What Your Real Estate Lawyer Does and When You Need One

Every real estate transaction in Ontario requires a lawyer. That is not optional. The buyer needs one. The seller needs one. And both lawyers do far more than most people realise.

If you have bought or sold before, you may remember signing a stack of papers at the lawyer's office and writing a cheque. That is the visible part. The invisible part is where most of the value sits.

What the Buyer's Lawyer Does

The buyer's lawyer handles the transfer of ownership from the seller to the buyer. That involves several steps, each of which protects you from a different kind of problem.

First, the title search. Your lawyer searches the land registry to confirm that the seller actually owns the property and has the right to sell it. They check for liens, encumbrances, easements, and any registered interests that could affect your use of the property. A lien from an unpaid contractor, a tax arrear from a previous owner, or an easement that gives a utility company the right to dig across your back garden are all things that would show up here.

Second, the review of the Agreement of Purchase and Sale. Your lawyer reads the contract to make sure the terms are clear, the conditions are properly drafted, and the timelines are realistic. If something does not make sense, they will flag it before it becomes a problem.

Third, the closing itself. Your lawyer prepares the transfer documents, registers the deed in your name, receives and distributes the funds, and ensures that the mortgage is properly registered. On closing day, your lawyer is the person who confirms that the money has moved, the keys can be released, and the property is legally yours.

What the Seller's Lawyer Does

The seller's lawyer handles the other side of the same transaction. They prepare the transfer deed, discharge the existing mortgage, calculate the adjustments (property taxes, utilities, and condo fees that have been prepaid or are owing), and ensure that the sale proceeds are distributed correctly.

If there is a mortgage on the property, the seller's lawyer arranges the payout with the lender. They confirm the exact amount owing on closing day, request a discharge statement, and ensure that the mortgage is removed from the title after the sale.

The adjustments are worth understanding. If you have prepaid your property taxes through to the end of the year and you close in September, the buyer owes you a credit for the months of October, November, and December. Your lawyer calculates that figure and adds it to the closing statement. The same logic applies to condo maintenance fees, utility deposits, and fuel oil if the home has an oil tank.

When to Hire One

The right time to engage a real estate lawyer is before you sign the Agreement of Purchase and Sale, not after. Most people find their lawyer after they have already agreed to the deal, which means the lawyer is reviewing a contract they had no input into. That still works. But if you have a lawyer lined up in advance, you can call them before you sign and ask whether the terms make sense.

This is especially important for transactions with unusual conditions: a seller take-back mortgage, a delayed closing, a property with tenants, or a purchase that involves assuming an existing lease.

What It Costs

Legal fees for a standard residential purchase in the GTA typically range from $1,500 to $2,500, plus disbursements. Disbursements include the title search, the title insurance premium, registration fees, and courier charges. In total, expect to pay $2,000 to $3,500 all in.

For sellers, fees are usually slightly lower because the transaction is simpler on the seller's side. Expect $1,000 to $2,000 plus disbursements.

These are general ranges. Complex transactions, multiple properties, or commercial elements will cost more.

How to Choose One

Choose a lawyer who practises real estate law regularly, not one who does a bit of everything. Real estate closings are deadline-driven and detail-heavy. An experienced real estate lawyer has seen the problems before and knows how to solve them quickly.

Ask how they communicate. Some lawyers handle everything by email. Others prefer phone calls. Some have a law clerk who manages the day-to-day and a lawyer who reviews the critical documents. All of those models work, as long as you know who to call when you have a question and how quickly they will respond.

Your real estate agent can usually recommend two or three lawyers they have worked with successfully. That is a reasonable starting point.

If you are buying or selling in the GTA and need a recommendation, or if you have questions about the process, call me at 416-560-4983.

Danny Macedo, Macedo Real Estate Group, Royal LePage Supreme Realty, Brokerage.