What Does A Real Estate Lawyer Do In Ontario?

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Why a Real Estate Lawyer is Required

In Ontario, the involvement of a real estate lawyer isn’t just helpful—it’s mandatory. Under current provincial regulations, only a licensed lawyer can register a property transfer. That means even if you have a skilled real estate agent or mortgage broker guiding your purchase or sale, the legal execution of that transaction must pass through a lawyer’s hands.

This is because real estate deals involve far more than a handshake and a signed purchase agreement. Title issues, tax arrears, zoning violations, and poorly worded clauses can all turn what looks like a simple real estate transaction into a legal nightmare. A real estate lawyer is your safeguard against these risks, ensuring that every detail is properly reviewed, negotiated, and documented in accordance with Ontario law.

Lawyers are also the only professionals legally permitted to register land ownership changes through Ontario’s electronic land registration system, Teraview. That includes registering deeds, mortgages, and discharges of mortgages—critical steps that legally complete the transfer of property and confirm you (or your buyer) as the rightful owner.

If you’re buying, your lawyer will verify the property’s title, review your mortgage terms, and ensure funds are safely transferred. If you’re selling, your lawyer will handle discharges of any existing mortgages, manage the closing documentation, and ensure that funds are properly distributed after closing.

In every case, your lawyer’s role is to protect your legal and financial interests at every stage of the closing process.

The Lawyer’s Role in the Real Estate Transaction

A real estate lawyer does more than just review paperwork—they manage the legal life cycle of your real estate transaction from the moment a deal is signed until well after the closing date. Think of your lawyer as the quarterback of the legal process: coordinating between agents, lenders, municipalities, title insurance providers, and opposing counsel to ensure everything comes together cleanly and on time.

One of the lawyer’s primary responsibilities is due diligence. That means uncovering potential issues that could affect the property or your ownership rights. For buyers, this includes title searches and checking for registered liens or easements. For sellers, it involves clearing encumbrances and preparing accurate documents to avoid legal exposure after the sale.

Real estate lawyers also handle the financial side of the transaction. They are responsible for collecting, holding, and disbursing funds through their trust accounts—whether it’s the buyer’s down payment, the mortgage advance, or the sale proceeds. These accounts are regulated under strict trust accounting rules by the Law Society of Ontario to protect against fraud or mismanagement.

Beyond the technical tasks, a good lawyer provides legal advice. That means flagging unfavourable contract terms, explaining the implications of closing adjustments, advising on title insurance, and helping you understand how the law applies to your specific situation. In short, they make sure you know what you’re signing—and what you’re getting into—before it’s too late to back out.

Whether you’re buying or selling, your lawyer’s job is to keep your real estate transaction compliant, your interests protected, and your closing process smooth.

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When You’re the Buyer

Buying a home or investment property in Ontario is an exciting milestone—but it’s also a legal transaction with real financial risks. Your lawyer is there to make sure the property you’re buying is exactly what you’ve been promised, free from legal complications, and properly registered in your name when the deal closes.

Reviewing the Agreement of Purchase and Sale

Your lawyer starts by reviewing the Agreement of Purchase and Sale (APS), commonly referred to as the purchase agreement. This includes confirming critical terms like the purchase price, closing date, deposit amount, inclusions and exclusions, and any conditions or warranties. They look for vague or problematic clauses and assess whether the agreement protects your interests, especially if any amendments or waivers are required before closing.

Conducting Title and Off-Title Searches

A title search is one of the most essential parts of a buyer’s lawyer’s role. It uncovers any registered claims or encumbrances—such as liens, easements, or restrictive covenants—that could affect your use or ownership of the property. Off-title searches go a step further by confirming details with the municipality or utility providers, checking for outstanding taxes, building violations, or unpaid water bills.

Advising on and Arranging Title Insurance

While not legally mandatory, most mortgage lenders in Ontario require title insurance as a condition of funding. Your lawyer will explain the policy’s coverage—including protection against title defects, fraud, and survey errors—and secure the appropriate policy on your behalf.

Calculating Land Transfer Tax and Available Rebates

One of the most significant closing costs for buyers in Ontario is the land transfer tax. Your lawyer will calculate the amount payable to the province—and if you’re buying in Toronto, the additional municipal tax as well. If you’re a first-time homebuyer, your lawyer will also apply any available rebates on your behalf to reduce the tax burden.

Coordinating with Lenders and Preparing Mortgage Documents

If you’re financing the purchase with a mortgage, your lawyer will liaise directly with your lender to receive instructions, draft the required mortgage documents, and ensure the funds are advanced on time. This process must be precise—errors in the mortgage registration can delay or derail the entire transaction.

Drafting the Statement of Adjustments and Registering Title

Your lawyer prepares a Statement of Adjustments, which accounts for prepaid expenses like property taxes or condo fees and ensures the final closing amount reflects these prorated costs. They also prepare the legal documents required to register the deed and mortgage using Ontario’s land registry office.

Managing Closing Day Funds and Documentation

On closing day, your lawyer receives the mortgage funds, combines them with your down payment, and delivers the total amount to the seller’s lawyer. They also ensure that the deed is registered, the keys are released, and you officially become the owner. After closing, your lawyer provides you with a full report package confirming title registration and outlining all financial details.

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When You’re the Seller

While selling property may seem simpler than buying, it still involves a range of legal and logistical tasks that require a lawyer’s oversight. Your real estate lawyer ensures that the transaction is properly documented, your obligations are fulfilled, and that you receive your funds without unexpected issues or delays.

Reviewing and Preparing Sales Documentation

The process begins with your lawyer reviewing the Agreement of Purchase and Sale to confirm the key terms, deadlines, and conditions. They’ll assess your responsibilities under the contract and prepare any necessary amendments, waivers, or affidavits leading up to closing. If you’re selling a condo, your lawyer will often coordinate the delivery of the Status Certificate to the buyer’s lawyer.

Negotiating Amendments and Handling Disclosures

If issues arise before closing—such as a delay in the buyer’s financing or damage to the property—your lawyer may assist in negotiating amendments to the agreement. They’ll also advise on your legal duty to disclose material defects or latent issues to avoid post-closing liability.

Discharging Mortgages and Clearing Title Issues

If your property has an existing mortgage or line of credit, your lawyer will request a discharge statement from the lender and arrange for the mortgage to be paid off and removed from title on closing. They’ll also resolve any other registered encumbrances, such as unpaid property taxes or old, undischarged liens.

Preparing the Seller’s Statement of Adjustments

The seller’s lawyer is responsible for preparing a Statement of Adjustments, which reconciles prepaid expenses such as property taxes, utilities, or condo fees. This ensures you’re reimbursed for any costs paid beyond the closing date and gives both parties a clear financial picture of the transaction.

Releasing the Deed and Transferring Closing Funds

On closing day, your lawyer will coordinate with the buyer’s lawyer to release the signed transfer documents once funds have been received. They’ll also oversee the delivery of keys, usually through a lockbox or courier, and ensure that net proceeds from the sale are disbursed to you after paying off the mortgage, real estate commissions, and legal fees.

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Complex Real Estate Transactions

Not all real estate deals fit the standard buy-and-sell mold. When transactions involve refinancing, estate matters, zoning issues, or shared ownership structures, the role of a real estate lawyer becomes even more critical. These complex scenarios require specialized legal insight, strategic planning, and often coordination with multiple parties.

Refinances, Title Transfers, and Survivorship Applications

When refinancing a property, your lawyer prepares the new mortgage documents, ensures the previous loan is properly discharged, and registers the new mortgage on title. If you’re transferring title between family members—or updating ownership due to marriage, divorce, or death—your lawyer will prepare the necessary transfer documents and advise on potential land transfer tax implications. Survivorship applications, often used when one joint owner passes away, require legal proof of death and careful title registration.

Severances and Zoning Considerations

Severing a piece of land involves an additional layer of due diligence. Your lawyer may coordinate with planners or surveyors, assess zoning compliance, and ensure municipal approval. These transactions often require navigating unique title issues, easements, or complex legal structures that go beyond a typical residential deal.

Resolving Title Defects, Boundary Disputes, and Joint Ownership Issues

If title searches reveal defects—like incorrect ownership records, encroachments, or missing registrations—your lawyer must take corrective action before closing. This can involve obtaining releases, filing affidavits, or negotiating with third parties. In cases of joint ownership, your lawyer can also assist in drafting co-ownership agreements or resolving disputes between owners, particularly in investment or family-owned properties

In all these cases, having a lawyer who understands the legal, municipal, and procedural nuances of complex transactions ensures your interests are protected and the deal gets done right.

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Understanding Legal Fees and Disbursements

When hiring a real estate lawyer in Ontario, one of the first questions is usually: What will this cost me? The answer depends on how the law firm structures its fees—and not all pricing models are created equal.

All-Inclusive Fees vs. “Plus Disbursements”

Many real estate lawyers still advertise a low legal fee—then tack on disbursements, registration fees, file opening charges, and other extras. This “plus disbursements” model often ends up costing more than expected and makes it difficult to compare quotes fairly.

We take a different approach.

Our all-inclusive pricing model is designed to offer real cost certainty. The quoted legal fee covers both our professional services and all routine disbursements required to close a standard residential transaction. That includes title searches, registration charges, file handling, and courier costs—no surprise add-ons.

The only additional charges outside our legal fee are third-party costs that apply to all Purchase Closings, such as:

• Title Insurance Premiums (based on the purchase price and lender requirements)
• Land Transfer Tax (including Municipal LTT in Toronto, if applicable)
• Government Registration Fees ($84.23 per document for deeds and mortgages)

You can use our Legal Fee Calculator to see exactly what these will look like in your specific transaction. The above closing costs are not applicable to Sale Closings.

What’s Covered in Our Legal Fee

Our all-inclusive fee covers:

• Reviewing the Agreement of Purchase and Sale
• Conducting title searches and clearing any issues
• Preparing and registering mortgage and title documents
• Coordinating with your lender and the seller’s lawyer
• Handling the trust funds and final accounting
• Full signing appointment (virtual or in-person)
• Accessible support throughout the entire closing process—and after closing

We believe that legal fees should be transparent, predictable, and reflect the care and attention your file deserves—not just a race to the bottom on price. You should know exactly what you’re paying for—and why.

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Summary

In Ontario, a real estate lawyer is far more than just a paperwork processor—they are the legal backbone of your transaction. Whether you’re buying, selling, refinancing, or navigating a complex title issue, your lawyer ensures the deal is legally sound, your rights are protected, and your closing process goes off without a hitch.

From reviewing the purchase agreement to conducting title searches, arranging title insurance, and disbursing funds, your lawyer guides you through every legal step. They also ensure that you comply with Ontario’s regulatory requirements, such as registering transfers through Teraview and calculating applicable land transfer taxes.

Legal fees are typically structured as a flat rate, but not all firms include the same things. Some quote a low fee and add disbursements later. Our all-inclusive pricing covers both legal services and standard disbursements—so you know exactly what to expect from the start.

In short, working with a skilled real estate lawyer is not just a legal requirement in Ontario—it’s the smartest way to protect your investment and ensure your real estate transaction closes smoothly.

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If you have questions about what a real estate lawyer does in Ontario 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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