The Complete Guide to Buying a Home in Ontario: Legal Steps You Need to Know

Before you start house hunting, get pre-approved for a mortgage. This tells you how much you can afford and shows sellers you're a serious buyer. Pre-approval involves a lender reviewing your financial situation, including your income, debts, credit score, and employment history.

Having a pre-approval letter gives you negotiating power and helps you move quickly when you find the right property. In Toronto's competitive market, this can make the difference between securing your dream home and losing it to another buyer.

Once you've found a property you want to buy, you'll make an offer through your real estate agent. The offer, known as an Agreement of Purchase and Sale, is a legally binding contract that includes: the purchase price, deposit amount, closing date, conditions (such as financing and home inspection), and any included chattels or fixtures.

Common conditions include: financing condition (usually 5-10 business days to secure final mortgage approval), home inspection condition (to identify any major issues with the property), status certificate review (for condos), and title search (to ensure the seller has clear ownership).

Your lawyer should review the Agreement of Purchase and Sale before you sign it, especially if there are complex terms or conditions.

In Ontario, you are required to have a lawyer handle the legal aspects of your real estate transaction. Your lawyer will: review the Agreement of Purchase and Sale, conduct a title search, review the status certificate (for condos), prepare and register the deed, arrange for title insurance, handle the transfer of funds, and register your ownership with the Land Registry Office.

Choose your lawyer early in the process. A good real estate lawyer can identify potential issues before they become problems and ensure your interests are protected throughout the transaction.

Once your offer is accepted, you have a specified period to fulfill all conditions in the agreement. This typically includes: securing financing approval, completing a satisfactory home inspection, reviewing the condominium status certificate (if applicable), and ensuring the title is clear.

If you discover issues during this period, you may be able to negotiate repairs, request a price reduction, or walk away from the deal without penalty (depending on the conditions in your offer). Once all conditions are satisfied, you remove the conditions in writing and the agreement becomes firm.

The closing date is when the property officially becomes yours. Your lawyer will: conduct a final title search, register the deed in your name, transfer the purchase funds to the seller's lawyer, receive the keys, and provide you with copies of all registered documents.

On closing day, you'll need to provide: the balance of the down payment (via certified cheque or wire transfer), proof of home insurance, and payment for closing costs (land transfer tax, legal fees, disbursements).

After closing, your lawyer will provide you with a reporting letter summarizing the transaction and copies of all important documents. Keep these in a safe place—you'll need them for future reference and when you eventually sell the property.