How to Sell a House Privately in Ontario: FSBO Guide for Homeowners

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Selling your home privately, without a real estate agent, is entirely legal in Ontario and increasingly common for homeowners looking to control the process and potentially save on real estate commissions. But while "For Sale By Owner" (FSBO) transactions can offer significant advantages, they also demand a thorough understanding of legal requirements, real estate market trends, and a strategic approach to pricing, marketing, and paperwork.

This guide walks you through the private sale process in Ontario—from assessing if selling a house privately is right for you to preparing documents and handling offers—so you can approach it with confidence and clarity.

Is a Private Sale Legal in Ontario?

Yes. In Ontario, you are legally permitted to sell your home without using a licensed real estate agent. This is often referred to as a "private sale" or a "for sale by owner" (FSBO) transaction.

What matters most is that the transaction complies with Ontario law, which means:

• Using a properly drafted Agreement of Purchase and Sale
• Disclosing material defects to the buyer
• Ensuring title is clear and transferable
• Complying with tenancy laws, if applicable

A private sale does not mean doing everything alone. Many private sellers still retain a real estate lawyer to draft or review the agreement, ensure compliance, and oversee closing. This helps minimize legal issues while maintaining control of the sale process. Even if you are selling a house privately, having professional guidance can protect your interests.

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Pros & Cons of Selling Your Own Home

Advantages of Private Sale

• Save on real estate commissions: In most Ontario transactions, the commission ranges from 4% to 5% of the sale price. Selling privately allows you to retain that portion.
• More control: You control showings, negotiations, and timing without relying on a third party.
• Ideal for off-market deals: FSBO is often used when selling to family, friends, tenants, or neighbours.

Potential Drawbacks

• Reduced exposure: Without access to the Multiple Listing Service (MLS) or REALTOR.ca, your listing may reach fewer prospective buyers.
• Buyer agent resistance: Some buyer agents may be reluctant to show your property unless you're offering them a commission (commonly 2% in Ontario).
• Higher workload: You're responsible for marketing, staging, open houses, and initial negotiation.
• Greater legal complexities: Without proper guidance, there's a higher chance of incomplete or non-compliant documents. This is one reason some sellers choose to work with a real estate agent even when selling a house privately.

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Legal Essentials & Required Paperwork

Agreement of Purchase and Sale (APS)

This is the central legal contract in every Ontario real estate transaction. The most widely used version is OREA Form 100.

While it's possible to download templates online, the Agreement of Purchase and Sale should be tailored to your situation. Terms like purchase price, deposit structure, inclusions/exclusions, representations, and conditions require close attention. Private sellers commonly rely on their real estate lawyer to draft or review the APS to ensure it reflects their intent and protects their interests.

Other Documents to Prepare

• List of included/excluded chattels and fixtures
• Disclosure of any known material defects
• Tenant notices or declarations if the property is rented

Role of the Real Estate Lawyer

In a private sale, your lawyer plays a central role:

• Drafting or reviewing the offer
• Advising on legal implications
• Ordering title searches
• Ensuring compliance with relevant legislation (e.g., Family Law Act, Planning Act)
• Handling funds and registration on closing

A lawyer can also advise on potential legal fees, mortgage discharge fees, and other closing costs associated with real estate transactions. For many, the legal complexities of selling a house privately make this professional support invaluable.

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Setting Your Price & Preparing Your Home

Pricing Your Home

Without an agent's market analysis, it's important to be objective. Review comparable recent sales in your neighbourhood, consider a professional appraisal, or use online valuation tools with caution. Staying aware of real estate market trends can help you set a competitive and realistic price.

Getting the Home Ready

First impressions matter. Simple improvements can go a long way:

• Deep clean and declutter
• Consider professional home staging to highlight your property’s best features
• Repaint high-traffic areas
• Address minor repairs (leaky taps, cracked tiles)
• Improve curb appeal with landscaping or fresh exterior accents

Marketing Without an Agent

Flat-Fee MLS Services

You can pay a licensed brokerage or discount brokerage a one-time fee (often $300 to $500) to list your property on the Multiple Listing Service, which pushes it to REALTOR.ca. This gives you broader exposure while maintaining your FSBO status. You'll still need to decide if and how much commission to offer to buyer agents.

Private Channels

Many FSBO sellers use:

• Kijiji or Craigslist
• Facebook Marketplace or community groups
• Lawn signage
• Personal and professional networks

While these can be effective, be mindful of your privacy and safety when showing the home. A real estate agent can often leverage these same tools—but selling a house privately means you’ll handle them yourself.

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Showing & Negotiating Offers

Hosting Private Showings & Open Houses
Plan ahead:

• Be present or have a trusted person nearby
• Secure valuables and sensitive documents
• Provide a feature sheet for visitors

Reviewing Offers

When an offer comes in:

• Review all terms carefully, especially conditions (e.g., financing, home inspection)
• Understand the deposit amount and how it's handled
• Note the closing date and any proposed inclusions/exclusions
• Confirm how the buyer’s agent commission will be paid if applicable

Negotiation is a critical step. It’s common to seek legal input before accepting or countering an offer, especially if terms are unclear or multiple offers are in play.

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Summary

Selling your home privately in Ontario is a legal and viable option for many homeowners. It provides cost-saving opportunities and control—but it also requires diligence, attention to detail, and familiarity with the legal framework. A well-prepared seller, supported by a knowledgeable real estate lawyer, can navigate the FSBO process confidently, avoiding common legal issues and ensuring a smooth real estate transaction and closing. Whether you hire a real estate agent or not, selling a house privately demands careful planning.

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If you have questions about selling your home privately or any other real estate legal matter, we're here to help. As real estate law specialists, our mission is to provide the clarity and direction you need to protect your property rights.

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