Steps to Buying and Selling Real Estate in Ontario

Introduction

Buying or selling real estate in Ontario is one of the biggest financial decisions most people will ever make. The process is exciting but can also feel overwhelming, especially if it’s your first time navigating the market or if you are a non-resident buyer or seller dealing with additional legal requirements. From preparing finances to signing the final closing documents, every step has specific rules and responsibilities.

Understanding the process not only helps you feel more confident but also prevents costly mistakes. Having the right professionals, particularly an experienced real estate lawyer in Ontario, ensures you are protected at every stage. This guide will walk you through the essential steps to buying and selling property in Ontario, highlighting key details for both residents and non-residents.

Step 1: Understand the Purchase and Sale Process

At the heart of every transaction is the Agreement of Purchase and Sale (APS). This legal contract outlines the price, deposit, conditions, and timeline for closing. Buyers and sellers must understand their obligations under the agreement, as it becomes legally binding once signed.

Whether you are purchasing or selling, it is helpful to review the full purchase and sale process before making decisions. This ensures you understand critical elements such as conditional clauses, disclosures, and timelines for inspections or financing approvals. Having this knowledge early can save you time, stress, and money later.

Step 2: Hire the Right Professionals

A successful real estate transaction relies on a strong team. Most buyers and sellers work with three main professionals:

• Real estate agent – Assists with property searches, market analysis, pricing strategies, and negotiations.
   
• Mortgage broker or lender – Helps buyers secure financing, compare rates, and get pre-approval.
   
• Real estate lawyer – Reviews contracts, completes the title search, ensures the transfer of funds, and registers the property in the buyer’s name.
   

While many people focus on finding a realtor, the legal side of the transaction is just as important. An experienced real estate lawyer in Ontario provides peace of mind by protecting your rights, handling paperwork, and ensuring compliance with Ontario’s real estate laws.

Step 3: Secure Financing

Before making an offer, buyers should obtain a mortgage pre-approval. This shows sellers that you are a serious buyer and helps you stay within your budget. Pre-approval also sets the stage for smoother negotiations since financing is one of the most common conditions in an APS.

During this stage, consider additional financial obligations such as property taxes, insurance, and closing costs. Sellers should also take time to settle any outstanding debts or liens against their property, as these could delay or even block the sale.

Step 4: Making or Receiving an Offer

For buyers, submitting a strong offer involves setting a fair purchase price, providing a deposit, and including necessary conditions. Sellers will evaluate these offers, negotiate terms, and choose the best one based on both price and conditions.

If you are a non-resident, this stage includes extra considerations such as foreign buyer taxes and withholding obligations. Understanding these requirements is crucial. Khan LLP provides detailed guidance on the purchase and sale for non-residents so you can navigate the process without surprises.

Step 5: Inspections, Title Search, and Due Diligence

Once an offer is accepted, the buyer typically arranges a home inspection to check for hidden issues such as structural damage, plumbing problems, or electrical hazards. Sellers may also benefit from a pre-listing inspection to address potential concerns before putting their home on the market.

Meanwhile, your lawyer conducts a title search to verify ownership and confirm that there are no liens, easements, or other restrictions on the property. Many buyers also purchase title insurance to protect against unforeseen issues that might arise after closing.

This due diligence stage is critical to ensuring that both the buyer and seller are fully prepared for closing day.

Step 6: Closing the Transaction

Closing is the final step when ownership officially transfers from the seller to the buyer. On this day, your lawyer coordinates the exchange of funds, registers the property with the Land Registry Office, and ensures all contractual obligations are met.

Buyers should budget for closing costs, which may include:

• Land Transfer Tax (with additional municipal tax in Toronto)
   
• Legal fees and disbursements
   
• Title insurance
   
• Adjustments for utilities, property taxes, or condo fees
   

Sellers should confirm their mortgage is discharged and all necessary payouts are completed. Working with a reliable lawyer helps avoid last-minute complications and ensures the closing day goes smoothly.

Step 7: Post-Closing Considerations

Even after the deal is finalized, there are still important steps to take. Buyers need to set up utilities, update their address with government and financial institutions, and ensure property insurance is active. Sellers should confirm that all proceeds from the sale are correctly deposited and that they have transferred keys and documents as agreed.

For non-residents, this stage may also involve handling tax remittances and ensuring compliance with Canadian Revenue Agency (CRA) requirements.

Common Pitfalls to Avoid

Many problems in real estate transactions stem from a lack of preparation or skipping critical steps. Common mistakes include:

• Failing to read contracts thoroughly
   
• Underestimating closing costs
   
• Skipping the home inspection
   
• Not hiring a qualified real estate lawyer
   
• Missing deadlines for conditions or payments
   

By staying organized and working with experienced professionals, these pitfalls can easily be avoided.

Why a Real Estate Lawyer is Essential

While buying and selling property involves many moving parts, the legal side of the process is where costly mistakes often happen. A real estate lawyer in Ontario safeguards your interests by reviewing agreements, handling funds, completing the title search, and addressing potential legal issues before they become problems.

Whether you are a resident or non-resident, having strong legal representation ensures that the transaction is legally binding, financially sound, and free of unnecessary risks.

Conclusion

Buying and selling real estate in Ontario is more than just finding the right property or buyer; it is a detailed legal and financial process that requires careful planning. By learning the purchase and sale process, securing financing, and working with the right professionals, you can approach your transaction with confidence.

For non-residents, additional requirements mean that understanding the purchase and sale for non-residents is especially important. Above all, having a trusted real estate lawyer in Ontario by your side ensures a smooth, stress-free experience from the first offer to the final closing.