What Does a Lawyer Do in the Home Buying Process in Ontario?
Buying a home is one of the biggest financial commitments you’ll ever make, and having the right professionals on your side is essential. While I help homebuyers secure the best mortgage options, a real estate lawyer ensures your home purchase is legally sound and hassle-free.
So, what exactly does a real estate lawyer do during the home buying process in Ontario? Let’s break it down step by step.
Why You Need a Real Estate Lawyer
In Ontario, you must work with a real estate lawyer to finalize your home purchase. Their job is to protect your interests by reviewing contracts, conducting legal checks, managing financial transactions, and ensuring your new home is registered in your name.
Whether you’re a first-time homebuyer or a seasoned homeowner, here’s how a real estate lawyer plays a crucial role in your home-buying journey:
- Title Search & Due Diligence
What It Is: Your lawyer conducts a title search to verify the seller’s legal ownership and ensure there are no issues with the property.
✅ Why It Matters: A clean title means no unexpected surprises, such as liens, unpaid property taxes, outstanding mortgages, or legal disputes. Any hidden problems could delay or even derail your purchase.
- Reviewing & Drafting Legal Documents
Your lawyer carefully reviews and prepares all the paperwork to make sure your interests are protected, including:
Purchase Agreement – Ensures the Agreement of Purchase and Sale (APS) is fair, legally sound, and protects you from hidden risks.
Mortgage Documents – Reviews the mortgage agreement to confirm loan terms, interest rates, and penalties are exactly as agreed.
Closing Documents – Prepares legal documents like the deed, transfer of ownership, tax adjustments, and land transfer tax statements.
- Registering Ownership
What They Do: Your lawyer registers the property in your name through Ontario’s Land Registry system.
✅ Why It Matters: This ensures you are the legal owner and that no one else has any claims to your home.
- Managing Financial Transactions
Your lawyer acts as a financial middleman to ensure all payments are handled correctly.
Trust Account Management – Holds your down payment and lender’s mortgage funds in a trust account.
Paying the Seller – Transfers funds to the seller’s lawyer on closing day.
Adjustments & Fees – Ensures both buyer and seller pay their fair share of prepaid property taxes, condo fees, or utilities.
- Closing the Deal
What Happens on Closing Day?
✔️ All legal documents are signed and finalized.
✔️ Funds are transferred to the seller.
✔️ The property is officially registered in your name.
✔️ You get the keys to your new home!
✅ Why It Matters: Closing day is when everything becomes official. Your lawyer ensures there are no last-minute legal or financial issues that could hold up your move-in date.
- Additional Legal Services
Legal Advice – If any disputes, zoning concerns, or contract issues come up, your lawyer provides expert guidance.
Title Insurance – Protects you from risks like title fraud, survey errors, or undisclosed claims. Your lawyer can arrange this for you.
How Much Does a Real Estate Lawyer Cost in Ontario?
Expect to pay between $1,000 – $2,500, depending on the complexity of your home purchase. This covers legal fees, registration costs, and title insurance.
Final Thoughts: Why Having the Right Team Matters
Buying a home involves many moving parts, and having the right professionals makes all the difference. While a real estate lawyer ensures your purchase is legally sound, working with an experienced mortgage broker ensures you get the best financing options.
Need a trusted real estate lawyer? I can connect you with a reliable legal professional to guide you through the process.
Ready to Buy a Home? Let’s Chat!
Call: 905-929-1199
Email: lamalfi@tmacc.com
Serving: Ancaster, Hamilton & All of Ontario
Let’s make your home-buying journey smooth, stress-free, and successful!