A real estate lawyer makes sure you legally become the owner of the home you’re buying, and that your money goes to the right place. Your lawyer checks the property’s title, reviews your contract and mortgage documents, handles the transfer of ownership, and sends the funds on closing day. In Ontario, nearly every home purchase involves one.
Here’s an example. Say you sign an agreement to buy a home with a closing date 45 days away. During those 45 days, your lawyer searches the title and finds an old claim registered against the property. Your lawyer raises it with the seller’s lawyer, the seller clears it up, and you close on schedule. You never see most of that work, but it’s the reason you end up owning a home with no surprises attached.
This guide explains what your lawyer does, step by step, and when you should call.
Before you make an offer
You don’t have to hire a lawyer yet, but you can get help now. A short conversation with a lawyer before you sign an agreement of purchase and sale can save you the most trouble. Once you sign, it’s a binding contract.
At this stage, your lawyer can:
Read the agreement and explain the conditions, deadlines, and what the sale includes or excludes
Flag risky wording, like a short financing condition or an unclear clause
Estimate your closing costs, so you know how much cash you need on top of your down payment
After your offer is accepted
Once the deal is accepted, send your lawyer the agreement and your closing date right away. Your lawyer then starts the legal work:
Checks title. Your lawyer searches the property’s records for mortgages, liens, easements, and other registered claims that could affect you.
Searches for debts. Your lawyer checks whether the seller has court judgments or unpaid debts that could attach to the property.
Reviews condo documents, if you’re buying a condo. That includes the status certificate, which shows the building’s finances, rules, and legal disputes.
Reads your lender’s instructions. Your mortgage lender sends your lawyer a list of requirements. Your lawyer follows them so your funding isn’t held up.
Sorts out title insurance, and explains what it covers.
Works with the seller’s lawyer, and deals with any questions about the property’s title.
A week or so before closing
Your lawyer prepares your closing documents, including the transfer of ownership and your mortgage papers. Your lawyer also:
Calculates your land transfer tax, and checks whether you qualify for a first-time buyer rebate
Prepares the statement of adjustments, which splits costs like property tax and condo fees between you and the seller
Tells you how much money to bring, and how to send it
Meets with you to sign. Your lawyer explains each document before you sign it, and answers your questions. Many signings happen by video or electronically, where the law allows it.
On closing day
This is where the careful work pays off. Your lawyer:
Receives your mortgage funds from your lender and your own closing money
Registers the transfer of ownership and your mortgage electronically
Pays the seller once everything lines up
Confirms the deal is complete, and tells you when you can pick up your keys
After closing
Your lawyer finishes up the file. That includes paying any remaining amounts, such as taxes or registration fees, and sending you a final report with copies of your documents. Keep that report, because you’ll need it for your records and future dealings with the property.
What a lawyer doesn’t do
A lawyer handles the legal side. Other people handle the rest:
Your agent finds homes, books showings, and negotiates the price.
Your mortgage broker or lender arranges your financing.
A home inspector checks the property’s condition.
An appraiser values the home, if your lender requires one.
Your lawyer works with all of them, but doesn’t replace them.
Why this matters for your money
You’re sending a large amount of money to a lawyer’s trust account, and your lawyer is responsible for sending it to the right place. Your lawyer also verifies your identity, which helps protect against fraud. If you ever get an email or text asking you to send closing funds to a new account, call your lawyer’s office at a number you already trust before you send anything. Fraudsters target home closings.
What it costs
Fees vary from lawyer to lawyer, so ask for a quote early. At Darr Law, a standard purchase with one institutional mortgage lender is $1,150 plus HST and disbursements. Disbursements are the out-of-pocket costs, like title searches and registration charges. Condo purchases and other non-standard closings can involve additional fees, and we confirm those before we start.
When to call a lawyer
Call as soon as you’re thinking seriously about a property, and no later than the day your offer is accepted. The earlier your lawyer sees the agreement, the more problems you can catch while you still have time to fix them.
Buying a home in Ontario? Contact us with your agreement and closing date, and we’ll confirm the next steps and give you a clear flat-fee quote.