Buying a home is both a financial commitment and a legal transaction. After an offer is accepted, the buyer, lender, realtor, and lawyers must coordinate documents, funds, searches, and deadlines so ownership can be transferred on the agreed closing date.
Important: This guide provides general information only. The agreement, property, financing, title, tax position, and closing requirements differ from one transaction to another.
1. Contact a Real Estate Lawyer Early
Contacting a lawyer early gives the firm time to open the file, complete identification and conflict checks, review key dates, and explain what information will be required. If the agreement has already been signed, provide the complete agreement and every amendment or schedule.
Where possible, buyers may wish to obtain legal advice before signing or waiving important conditions. Once an agreement is firm, its deadlines and obligations may already be binding.
2. Provide the Agreement and Buyer Information
The lawyer generally needs the Agreement of Purchase and Sale, amendments, waivers, property address, closing date, realtor information, mortgage or lender information, and the buyers’ legal names and contact details.
Buyers should also identify how they intend to hold title, whether they are first-time homebuyers, whether any buyer is a non-resident of Canada, and whether another person will contribute funds or have an interest in the property. These facts can affect documents, tax questions, lender requirements, or advice.
3. Coordinate Financing and Lender Instructions
A mortgage approval does not complete the legal work. The lender must send formal instructions to the lawyer, and the borrower must satisfy the lender’s conditions. Delays in financing instructions, insurance confirmation, identification, or supporting documents can place pressure on the closing timeline.
Buyers should stay in contact with their lender or mortgage broker and tell the lawyer promptly about any change in financing, purchase price, buyers, occupancy, or source of funds.
4. Review Title and Property-Related Information
The lawyer reviews title information and the transaction documents relevant to the purchase. Depending on the property and file, this may involve registered ownership, mortgages, liens, easements, restrictions, taxes, condominium information, or other matters affecting title.
The scope of searches and available remedies depends on the agreement, title insurance, lender requirements, timing, and the particular property.
5. Understand Title Insurance
Title insurance is an insurance policy that may protect an owner or lender against specified losses connected with title or ownership. The Financial Services Regulatory Authority of Ontario explains that title insurance is not legally required in Ontario and does not replace legal advice. Coverage, exclusions, and policy terms should be reviewed for the particular transaction.
6. Prepare for Land Transfer Tax and Closing Adjustments
Ontario land transfer tax is generally payable when an interest in land is transferred, subject to the legislation and available exemptions or refunds. Eligible first-time homebuyers may qualify for an Ontario refund, but eligibility must be confirmed from the buyer’s circumstances.
The statement of adjustments may also account for items such as property taxes, condominium fees, fuel, rents, or other amounts that have been paid or remain owing. These adjustments help allocate expenses between buyer and seller as of closing.
7. Review and Sign Closing Documents
Before closing, the lawyer arranges signing and explains the principal legal documents. Buyers may need to provide original identification, insurance information, banking details, funds, and any documents requested by the lender or lawyer.
Ask questions before signing if a name, amount, address, ownership instruction, or other detail appears incorrect. Last-minute changes can require revised lender instructions or additional documents.
8. Deliver Closing Funds Safely
The firm will provide instructions for the balance required to close, including legal fees, taxes, adjustments, registration expenses, title insurance if applicable, and other transaction amounts. Buyers should follow the firm’s verified payment instructions and independently confirm any unexpected request to redirect funds. Real estate transactions are a known target for payment fraud.
9. What Happens on Closing Day?
On closing, the lawyers exchange the required funds and documents and complete the electronic registration steps. Once the transaction has closed and release is authorized, the buyer can normally obtain access through the arrangement made with the realtor or seller.
Closing time can vary. Buyers should avoid scheduling movers, deliveries, renovations, or key-dependent appointments too early in the day.
Homebuyer Preparation Checklist
- Complete Agreement of Purchase and Sale, amendments, and waivers
- Government-issued identification for every buyer
- Mortgage and lender or broker contact information
- Property insurance confirmation when required
- Full legal names and instructions for ownership
- Information relevant to first-time homebuyer eligibility
- Source-of-funds information requested by the lawyer or lender
- Closing funds delivered according to verified instructions
Common Problems That Can Delay a Closing
- Late mortgage instructions or unresolved lender conditions
- Missing identification, insurance, or supporting documents
- Incorrect buyer names or late changes to ownership
- Unresolved title, tax, condominium, or document issues
- Closing funds arriving late or through an unapproved method
Planning to buy in Ottawa?
Meysami Law Professional Corp. assists with residential purchases, title-related work, lender documents, and closing coordination.
Buying a home is also a useful time to review your estate-planning documents and consider whether your will and powers of attorney still reflect your property ownership and wishes. Learn about Wills & Powers of Attorney.
Official Resources
Ontario Land Transfer Tax · First-Time Homebuyer Refund · FSRA: Understanding Title Insurance
This article is for general information only and does not constitute legal advice. Reading it or contacting the firm does not create a lawyer-client relationship. Legal advice depends on the specific facts and documents of each transaction.