A real estate lawyer (or notary in Quebec) protects your legal interests in a purchase or sale: they check the title, handle the transfer of funds and register the mortgage. This guide explains what they do at each stage, what it costs, and how the process differs by province.
What a Real Estate Lawyer Does: Step by Step
When Buying
| Stage | What the Lawyer Does |
|---|---|
| Before the offer | Reviews the Agreement of Purchase and Sale (APS); advises on conditions, clauses, and legal risks |
| After the offer is accepted | Opens the file; orders a title search; contacts the lender’s lawyer for mortgage instructions |
| Title search | Searches the land registry to confirm the seller owns the property, identifies any liens, encumbrances, easements, or issues on title |
| Title insurance | Arranges title insurance (protects against title defects, survey issues, fraud) — typically $250–$500 |
| Review of documents | Reviews status certificate (condos), survey/RPR, property tax account, utility accounts, condo bylaws |
| Mortgage documentation | Receives mortgage instructions from the lender; prepares mortgage documents for your signature |
| Closing preparation | Prepares the transfer/deed, statement of adjustments, statutory declarations |
| Signing appointment | You meet the lawyer to sign all documents (typically 1–5 days before closing) |
| Closing day | Registers the transfer and mortgage on title; releases funds to the seller’s lawyer; you receive the keys |
| Post-closing | Sends you a reporting letter with copies of all registered documents; remits land transfer tax |
When Selling
| Stage | What the Lawyer Does |
|---|---|
| Before closing | Receives the APS and verifies terms; requests mortgage payout statement from your lender |
| Closing preparation | Prepares the transfer/deed; statement of adjustments (prorated taxes, rent, utilities) |
| Signing | You sign the transfer documents |
| Closing day | Receives funds from buyer’s lawyer; pays off your mortgage; remits commissions and fees; deposits net proceeds to your account |
| Post-closing | Sends reporting letter; confirms mortgage discharged |
Key Legal Tasks Explained
Title Search
| What It Checks | Why It Matters |
|---|---|
| Current registered owner | Confirms the seller actually owns the property |
| Mortgages / liens on title | Any existing mortgages, tax liens, construction liens, or court judgments must be cleared before closing |
| Easements | Right of way, utility easements — these survive the sale and may restrict how you use the property |
| Restrictive covenants | Rules on title about what you can and cannot build (e.g., height restrictions, usage) |
| Property tax status | Confirms taxes are paid; any arrears become your problem |
| Zoning compliance | Confirms the property’s use matches municipal zoning |
| Encroachments | Structures crossing property lines (fences, garages, decks) |
Statement of Adjustments
The statement of adjustments calculates the final amount the buyer pays, accounting for prepaid or owing items.
| Adjustment | Who Pays | Example |
|---|---|---|
| Property taxes (prepaid by seller) | Buyer reimburses seller for the portion from the closing date | Seller prepaid the full year ($4,800); closing July 1, buyer owns 184 days: $4,800 × 184 ÷ 365 = $2,419.73 |
| Property taxes (in arrears) | Seller credits buyer | Seller hasn’t paid current year taxes; buyer gets credit |
| Condo fees (prepaid) | Buyer reimburses seller | Seller paid current month; closing mid-month = proportional credit |
| Fuel/oil tank | Buyer reimburses seller | Seller filled the oil tank; buyer pays current value |
| Rent (if rental property) | Seller credits buyer | If tenant already paid rent for the closing month, buyer gets the post-closing portion |
| Deposit | Credited to buyer | Deposit held in trust is applied against purchase price |
Title Insurance
| Feature | Details |
|---|---|
| Cost | $250–$500 (one-time, at closing) |
| What it covers | Title fraud, forgery, liens discovered after closing, survey defects, zoning violations, encroachments |
| What it doesn’t cover | Issues you knew about before closing; future environmental contamination |
| Who provides it | FCT, Stewart Title, Chicago Title, TitlePLUS |
| Is it required? | Not by law; many lenders require it (or a survey and lawyer’s opinion) |
| Alternative | Survey / Real Property Report, usually costing more and covering different risks |
Legal Costs by Province
| Province | Legal Fees (Typical Range) | Disbursements | Land Transfer Tax | Total Legal Cost (Excl. LTT) |
|---|---|---|---|---|
| Ontario | $1,000–$2,000 | $300–$700 | Marginal rates 0.5–2.5% (+ Toronto municipal LTT) | $1,300–$2,700 |
| BC | $1,000–$2,000 | $300–$700 | Property Transfer Tax: 1–3% marginal rates, plus 2% more on residential value above $3 million | $1,300–$2,700 |
| Alberta | $800–$1,500 | $200–$500 | No land transfer tax (registration fees only) | $1,000–$2,000 |
| Quebec (notary) | $1,000–$2,000 | $300–$600 | Welcome tax (droits de mutation): progressive rates, with higher top rates in Montreal and some other cities | $1,300–$2,600 |
| Manitoba | $800–$1,500 | $200–$500 | 0–2% | $1,000–$2,000 |
| Saskatchewan | $800–$1,500 | $200–$500 | No LTT (registration fees only) | $1,000–$2,000 |
| Nova Scotia | $800–$1,500 | $200–$500 | Municipal deed transfer tax (the rate varies by municipality) | $1,000–$2,000 |
| New Brunswick | $800–$1,500 | $200–$500 | 1% | $1,000–$2,000 |
| PEI | $800–$1,500 | $200–$500 | 1% | $1,000–$2,000 |
| Newfoundland | $800–$1,500 | $200–$500 | No LTT (registration fees only) | $1,000–$2,000 |
Common Disbursements
| Item | Cost |
|---|---|
| Title search | $50–$150 |
| Title insurance premium | $250–$500 |
| Registration fees (transfer + mortgage) | $100–$300 |
| Courier / delivery | $30–$100 |
| Software / e-registration | $50–$100 |
| Tax certificate | $30–$75 |
| Name search (if applicable) | $20–$50 |
| Photocopies / administration | $25–$75 |
How to Choose a Real Estate Lawyer
| Factor | What to Look For |
|---|---|
| Specialization | A practice focused on real estate |
| Volume | Regular experience with both standard and complex deals |
| Availability | Responsive to calls/emails; can meet your closing timeline |
| Fees | A written fee quote upfront, including estimated disbursements |
| Location | Licensed in the province where the property is located |
| Reviews | Google reviews, referrals from your agent or mortgage broker |
| Communication | Explains things clearly; doesn’t rush you at the signing appointment |
| Red flags | Won’t provide a fee estimate; unreachable by phone; not familiar with your type of transaction |
When You Need a Lawyer vs When You Don’t
Outside Quebec a lawyer usually handles the closing (in BC, a notary public can too), and in Quebec a notary (notaire) does, since a mortgage (hypothec) there must be a notarial deed.
| Situation | Lawyer Required? |
|---|---|
| Buying a home (any province) | Yes in practice (lenders require it) |
| Selling a home | Yes |
| Refinancing | Yes (new mortgage registration on title) |
| Mortgage renewal (same lender) | Usually no — same mortgage continues |
| Mortgage switch/transfer (new lender at renewal) | Often handled by the new lender’s legal or title service, sometimes at no cost to you |
| Private sale (no agent) | Yes, and the lawyer often drafts the agreement |
| New construction / pre-build | Yes — additional complexity with builder agreements, Tarion warranty (ON), deposit protection |
| Buying a condo | Yes — additional status certificate review required |
| Buying an investment property | Yes — may need additional lease reviews |
| Selling and buying simultaneously | Yes: two closings have to be coordinated |
Common Legal Issues That Can Derail a Closing
| Issue | What Happens | How the Lawyer Helps |
|---|---|---|
| Title defect (lien, judgment) | Seller can’t provide clear title | Lawyer identifies the issue early; seller must clear it or deal may collapse |
| Survey shows encroachment | Neighbour’s structure crosses your property line (or vice versa) | Title insurance covers most survey issues; lawyer advises on risk |
| Mortgage not funded on time | Lender hasn’t released funds by closing | Lawyer coordinates with lender; may need to delay closing |
| Seller can’t close on time | Seller’s purchase falls through; seller needs an extension | Lawyer negotiates extension or enforces the contract |
| Condo status certificate issues | Special assessment pending, litigation, or reserve fund issues | Lawyer reviews and advises whether to proceed or walk away |
| Missing discharge of previous mortgage | Seller’s old mortgage still shows on title after they paid it off | Lawyer arranges discharge before or at closing |
| Fraud | Someone impersonating the seller; forged documents | ID verification and the title search catch much of it; title insurance covers losses within its terms |
Lawyer’s Role in Different Transaction Types
| Transaction | Additional Lawyer Tasks |
|---|---|
| First-time buyer | Confirms eligibility for land transfer tax rebates; ensures FHSA/HBP requirements are met |
| New construction | Reviews builder’s APS (often non-negotiable but lawyer explains risks); Tarion enrollment; occupancy vs closing |
| Private sale | Drafts or reviews APS (normally prepared by agents); additional advisory role |
| Investment property | Reviews existing tenancy agreements; advises on rent assignment at closing |
| Separation / divorce | Handles title transfer between spouses; mortgage assumption or refinance |
| Estate / probate sale | Verifies executor authority; estate trustee documentation |
| Rent-back agreement | Drafts the post-closing occupancy agreement; advises on tenancy law implications |
Related Resources
Sources
The figures and rules on this page come from these sources, last checked against them on September 24, 2026. How we check facts.
- Government of British Columbia: Property transfer tax