What a Real Estate Lawyer Does
A Toronto real estate lawyer runs the legal closing. Not the showing. Not the offer. The title, the money, and the registration that puts your name on the property, or takes it off.
In Ontario you cannot register a transfer or a mortgage yourself. A lawyer licensed by the Law Society of Ontario does that through Teraview. A realtor cannot. A mortgage broker cannot. That is why a residential purchase, sale, or refinance has a lawyer on it, not as a courtesy.
The job starts when the Agreement of Purchase and Sale is signed, not on closing morning. Send the agreement as soon as it is accepted. Title problems do not wait for keys.
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On a Purchase
The buyer's lawyer reads the agreement: price, dates, conditions, chattels, rental contracts, and anything that will still bind you after closing. Then the searches.
That includes the deposit: who holds it, when it was due, and whether it is still refundable. Real estate deposits are their own problem when a deal wobbles.
That includes the disclosure and warranty clauses. Ontario sellers do not volunteer every flaw. Known dangerous latent defects are covered in seller disclosure.
A title search confirms the seller owns what they are selling, and what is registered against it: mortgages, liens, easements, rights of way, restrictive covenants. Off-title searches catch what the register does not always show, including tax arrears and work orders. Problems get requisitioned. The seller's lawyer answers. You do not want those answers on closing day.
On a condo, the lawyer also reads the status certificate. That is the building, not the unit's kitchen.
If there is a mortgage, the lawyer takes the lender's instructions, prepares the charge, and usually acts for both you and the lender on the same file. That dual retainer is normal in Ontario residential work. The lawyer still owes you the explanation of what you are signing.
They calculate land transfer tax, claim the first-time rebate if you qualify, and arrange title insurance. Lenders almost always require the policy. The premium is not the legal fee.
A spouse who owned while you were together, or a parent on title as a real owner, can cut or kill that rebate. The rules are in first-time land transfer tax rebates.
The statement of adjustments prorates prepaid taxes, condo fees, and similar items so you reimburse only the seller's share from closing forward. On closing day the down payment and the mortgage advance come into the lawyer's trust account. The purchase funds go to the seller's lawyer. The transfer and the mortgage register. You own the home when registration is complete, not when someone hands you a key. Most of that signing is remote.
On a Sale
The seller's lawyer also starts with the agreement. Then they clear title. That means a discharge statement from the existing lender, payout of the mortgage from the sale proceeds, and answers to the buyer's requisitions. Rental hot-water tanks, old liens, and a missing discharge are the usual leftovers.
The seller's lawyer prepares the transfer (deed) and the statement of adjustments. On closing they release the signed transfer once the funds are in, pay out the mortgage and the commission as instructed, and send you the net proceeds. You do not get paid, then figure out the mortgage. The mortgage comes off first.
If you cannot give vacant possession, or a tenant is staying, that has to be in the agreement before anyone is requisitioning it the week of closing.
Refinance and Title Changes
A refinance is still a closing. The lawyer searches title, reviews the new lender's instructions, discharges the old charge, and registers the new one. There is no buyer on the other side. There is still a lender, and still Teraview.
Adding or removing a name, a title transfer between family members, or a survivorship application after a death is the same system. The document changes. The registration does not. Land transfer tax can still apply if a mortgage is assumed. A true gift with no mortgage usually does not.
What the Lawyer Is Not
The realtor markets the property and negotiates the offer. The lawyer does not find you a house. The realtor does not search title, hold the money in trust, or register the transfer. On a typical deal you want both. One does not replace the other.
The legal bill is also not land transfer tax. All-inclusive residential fees start at $2,299 on a purchase and $1,999 on a sale, plus HST. Registration is $85 per document. The tax, the title-insurance premium, and the corporation's status-certificate fee sit outside that number. The breakdown lives on the legal fees page.
Hire the lawyer when the offer is accepted, or before you write it if the terms are unusual. Closing morning is how files miss a discharge, a rebate, or a title problem that was sitting on the register the whole time.
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Zachary Soccio-Marandola
Real Estate Lawyer
Direct: (647) 797-6881
Email: zachary@socciomarandola.com
Frequently Asked Questions (FAQ)
Can I buy or sell a home in Ontario without a real estate lawyer?
You cannot register the transfer or the mortgage yourself. A licensed Ontario lawyer does that through Teraview. A realtor cannot complete the legal closing.
When should I hire the lawyer?
As soon as the offer is accepted, and before that if the terms are unusual. The title search and the lender work run in the weeks before closing, not on closing day.
Does the lawyer also act for my lender?
Usually, on a standard residential purchase or refinance. The lawyer takes the lender's instructions and registers the charge. You still get the explanation of what you are signing. A private lender is a different file and often needs a second lawyer.
What does the lawyer do with the money on closing day?
It runs through the lawyer's trust account. On a purchase, the down payment and the mortgage advance come in, the seller is paid, and land transfer tax is remitted at registration. On a sale, the incoming funds pay out the existing mortgage first, then you.
Do I need a lawyer if I am only refinancing?
Yes. A refinance still registers a new charge and usually discharges the old one. That is Teraview work. There is no buyer, and there is still a lender.