If a problem appears, notify your representative and lawyer promptly. Let your lawyer advise on the contractual response. Avoid assuming you can withhold funds or alter the closing arrangements without legal advice.
06 / TEST YOUR UNDERSTANDING
What happens next?
These fictional cases show why the wording and status of the agreement matter. Tap each one to explore the possible next step.
CASE FILE 01
A buyer has an outstanding financing condition. The lender declines the application.
What should happen next?
Review the precise condition wording and deadline with the buyer's lawyer. The contract determines the available options and required notices. The buyer should not assume an informal message is enough to end the agreement.
CASE FILE 02
The deal is firm. The lender later approves a smaller mortgage than expected.
Can the buyer simply walk away?
Generally, a firm agreement continues to bind the buyer. The buyer should urgently discuss funding options with the mortgage professional and legal obligations with the lawyer. Failing to close can create significant liability.
CASE FILE 03
The seller requests a new closing date after both sides have signed.
Does the buyer have to agree?
A request alone does not normally amend the agreement. The parties may negotiate a written amendment, or other contractual or legal provisions may affect their obligations. Both should obtain advice before changing arrangements.
CASE FILE 04
A final visit shows that an agreed repair has not been completed.
What should the buyer do?
Document the concern and notify the representative and lawyer promptly. The lawyer can determine whether a remedy, agreement or other action is appropriate under the contract.
07 / UNDERSTAND THE CONSEQUENCES
Failing to close can be expensive.
A firm agreement carries legal obligations. A buyer who fails to close may face the loss of a deposit and potentially additional damages, depending on the facts and applicable law.
For example, a seller might need to resell at a lower price or incur additional costs following a buyer's default. Whether those losses can be recovered requires legal analysis.
IMPORTANT DISTINCTION
Your deposit may be only part of your financial exposure.
The consequences of default depend on the agreement, the conduct of the parties and the law. A deposit is not necessarily a limit on potential liability.
Sellers also have contractual duties. If either side believes the other cannot complete the transaction, early legal advice may help preserve options and avoid preventable losses.
08 / WHAT EACH PARTY SHOULD WATCH
A closing needs coordination from both sides.
IF YOU'RE BUYING
Know what is still outstanding.
Ask the lender whether any documentation or property approval is outstanding.
Confirm with the lawyer when your remaining down payment and closing funds must be available.
Understand your pre-closing visit rights and when possession is expected under the agreement.
IF YOU'RE SELLING
Prepare to deliver what was promised.
Maintain the property and complete any contractual obligations before closing.
Confirm what must stay with the property and what can be removed.
Coordinate mortgage discharge, document requests and vacant possession where required.
09 / SAVE THIS CHECKLIST
Your closing-readiness review
Check these items as you review your transaction. Selections are for this page only and aren't saved.
BEFORE THE CLOSING DATE
A successful closing requires more than signatures.
The purchase agreement establishes important rights and obligations. Completing the transaction requires the parties to follow through on those commitments.
Financing, legal work, property condition and closing funds all deserve attention before moving day.
The best approach is to understand what remains outstanding, monitor the deadlines and raise concerns while there's still time to address them.
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