Share article
Share article
Summary: In a sale closing, your real estate lawyer reviews your Agreement of Purchase and Sale, confirms your title and clears any issues, obtains your mortgage payout statement and discharges the mortgage, prepares the transfer and statement of adjustments, receives the buyer's funds, pays off your mortgage and commissions, and sends you the net proceeds.
Selling a home comes with its own stack of paperwork and deadlines, and the legal side runs in parallel to your agent's work. Here is what your real estate lawyer actually does at each stage of a sale closing in Ontario.
What does your lawyer review before a sale closing?
Your lawyer starts by reviewing your Agreement of Purchase and Sale to confirm the conditions, dates, and any special terms. They then check the property's title to confirm you have the right to sell and to identify anything that has to be cleared before closing, such as liens or easements registered against the property.
How does your lawyer handle your mortgage payout?
If you still have a mortgage, your lawyer requests a payout statement from your lender showing the exact balance owing on the closing date. On closing day, they use the sale funds to pay the mortgage off in full and arrange to discharge it from title, so the buyer receives clear ownership free of your old charge.
What does your lawyer prepare for closing day?
Behind the scenes, your lawyer drafts and reviews the documents that complete the sale. These typically include:
The transfer (deed). The document that conveys ownership from you to the buyer.
The statement of adjustments. A closing statement that prorates shared costs.
Discharges and releases. Paperwork to clear your mortgage and any other registered obligations.
They also calculate the adjustments, such as property taxes or condo fees you have prepaid, so you are credited for the portion that applies after your closing date.
How does the money flow in a sale closing?
On closing day, the funds move through your lawyer's trust account in order. Your lawyer:
Receives the purchase funds. The buyer's lawyer sends the sale proceeds into your lawyer's trust account.
Makes the payouts. Your lawyer pays off your mortgage, the real estate commission, and the legal fees and disbursements.
Sends you the balance. Whatever remains, your net proceeds, is transferred to you, with every dollar accounted for.
How does your lawyer protect you through the sale?
Beyond the mechanics, your lawyer answers your questions, explains each document in plain language, and steps in quickly if an issue comes up before closing. Their job is to make sure your obligations are met and your proceeds reach you safely. For the buyer's side of the same process, see our guide on what a real estate lawyer does in a purchase closing, and for the bigger picture, our 7 reasons why you need a real estate lawyer.
Frequently asked questions
Do you need a lawyer to sell a home in Ontario?
In practice, yes. Discharging your mortgage, clearing title issues, and registering the transfer to the buyer are steps handled by a lawyer. Your real estate agent cannot complete the legal closing.
How does my mortgage get paid off when I sell?
Your lawyer requests a payout statement from your lender, then uses the buyer's funds on closing day to pay the balance in full and discharge the mortgage from title.
When do I get my money after selling?
After your lawyer receives the buyer's funds and makes the required payouts (mortgage, commission, legal fees), they transfer the net proceeds to you, typically on closing day or shortly after.
What gets deducted from my sale price?
Common deductions are the outstanding mortgage balance, the real estate commission, legal fees and disbursements, and any adjustments owing to the buyer. What remains is your net proceeds.
What are adjustments on a sale closing?
Adjustments reconcile prepaid costs such as property taxes or condo fees, so you are credited for amounts that cover the period after your closing date. They appear on the statement of adjustments.
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 entirely on Ontario residential real estate law. We pair a simple online platform with licensed Ontario lawyers who handle your sale closing from the title review through discharging your mortgage and sending your proceeds. You can start your closing online or get in touch with any questions. For related reading, see our guides on the Agreement of Purchase and Sale, the statement of adjustments, and the costs involved in a real estate transaction.
Legal references: Land Transfer Tax Act (Ontario); Land Titles Act (Ontario) (registration of transfers and discharges of charges).
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.
