The Legal Process of Buying a Home in Ontario

Buying a home is the largest financial transaction most Ontarians will ever make. Understanding the legal process protects your investment and helps you avoid costly mistakes.

Step 1: The Agreement of Purchase and Sale

Once your offer is accepted, you have a binding contract. This document outlines price, deposit, conditions (financing, home inspection), closing date, and what's included. A lawyer can review this before you sign — even a few hours of legal review can save thousands.

Step 2: Conditions Period

Most offers include conditions that must be satisfied — typically within 5-10 business days. Common conditions include:

• Financing approval from your lender
• Satisfactory home inspection
• Review of status certificate (for condos)
• Sale of your existing home

Step 3: Your Lawyer's Role

Once conditions are waived and the deal is firm, your real estate lawyer takes over. They will:

• Conduct a title search to ensure the seller actually owns the property and there are no liens
• Review the survey or title insurance
• Receive and review mortgage instructions from your lender
• Calculate closing adjustments (property taxes, utilities)
• Prepare closing documents
• Register the transfer of title on closing day

Step 4: Closing Day

You'll sign documents with your lawyer a few days before closing. On closing day, funds are transferred, title is registered in your name, and keys are released. The process typically takes 60-90 days from accepted offer to closing.

Land Transfer Tax

Ontario buyers pay provincial land transfer tax, and Toronto buyers pay an additional municipal land transfer tax. First-time buyers receive a rebate of up to $4,000 provincially and $4,475 in Toronto.