In Ontario, a real estate lawyer handles the legal transfer of property ownership, and retaining one is not optional. Ontario law requires a lawyer to be involved in every residential purchase and sale to register the transfer of title, coordinate mortgage financing, and ensure the transaction complies with provincial regulations.
Your lawyer's work begins well before closing day. On the buyer's side, the lawyer reviews the Agreement of Purchase and Sale to confirm that its terms protect your interests and that all conditions have been satisfied or waived. They conduct a title search through Ontario's Electronic Land Registration System to verify that the seller has clear ownership and to identify any registered liens, easements, or encumbrances on the property. If you are purchasing a condo, your lawyer will also review the status certificate to flag financial or legal concerns with the condominium corporation.
The lawyer coordinates directly with your mortgage lender, preparing and registering the mortgage documents required to fund the purchase. They also prepare the statement of adjustments, which calculates the final amount you owe on closing after accounting for prepaid property taxes, utility costs, and other credits between buyer and seller. On closing day, the lawyer registers the deed, transfers funds to the seller's lawyer, and ensures that the provincial and municipal land transfer taxes are paid.
For sellers, the lawyer's role is somewhat narrower but no less important. They prepare the deed transferring ownership, arrange for the discharge of any existing mortgage on the property, and review the statement of adjustments from the buyer's side. They also ensure the sale proceeds are distributed correctly, including any payments owed to the seller's brokerage.
Legal fees for a standard residential transaction in Ontario typically range from $1,000 to $2,500 plus HST. This does not include disbursements, which are third-party costs the lawyer pays on your behalf. Common disbursements include title search fees, registration fees, and the title insurance premium. It is standard practice to request a written quote that separates the legal fee from estimated disbursements so you can budget accurately.
Because your lawyer acts as both your legal representative and your lender's representative in the same transaction, choosing someone experienced in Ontario real estate closings matters. Ask your agent, mortgage broker, or friends for referrals well in advance of your closing date.