Property
Canada — Property: Buying Process
After buyer and seller sign the Agreement of Purchase and Sale (APS), closing typically takes 30-90 days, during which the buyer finalizes their mortgage, arranges a home inspection (if not already done), and sets up home insurance (lenders require proof of insurance before releasing funds). In Ontario, using a real estate lawyer is mandatory to complete the transaction; lawyers handle the title search, prepare closing documents, and manage the transfer of funds, typically charging $1,500-2,500 for a standard residential transaction. Title insurance is commonly purchased as a one-time premium at closing, protecting the buyer against undisclosed liens, survey errors, or fraud affecting the property's title. On closing day, the lawyer coordinates the simultaneous transfer of funds, registration of title, and release of keys.
Key facts
- Closing typically runs 30-90 days after signing the Agreement of Purchase and Sale.
- Ontario legally requires a real estate lawyer for closing; typical fee is $1,500-2,500.
- Title insurance (one-time premium at closing) protects against undisclosed liens, survey errors, or fraud.
- Lenders require proof of home insurance before releasing mortgage funds.
Steps
- 1. Sign the Agreement of Purchase and Sale — Buyer and seller agree on price and terms; this starts the 30-90 day closing clock.
- 2. Finalize mortgage and arrange inspection/insurance — Complete mortgage approval, home inspection (if not done pre-offer), and home insurance — required by the lender before funding.
- 3. Lawyer conducts title search and prepares documents — The buyer's real estate lawyer verifies clear title and prepares the closing package.
- 4. Purchase title insurance — A one-time premium policy protecting against undisclosed title defects.
- 5. Closing day — Lawyer coordinates fund transfer, title registration, and key release simultaneously.
Costs
- Ontario real estate lawyer fee: $1,500-2,500
Timelines
- Standard closing period: 30-90 days after APS signing
Required documents
- Agreement of Purchase and Sale
- Proof of home insurance
- Mortgage approval
Common mistakes
- Delaying home insurance arrangement — lenders will not release funds without proof of coverage.
- Skipping title insurance to save cost, leaving no protection against undisclosed liens or fraud discovered post-purchase.