What does a real estate lawyer do in Ontario? A real estate lawyer handles the legal work required to transfer, finance or otherwise deal with property, including document advice, title review, closing funds and electronic registration. The term “real estate attorney” is commonly used in the United States; in Ontario, the usual term is real estate lawyer.
For a purchase or sale, the lawyer’s work usually begins once there is a signed Agreement of Purchase and Sale and continues through closing and follow-up registration matters. Our real estate lawyer services can also assist with refinancing, title transfers, condominium transactions, leases and property disputes, depending on the legal issue.
Review the agreement and identify legal risks
A real estate lawyer reviews the Agreement of Purchase and Sale, amendments and schedules to explain what the parties have agreed to and identify legal risks. The wording of the agreement, its conditions and its deadlines control what must happen next.
A real estate agent may help a buyer or seller with pricing, marketing and negotiating the business terms of a deal. A lawyer focuses on the legal effect of the agreed terms, such as the closing date, deposit provisions, included chattels, exclusions, representations, conditions and remedies if a party does not close.
For example, a buyer agreeing to purchase a Toronto freehold home for $1,050,000 may have a financing condition, an inspection condition or both. The lawyer can explain the condition’s deadline, the required form of notice, and the risk of allowing a condition to expire without a valid waiver or fulfilment. If an amendment changes the closing date or adds an item to be left at the property, the lawyer can review how that change affects the transaction.
Title searches and verification
Title searches and verification involve reviewing the registered title to confirm the owner, legal description, mortgages, easements and other registered interests that may affect the property. The lawyer then raises or responds to title requisitions and works to resolve items that must be dealt with before closing.
In Ontario, this work is generally completed through the parcel register and related records in the Ontario land registration system, rather than by reviewing a fixed number of years of ownership. Depending on the property and transaction, the review may also consider executions, property tax information, surveys, condominium documents or other searches relevant to the file.
A title search is not a building inspection and does not guarantee that every problem with a property will be found. A buyer should still arrange appropriate inspections and investigate issues such as the condition of the roof, plumbing, electrical systems, permits and intended use.
Title insurance: what the lawyer arranges and what it does not replace
Title insurance is an optional insurance policy that can protect an owner or lender against certain title-related risks, subject to the policy’s terms, exclusions and limits. It is different from home insurance, which generally addresses physical loss or damage to the home and its contents.
A lawyer can arrange title insurance where it is appropriate and explain the available policy to the client. Coverage can vary, but policies may address certain existing title defects, fraud-related title issues, survey matters or problems with access or municipal compliance that fall within the policy wording.
Title insurance does not replace legal review, a property inspection, home insurance or careful review of the Agreement of Purchase and Sale. It also does not promise coverage for every issue a buyer knows about, accepts, creates after closing or encounters outside the policy terms.
Calculate closing money and register the transaction
A real estate lawyer calculates the money required to close, receives and pays funds through trust as appropriate, and registers the transfer and mortgage electronically. This is the point at which the legal documents, lender requirements and financial adjustments must line up.
The statement of adjustments is a key closing document. It apportions items such as property taxes, condominium common expenses or other prepaid amounts between buyer and seller as of the closing date. It is not the same as the legal account sent by the lawyer.
| Closing cost item | What it generally covers |
|---|---|
| Legal fee | The lawyer’s professional work under the agreed scope of retainer. |
| Disbursements | Out-of-pocket transaction costs, which may include searches, courier charges and registration-related expenses. |
| Land transfer tax | Ontario land transfer tax payable on many transfers, with Toronto municipal land transfer tax also applying to qualifying Toronto properties. |
| Title insurance | The premium for an owner’s or lender’s policy if obtained. |
| Registration charges | Fees associated with registering documents electronically. |
For example, a purchaser of a $780,000 condominium in Toronto needs more than the balance of the purchase price. The lawyer will use the statement of adjustments to calculate the final funds needed, account for the buyer’s deposit, arrange mortgage funding if applicable, and include applicable land transfer taxes, legal costs and registration expenses. On closing, the transfer and any mortgage are registered through the Ontario electronic land registration system, which is connected to the applicable Land Registry Office.
A clear quote should distinguish the legal fee from HST, disbursements, title insurance, land transfer tax and registration charges. This helps clients compare quotes without mistaking a partial legal fee for the full amount required to close. If you are approaching a closing date, a lawyer can help with your closing by identifying the documents, funds and instructions required for the file.
What happens if a problem comes up before closing?
If a problem arises before closing, the lawyer reviews the agreement, advises on the available options, communicates with the other side’s lawyer and records any solution in writing. The appropriate next step depends on the facts, the contract wording and how much time remains before closing.
Common complications include:
- a mortgage lender requiring more documents or an appraisal that affects financing;
- a title issue, such as an old mortgage that must be discharged or an easement that needs to be understood;
- a condominium concern revealed by a Status Certificate, including arrears, litigation disclosures or a planned special assessment;
- missing closing documents, identity-verification concerns or a delay in obtaining payout information; and
- a disagreement about repairs, included items, access, deposits or another contractual obligation.
Consider a seller of a condo unit where the buyer’s lawyer raises a title requisition concerning a registered charge that was paid years earlier but never discharged. The seller’s lawyer can seek a discharge from the lender, provide evidence to the buyer’s lawyer and, if necessary, discuss a written arrangement that permits closing while the issue is completed. The solution should not be assumed: the timing, lender response and terms of the Agreement of Purchase and Sale matter.
A Status Certificate is particularly important when buying a condo, because it provides information about the condominium corporation and the unit that may affect the buyer’s decision or closing calculations.
What does a commercial real estate lawyer do?
A commercial real estate lawyer handles the legal aspects of buying, selling, leasing or financing business and income-producing property, with due diligence tailored to the property and deal structure. This work is often broader than a standard residential closing because the property’s use, income and liabilities can be central to its value.
For a retail plaza, industrial unit or apartment building, the lawyer may review the permitted use under zoning or municipal rules, existing leases, rent rolls, financing terms, environmental reports, service contracts and corporate or partnership structure. A purchaser of a $2.4 million mixed-use building, for example, may need to understand whether current commercial leases continue after closing, which repairs the landlord must perform and whether the intended business use is permitted.
Commercial due diligence is driven by the agreement and the property itself. Environmental concerns, tenant obligations, tax treatment and lender requirements should be identified early enough to be reviewed before applicable deadlines expire.
Do real estate lawyers go to court?
Most real estate lawyers work on transactional files and do not need to go to court for an ordinary purchase or sale. However, lawyers may advise on, negotiate or represent clients in disputes involving property when a transaction cannot be resolved through closing work alone.
Examples include an alleged breach of an Agreement of Purchase and Sale, a title or boundary dispute, an easement dispute, construction-related claims or a disagreement over jointly owned property. Ontario mortgage enforcement may also involve power of sale, which is commonly used by lenders, rather than treating “foreclosure” as the usual remedy.
What a lawyer does for a buyer
For a buyer, the real estate lawyer reviews the purchase documents, investigates title, explains mortgage documents, calculates adjustments and registers the transfer after closing. The lawyer also helps identify what must be addressed if a lender, seller or condominium corporation raises an issue before closing.
Read more about what does the lawyer do when buying a house, including steps to take before signing and before the closing date.
What a lawyer does for a seller
For a seller, the lawyer prepares sale documents, responds to title requisitions, coordinates mortgage payout and discharge information, and receives and accounts for sale proceeds on closing. The lawyer also reviews the statement of adjustments and ensures the seller understands deductions from the proceeds.
For a closer look at the seller-side process, see our guide to hiring a lawyer for sale.
Frequently asked questions
How much does a real estate lawyer cost in Ontario?
The cost depends on the type of transaction, its complexity and the scope of work. Ask for a written quote that separates the legal fee from HST, disbursements, title insurance, registration charges and taxes, because not all of those items are legal fees.
Do you need a lawyer to buy a house in Ontario?
In practice, buyers and sellers ordinarily retain Ontario real estate lawyers to complete the legal work, coordinate closing funds and register transfer and mortgage documents electronically. It is wise to retain a lawyer as soon as possible after signing, particularly where the deal has conditions, a short closing date, a condominium corporation or unusual terms.
How do you become a real estate lawyer in Ontario?
A person must complete the education, licensing and licensing-process requirements to practise law in Ontario and be licensed by the Law Society of Ontario. A lawyer may then develop real estate practice experience through transactional work, continuing professional development and work with clients on residential or commercial matters; the Canadian Bar Association is one professional organization lawyers may join.
What should I ask before hiring a real estate lawyer?
Ask what work the quote includes, which costs are separate, who will handle day-to-day communications, what documents the lawyer needs and when they need them. These questions to ask a real estate attorney can help buyers and condo purchasers prepare for the first conversation.
Clients outside Toronto can also work with real estate lawyers brampton on Ontario purchase, sale and refinancing transactions. For additional detail on the final stages of a transaction, see what does a real estate lawyer do at closing.
Speak with a Toronto real estate lawyer
Early legal advice can help you understand your Agreement of Purchase and Sale, closing costs, title concerns and the steps required before your closing date.
Call 416-321-8766 or request a quote to discuss your matter with Zinati Kay.