The Hidden Risks of Same Day Closings

As we enter the holiday season, many homeowners are quietly planning their next move. While December often feels like a pause in the real estate market, history tells us otherwise — the spring market is already in sight, and preparation starts now.

One of the most common strategies we see is buying and selling on the same day. While it can be efficient, it is also one of the highest-risk transaction structures if not handled properly.

If you’re planning to sell your home and purchase a new one — especially with same-day closings — here’s what you need to know, and more importantly, what not to do.

Why People Buy and Sell on the Same Day

Same-day closings are attractive because they can:

• Reduce the need for bridge financing

• Avoid temporary housing

• Allow equity from the sale to fund the purchase

• Streamline moving logistics

However, these benefits only materialize when the transaction is structured correctly.

The Biggest Risk: Timing and Money Flow

When buying and selling on the same day, your purchase is typically funded by the proceeds of your sale.

This means:

• Your sale must close first

• Funds must be received, cleared, and released

• Any delay on the sale side can put your purchase at risk

Even small issues — a delayed wire, missing document, or last-minute lender requirement — can create a domino effect.

What You NEED to Do

1. Get Legal Advice Before You Firm Up

Too many buyers call their lawyer after waiving conditions. By then, your leverage is gone.

A lawyer should review:

• Closing dates

• Conditions

• Financing timelines

• Deposit terms

• Occupancy provisions

Early legal review allows risks to be identified and addressed before they become expensive problems.

2. Build in a Buffer (If Possible)

While same-day closings can work, they leave zero room for error.

If feasible:

• Consider closing your sale one day earlier

This small buffer can eliminate the need for emergency bridge financing or last-minute scrambling.

3. Ensure Your Financing Is Fully Aligned

Your mortgage approval must account for:

• The sale of your existing property

• Net proceeds being applied to the purchase

• Timing of funds on closing day

A pre-approval alone is not enough. Your lender must understand the entire transaction structure.

4. Coordinate Everyone Early

Same-day closings require precise coordination between:

• Your realtor

• Your lender

• Your lawyer

If one party is out of sync, delays occur — and delays cost money.

What You Should NOT Do

Do NOT Waive Conditions Without Understanding the Risk

Waiving financing or sale conditions without proper review can expose you to:

• Failed closings

• Loss of deposits

• Litigation

• Emergency bridge loans at unfavourable rates

Competitive markets demand speed — but speed without structure is dangerous.

Do NOT Assume Funds Are “Instant”

Sale proceeds do not magically appear the moment keys change hands.

Funds must:

• Be received by the lawyer

• Clear through the banking system

• Be released in accordance with trust accounting rules

This process takes time — even on a “same-day” closing.

DO NOT Cancel Your Home Insurance

This is one of the most common — and most expensive — mistakes.

Do not cancel your home insurance:

• Before your sale has fully closed

• On the morning of closing

• Until your lawyer confirms the transaction is complete

If your sale fails to close and insurance has been cancelled, you may be:

• Uninsured

• In breach of mortgage terms

• Personally exposed to loss or damage

Always wait for written confirmation that your sale has closed before cancelling coverage.

Do NOT Rely on Verbal Assurances

Statements like:

“It’ll be fine” “This happens all the time” “We’ve never had an issue before”

… do not protect you if something goes wrong.

Only what is in writing and properly structured matters.

Holiday Planning = Spring Success

If buying and selling is on your radar for early 2026, now is the time to prepare.

Holiday planning allows you to:

• Review options calmly

• Avoid rushed decisions

• Structure transactions properly

• Enter the spring market confidently

Buying and selling on the same day can be done, but it is not something to leave to chance.

The difference between a smooth closing and a stressful, expensive one often comes down to planning, timing, and proper legal advice.

If you’re considering a move — whether this winter or in the spring market — speak to a real estate lawyer early. Prevention is always cheaper than repairs.