What Does a Real Estate Lawyer Do in an Ontario Home Purchase or Sale?

A real estate lawyer handles the legal work between a signed Agreement of Purchase and Sale and the day you get the keys or the sale proceeds. For a buyer that usually means reviewing the agreement, searching title, preparing mortgage and closing documents, and registering the transfer; for a seller it means preparing the transfer and sorting out what is owed on the property.

In Ontario's electronic land registration system, only a lawyer may sign for completeness of a document that requires compliance with law statements, and most transfers of title contain such statements. Generally, a transfer must be signed for completeness by two different lawyers, one acting for each side. Some transfers, such as those within a family, between related parties or in remote communities, may be completed by one lawyer acting for both sides.

The lawyer also works out the adjustments between buyer and seller, and the land transfer tax, which is payable when the transfer is registered on closing and is generally based on the purchase price plus any mortgage or debt assumed. The Ontario land transfer tax refund for eligible first-time homebuyers is up to $4,000, and other taxes may have different refund rules. Ask your lawyer which taxes and refunds apply to you.