Most of the closings I handle go smoothly. The ones that don’t usually fail for one of three reasons: something on title that nobody flagged in time, a renovation that left a contractor unpaid, or a same-day sale and purchase where the numbers were estimated instead of confirmed. This post walks through each one, because every one of them can be caught early.
The requisition date is your window to object
Once your offer is firm, your lawyer searches the property’s title (the parcel register under the Land Titles Act) and sends the seller’s lawyer a letter listing anything that needs fixing. Those objections are called requisitions, and the Agreement of Purchase and Sale sets the last day to send them. Where the agreement says nothing on a point, the Vendors and Purchasers Act fills the gap.
The date matters because once it passes, you generally lose the right to make the seller fix minor issues at their cost. Problems that go to the root of title, such as the seller not actually owning the property, can still be raised later. A leftover easement or an undischarged line of credit usually can’t.
Here is what I check before that deadline:
- Mortgages and other registrations. Every mortgage, private loan, line of credit, and equipment notice on title has to be paid out and discharged on closing, or covered by the seller’s lawyer’s written undertaking to discharge it.
- Lot splits and merged titles. If a previous owner divided land without the approvals required by Section 50 of the Planning Act, the transfer may not pass any interest in the land at all. That means searching the neighbouring parcels too.
- Easements and work orders. A shared driveway or a utility easement can limit what you do with the property. So can an open municipal work order.
- Condo finances. For a condo, the status certificate under Section 76 of the Condominium Act, 1998 tells you about the reserve fund, lawsuits, and upcoming special assessments. Read it before the deal goes firm, not after.
- Who the lawyer is acting for. Co-buyers need a joint retainer, and a private lender or a vendor take-back (VTB) mortgage may need independent legal advice. Sorting this out early avoids a scramble when the lender’s instructions arrive.
Renovated homes come with lien risk
A freshly renovated house is appealing, and that’s the risk. If the seller didn’t pay the contractor, the contractor’s claim attaches to the land, not to the seller personally. The same applies to a renovated commercial building or a tenant fit-out.
The rules come from the Construction Act:
| Rule | What it says | What it means for you |
|---|---|---|
| 10% holdback (s. 22) | Whoever pays for construction work must hold back 10% of each payment. | If the seller paid the contractor in full, there may be no holdback to protect you. |
| 60-day lien window (s. 31) | A contractor generally has 60 days after the job is finished, abandoned, or terminated to register a lien. | If work ended recently, a lien can still appear after you sign, or even after you close. |
| 90 days to sue (s. 36) | Once a lien is registered, the contractor has 90 more days to start a lawsuit and register a certificate of action. | Any lien already on title has to be removed before your money goes to the seller. |
| Prompt payment (Part I.1) | An owner must pay a proper invoice within 28 days unless they send a notice of non-payment within 14 days. | For a commercial build-out, keep track of invoice dates. Either side can send a payment dispute to adjudication while the job is still going. |
When I act for a buyer of a recently renovated property, I ask for a sworn statement from the seller that every contractor and supplier has been paid, and I make sure the title insurance covers liens. New builds (Tarion, HST rebates), assignment sales, the Non-Resident Speculation Tax, and sellers who aren’t Canadian residents (Section 116 of the Income Tax Act) each have their own steps, and those need to be flagged before you sign.
Selling and buying on the same day
Plenty of clients in Aurora and King City use the money from one sale to buy their next home on the same day. It works, but there is no slack. The sale has to close first. The money has to arrive in my trust account. The old mortgage has to be paid out. Only then can your purchase register, and Teraview, Ontario’s electronic land registry, stops accepting registrations at 5:00 p.m.
Before closing week, I run the numbers three times:
- What the sale actually nets. Sale price, adjusted for property taxes (using a current tax certificate that separates any arrears from this year’s instalments), minus the exact mortgage payout from the lender’s statement, the real estate commission plus HST, and legal fees and charges. Our sale fee is $1,500 + HST.
- What the purchase needs. Take the net sale proceeds, add your new mortgage, then subtract the balance of the price, Ontario land transfer tax (first-time buyers can get back up to $4,000, as covered in our post on mistakes first-time buyers make), title insurance, and legal fees. Our purchase fee is $1,500 + HST for a cash deal or $1,650 + HST with a mortgage. Government registration is $85.00 per document ($86.42 from November 2, 2026), and there is a $50.85 closing software charge.
- What happens if it runs late. If your buyer’s lender is slow, do you have bridge financing? Are the documents signed on both sides so they can register as soon as the money lands?
Before you sign
- Have a lawyer read the Agreement of Purchase and Sale before you sign it or waive conditions, especially the schedules, rental equipment, and the requisition date.
- Ask the seller whether any work was done in the last 60 days.
- On a same-day sale and purchase, ask for the gap calculation in writing, based on real payout statements.
- For a condo, get the status certificate reviewed before the deal goes firm.
- If you are buying with someone else or borrowing privately, tell your lawyer on day one.
Buying or selling? Talk to Barbarian Law®
Barbarian Law® is at 14981 Yonge Street, Upstairs, in Aurora. We handle residential and commercial purchases, sales, refinances ($1,250 + HST), title transfers ($1,000 + HST), and commercial leases across York Region and the GTA, with more than $150M in completed transactions. Our real estate fee breakdown and full fee schedule are published.
- No retainer. No deposit. Invoiced after the work is delivered. You get a written estimate before we start.
- I handle your file myself, from the first read of your agreement to registration.
Frequently Asked Questions
Requisitions, construction liens, same-day closings, and our fees.
What is the requisition date in an Ontario real estate deal?
It’s the deadline in your Agreement of Purchase and Sale for your lawyer to send the seller’s lawyer written objections to the title. After that date you usually can’t make the seller fix minor issues. The Vendors and Purchasers Act fills in where the agreement is silent.
Can a contractor put a lien on a house I just bought?
It can happen. Under the Construction Act, a contractor generally has 60 days after the work is finished, abandoned, or terminated to register a lien against the property. That’s why buyers of renovated homes should get a sworn statement from the seller and title insurance that covers liens.
How does a same-day sale and purchase work in Ontario?
Your sale closes first and the money goes to your lawyer’s trust account. That money, plus your new mortgage, pays for the purchase, which has to register before Teraview stops accepting registrations at 5:00 p.m.
What does Barbarian Law® charge for a real estate closing?
A residential sale or cash purchase is $1,500 + HST. A purchase with a mortgage is $1,650 + HST, including a condo status certificate review. A refinance is $1,250 + HST. Government registration ($85.00 per document; $86.42 from November 2, 2026), the $50.85 software charge, and title insurance are listed separately at cost.
When do I pay?
No retainer. No deposit. You get a written estimate up front and are invoiced after the work is delivered.
This article is general information, not legal or tax advice, and reading it does not create a lawyer-client relationship. For advice on your own transaction, contact Barbarian Law®. Barbarian Law® is a registered trademark (CIPO Reg. No. TMA 1,359,734).
