What documents will I sign when I sell a property?

Summary: Sellers in Ontario sign about eight closing documents, usually a few days before closing. They go to the buyer's lawyer, your mortgage lender and your own lawyer. If the property is a matrimonial home, your spouse may need to sign too, under the Family Law Act.

What documents do you sign when selling a property?

Sellers in Ontario sign a short package of closing documents that authorise the transfer, settle the money and confirm promises made to the buyer. Most are signed at one signing meeting with your lawyer, often within the week before the closing date.

The agreement of purchase and sale (APS), the contract you signed when you accepted the offer, comes first and sets the rules for everything else. The closing documents carry it out. Here is what a typical sale package contains:

The exact list varies, and an estate sale or a sale under a power of attorney adds documents of its own.

What documents go to the buyer?

Most of what a seller signs goes to the buyer's lawyer. They confirm that title will be clear and the numbers are right, and the buyer's lawyer generally will not release the money until they have them.

• Statement of adjustments. The statement of adjustments sets out the sale price, the deposit already paid and credits for prepaid property tax or utilities. The balance it shows is what the buyer pays on closing.

• Undertaking to readjust. An undertaking is a written promise. In this one, you and the buyer each agree to fix the adjustments after closing if a tax bill or utility reading turns out to be different.

• Vendor's undertaking. You promise to pay off any mortgage registered on title from the sale proceeds and to pay any outstanding property tax or utility arrears.

• Statutory declaration. A sworn statement of facts. It typically confirms you are not a non-resident of Canada for tax purposes and that you have been in possession of the property.

• Bill of sale. A short document passing ownership of the chattels listed in the APS, such as the fridge, stove and window coverings, along with a promise that they are paid for.

• Direction re funds. Tells the buyer's lawyer to pay the closing balance to your lawyer's trust account.

The residency confirmation matters because a buyer who purchases from a non-resident without a clearance certificate under section 116 of the Income Tax Act can be required to pay up to 25% of the purchase price to the Canada Revenue Agency (CRA), unless they made a reasonable inquiry into the seller's residency. That is why the buyer's lawyer asks for it on every file.

What documents does your lender need?

If you have a mortgage, your lawyer pays it off from the sale proceeds on closing day. Your lender needs your written authorisation before it will share the payout figure with your lawyer, and it then removes its charge from title after it is paid.

• Payout authorisation. Lets your lawyer request a mortgage payout statement, which shows the exact balance, interest to the closing date and any prepayment penalty.

• Home equity line of credit (HELOC) instructions. If a HELOC is secured on the home, you may sign a direction to close the account so the lender can discharge it.

How mortgage discharge works in Ontario covers the timeline and fees.

What documents go to your lawyer?

Two documents stay between you and your lawyer: the retainer agreement, which hires them, and the Acknowledgement and Direction, which authorises them to sign the transfer on your behalf. Without the second, the sale cannot be registered.

• Retainer agreement. Sets out the work your lawyer will do, the fee and the disbursements, which are third-party costs such as registration fees. You usually sign it when you first engage the firm.

• Acknowledgement and Direction. Ontario land transfers are registered electronically, so you never sign the transfer itself, the document that moves ownership to the buyer and was once called the deed. Instead, this document confirms you have reviewed the transfer and directs your lawyer to sign it electronically for you.

Does your spouse need to sign when you sell?

Your spouse may need to sign even if they are not on title. Under section 21 of Ontario's Family Law Act, a married spouse cannot sell a matrimonial home without the other spouse's consent, unless that spouse has released their rights in a separation agreement or a court order authorises the sale.

A matrimonial home is a property a married spouse has an interest in that the couple ordinarily lives in, or lived in when they separated, as their family residence. A cottage can qualify too.

In practice, your spouse signs the Acknowledgement and Direction too, so your lawyer can include their consent in the electronic transfer. Common-law partners do not have the same statutory right, and your lawyer records your spousal status in the Family Law Act statements on the transfer.

How do you sign closing documents?

You sign closing documents at a signing meeting with your lawyer or a law clerk, either in person or over video. The meeting usually lasts 30 to 45 minutes and often takes place within the week before closing, once your lawyer has the payout statement and adjustments.

1. Verify your identity. Your lawyer must confirm who you are under Law Society of Ontario (LSO) rules, typically with government-issued photo ID.

2. Review the numbers. Your lawyer walks through the statement of adjustments and the expected net proceeds, line by line.

3. Go through each document. Each one is explained in plain language before you sign, and you can ask questions at any point.

4. Sign electronically. Most documents can be signed electronically during the call. A statutory declaration is sworn in front of your lawyer or a commissioner, which can also happen by video.

5. Hand over the keys. Your lawyer explains how the keys reach the buyer on closing day, usually through your agent.

After that, you have nothing left to sign.

Frequently asked questions

Do I sign the transfer when I sell a house in Ontario?

Not directly. Ontario registers land transfers electronically, so your lawyer signs the transfer for you. You sign an Acknowledgement and Direction, which confirms you have reviewed the transfer and authorises your lawyer to sign and register it.

What is a vendor's undertaking?

A vendor's undertaking is a written promise from the seller to the buyer. It usually covers paying off any mortgage on title from the sale proceeds and paying any outstanding property tax or utility arrears after closing.

Can I sign my sale closing documents online in Ontario?

Yes. Most Ontario sale documents can be signed electronically over a video meeting, including sworn statutory declarations. Your lawyer still has to verify your identity before you sign, so have government-issued photo ID ready.

Do both owners have to sign the closing documents?

Yes. Every registered owner has to sign, and a spouse who is not on title may also need to sign if the property is a matrimonial home. If an owner has died or cannot sign, an estate trustee or an attorney under a power of attorney signs instead.

About the author

Joel Fox is a co-founder and COO at Ownright. He helps run the firm's day-to-day work on Ontario residential closings, refinances, and sales, and writes regularly to demystify the parts of a transaction that most homeowners only encounter once or twice in their lives.

At Ownright, our team of licensed Ontario real estate lawyers handles sales alongside our work on purchase closings, refinances, and status certificate reviews. Everything runs through our digital platform, so you can track your file, sign documents remotely, and reach us by chat, email, or video call. If you are getting ready to sell, you can start your closing online or contact our team with any questions.

Legal references: Family Law Act, R.S.O. 1990, c. F.3, s. 21; Land Registration Reform Act, R.S.O. 1990, c. L.4; Income Tax Act, R.S.C. 1985, c. 1 (5th Supp.), s. 116.

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.