What Are the Steps for Working with a Real Estate Lawyer When Selling a Home in Ontario?
Selling your home can be exciting, emotional, and occasionally held together by coffee and cardboard boxes.
Once you've accepted an offer, it's easy to think the hard part is over. In reality, there's still a fair amount happening behind the scenes to make sure your sale closes on time and without any legal hiccups.
So, what exactly does your real estate lawyer do? Let's walk through the process.
Step 1: Hire Your Lawyer
Once you've accepted an offer, it's time to contact your real estate lawyer. The sooner we're involved, the more time we have to review your Agreement of Purchase and Sale, request information about your mortgage, and deal with any issues before closing day.
As with most things in life, last-minute scrambling is rarely anyone's favourite pastime.
Step 2: Send Us Your Documents
We'll ask you to provide:
Your Agreement of Purchase and Sale (“APS”)
Any amendments or waivers
Government-issued identification
Your contact information
Details of any mortgages or secured lines of credit on the property
Information about any rental items, such as a hot water tank or furnace, if applicable
The more complete the information, the smoother the process tends to be.
Step 3: We Gather Information About Your Property
One of our first jobs is obtaining information about the title to your property.
We'll review:
Your ownership details
Existing mortgages
Registered easements
Property tax information
Any registered encumbrances that need to be dealt with before closing
We’ll get a Requisition Letter from the purchaser’s lawyer outlining any concerns they have and their requirements for closing. If there are issues that need attention before the sale can close, we'll let you know right away.
Step 4: We Work With Your Mortgage Lender
If you still have a mortgage, we'll contact your lender and request a payout statement. This tells us exactly how much is needed to pay off your mortgage on the closing date.
If you've ever wondered how the bank magically gets paid without you writing a cheque on closing day... this is how. We'll make sure the mortgage is paid out and properly discharged from title after closing.
Step 5: We Prepare the Closing Documents
Before closing, we'll prepare all of the legal documents needed to transfer ownership of your property to the buyer.
This includes:
The Transfer of Land Statements of adjustments
Declarations and affidavits
Other documents required to complete the transaction
We'll also communicate directly with the buyer's lawyer to ensure everyone is ready for closing.
Step 6: You Meet With Your Lawyer to Sign
A few days before closing, you'll come into our office to sign the sale documents. We'll review everything with you, answer any questions, and explain exactly what happens on closing day.
This meeting is usually much less intimidating than people expect. There's paperwork, of course, but we promise there won't be a pop quiz.
Step 7: Closing Day
On the closing date, we work with the buyer's lawyer to complete the transaction.
Once we receive the purchase funds, we'll:
Pay out your mortgage (if applicable)
Pay any outstanding property taxes or other adjustments
Deduct legal fees and other closing costs
Transfer the remaining sale proceeds to you
Once everything is complete, ownership transfers to the buyer and they receive the keys.
Congratulations! You've officially sold your home.
Step 8: You Receive Your Sale Proceeds
One of the most common questions we hear is: "When do I get my money?"
Typically, once the transaction has closed and all funds have been received and processed, we'll release your sale proceeds to you, usually by direct deposit or wire transfer, depending on your instructions. Keep in mind that if you're buying another home on the same day, your sale proceeds are often used directly toward your purchase.
What Can Delay a Closing?
Fortunately, most transactions close without any issues.
That said, delays can happen if:
Mortgage payout information isn't available.
Required documents haven't been signed.
Identification requirements haven't been met.
There are unexpected title issues.
Funds arrive late.
The good news is that most potential problems can be avoided with good communication and a little preparation. Real estate transactions take patience, as buyers are often waiting on mortgage funds to be released to their lawyer before we can close the transaction. Most deals close in the afternoon.
Why Having a Real Estate Lawyer Matters
Selling a home involves much more than signing a few documents.
Your lawyer ensures:
Ownership transfers correctly.
Existing mortgages are properly paid out.
You receive the correct sale proceeds.
Legal documents are properly prepared and registered.
Problems are identified before they become expensive.
In short, we're there to make sure one of the biggest financial transactions of your life goes according to plan.
Final Thoughts
Selling your home is a major milestone. Whether you're upsizing, downsizing, relocating, or simply starting a new chapter, having an experienced real estate lawyer helps ensure everything runs smoothly from accepted offer to closing day.
At Passageway Law, we believe real estate transactions don't need to be stressful. We'll explain each step in plain English, keep you informed throughout the process, and make sure you can focus on what's next instead of worrying about the paperwork.
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.