Real Estate Lawyer FAQs — Ontario
Common questions about real estate closings in Ontario — answered by Li Cheng, JD. Fees, closing dates, remote signing, title insurance, rush closings, and more.
These FAQs are written by Li Cheng, BA (Hons), JD — Trustee of the Hamilton Law Association, Chair of its Real Estate Subcommittee, and practicing real estate lawyer serving Hamilton, Burlington, St. Catharines the Niagara Region and surrounding areas.
FEES & PRICING
What is the difference between Li Cheng Law pricing and traditional law firm pricing?
Traditional law firms quote fees without including disbursements. Disbursements are costs incurred on behalf of the client — some are hard costs where specific services are rendered (title insurance, title search, software fees), and some are soft disbursements which are a portion of bulk-incurred office charges (phones, file storage, printing, couriers).
There are great pressures on lawyers to quote a lower sticker price, which results in many law firms charging additional fees in the form of undisclosed disbursements — frequently described as “conveyancing fee” or “file management fee.” These are technically not allowed under Law Society of Ontario guidelines.
Li Cheng Law’s fee includes all soft disbursements as well as some hard disbursements — software transactional fees, mortgage instruction fee, standard courier, all technology costs, and office expenses. The hard disbursements charged on top are limited to: land transfer tax, title searches, writ searches, tax certificate, ID verifications, law society levies, registrations, condominium status certificate, and title insurance.
Do I pay legal fees before or at closing?
Legal fees and disbursements are typically rolled into the final closing costs calculation. You do not pay separately in advance, except for an initial retainer deposit when you engage the firm.
The retainer deposit is applied toward your legal fees and helps cover costs already incurred if the transaction does not proceed — for example, if you change your mind, financing fails, or the deal falls through due to inspection issues. The retainer agreement outlines the full scope of work before you sign.
Can I receive all closing amounts immediately after hiring a lawyer?
No. The amounts required for final closing are typically not available until 1–2 weeks prior to the closing date. They depend on seller-side adjustments, mortgage amounts confirmed by your lender, and the results of searches completed for your transaction. Your lawyer will provide the final closing funds statement as soon as all information is available.
Why is the final amount different from what my mortgage advisor estimated?
Mortgage advisors often estimate closing funds based on a percentage of purchase price and approved mortgage amount. These estimates typically do not include closing costs and adjustments such as property tax adjustments, land transfer tax, legal fees, title insurance, tax certificates, writ searches, status certificates, and other closing costs. Lawyers calculate based on actual amounts required to close — not percentages — which is why the lawyer’s figure is more precise and sometimes higher than the advisor’s estimate.
Are there rush fees for fast closings?
Yes. Standard turnaround for a residential transaction is around two weeks or more. Expedited closings below this standard create significant disruptions to workflow, require duplicate follow-ups with all stakeholders involved, and carry a greater chance of errors. Rush fees are charged to accommodate the added work and risk, and are always disclosed upfront before you proceed. We strongly recommend engaging your lawyer as early as possible to avoid rush fees.
Do mortgages from independent brokers cost more to close?
Mortgages obtained directly from one of the big-five banks (TD, Scotia, CIBC, RBC, BMO) have much simpler legal closing processes. Mortgages obtained through independent mortgage brokers have more complicated legal closing processes which may incur additional legal fees. However, brokers provide access to lenders not available through bank branches and can shop your application to multiple lenders simultaneously without additional cost to the borrower.
CLOSING DATES & TIMING
When should I set my closing date?
If you can, avoid closing at month-end, month-beginning, and on Fridays. Resources on popular closing days — mortgage funding departments, bank transfer departments, law offices, moving companies — are stretched thin.
All transactional adjustments are calculated to the day prior to closing, so there is no financial difference between closing on a popular date versus an off-peak date like the third Tuesday of the month. Choosing an off-peak date ensures smoother logistics for all parties. Also avoid closing right before a weekend or long weekend — any delay would extend the transaction to the next business day.
Should I buy and sell on the same day?
We generally strongly recommend avoiding same-day purchase and sale transactions. The sale must happen first to fund the purchase. Any delay in the sale may jeopardize the purchase — and there are many elements outside everyone’s control, such as banking delays and wire delays.
Although most combo closings complete without difficulty, those that experience delays can cause significant problems. Alternatives to consider:
- Close the purchase first with a bridge loan
- Sell first and negotiate a short-term leaseback from the buyer
- If neither option is possible, arrange alternative lodging in case of delays
When is the latest I should arrange mortgage financing?
As early as possible. There is a common misconception that the legal steps of mortgage closing can happen in one day. In practice, they usually cannot. The full process involves: pre-approval, final approval, lender preparing and sending mortgage instructions to your lawyer, the lawyer performing searches and preparing documents, clearing all conditions, and funds being sent to the lawyer’s trust account.
If lender instructions arrive the day before or day of closing, funding may not arrive in time. Only certain big-bank direct loans can be rushed — and even then, this is the exception. Clients should arrange financing early and may consider parallel applications with multiple lenders if there are no upfront costs.
SIGNING & PROCESS
Do I have to meet in person for closing?
Not typically. Li Cheng Law can facilitate closings remotely through a secure video meeting so long as the client has access to reliable internet. In certain circumstances, other parties to the transaction — such as mortgage lenders or builders for new construction purchases — may have special requirements that demand physical signatures. Contact us to discuss remote signing for your specific transaction. Offices are located in Hamilton, Burlington, and St. Catharines for clients who prefer in-person signing.
Do I need to find a lawyer local to where the property is?
It depends on the property type. For general single-family residential dwellings connected to municipal services (water, sewer) located within urban boundaries, Li Cheng Law can generally close the transaction anywhere in Ontario. Things become more complex with very remote cottage or seasonal properties that may have particular localised title issues — in those circumstances, we would recommend hiring a lawyer local to that area.
Can the buyer and seller use the same lawyer to save money?
The Law Society of Ontario has strict rules about a lawyer representing multiple parties on a real estate transaction. In limited circumstances it may be permitted — only if there is no mortgage involved. If there is a mortgage, it is almost never approved for a lawyer to represent both the buyer and the seller. Each party requires independent legal representation.
Why do you need so much information when I sign up as a client?
Real estate transactions have become increasingly complex, and lawyers are required to collect detailed information to comply with several legal and regulatory obligations. The information we collect helps ensure compliance with:
- Land Transfer Tax rules
- Anti-Money Laundering (AML) regulations
- Vacant Unit Tax requirements
- HST and tax rules
- Law Society of Ontario identification and verification rules
Gathering this information upfront protects you, reduces the risk of delays, and ensures your transaction can be completed smoothly and in full compliance with current laws.
TITLE INSURANCE & MORTGAGE
Is title insurance legally required to close a purchase in Ontario?
Title insurance is not legally required but is functionally necessary in Ontario. Legal fees are generally structured around the assumption that title insurance replaces the need for a lawyer’s title opinion. Title opinions are costly and do not cover future title fraud. Title insurance offers lower closing costs and fraud protection, making it the practical choice for almost all purchasers. If there is a mortgage involved, title insurance is almost always required by the lender. Opting out is technically possible but rarely advisable.
Why is my registered mortgage amount different from what the bank told me?
Banks and credit unions often approve borrowers for home equity loans rather than conventional mortgages. Home equity loans may include a conventional mortgage plus one or more secured lines of credit. Lenders frequently register a higher limit and interest rate range on title to allow borrowers to obtain future loans without incurring additional legal fees, as long as borrowing stays within the registered limits. The registered amount is a ceiling for security purposes, not your actual loan amount.
How do I select a real estate lawyer?
Residential real estate lawyers require volume to offer competitive fees and process transactions efficiently. Transactions are typically handled by a team including the lawyer, law clerks, legal assistants, and support staff. Consider the following:
- Is the lawyer insured to practice real estate? (Check the Law Society of Ontario directory)
- Does the lawyer carry sufficient Errors & Omissions insurance? Standard is $1 million — higher is better for transactions above $1 million. Li Cheng Law carries E&O insurance up to $10 million.
- How many professionals will handle your file? A well-structured team keeps fees reasonable and reduces errors.
- Will a lawyer supervise the file and sign with clients directly at closing?
- Does the lawyer primarily practice real estate? Real estate transactions are increasingly complex and require dedicated focus.
AFTER CLOSING
What if I receive notices of water or tax arrears after purchasing?
In residential transactions, seller water and tax arrears are typically covered by the buyer’s title insurance — assuming standard undertakings were obtained at closing. If you receive such a notice, pay the arrears to stop interest from accumulating, then send the notice and proof of payment to your lawyer to request a re-adjustment from the seller. If the seller refuses, your lawyer can assist you in filing a title insurance claim. Work orders and notices to comply are also typically covered if they were already on file with the issuing authority prior to closing.
Why did I still receive a property tax statement after selling?
This typically occurs because the municipal tax department printed and sent the tax statement before processing the updated title records from your sale. Since property taxes are tied to the property rather than the owner, you can simply ignore these statements after your sale has closed. If you have any concerns, contact your lawyer to confirm the sale was properly registered.
GLOSSARY OF TERMS
When researching real estate lawyer fees in Ontario, you will likely come across some legal and industry terms. Here is what they actually mean.
Legal Fee: When the lawyer charges for their time and work on your file
Disbursements: Costs your lawyer pays on your behalf and passes through to you. For example, government fees, searches, insurance
Soft Disbursements: Office running costs including printing, couriers, banking fees, software and file storage. Many firms charge these on top of their quoted legal fee. At Li Cheng Law, they are included under most circumstances.
Hard Disbursements: Actual third-party costs like title insurance, land transfer tax, title search, writ search, Law Society of Ontario levy, ID verification, and government registration fees. These vary by transaction and are itemized in your written quote.
Conveyancing Fee: This is another name for soft disbursements. Some firms charge this fee to cover their office costs (often $250-$400). This is not charged at Li Cheng Law.
Title Insurance: Insurance that protects your ownership against title fraud, survey errors, and issues missed in the title search. Required by most lenders.
Still have questions? Contact Li Cheng Law directly.
We are happy to answer any questions you may have.
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