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Summary: When you buy a home in Ontario, the documents you sign fall into three groups: those for the seller (the Direction re Title and the Undertaking to Readjust), those for your lender if you are financing (the Cost of Borrowing Disclosure Statement, the Acknowledgement of Standard Charge Terms, and a few others), and those for your own lawyer (a Retainer Agreement, plus the Transfer and the Charge with an Acknowledgement and Direction). Your lawyer prepares each one and walks you through it before you sign.
Buying a home is a significant financial commitment, and it involves a lot of paperwork. Understanding what you are signing can feel daunting, so here is an overview of the most common documents you will encounter as a purchaser, grouped by who receives them.
What documents do you sign when buying a property?
Most purchase transactions involve documents in three groups: those the purchaser provides to the seller, those provided to the lender, and those provided to the purchaser's own lawyer. Here is a quick reference, with each explained in full below:
Document | Goes to | What it does |
Direction re Title | Seller | Sets out who goes on title and how ownership is split |
Undertaking to Readjust | Seller | Mutual promise to correct credits after closing if needed |
Cost of Borrowing Disclosure Statement | Lender | Discloses the loan terms, rate, payments, and fees |
Acknowledgement of Standard Charge Terms | Lender | Confirms you received the mortgage's standard terms |
Retainer Agreement | Lawyer | Sets out the work and the lawyer's fee |
Transfer | Lawyer (registered on title) | Transfers ownership from seller to buyer (formerly the "deed") |
Charge | Lawyer (registered on title) | Records the lender's interest in your property |
Acknowledgement and Direction | Lawyer | Authorizes the lawyer to register the Transfer and Charge |
What documents go to the seller?
In most cases the purchaser provides the seller with two documents. The Direction re Title identifies the purchasers whose names will appear on title, their birthdates, and how ownership is split among multiple owners. An off-title purchaser whose interest is held in trust by the on-title owners does not need to be listed.
The Undertaking to Readjust is a promise to readjust credits applied to the purchase price after closing if it turns out one party paid a cost that should have been borne by the other. The seller signs a matching version, so the promise is mutual. For example, if the seller claims to have paid the full year's property tax and the buyer later receives a bill for unpaid taxes, the buyer relies on that undertaking to be reimbursed. It connects directly to the statement of adjustments.
What documents does the lender require?
If you are financing your purchase with a mortgage or line of credit, the lender requires several documents to secure its interest:
Cost of Borrowing Disclosure Statement (sometimes called a Personal Credit Agreement). Outlines the loan terms: principal, interest rate, any costs paid with the mortgage such as property taxes, payment frequency, term length, amortization, total interest, and any fees, prepayment privileges, and penalties.
Acknowledgement of Receipt of Standard Charge Terms. Confirms you received the Standard Charge Terms, the basic terms of the mortgage (definitions, how the mortgage works, what happens on default). The lender must provide them, so it asks you to acknowledge receipt.
Other lender documents, depending on the file. These can include a direct-debit form to withdraw payments from your account, a statutory declaration that you will occupy the property and not obtain secondary financing, and an assignment of rents if the property is tenanted.
What documents go to your lawyer?
Some documents you sign instruct your own lawyer. Many lawyers begin with a Retainer Agreement, which sets out the work the lawyer will do and the flat rate or hourly rate for the lawyer and support staff. When multiple clients hire the same lawyer jointly, it also discloses that the lawyer cannot act on conflicting instructions or withhold information one client shared from another.
Your lawyer will also present drafts of the two documents registered on title, each with an Acknowledgement and Direction:
The Transfer. Shows ownership passing from seller to buyer. It used to be called the "deed" and is your evidence that you own the property.
The Charge. Records the lender's interest in your property.
The Acknowledgement and Direction for each one confirms you have reviewed the information on the Transfer or Charge and directs your lawyer to register it as drafted. These are the documents that, once registered, complete your purchase on closing day.
How do you sign closing documents?
Signing your closing documents marks the transfer of ownership and the registration of the lender's interest, and in Ontario it no longer has to happen at a lawyer's office. At Ownright, you can sign virtually, reviewing and signing securely from home over a video call, using any device that works with DocuSign.
Your lawyer walks you through each document on the call and answers your questions before you sign, so you understand what you are agreeing to. If you are still early in the process, our explainer on the Agreement of Purchase and Sale covers the contract that starts it all.
Frequently asked questions
What is a Direction re Title?
It is a document the buyer signs telling the lawyer who will appear on title, their birthdates, and how ownership is split among multiple owners. An off-title buyer whose interest is held in trust does not need to be listed on it.
What is an Undertaking to Readjust?
A mutual promise between buyer and seller to correct credits applied to the purchase price after closing if one party turns out to have paid a cost the other should have. It is what lets a buyer recover, for example, a property-tax bill the seller said was paid.
What is the Transfer when buying a home?
The Transfer is the document that passes ownership from the seller to the buyer and is registered on title. It was formerly called the "deed" and is your evidence that you own the property.
What is the Charge?
The Charge is the document that records your lender's interest in your property and is registered on title. You sign an Acknowledgement and Direction authorizing your lawyer to register it as drafted.
Can you sign closing documents online in Ontario?
Yes. You can sign your closing documents virtually over a video call using a service like DocuSign, without travelling to a lawyer's office. Your lawyer reviews each document with you before you sign.
About the author
Benjamin Berry is a co-founder and principal lawyer at Ownright. He works on Ontario residential purchases, sales, and refinances, and writes to make the legal side of a real estate transaction clearer for the people going through it.
At Ownright, we focus on Ontario real estate law and prepare and explain every document in your purchase, then let you sign securely from home. You can start your closing online or get in touch with any questions.
Important note: This article is not legal advice. No one should act, or refrain from acting, based solely on the information in this post or any linked materials without first seeking appropriate legal or professional advice.
