What Does a Real Estate Lawyer Do When You Buy a Home in Ontario?

Unlike some other provinces, Ontario requires a licensed lawyer to complete every residential real estate purchase. You cannot close on a home in Ontario without one. But if you've never bought property before, the question is fair: what exactly does that lawyer do for you — and why can't you just handle it yourself?

The short answer is that your real estate lawyer does a great deal more than sign papers. They are the professional who stands between you and a potentially catastrophic mistake — an undisclosed lien, a title defect, a mortgage instruction you misunderstood, or a closing-day error that leaves you locked out of your own home. This article walks through each stage of the process.

Stage 1: After the Agreement of Purchase and Sale Is Signed

Your agreement with the seller is typically negotiated and signed before a lawyer is directly involved — your real estate agent usually handles that process. Once the deal firms up (all conditions, like financing and home inspection, are satisfied), your agent sends a copy of the signed agreement to your lawyer.

This is when the legal work begins in earnest.

Reviewing the Agreement

Your lawyer reads the agreement carefully to understand key dates (the closing date, the date title transfers), what is included in the purchase (fixtures, chattels, exclusions), any representations the seller has made, and whether anything in the agreement creates a risk or requires special attention.

If your lawyer spots a problem with the agreement at this stage, they will raise it with you immediately — some issues can still be addressed by negotiation or amendment, even after signing.

Stage 2: The Title Search

This is arguably the most important thing your real estate lawyer does. Under the Land Titles Act, Ontario maintains an electronic land registry. Your lawyer (or their agent) searches the registered title to the property you're buying to confirm:

• Who actually owns it. The registered owner should match the seller named in your agreement. Discrepancies can signal fraud or an estate issue.
• What mortgages or charges are registered. Any existing mortgage on the property must be paid off and discharged on or before closing. Your lawyer ensures the seller's lawyer arranges this.
• Whether there are any liens. A construction lien (registered under the Construction Act when a contractor hasn't been paid), a judgment lien, or a utility arrears charge can attach to the property and become your problem if not cleared before closing.
• Easements and rights-of-way. An easement gives another party a legal right to use part of your land — for example, a utility company's right to run a gas line through the backyard. Easements are permanent and transfer with the property.
• Restrictive covenants. Older covenants may restrict what you can build or how you can use the land. Your lawyer identifies these so you're not surprised later.

Requisitions

After completing the title search, your lawyer sends a letter to the seller's lawyer called a requisition letter (or simply "requisitions"). This is a formal list of title defects, problems, or questions identified in the search, accompanied by a demand that the seller resolve them before closing. The seller's lawyer must respond and provide evidence that each issue has been — or will be — addressed.

This back-and-forth between lawyers is a critical quality-control step. You don't see it happening, but it protects you.

Stage 3: Off-Title Searches

Beyond the land registry, your lawyer conducts a series of off-title searches — inquiries to other government bodies and registries:

• Property tax search: Confirms that property taxes are paid up to date (or identifies arrears that must be cleared before closing).
• Execution search: Checks whether there are any court judgments outstanding against the seller that could attach to the property.
• Utility arrears and work orders: Some municipalities have programs where unpaid utility bills or outstanding work orders (orders to fix a code violation) can be registered against the property.
• PPSA and other searches: In some transactions, a search of the Personal Property Security Act registry is warranted to confirm that equipment or fixtures haven't been financed separately.

Stage 4: Mortgage Instructions

If you're borrowing to finance the purchase, your lender sends a package of mortgage instructions to your lawyer. These instructions tell your lawyer:

• The amount of the mortgage.
• The conditions that must be satisfied before the lender will release funds.
• Documents you must sign (the mortgage itself, a commitment letter, possibly a property insurance declaration).
• Any outstanding items from the lender's own file.

Your lawyer acts for you and your lender simultaneously in most Ontario residential transactions (with disclosure and your consent). They ensure the mortgage documents accurately reflect what you agreed to with your lender, explain what you're signing, and confirm all lender conditions are satisfied.

Stage 5: The Reporting Letter and Pre-Closing Preparation

A few days before closing, your lawyer sends you a reporting letter (sometimes called a pre-closing package or statement of adjustments). This document:

• Summarizes the title search results.
• Explains any title insurance coverage being arranged.
• Sets out the statement of adjustments — the final calculation of what you owe on closing day, including the purchase price balance, property tax adjustments, Land Transfer Tax, legal fees, and disbursements.
• Identifies documents you need to sign, and may ask you to attend the office in person (or sign via a secure digital platform).

This is also when you arrange to have your closing funds ready — typically by bank wire or certified cheque.

Stage 6: Closing Day

On the actual closing date, your lawyer coordinates a chain of events that all need to happen in a specific order:

1. They receive your closing funds (and confirm your mortgage funds have been received from the lender).
2. They release funds to the seller's lawyer in exchange for the signed transfer document and keys.
3. They register the transfer (the legal document conveying ownership to you) in the Ontario land registry, making your ownership official and public.
4. They register your mortgage against the title.
5. They arrange for the seller's existing mortgage to be discharged (or obtain an undertaking that it will be discharged shortly after closing).

Once registration confirms, you legally own the property. Your lawyer provides you with the keys (or confirms with the agent to do so) and sends you a post-closing reporting letter with copies of all registered documents.

Frequently asked questions