What Are the Steps for Working with a Real Estate Lawyer When Buying a Home in Ontario?
Buying a home is exciting. It's also a little overwhelming.
Between house hunting, mortgage approvals, inspections, insurance, packing, and wondering whether you'll ever find the box with the coffee maker, there are a lot of moving parts (pardon the pun).
Fortunately, your real estate lawyer is there to make sure the legal side of the transaction runs smoothly. While much of our work happens behind the scenes, it's some of the most important work involved in your purchase.
Here's what you can expect when working with a real estate lawyer in Ontario.
Step 1: Hire Your Lawyer Early
Ideally, you should choose your lawyer as soon as your offer is accepted (and ideally while it’s still conditional).
This gives us plenty of time to review the Agreement of Purchase and Sale, gather information from your mortgage lender, and address any issues well before closing day.
Step 2: Send Us Your Documents
Once you've retained us, we'll ask for some important information, including:
Your Agreement of Purchase and Sale (“APS”)
Any amendments or waivers
Government-issued identification
Your contact information
Information about your mortgage lender
Your home insurance details before closing
The sooner we receive these documents, the sooner we can get to work.
Step 3: We Review the Property
One of the biggest jobs your lawyer performs is investigating the property itself.
We'll conduct title searches to confirm that the seller actually owns the property and has the legal right to sell it.
We'll also look for issues such as:
Easements affecting the property
Outstanding mortgages
Construction liens
Encroachments
Restrictive covenants
Other title issues that could affect your ownership
If anything unusual comes up, we'll explain what it means and discuss your options before closing.
Our working deadline is the “Requisition Date” set out in your APS. This is the deadline we have to raise any title issues with the seller’s lawyer and tell them exactly what is required from them for us to close the deal.
Step 4: We Coordinate with Your Mortgage Lender
If you're financing your purchase, we'll receive instructions directly from your lender.
We'll prepare the mortgage documents, review them with you, and ensure all lender requirements are satisfied before closing.
Think of us as the legal translator between you and your bank.
Step 5: We Calculate Your Closing Costs
A few days before closing, we'll provide you with a Statement of Adjustments.
This document sets out exactly how much money you'll need to bring us in order to complete the purchase.
It typically includes:
The balance of your purchase price
Land Transfer Tax
Legal fees and disbursements
Title insurance premiums
Registration costs
Adjustments for property taxes, utilities, or condominium fees already paid by the seller
No surprises. Just a clear breakdown of where every dollar is going.
Step 6: You Sign the Closing Documents
Before closing day, you'll meet with your lawyer to sign the necessary paperwork.
We'll walk you through everything, answer your questions, and make sure you understand what you're signing.
This meeting is also when you'll provide the funds needed to complete the purchase, usually by certified cheque or wire transfer.
Step 7: Closing Day
This is where everything comes together.
On closing day, we will:
Exchange funds with the seller's lawyer.
Register you as the new owner.
Register your mortgage (if applicable).
Confirm that all legal requirements have been satisfied.
Arrange for the keys to be released.
Once everything is complete, congratulations! You're officially a homeowner.
One thing to note- most transactions close in the afternoon, so don’t expect to be moving in at 9:00 a.m. sharp.
Step 8: After Closing
Even after you've picked up the keys, there are still a few things we take care of behind the scenes.
We'll:
Confirm all registrations have been completed correctly.
Report to your mortgage lender.
Send you copies of your final documents and a report outlining our work.
Ensure title insurance has been put into place.
Close out the transaction.
You can then focus on unpacking, decorating, and deciding where the couch should go.
Why Having a Real Estate Lawyer Matters
A home purchase is likely one of the biggest financial transactions you'll ever make.
While your realtor helps negotiate the deal and your lender provides financing, your lawyer's job is to protect your legal interests, identify potential problems before they become expensive ones, and ensure ownership transfers properly.
Most home purchases go smoothly. The reason they do is often because a lot of legal work has happened quietly in the background.
not to mention you literally cannot buy a home without a lawyer in Ontario, since we are the only ones quthorized to transfer legal title to real estate.
Final Thoughts
Buying a home doesn't have to be stressful. With the right team in place, the legal process is usually straightforward, predictable, and far less intimidating than many people expect.
At Passageway Law, we believe buying a home should be exciting, not confusing. We're here to answer your questions, explain the process in plain English, and guide you from accepted offer to getting the keys in your hand.
Disclaimer: This article is intended for informational purposes only and does not constitute legal advice. If you are buying or selling property in Ontario, you should speak with a lawyer about your specific circumstances.