Purchase & Sale Transactions

Buying or selling a home is one of the most significant financial and personal decisions you will ever make. The legal process that governs these transactions in Ontario is detailed, time-sensitive, and governed by strict regulatory requirements. At Goldstone Law Professional Corporation, our residential purchase and sale lawyers guide clients through every step of the transaction — from the moment an Agreement of Purchase and Sale is signed to the final transfer of keys. Whether you are a first-time buyer navigating the process for the first time, an experienced investor completing a multi-property portfolio transaction, or a homeowner selling the family home after many years, our lawyers provide the experienced, attentive legal counsel you need to close successfully.

Understanding the Ontario Residential Purchase & Sale Process

In Ontario, real estate transactions are primarily governed by the Land Titles Act and the regulations made under the Real Estate and Business Brokers Act, 2002. All title transfers must be completed through the Ontario Land Registry system, which operates electronically through a platform known as Teraview. Only licensed lawyers are permitted to register title transfers, mortgage documents, and other instruments through this system, which is one reason why retaining a lawyer early in the process is so important. A typical residential purchase or sale in Ontario involves several key stages, each with its own legal requirements and deadlines. Missing a deadline, overlooking a condition, or failing to address a title defect can jeopardize the entire transaction. Our role is to manage every stage of this process on your behalf, so that nothing falls through the cracks.

For Buyers: What Our Lawyers Do

Reviewing the Agreement of Purchase and Sale

If you are purchasing a resale home, the Agreement of Purchase and Sale (APS) is the foundational legal document. While real estate agents assist with negotiating the price and conditions, the APS is a binding contract with significant legal implications. Our lawyers review the APS to ensure that your interests are protected, that the conditions — including financing, home inspection, and status certificate review — are appropriately worded, and that the closing adjustments are fair and clearly defined. Buyers should ideally have a lawyer review the APS before signing, particularly if the transaction involves unusual conditions, a unique property type, or a private sale without real estate agent representation.

Title Search and Due Diligence

Before you commit to purchasing a property, it is essential to confirm that the seller has clear and unencumbered title to convey. Our lawyers conduct a comprehensive title search through the Ontario Land Registry to identify any registered encumbrances, mortgages, liens, easements, rights of way, or other interests that may affect your ownership of the property. In addition to the title search, we review relevant off-title matters, including property tax status, outstanding work orders or building permits, zoning compliance, and utility arrears. Our due diligence process ensures that you have a complete picture of what you are acquiring before you reach the closing table.

Coordinating with Your Lender

If you are financing your purchase with a mortgage, we act as the intermediary between you and your lender. We receive and review the mortgage commitment and instructions from your lender, prepare the necessary documentation, ensure that the title is acceptable to the lender, and register the mortgage electronically on closing day. We coordinate all timing requirements so that mortgage funds are available on the closing date.

Preparing and Reviewing Closing Documents

In the days leading up to closing, we prepare and exchange a range of closing documents with the seller’s lawyer, including the Transfer/Deed of Land, direction regarding funds, the Statement of Adjustments, and any undertakings required to complete the transaction. We review every document carefully to ensure accuracy and compliance with the terms of the Agreement of Purchase and Sale.

Statement of Adjustments and Closing Costs

The Statement of Adjustments sets out how costs and credits are allocated between buyer and seller at closing. These adjustments typically include property tax apportionments, prepaid utilities, and in the case of a condominium, common expense (maintenance fee) adjustments. Our lawyers prepare a detailed statement and ensure that you fully understand all costs before closing, including Land Transfer Tax, title insurance premiums, legal fees, and registration charges.

Registering Title and Releasing Funds

On closing day, we register the Transfer/Deed of Land in your name on the Ontario Land Registry through Teraview, simultaneously releasing the purchase funds to the seller’s lawyer in exchange. Once registration is confirmed, we prepare a reporting letter summarizing the transaction and deliver the keys and any relevant documentation to you.

For Sellers: What Our Lawyers Do

Preparing the Seller’s Closing Documents

For sellers, our role is equally critical. We prepare the Transfer/Deed of Land, respond to title and off-title requisitions raised by the buyer’s lawyer, and ensure that the legal documentation required for closing is accurate, complete, and delivered on time.

Discharging Mortgages and Completing the Closing

Where there is an existing mortgage on title, we coordinate the discharge process so that clear title can be transferred to the buyer on closing. We also prepare the Statement of Adjustments, receive the sale proceeds, and ensure that all funds are properly disbursed in accordance with the closing documents and trust accounting requirements.

Resolving Issues Before Title Is Transferred

We also advise sellers on issues that can delay or complicate closing, including outstanding work orders, unresolved building permit matters, encumbrances on title, and other defects that must be dealt with before the transaction can be completed.

Additional Considerations in Residential Transactions

Land Transfer Tax in Ontario

Ontario’s Land Transfer Tax (LTT) is payable by the buyer on every purchase of land in Ontario. The tax is calculated based on the purchase price and is due on closing day. In the City of Toronto, buyers are also subject to a Municipal Land Transfer Tax (MLTT) in addition to the provincial LTT. First-time homebuyers may be eligible for rebates on both the provincial and municipal taxes. Our lawyers calculate the applicable taxes, advise on rebate eligibility, and ensure that the tax is remitted on closing day.

Condominiums and Townhouses

Purchasing a condominium or townhouse in Ontario involves additional legal considerations not present in freehold transactions. Condominium purchasers are entitled to review a Status Certificate, which provides detailed financial and governance information about the condominium corporation. This 10-day review period is a critical window for identifying any financial concerns, special assessments, or governance issues that may affect your purchase decision. Our lawyers review Status Certificates thoroughly and advise you on any red flags before you waive the condition.

Frequently Asked Questions — Residential Purchase & Sale

Do I need a lawyer to buy or sell a house in Ontario?

Yes. In Ontario, only a licensed lawyer can register title transfers and mortgage documents through the Ontario Land Registry. A real estate lawyer is not optional — it is a legal requirement for all real estate transactions.

When should I contact a lawyer during the home buying process?

Ideally, you should retain a lawyer before you sign the Agreement of Purchase and Sale, or as soon as possible after signing. The earlier we are involved, the more effectively we can protect your interests. Many buyers contact us the moment they begin seriously searching for a property.

How long does a real estate closing take in Ontario?

The closing process typically takes 30 to 90 days from the date the Agreement of Purchase and Sale is signed, though this depends on the closing date agreed to by the parties. Our team begins preparing for closing well in advance to ensure that all documentation is ready on time.

What is included in closing costs for a buyer in Ontario?

Closing costs for buyers in Ontario typically include Land Transfer Tax (and Municipal Land Transfer Tax in Toronto), title insurance, legal fees and disbursements, home inspection fees (if not included in conditions), moving costs, and any adjustments set out in the Statement of Adjustments. We provide a detailed cost estimate early in the process so you can plan accordingly.

Can you represent both the buyer and seller in the same transaction?

Ontario law generally does not permit a lawyer to act for both the buyer and seller in the same transaction, as this creates a conflict of interest. Each party should retain independent legal counsel to ensure that their individual interests are fully protected.

Ready to proceed with your purchase or sale? Contact Goldstone Law Professional Corporation today. Our residential real estate lawyers serve clients throughout Ontario and are available to discuss your transaction.