Yes. For an ordinary private home sale in Ontario, plan to retain a real estate lawyer to complete the legal closing. You can find a buyer and negotiate a sale without a real estate agent, but that does not remove the requirements for transferring ownership. Ontario restricts most title transfers to lawyers, with separate lawyers normally acting for the seller and buyer.
Your lawyer can review or prepare the Agreement of Purchase and Sale, explain your obligations, address title and mortgage issues, handle closing funds and coordinate the transfer with the buyer’s lawyer. Contact the lawyer before accepting an offer so that legal terms can be considered while they are still negotiable. Confirm that contract preparation or review is included in your agreed services.
Selling privately may reduce brokerage costs, depending on your agreements, but it does not eliminate legal fees, mortgage payout charges or closing adjustments. A buyer you know, a cash purchase or a mortgage-free property still needs the appropriate legal closing work.
Planning a private sale? Contact Khan Law to discuss the agreement, your closing requirements and a written quote for the work involved.
Discuss your Ontario home sale with Khan Law
Yes. A private sale, sometimes called “for sale by owner” or FSBO, means the owner handles some or all of the work normally arranged through a brokerage. You may find the buyer yourself, arrange viewings and negotiate the proposed price and terms. Khan Law’s purchase and sale guidance recognizes that a property can be listed by the owner.
Decide who will handle each task before you proceed. Hiring a lawyer for the closing does not automatically include marketing the home, advising on its market value or managing viewings. Agree on the scope of legal services, including whether the lawyer will draft the contract or review a buyer’s proposed agreement.
The sale agreement and the ownership transfer are different steps. The agreement records the bargain; registration changes the ownership recorded in Ontario’s land registration system. Signing an agreement and handing over keys do not, by themselves, complete that registered transfer.
Ontario’s electronic registration rules require lawyer statements for most ordinary title transfers. This is more specific than the general rules about who can access the registration system: access alone does not authorize someone to complete every type of document. Limited exceptions exist, so the precise requirements depend on the transfer.
For a typical private resale between unrelated individuals, arrange for a lawyer on each side. A private arrangement does not create a separate, informal closing process that bypasses the usual title and funding requirements.
Contact a lawyer before you sign or accept an offer. An Agreement of Purchase and Sale is the contract governing the transaction, including the price, deposit, conditions, closing date and promises about the property. Early advice allows you to consider proposed wording before you commit.
A lawyer who receives an already accepted agreement must work with its terms. Changes generally require agreement between the parties unless the contract gives a relevant right. Do not assume you can cancel an ordinary resale agreement simply because you later dislike a clause or discover that closing will cost more than expected.
If you have already signed, send the complete agreement to your lawyer promptly, including schedules, amendments and any condition notices. Identify the next deadline so the lawyer can assess what needs attention first.
A lawyer can prepare a private sale agreement or review one supplied by the buyer. Tell the firm which service you need when requesting a quote. A closing retainer should not be assumed to include unlimited drafting, negotiations or advice on earlier offers.
The agreement should clearly address the actual property and the bargain. Ask for advice on the following points before signing:
A template may provide a starting point, but it cannot tell you whether a promise fits your circumstances. For example, agreeing to vacant possession of a tenanted home requires advice about both the sale contract and the tenancy. Raise that issue before promising the buyer a move-in date.
Agree on the deposit arrangements before accepting the offer. Without a listing brokerage, there may be no brokerage trust account designated to receive it. Ask whether a lawyer will accept the deposit in trust and ensure the contract identifies the holder, amount, deadline and payment method. Do not assume an office has agreed to hold funds.
A deposit held in trust is money held under legal and contractual obligations; it is not automatically available for the seller to spend. If the transaction becomes disputed, entitlement to the deposit and authority to release it must be assessed. The seller should not assume a failed sale gives immediate access to the funds.
Follow verified payment instructions. Confirm trust instructions through a known telephone number or the firm’s secure process, particularly where an email unexpectedly changes payment details.
Usually, each party should have their own lawyer. Ontario’s professional rules generally prevent an individual lawyer from acting for both sides of a title transfer, subject to limited exceptions. The fact that both parties agree on a price does not remove this issue.
Two different lawyers within one firm may sometimes represent the parties if the professional rules allow it and no prohibited conflict exists. Limited exceptions can also apply to certain related-person transfers and other specified circumstances. Whether an arrangement is permitted must be assessed by the lawyer; knowing the buyer socially is not enough to assume an exception applies.
The legal work depends on the property, sale agreement and retainer, which is your agreement with the lawyer about the services to be provided. In a typical sale, it includes reviewing the contract and ownership information, dealing with the buyer’s lawyer, preparing seller documents and arranging the handling of closing funds. Registered mortgages and other title issues must be addressed under the agreed closing arrangements.
Your lawyer also reviews information needed to establish your authority to sell. Tell the firm about co-owners, your marital status, an estate, a power of attorney, separation arrangements or a non-resident seller. These facts can change the documents, advice and payment arrangements required.
On closing, the lawyers coordinate the documents, funds and electronic registration. Your lawyer uses sale funds to make authorized payments, such as the mortgage payout, and accounts to you for the remaining balance. Mortgage discharge registration may follow under the applicable closing arrangements; do not assume every lender registration disappears immediately when the sale closes.
A private sale is not a sale without closing costs. Ask for a transaction-specific estimate covering the categories that apply to your property:
If you previously listed the home, have the agreement reviewed before assuming no commission is owed. RECO explains that a holdover clause can require payment in specified circumstances even after a representation agreement expires. A buyer’s brokerage arrangements may also affect negotiations about who pays what.
Ask Khan Law for a written quote identifying the services included, applicable taxes and charges, and circumstances that could require additional work. Provide the agreement and property details so the estimate reflects your transaction.
Your net proceeds are the amount left after the required payments and adjustments, rather than the full sale price. Use this planning formula, then have the figures confirmed for your file:
Estimated net proceeds = sale price − (mortgage and secured debt payouts + legal account + brokerage remuneration if payable + other authorized payments and holdbacks), with closing adjustments added or deducted as applicable.
The deposit counts toward the purchase price; it is not extra money on top. Its treatment in the closing funds depends on who holds it and the agreed arrangements. Ask your lawyer when the final balance can be confirmed and released before committing those funds to another purchase.
Prepare the following information. If no agreement has been signed, send the proposed terms and explain that you need help with the contract.
A cash buyer may have no purchase mortgage to arrange, and a mortgage-free seller may have no lender payout. Neither fact removes the ordinary title transfer requirements. The contract, ownership, closing documents and transfer of funds still need to be addressed.
Likewise, a sale to a friend or relative still needs careful documentation. Tell your lawyer if the price includes a gift element or if part of the price will be paid later. Ask for advice on the particular arrangement before treating it as a routine resale.
Start with the proposed terms and the property details. Khan Law can discuss contract preparation or review, the legal closing work and the scope and fee appropriate to your Ontario sale. If you have already signed, provide the agreement promptly and flag any upcoming deadlines.
Have questions about what you just read? Whether it is real estate, family law, immigration, or any other legal matter, our team at Khan Law is here to help. Contact us today to speak with a lawyer who understands the details that matter to you.
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Khan Law is a boutique law practice that has been providing legal services to the Greater Toronto Area since the year 2000.
