For most buyers and sellers, the legal process that runs alongside a real estate transaction is largely invisible until closing day. Understanding what your lawyer is doing, and when, removes the anxiety from a process that is more orderly than it appears from the outside.
Ontario real estate law requires a lawyer to register the transfer of property and the associated mortgage. That much is widely understood. What is less well understood is the volume and variety of legal work that occurs in the weeks between an accepted offer and a completed registration, and why that work matters to the outcome of the transaction.
This guide is intended for buyers and sellers who are entering a real estate transaction and want a clear, accurate picture of the client experience: when to engage a lawyer, what information to provide, what the lawyer does at each stage, and what to expect at and after closing. The goal is not to make the process seem simple, but to make it comprehensible. With the right counsel and reasonable preparation, it genuinely is manageable.
When to Engage a Real Estate Lawyer
The most common question about timing is also the most straightforward to answer: engage your lawyer before the Agreement of Purchase and Sale is signed, not after.
A real estate lawyer can review the agreement before you sign, identify conditions that require clarification or strengthening, advise on the appropriateness of the closing date, and flag any provisions that create unusual risk. The window for making changes to a standard agreement is open before both parties have signed. Once executed, the document is a binding contract and modifications require the cooperation of the other party.
In practice, many buyers and sellers engage a lawyer only after the agreement is firm. This is common and, in the majority of transactions, the practical consequences are limited. But for transactions involving unusual conditions, short condition periods, complex property types, or material risk allocations, pre-signing legal review is a measurable protection. The cost of a brief lawyer review at the offer stage is modest. The cost of an obligation you did not fully understand is potentially not.
At minimum, engage your lawyer immediately upon going firm. The legal work that precedes closing takes time, and lawyers who receive instructions weeks before closing are better positioned to identify and resolve issues than those who receive them days before.
Initial Instructions: What Your Lawyer Needs From You
When you first instruct your real estate lawyer, they will need the following:
- A copy of the fully executed Agreement of Purchase and Sale, including all schedules and amendments.
- Confirmation of the property address, legal description, and purchase price.
- Your contact information, including the address to which closing documents and the reporting letter should be sent.
- If you are financing the purchase, the name and contact information for your mortgage broker or lender.
- Two pieces of government-issued identification, one of which must include a photograph.
- If you are a first-time buyer, confirmation of your eligibility for the Land Transfer Tax rebate.
- If the property is a condominium, confirmation that the status certificate review is underway or has been completed.
The sooner this information is provided, the sooner the legal work can begin. Delays in providing instructions, identification, or mortgage information are among the most common causes of unnecessary stress in the weeks before closing.
Title Search and Due Diligence
The title search is among the first substantive legal tasks your lawyer undertakes after receiving instructions. Through Ontario’s electronic land registry system, your lawyer searches the full ownership history of the property, identifies all registered interests against title, and confirms that the seller has clear authority to transfer the property to you.
A thorough title search for a residential property typically reveals, and addresses, the following categories of matters.
Existing Mortgages and Charges
Any mortgages registered against the property must be discharged at or before closing. Your lawyer coordinates with the seller’s lawyer to confirm that outstanding mortgages will be paid out from the sale proceeds and that discharges will be registered in good order. Where a mortgage is being assumed by the buyer, additional steps are required and your lender’s involvement is necessary.
Liens and Encumbrances
Construction liens, judgment creditors, and other registered interests against the property must be identified and addressed. Your lawyer confirms whether any such interests exist and advises on the steps required to ensure they do not affect your ownership after closing.
Easements and Rights of Way
Easements and rights of way are interests in land that permit another party to use a portion of the property for a defined purpose. They run with the land and transfer to the new owner. Common examples include utility easements, shared driveway rights of way, and drainage easements. Your lawyer identifies these interests, explains their practical implications for your use of the property, and confirms that they are consistent with the representations in the agreement.
Restrictive Covenants
Restrictive covenants are registered limitations on the use of land, often originating from historical subdivisions. They may restrict the type of structure that can be built, the permitted uses of the property, or the materials that can be used in construction or renovation. Your lawyer identifies any restrictive covenants on title and advises on their scope and enforceability.
Off-Title Searches
In addition to the title search, your lawyer conducts searches through the relevant municipality and other public authorities to identify outstanding work orders, property tax arrears, open building permits, and similar matters that affect the property but do not appear on title. These off-title searches are a standard component of residential real estate due diligence in Ontario.
Status Certificate Review for Condominium Purchases
If you are purchasing a condominium unit, the status certificate review is a critical element of the legal due diligence. Under the Condominium Act, 1998, the condominium corporation is required to provide a status certificate upon request, and buyers have ten days from receipt to review it and, if necessary, rescind the Agreement of Purchase and Sale unconditionally.
Your lawyer reviews the status certificate to assess the financial health of the condominium corporation, the adequacy of the reserve fund, any pending or active litigation, outstanding special assessments, and the corporation’s Declaration, By-Laws, and Rules. Issues identified during this review are reported to you with an assessment of their materiality and practical significance. Where the findings are serious, your lawyer advises on whether rescission or renegotiation is warranted.
For a detailed account of what a status certificate contains and what a lawyer looks for in reviewing one, see our dedicated article on the topic.
Mortgage Review and Lender Coordination
Once your mortgage is approved and finalized, your lender sends mortgage instructions to your lawyer. These are the legal directions governing the terms of the mortgage being registered on title, and they frequently include conditions that must be satisfied before the lender will advance funds.
Your lawyer reviews the mortgage instructions and the mortgage documents carefully, confirms that the terms are consistent with what you were advised by your lender or broker, and identifies any conditions or undertakings that require action before closing. This review matters because mortgage documents are lengthy, technical, and often reviewed under time pressure. Your lawyer’s role is to ensure that you understand what you are signing and that the lender’s conditions are achievable within the closing timeline.
Common conditions in residential mortgage instructions include confirmation of property insurance, satisfactory title, compliance with any outstanding conditions of the commitment letter, and in some cases confirmation that specific items identified in the appraisal have been addressed. Your lawyer coordinates with the lender’s counsel to satisfy these conditions and confirm that funds will be advanced on closing day.
The Statement of Adjustments
In the days before closing, your lawyer prepares the statement of adjustments, which is the financial summary that calculates the precise amount of money you need to bring to closing. It accounts for the purchase price, your deposit, the mortgage advance, and a series of financial adjustments between you and the seller for prepaid or outstanding amounts as at the closing date.
Common adjustments include property tax credits and debits (reflecting whether the seller has prepaid taxes beyond the closing date or owes arrears), condominium maintenance fee adjustments, and in some cases fuel oil or utility credits. The resulting balance is the cash you need to deliver to your lawyer’s trust account before closing, by certified cheque, bank draft, or wire transfer.
Review the statement of adjustments when your lawyer sends it, and ask questions about any items that are unclear. It is a straightforward document once its structure is understood, and your lawyer should be able to walk you through it promptly.
Signing Appointments
In the days before closing, you will attend your lawyer’s office to sign the closing documents. For buyers, this typically includes the mortgage documents provided by the lender, a transfer direction, a direction regarding title (specifying the form in which you wish to hold title), and various declarations and undertakings required by the lender and title insurer.
This appointment is the right time to raise any questions that remain unanswered about the transaction, the documents you are signing, or the closing process. Your lawyer should walk you through each document, explain its purpose, and ensure that you understand what you are agreeing to before you sign.
If you cannot attend in person, it may be possible to sign documents remotely, through a commissioned virtual signing, or through a power of attorney if you have appointed someone to act on your behalf. Your lawyer will advise on the available options and the lender’s requirements in this regard.
Closing Day
On closing day, your lawyer registers the transfer of title and the mortgage electronically through Ontario’s land registry system, confirms the exchange of funds between the solicitors acting on each side, and ensures that all outstanding conditions and undertakings have been satisfied. In most residential transactions, this process is conducted entirely by the lawyers without any requirement for the buyer or seller to be present.
Closings can be confirmed at various points during the business day. If your transaction involves a chain of closings, where the seller’s purchase of another property depends on the proceeds of your purchase, the timing may be affected by delays elsewhere in the chain. Your lawyer manages communication with the other side and keeps you informed of the status as the day progresses.
Once closing is confirmed, your real estate agent or the listing agent will typically arrange for key release. Your lawyer will notify you when the transaction has been registered and when it is safe to take possession.
After Closing: The Reporting Letter
In the days or weeks following closing, your lawyer will send you a reporting letter. This document summarizes the completed transaction, confirms the registered title details, includes copies of the key closing documents, and provides any other information relevant to your ongoing ownership of the property.
Keep your reporting letter and the enclosed documents in a safe place. You will need them when you refinance, when you sell the property, and for any future dealings that require confirmation of title, the mortgage terms, or the closing history of the transaction.
Your reporting letter will also include confirmation of the title insurance policy issued in your favour, which provides continuing protection against certain title defects and survey-related issues that may arise in the future. Review your policy and understand its coverage. If questions arise, your lawyer can assist in interpreting the policy or, if a claim is required, advising on the claims process.
A Note on Communication
One of the most consistent sources of stress in real estate transactions is not legal complexity but communication gaps: not knowing what is happening, when, and whether something requires action on the client’s part. A good real estate lawyer manages this proactively, updating clients at meaningful points in the process and flagging promptly anything that requires a decision or additional information.
As a client, the most useful things you can do are to respond promptly to requests for information, provide your identification and closing funds in the required form and on the required timeline, and make yourself available by phone in the days immediately before and on closing day. The legal process is well-established and largely predictable. When problems arise, they are almost always more manageable when identified early.
Buying or Selling in Ontario? Our Real Estate Team Is Ready to Help.
At Goldstein & Grubner LLP, our real estate lawyers guide buyers and sellers through every stage of the closing process across Ontario, with clear communication, thorough due diligence, and the experience to manage whatever the transaction requires.
Contact our office to speak with a member of our real estate team.
This article is intended for informational purposes only and does not constitute legal advice. The closing process varies with each transaction and property type. Please consult a qualified real estate lawyer for advice specific to your circumstances.
