Can a Notary Public Handle a Real Estate Closing in Ontario?

If you are buying Ontario property from another country or province, you may be used to a notary playing a central role in closing. In Ontario, the system works differently, and assuming otherwise can cause delays near your closing date.

This article explains who can legally register a transfer of title, what a notary public in Ontario can do, and what to prepare if you are not living here.

Notaries public in Ontario are not what many people expect

In Ontario, lawyers and paralegals are not notaries public by right. They must apply to be appointed. Non-lawyer notaries are appointed only for powers needed in their existing job, they cannot notarize documents remotely, and appointments are not granted to start a new line of business.

So a notary here is not a substitute for a real estate lawyer. Even where a notary stamp is useful, for example on a document you sign, it is a separate step from registering the transfer of the property.

If you come from a place where one notary prepares the deed, checks the parties and handles the funds, it helps to set that expectation aside. Whether a particular document you sign needs a notary at all depends on the document and where you are signing it, so it is worth confirming with a lawyer early.

Who can sign and register the transfer

Transfers are registered through Ontario's electronic land registration system, called e-reg. Only a lawyer may sign for completeness a document that requires compliance with law statements, and most transfers of title contain such statements. Non-lawyers may sign these documents for release only.

Generally, a transfer of title must be signed for completeness by two different lawyers, one acting for the transferor and one for the transferee. Some transfers, such as transfers within a family, between related parties or in remote communities, may be completed by one lawyer acting for both sides, under the Law Society's professional standards.

In practical terms, this means your lawyer, not a notary, will handle the registration side of your purchase. Whether one lawyer or two will act on your transfer depends on the facts of your deal, so ask your lawyer to explain the arrangement before closing.

Money you should expect at closing

Ontario land transfer tax is payable when the transfer is registered, which happens on closing. It is generally based on the purchase price plus any mortgage or debt assumed.

• Eligible first-time homebuyers can get a land transfer tax refund of up to $4,000 for registrations on or after January 1, 2017, claimed at registration or later from the Ministry of Finance.
• Foreign nationals, foreign corporations and taxable trustees buying residential property anywhere in Ontario pay the Non-Resident Speculation Tax at 25 per cent, effective October 25, 2022, in addition to land transfer tax.

If you are not a citizen or permanent resident, ask your lawyer early whether the Non-Resident Speculation Tax could apply to you, since it affects how much cash you need on closing. The exact amount you owe depends on your situation, so confirm it before you send funds.

Why your funds should go through a lawyer

Your lawyer typically holds your closing funds in trust. The Law Society's Compensation Fund typically pays for losses involving trust funds held for real estate closings, but it is a last resort: the claimant must first try to recover the loss from the lawyer or paralegal and from any other sources. That is one more reason to deal only with a licensed Ontario lawyer for closing.

Whatever the arrangement, keep a record of every transfer of money you make and ask your lawyer to confirm in writing when it has been received.

What to do next

• Hire an Ontario real estate lawyer before your conditions expire, not days before closing.
• Ask how you can sign documents from abroad and whether a notary or other witness will be needed.
• Gather identification and proof of the source of your funds.
• Ask whether the Non-Resident Speculation Tax or a first-time homebuyer refund could apply to you.
• Confirm in advance whether one lawyer or two will act on your transfer.
• Plan for time-zone and courier delays when documents must be signed outside Ontario.

Frequently asked questions