Buying a home is a major milestone — exciting, nerve-wracking, and often just a little overwhelming. In Ontario, the process can feel like a whirlwind of showings, offers, counteroffers, and paperwork. Whether you’re buying your first condo in Toronto or a family home in Windsor, understanding what you’re getting into legally is just as important as choosing the right neighbourhood.
Here’s what you need to know (and what nobody tells you until it’s too late).
It All Starts with the Offer
You’ve found the one — the house with the porch, the backyard, and the dream kitchen. You’re ready to make an offer. But that’s not just a number on a piece of paper. It’s a legal document, and once it’s accepted, it becomes a binding contract.
This document is formally called the real estate purchase and sale agreement. It’s the framework that governs the entire transaction. It sets out the price, deposit, closing date, and any conditions — like financing or a home inspection. It might look boilerplate, but trust us, there’s nothing generic about it.
Conditions Are Your Safety Net
In hot markets, buyers sometimes feel pressured to skip conditions in order to compete. This can be a mistake. A financing condition protects you in case your lender backs out. A home inspection condition gives you a way to walk away (or renegotiate) if the house turns out to have problems.
In Ontario, once the conditions are waived or fulfilled, your agreement becomes “firm” — and you’re locked in. Backing out at that point isn’t just bad form. It can get expensive.
What Happens If You Change Your Mind?
Real estate deals fall apart all the time, but that doesn’t mean there are no consequences. If you back out of a firm deal, the seller can sue for damages — especially if they have to sell for less later.
That’s why you need to understand exactly what’s in the agreement. Who pays the property tax adjustment? What happens if the seller doesn’t fix something before closing? Is there a clause that lets you do a final walkthrough?
This isn’t a time to guess.
Enter: Your Real Estate Lawyer
In Ontario, it’s not just a good idea to have a real estate lawyer — it’s a must. Your lawyer does more than shuffle papers. They’ll:
- Review your real estate purchase and sale agreement to spot red flags
- Explain clauses you may not understand
- Conduct a title search to ensure there are no liens or surprises
- Handle the money (because yes, that deposit and final payment don’t just go in a shoebox)
They’re also the ones who make sure the deed gets transferred properly, the taxes are adjusted, and your new keys are legally yours.
Before You Close: Last-Minute Surprises
There’s often a gap between the agreement date and the actual closing date — sometimes a few weeks, sometimes a few months. During that time, lots can happen. Your lender may want more documents. The seller might need to prove a permit was pulled for that sunroom addition. Or your lawyer might uncover an issue with the title that needs to be resolved.
Stay in touch with your legal team during this time. If they ask for something, act quickly. Delays in closing can mean penalties — or even losing the home altogether.
Final Walkthrough and Moving Day
Don’t forget to schedule a final walkthrough shortly before closing. You want to make sure the home is in the same condition as when you made the offer — and that the seller didn’t accidentally (or not-so-accidentally) take the washer and dryer with them.
On closing day, your lawyer will handle the transfer of funds, register the title with the Land Registry Office, and hand you the official go-ahead to get your keys. Congratulations — you’re now a homeowner.
A Few Pro Tips from the Legal Trenches
- Read everything. Even if it’s boring. If you don’t understand a clause, ask.
- Don’t rely solely on your agent. They’re helpful, but they’re not your lawyer.
- Budget for legal fees. Good legal help isn’t free, but neither is dealing with a lawsuit.
- Plan for adjustments. You might owe or receive money on closing depending on taxes, utilities, and other pre-paid expenses.
Final Word
Buying a home is exciting — but it’s also a legal transaction, not just a handshake and a down payment. The real estate purchase and sale agreement is the heart of the deal, and you owe it to yourself to know what’s in it.
A good lawyer won’t just protect you — they’ll make the whole experience smoother, faster, and far less stressful.
Welcome to homeownership — you’ve got this. 🏡