How Much Does a Real Estate Lawyer Cost in Ontario?

If you’re buying, selling, or refinancing a property in Ontario, you’ll need to hire a real estate lawyer. But how much does a real estate lawyer cost in Ontario, and is it worth the investment? In this blog post, we’ll break down the typical costs and fees involved and show you why working with a reputable lawyer is essential to protect your biggest investment. Plus, in Ontario, it's legally required to have a real estate lawyer involved in any property transaction, whether you’re buying or selling a home.

Let’s dive into the details.

Why Hire a Real Estate Lawyer?

Real estate transactions are complex, involving several legal documents and processes. A real estate lawyer helps you navigate this complexity, ensuring the transaction is legally sound and minimizing risks.

When You’re a Buyer

As a buyer, a real estate lawyer reviews your purchase contract, ensures that the property title is clean, handles the transfer of funds, and registers the property under your name. They ensure that no legal issues arise later, like unpaid taxes or hidden liens on the property.

When You’re a Seller

For sellers, a real estate lawyer drafts the deed, prepares the statement of adjustments, and ensures that all legal documents are accurate and complete. They help facilitate the transfer of ownership smoothly and make sure that all financial obligations are settled at closing.

How Much Are Real Estate Lawyer Fees in Ontario?

The cost of hiring a real estate lawyer in Ontario depends on several factors, including the complexity of the transaction and the services required. At Deeded, we provide transparent pricing for various services, ensuring there are no surprises along the way.

Let’s break down the costs you can expect when hiring a real estate lawyer in Ontario.

Closing Fees

Closing fees can vary depending on the property’s value and location, but in Ontario, closing a mortgage costs typically range between 1.5% to 4% of the purchase price. These fees cover land transfer taxes, legal fees, and other associated costs such as title insurance and registration. 

At Deeded, you can expect a purchase fee of $1,099, or sale fee of $999, which includes handling all of the legal aspects of your closing.

Refinancing Fees

If you are refinancing your mortgage in Canada, you’ll also need a real estate lawyer to handle the legal paperwork and registration. Deeded charges $999 for mortgage refinancing services, ensuring a smooth transition with no hidden costs.

Purchasing Fees

For home buyers, beyond the lawyer's fees, you’ll need to consider the down payment requirements. In Ontario, the minimum down payment depends on the purchase price of the property. It’s important to note that there are changes coming to Canadian Mortgage Rules in 2025.

Home Purchase Cost and Down Payment Requirement

• Up to $500,000: Minimum down payment is 5%
• Between $500,001 - $999,999: 5% on the first $500,000 and 10% on the portion above $500,000
• $1,000,000 and above: Minimum down payment is 20%

New Mortgage Rules Coming in 2025:

But, it's important to consider some changes that are coming in 2025 to Canadian real estate which could impact the traditional cost and downpayment requirements:.

Deputy Prime Minister Chrystia Freeland has introduced new mortgage rules aimed at enhancing accessibility and flexibility in homeownership:

Higher Price Cap for Insured Mortgages
First-time homebuyers can now purchase properties up to $1.5 million with less than a 20% down payment, an increase from the previous $1 million limit. This is especially valuable in high-cost markets like Toronto and Vancouver, where average home prices often exceed $1 million.

Extended Amortization for First-Time Buyers and New Builds
First-time buyers and those purchasing newly built homes now have the option of a 30-year amortization period, helping to lower monthly payments. This change is expected to attract more buyers and stimulate demand in new housing projects.

Secondary Suite-Friendly Financing
The new rules also permit insured refinancing for secondary suites, making it easier for homeowners to add units like basement apartments or laneway homes. This could open up more affordable housing options, especially in urban areas with supply constraints.

Registering a Mortgage

When registering a mortgage in Ontario, you’ll either have a standard charge or a collateral charge mortgage. Each has different implications for switching lenders and accessing your home equity.

A standard charge is more flexible, allowing you to switch lenders without incurring additional legal fees. A collateral charge locks you into your current lender, which may involve additional legal costs if you decide to switch. Deeded's $999 fee for registering a mortgage covers the legal work required for either type of mortgage.

What Does a Real Estate Lawyer Do?

In Ontario, it's legally required to have a real estate lawyer involved in any property transaction, whether you’re buying or selling a home. A lawyer ensures that every aspect of the transaction is legally compliant and protects your interests. Here’s a breakdown of the key tasks a real estate lawyer handles:

• Property Transfer Registration: Only a licensed real estate lawyer in Ontario can register the deed and transfer property ownership with the government land registry. This step is essential to finalize the sale and legally transfer ownership from the seller to the buyer.
• Legal Compliance: Your lawyer ensures that the entire transaction complies with Ontario laws and regulations, such as the Statute of Frauds, which mandates that real estate sales be formalized through a written contract.
• Title Registration: A critical part of the lawyer's role is conducting a title search to ensure there are no issues like unpaid taxes or undisclosed liens. They also arrange for title insurance and officially register the new title in the buyer’s name, which is required to legally transfer ownership.
• Funds Transfer: The lawyer manages the movement of funds between the buyer, seller, and any involved parties, ensuring that all financial obligations are met before the closing date.
• Document Preparation and Review: Your lawyer prepares and reviews all essential legal documents, including the Agreement of Purchase and Sale, to ensure they meet all legal requirements and protect your interests.

In summary, Ontario law mandates the involvement of a real estate lawyer to legally complete the property transfer process and safeguard both the buyer and seller. Without a lawyer, the transaction cannot be legally finalized in the province. You can learn more about the role of a real estate lawyer in Ontario by visiting the Law Society of Ontario's page on real estate law.

At Deeded, we make sure all costs are transparent and upfront, so you know exactly what you’ll be paying.

Other Costs to Hire a Real Estate Lawyer in Ontario

In addition to the primary fees for buying, selling, or refinancing, there may be additional costs to consider, such as:

• Land Transfer Tax: A tax paid to the provincial government when purchasing a property.
• Title Insurance: Protects you from issues like fraud or title defects.
• Disbursements: These include administrative fees like courier services, title searches, and registration fees.

Where Can I Find a Real Estate Lawyer in Ontario?

If you're looking for a real estate lawyer in Ontario, the process doesn’t have to be complicated or time-consuming. Deeded offers a completely virtual solution that connects home buyers, sellers, real estate agents, and mortgage brokers with qualified real estate lawyers across the province. This innovative approach allows you to complete the entire closing process from the comfort of your home, without needing to visit a lawyer’s office in person.

Benefits of Closing Virtually with Deeded

Choosing Deeded for your real estate closing means you'll enjoy several key benefits:

• Convenience: The entire process is handled online, from document signing to lawyer consultations, allowing you to close your real estate deal from anywhere.
• Efficiency: Virtual closings are streamlined and faster, reducing the time spent on back-and-forth paperwork or scheduling conflicts with in-person meetings.
• Transparency: With Deeded’s platform, you can track your transaction in real-time. The status of your deal, required documents, and communication with your lawyer are all available in one place.‍
• Cost-Effectiveness: Virtual closings often help reduce costs by eliminating unnecessary office visits and other in-person expenses, making it an affordable option without compromising quality.

Deeded is an official partner of the Law Society of Ontario read more about our partnership here, ensuring that all the real estate lawyers available through our platform meet the highest professional standards.

If you’re looking to search for other real estate lawyers, you can also explore the Law Society of Ontario’s lawyer directory here or visit the Ontario government's lawyer and paralegal directory here.

When Should You Get a Real Estate Lawyer?

You should involve a real estate lawyer as soon as you start the process of buying or selling a home. They can review your purchase agreement and provide advice on any potential legal risks. Having a lawyer early in the process ensures you avoid costly mistakes or legal issues down the road.

You can learn more about the role of a real estate lawyer in Ontario by visiting the Law Society of Ontario's page on real estate law.

Hiring a real estate lawyer in Ontario is essential for ensuring that your property transaction goes smoothly and is legally sound. Whether you’re buying, selling, or refinancing, Deeded provides affordable, flat-rate legal services with no hidden fees, so you can confidently close on your property.

Looking to get started? Contact us today for a free consultation or learn more about how we can help you with your real estate transactions.

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