What is the “No Money, No Keys” Myth in BC Real Estate?

It’s a common belief — and a wrong one — that if the buyer’s money isn’t in the seller’s hands on the closing date, the seller can simply refuse to hand over the keys. We get lots of sellers saying, “If I don’t have my money on the completion date, the deal is off!”

Unfortunately, this approach will get a seller into big trouble very easily.

How Do the Money and Keys Really Get Exchanged in BC?

When you buy a home in BC, you negotiate a contract of purchase and sale with the seller of that home.
That contract covers off all kinds of issues like:

  • Purchase price
  • Completion date
  • Possession date
  • What will be left in the property and what will be cleared away
  • Closing procedures
  • Inspections and investigations
  • Deposit amounts
  • Adjustments
  • How money will be transferred

…and many other details. This contract tells us how to exchange the money and title.

Completion Date vs. Possession Date in BC Real Estate

The completion date (also called a “closing date”) is the date the title transfers hands and the money is made available to the seller’s notary (“tendering”).

The possession date is the date the buyer gets to take possession of the property — the day the keys change hands.

These are two separate things. Both need to happen, and you don’t get to say, “Well you didn’t do your part, so I’m not doing my part.”

A seller who doesn’t allow possession of a property on the possession date could be accused of a breach of contract.

When Does a Seller Get Their Money?

The money goes through a lot of steps to get into the seller’s hands. The logistics of this process can take a lot of work and time. The contract sets out this process.

Here’s how it works in BC real estate transactions:

  1. The buyer gets all of the funds into their notary’s trust account (mortgage funds, cash to close, etc.).
  2. Only when that money is in the notary’s trust account can the notary submit the transfer papers for registration – no money, no transfer.
  3. The buyer’s notary “tenders” the money once the transfer paperwork has been submitted to the registry – they make it available to the seller’s notary.
  4. Once the money has been tendered, it gets delivered to the seller’s notary – this could take hours or days depending on where the property is and how far the money needs to travel.
  5. When the seller’s notary receives the money, they process the funds and pay them out according to their agreement with the seller – this might include paying out lines of credit, mortgages and other bills.

The seller is the last person to be paid – their funds will only be available after everything else that must be paid out has been paid out.

This means the seller will rarely receive their sales proceeds on the actual completion day – it’s more likely they will receive their funds the next business day, or even after that.

What Does “Tendering” Mean?

Tendering means the buyer’s notary makes the funds available for the seller’s notary. They say to the seller’s notary: “Documents have been submitted to the registry, and the funds are now available.”

This doesn’t mean the funds have been delivered — it means the funds are now available for the seller’s notary, and the delivery process can begin.

How Funds Are Delivered in BC Closings

Because these are large amounts of trust money, they can’t be sent by Interac e-transfer. Trust accounts for Realtors, notaries and lawyers are all governed by strict Rules and anti-money laundering requirements.

That’s why we are still printing physical cheques and using “old-school” methods like runners and couriers to move these cheques around. Wires and other forms of electronic transfers have still not been streamlined enough to be reliable and timely.

The delivery process also differs depending on where the property is located:

  • Lower Mainland property → the seller’s notary must arrange to pick up the funds.
  • Outside the Lower Mainland → the buyer’s notary must deliver the funds to the seller’s notary.

In many cases, notaries will help each other and direct deposit the funds to the seller’s notary’s trust account — but this isn’t required and doesn’t always happen.

Practical Factors That Can Delay Delivery

The moment those funds land in the seller’s notary’s trust account can depend on:

  • The buyer’s notary is in another city and funds must be couriered.
  • The seller’s notary has requested certified funds, which requires extra bank processing.
  • The bank puts the deposited funds on hold.
  • The runner delivering the funds is stuck in a long bank lineup or traffic.
  • The bank closes before the delivery is made.

You can see that there are many reasons why the money might not make it into your hands on the completion date. These things are out of your control, which means you can’t say “no money, no keys”.

Why This Matters to Buyers and Sellers in BC

If you’re a buyer: The possession date is the date in your contract — not the completion date. If you want in earlier, you must ask the seller, and they do not have to agree.

If you’re a seller: While the buyer’s notary has to tender the money on the completion date, they have up to midnight to do so and no obligation to ensure the money arrives that day.

Client Story – BC Closing Delays in Real Life

Our seller had sold their property in Prince Rupert after moving to Kelowna.

When the buyer’s notary in Prince Rupert submitted the documents for registration, they emailed to say the money was ready.

Because the property was outside the Lower Mainland, they had to deliver the funds to us. Prince Rupert didn’t have any banks where we have trust accounts. No direct deposit was possible, and the buyer’s bank’s wire system was down.

They couriered the funds — but the courier took almost a week, routing the package through Victoria where it sat in a clearing house for 3 days.

We received the funds, paid out the client’s mortgage, and called to let him know the money was ready — nearly a week after completion.

In the meantime, the buyers had long moved in and were enjoying their new home. Both parties got what they bargained for — just not exactly when they expected it.

Final Takeaway

The contract sets clear dates and obligations for both sides. This means you don’t get to say “no money, no keys”.

Work with your BC notary early to avoid last-minute hiccups — and don’t expect to have your funds available on the completion date.

Remember, banks may put holds on funds even after they’re deposited into your account — so plan ahead.

We’ll walk through all of these logistics when you come to sign your documents and can make a plan based on your situation.

Have questions? Call!

FAQs – “No Money, No Keys” in BC Real Estate

No. The completion date is when the title transfers and the buyer’s notary tenders the funds. The possession date is when the buyer actually gets the keys and can move in.

Not if the contract says possession happens on a specific date. The seller must honour the possession date, even if funds are still in transit after being tendered.

Tendering is when the buyer’s notary makes the funds available to the seller’s notary after the transfer is submitted for registration. It doesn’t mean the seller has received the money yet.

Moving large sums of trust money can take time due to courier schedules, bank processing, certified cheque requests, and anti-fraud procedures.

Remember that many of these logistics pieces are out of your control.

Work with your notary early, provide all payout details promptly, and be aware of banking timelines, especially if you or the buyer are in different cities.

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