Somewhere between the accepted offer and moving day, someone tells you: “You’ll need a lawyer for closing.” Most buyers nod, hire one, and never quite find out what happens between then and getting the keys. Then a “statement of adjustments” arrives, closing costs appear that nobody mentioned at the open house, and the questions start.
Here’s what your lawyer is actually doing — and why the quiet weeks before closing are where your purchase is protected.
Before closing: the searches
Title search. Your lawyer searches title to confirm the seller actually owns what they’re selling, and to find everything registered against it: mortgages, liens, easements, restrictive covenants, rights of way, old charges nobody discharged. On a typical purchase, some of what turns up has to be fixed before you close.
Requisitions. Problems found on title get raised with the seller’s lawyer by a deadline set in your purchase agreement — the requisition date — requiring the seller to fix them before closing. Discharge the old mortgage, delete the expired lien, explain the easement running under your future garage.
Off-title inquiries. Title isn’t everything. Depending on the property and your title insurance, your lawyer considers taxes and utilities that could become liens, zoning and work orders, and — for condos — a status certificate review: the corporation’s finances, reserve fund, special assessments looming, and rules that might matter to you (pets, rentals, that hot tub on the terrace).
Title insurance. Nearly every Ontario purchase now closes with a title insurance policy, covering defects a search can’t reveal: fraud, errors in prior registrations, unpermitted work, survey issues. It covers your lender too. It’s a one-time premium, not a recurring cost — and it’s why some traditional searches are streamlined today.
Closing week: the money and the documents
This is where the choreography happens.
Mortgage instructions. Your lender sends instructions to your lawyer, who prepares and certifies the mortgage, confirms conditions are met, and receives the funds into trust. (If your deal involves a private mortgage or a VTB, this stage carries extra paperwork — and sometimes ILA.)
The statement of adjustments. The seller prepaid property taxes through December? You owe them the portion after closing. Tenant paid rent for the month? Credit to you. The statement reconciles every prepaid and accrued amount so each side pays their share to the day.
Funds in trust. Your down payment, the mortgage advance, the adjustments — everything flows through your lawyer’s trust account, and nothing moves until the moment everything is ready to move at once.
Closing day. Documents are signed and exchanged electronically between lawyers, funds are released, the transfer and mortgage are registered on title, land transfer tax is remitted — and then the only part you see: you get the keys. Afterward, your lawyer reports to you and your lender, confirming registration, title insurance, and where every dollar went.
The costs nobody mentions at the open house
The purchase price is not the price. Budget for:
Land transfer tax — the big one. Ontario charges LTT on a sliding scale with the price; buying in Toronto adds a second, municipal LTT on top. First-time buyers can claim a provincial refund of up to $4,000 (Toronto offers its own additional rebate), and your lawyer claims it right at registration so you never pay it in the first place. Eligibility is strict: never owned a home anywhere in the world, and a spouse’s ownership history can disqualify you.
Title insurance premium — scales with property value; one-time.
Legal fees and disbursements — the fee covers the work above; disbursements are the hard costs (searches, registration fees, software levies) that flow through at cost.
Adjustments — whatever the statement of adjustments says you owe the seller on closing day, on top of the price.
A good lawyer quotes fees up front and estimates the rest early enough that closing day holds no financial surprises. Ask for exactly that.
When to actually call the lawyer
Here’s the part most buyers get wrong: they hire a lawyer after signing the agreement of purchase and sale — the document that decides everything the lawyer must later live with. Conditions, the requisition date, which fixtures are included, closing date mechanics: all set before the file is even opened.
On resale homes with a standard form and a good agent, this usually works out. On private sales, assignments, rural properties, or anything unusual, get the agreement reviewed before you sign. It costs little and occasionally saves everything.
The bottom line
Closing a purchase is a few hundred small verifications with your life savings on the line, ending in one synchronized exchange. You’re not paying your lawyer to fill out forms. You’re paying for the searches that catch problems while they’re still the seller’s problems, and a trust structure that means your money only moves when everything is right.
Buying or selling in Ontario? Barbarian Law™ closes residential and commercial purchases, sales, and refinances — with fees quoted up front and agreements reviewed before you’re bound.
📞 Contact Barbarian Law — ideally before you sign, not after.
This article is general information, not legal advice. First-time buyer refund details are set by the Ontario Ministry of Finance. Every situation is different — speak with a lawyer about yours.
