Selling Your Home in Ontario: A Legal Checklist

When you sell your home in Ontario, a lot of the visible activity belongs to your real estate agent — listing, showings, negotiating the offer. But once the offer is accepted and the conditions are waived, a parallel legal process begins. Your real estate lawyer takes the lead on everything that happens between acceptance and the moment funds land in your account.

Understanding what selling a house in Ontario involves legally helps you avoid surprises, prepare the right documents in time, and know what to expect from your lawyer. Here is a practical checklist of the legal steps.

Step 1: Retain a Real Estate Lawyer Early

Many sellers wait until an offer is accepted before contacting a lawyer. Ideally, engage one a bit earlier — when your home is listed, or at least the moment you receive a serious offer. Your lawyer needs time to:

• Review your existing mortgage details
• Confirm title is clean
• Identify any potential issues (liens, executions, easements) before they become closing-day emergencies

Action item: Contact your real estate lawyer as soon as an offer is likely.

Step 2: Review the Agreement of Purchase and Sale

Your lawyer will review the accepted Agreement of Purchase and Sale (APS) with you. Key things they look for:

• Closing date: Is it realistic given your plans?
• Inclusions and exclusions: Are chattels (appliances, window coverings, etc.) correctly listed?
• Conditions: What conditions did the buyer include and what are the timelines?
• Deposit amount and holding arrangement: Is the deposit being held in trust by the real estate brokerage?
• Representations and warranties: Are there any seller warranties that could create liability?
• Buyer's conditions that have passed: Once conditions are waived or fulfilled in writing, the deal is firm.

Action item: Send your signed APS to your lawyer immediately after acceptance.

Step 3: Gather Your Title Information

Your lawyer will search title to the property to confirm what is registered and identify anything that must be cleared before closing. To assist, provide:

• A copy of your deed or prior transfer (if you have it — the lawyer can search for it but having it speeds things up)
• Survey: An existing survey of the property, if you have one. Buyers may request it; it also helps the lawyer confirm lot boundaries and encroachments.
• Details of any work done: If you had major work (additions, pools, HVAC installations) done on the property, you may need permits and, in some cases, letters from contractors about liens.

Action item: Locate your survey and prior transfer documents and send them to your lawyer.

Step 4: Confirm Your Mortgage Payout

If there is a mortgage on the property, your lawyer will request a payout statement from your lender. This shows the exact amount needed to discharge the mortgage on the closing date, including:

• Outstanding principal
• Accrued interest
• Any prepayment penalty
• Discharge or administration fees

Prepayment penalties can be substantial depending on your lender and how far you are from your renewal date. Confirm the penalty amount early so there are no surprises when your net proceeds are calculated.

Action item: Alert your lawyer to which lender holds your mortgage and let the lawyer request the payout statement.

Step 5: Respond to Buyer's Requisitions

The buyer's lawyer will raise requisitions — written requests and objections about the state of title. Common requisitions include:

• Requests to discharge outstanding liens or encumbrances
• Questions about undischarged old mortgages
• Requests to explain easements, rights-of-way, or restrictions registered on title
• Questions about survey discrepancies or encroachments
• Requests regarding unpaid taxes or utility arrears

Your lawyer must respond to requisitions by a deadline set out in the APS (commonly 5–10 business days before closing). Some requisitions are easily answered; others require action — for example, discharging a contractor's lien or paying off a judgment.

Action item: Respond promptly to your lawyer's requests for information about any issues raised in requisitions. Do not ignore these; unresolved requisitions can delay or kill the deal.

Step 6: Provide Documentation Your Lawyer Requests

As closing approaches, your lawyer will ask you for various items. Be ready to provide:

• Government-issued photo ID (required for anti-money laundering client identification under Law Society rules)
• Mortgage documents (if you need to locate account numbers, lender contact information, etc.)
• Condominium-related documents (if selling a condo: status certificate, declaration, bylaws)
• UFFI declaration (a standard statutory declaration that the property contains no urea-formaldehyde foam insulation)
• Home improvement records (permits, contractor information, for anything that might affect title or warranties)

Action item: Have your ID ready and respond quickly to document requests. Delays here ripple through to closing.

Step 7: Review the Statement of Adjustments

Your lawyer prepares a statement of adjustments — a financial reconciliation between you and the buyer. It shows:

• The purchase price (credit to you)
• Less: the buyer's deposit (already paid to the brokerage in trust)
• Adjustments for property taxes (if you have paid taxes for the period after closing, the buyer owes you a credit; if you owe taxes for the period before closing that have not been paid, that is a debit to you)
• Adjustments for utility or condo fee prepayments, if applicable
• The net amount you will receive after these adjustments

The statement of adjustments does not yet subtract your mortgage payout, legal fees, or real estate commission — those come off your net proceeds separately.

Action item: Review the statement of adjustments carefully when your lawyer sends it and flag any entries you do not understand.

Step 8: Sign Closing Documents

A few days before closing, you will sign with your lawyer:

• A Transfer/Deed of Land transferring the property to the buyer
• A direction regarding title (directing the buyer's lawyer where to register the transfer)
• Various declarations and certifications
• Discharge authorizations for your mortgage lender

Many Ontario real estate lawyers now offer remote signing — you sign documents electronically or via video, without coming into the office. Confirm signing arrangements with your lawyer well in advance.

Action item: Schedule your signing appointment for several days before closing, not the day before.

Step 9: Closing Day — What the Seller's Lawyer Does

On closing day, your lawyer:

• Coordinates with the buyer's lawyer to ensure the transfer is registered and funds are received
• Once funds arrive in trust, pays out your mortgage from the proceeds
• Pays any other encumbrances that must be cleared
• Calculates real estate commission owing (typically the agent holds the deposit and applies it against commission)
• Pays legal fees and disbursements
• Releases the balance of your net proceeds to you

This all happens electronically. The transfer registers through Teraview. Funds flow between lawyers' trust accounts. You do not need to attend.

Action item: Make sure you have told your lawyer where to send your net proceeds (bank information for wire transfer or instructions for a trust cheque).

Step 10: Deliver Vacant Possession and Keys

The Agreement of Purchase and Sale specifies the time by which you must be out of the property and deliver vacant possession. Failure to vacate on time can expose you to legal liability. Keys are typically held by your real estate agent and released once the seller's lawyer confirms the transaction is complete.

Action item: Be fully moved out before the closing date and confirm with your agent when and where keys should be left.

Frequently asked questions