Buying a home is, for most people, the largest transaction of their lives, and the legal process behind it follows a fairly consistent path in Ontario once an offer is accepted. Understanding the sequence helps you see where the risks are, and why involving a lawyer early — ideally before you sign anything — protects you.
The Agreement of Purchase and Sale
Everything starts with the Agreement of Purchase and Sale (APS). This is the binding contract between buyer and seller. It sets the price, the closing date, what is included, and — crucially — any conditions. Once signed and accepted, it is enforceable, so the time to have it reviewed is before signing, not after. Common conditions protect the buyer by making the deal dependent on certain things happening.
The conditional period
Many agreements include conditions such as:
- Financing: the deal proceeds only if the buyer secures a mortgage on acceptable terms.
- Home inspection: the buyer can back out or renegotiate if the inspection reveals significant problems.
- Status certificate review for condominiums, so a lawyer can assess the corporation's finances and rules.
If the conditions are met (or waived) within the time allowed, the deal becomes "firm." If a genuine condition is not satisfied, the buyer can usually walk away and recover the deposit, depending on the wording.
The lawyer's work between firm and closing
Once the deal is firm, your lawyer does the legal heavy lifting: searching title to confirm the seller can transfer clean ownership, reviewing the agreement, raising requisitions to have any title defects corrected, arranging title insurance, and preparing the closing documents and the statement of adjustments. Your lawyer also receives your mortgage instructions from the lender and prepares the mortgage for registration.
Closing day
On the closing date, funds and keys change hands. The buyer's lawyer sends the balance of the purchase price to the seller's lawyer, the transfer of ownership is registered electronically through Ontario's land registration system (Teraview), and — once registration is confirmed — the keys are released. At that point you are the legal owner.
What buyers often underestimate
- The importance of reading the agreement before signing, when conditions can still be added.
- That closing costs (land transfer tax, legal fees, adjustments) come on top of the price.
- That the closing date and conditions in the APS are what actually protect them if something goes wrong.
Takeaway: Involve a lawyer early — ideally before you sign — so that the conditions, closing date, and contract terms are working in your favour rather than against you.
This article is general information for educational purposes only and is not legal advice. For advice on your situation, book a consultation.