Buying a home is exciting, but it comes with its fair share of paperwork and professionals.
Buying a home takes more than just money and mortgage approval. You’ll need a few experts in your corner too. Think real estate agents, movers, and definitely a real estate lawyer to handle the legal side of things.
In many Canadian provinces, including Ontario, both buyers and sellers are required to hire a real estate lawyer to complete the transaction. And while their expertise is essential, it doesn’t come for free which makes it important to factor legal fees into your overall budget.
We break down the average costs and answer other common legal fee questions below. Keep reading to learn what to expect.
What does a real estate lawyer do for buyers?
If you're purchasing a home in Ontario, your real estate lawyer plays a crucial role in making sure everything runs smoothly and legally. Their responsibilities typically include:
Conducting a title search to confirm ownership and check for claims or liens.
Verifying that the title is clear and transferable
Preparing the Statement of Adjustments
Registering the property in your name
Handling all financial transactions on closing day
What does a real estate lawyer do for sellers?
Real estate lawyers also assist sellers, though their responsibilities differ slightly. If you're selling your home, your lawyer will usually:
Perform a title search to confirm ownership
Make necessary changes to the deed
Calculate and verify closing costs
Prepare the Statement of Adjustments
Manage the financial transactions on closing day
Keep in mind that legal fees and closing costs can vary based on the complexity of the transaction.
What are the average Lawyer Fees when you're buying a home in Ontario?
Lawyer fees can vary depending on several factors, including the complexity of the transaction and whether additional legal support is required.
For a standard residential purchase, buyers in Ontario typically pay between $1,200 and $2,400 in legal fees. However, costs can rise if a second lawyer becomes involved or if the deal requires extra documentation or services.
To get an accurate quote, it's best to speak directly with your real estate lawyer. They can walk you through their pricing structure and any additional fees you might encounter.
Disbursements include:
- Land Transfer Tax (see below to access our Land Transfer Tax Calculator)
- Title Search (usually between $150 and $450)
- Status Certificate (max. $100)
- Registration of Deed
- Registration of Mortgage
- Execution Certificates
- Title Insurance
- Office Expenses
- Tax Certificate
Land Transfer Tax Calculator
Click here to access our Land Transfer Tax Calculator
Ontario Land Transfer Tax Rates
| Portion of Purchase Price | Tax Rate |
|---|---|
| Up to and including $55,000 | 0.5% |
| $55,000.01 to $250,000 | 1.0% |
| $250,000.01 to $400,000 | 1.5% |
| $400,000.01 to $2,000,000 | 2.0% |
| Over $2,000,000 (for 1–2 single-family residences) | 2.5% |
Example:
If your purchase price is $250,000, your Land Transfer Tax would be calculated as:
0.5% on the first $55,000 = $275
1.0% on the remaining $195,000 = $1,950
Total = $2,225
This amount is due on your closing date and is payable to the Ontario Ministry of Finance.
Frequently Asked Questions
Do I need a lawyer to buy or sell a home?
Yes, if you're buying or selling a home in Ontario, you are required to hire a real estate lawyer to finalize the transaction.
Do I need a lawyer when buying a mobile home?
For the private sale of the home only (no real property involved, just the structure) you will not require a lawyer.
However, it is highly recommended, especially if there is a land lease or financing involved.
At what point in the process do I contact a real estate lawyer?
In Ontario, you should involve a real estate lawyer fairly early in the home buying or selling process, ideally as soon as you’ve signed or are about to sign an Agreement of Purchase and Sale (APS). The very latest point would be 2 - 3 weeks before the closing date to review the title, complete the title search, and prepare for closing. If issues arise during financing, inspection, or with the seller’s title, your lawyer can help resolve them before they become deal-breakers.
Tip: When you're refinancing, you will need to contact your lawyer again to conduct another title search to ensure a clear title to protect you and your lender.
What is the difference between legal fees and disbursements?
Disbursements are out-of-pocket expenses your lawyer pays on your behalf while handling your transaction. These can include things like photocopying, courier fees, land title searches, and other administrative costs.
Legal fees, on the other hand, refer to the cost of the lawyer’s professional time—either as a flat fee or billed hourly.
What is the difference between title registration and title insurance?
Title registration is the official process of transferring ownership of the property from the seller to the buyer.
Title insurance, on the other hand, protects you against potential issues that weren’t identified during the title search. This can include things like zoning violations, outstanding work orders, unpaid property taxes, or encroachments onto a neighbouring property—all of which could impact your legal ownership.
Both the title registration fee and the title insurance premium are typically paid on closing day.
