What does a lawyer do when I sell my home in Ontario?
Your lawyer pays off your existing mortgage from the sale proceeds, prepares the deed and closing documents, and sends you what's left after fees. Most of this work happens in the two to three weeks before closing.
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What does the seller's lawyer do?
Once your agreement is signed, your lawyer requests a mortgage payout statement, prepares the deed, and calculates the statement of adjustments: who owes what for prepaid taxes, condo fees, or oil in the tank. Your lawyer also answers the buyer's lawyer's title questions and clears anything outstanding, like an old mortgage paid off years ago but never formally discharged.
What happens to my existing mortgage?
Your lawyer pays it off directly from the sale proceeds and registers a discharge on title. Selling before your term is up can trigger a prepayment penalty. The calculation depends on your mortgage contract: many fixed-rate mortgages charge the greater of three months' interest or an interest rate differential, and many variable-rate mortgages charge three months' interest. Get the exact payout figure from your lender before setting a closing date.
Do I get my money on closing day?
Usually. The net proceeds are released once registration is confirmed and the deal has closed, which is often on closing day. Your lawyer deducts the mortgage payout, commission, legal fees, and adjustments, then sends you the balance by wire or trust cheque.
What if there's a lien or old debt on my property?
More common than you'd think: an old line of credit secured against the home, a lawsuit judgment, or a construction lien. Your lawyer finds these during the title search and works out how to clear them, often from your proceeds.
What if the buyer's closing gets delayed?
If their financing or their own sale falls through, your lawyer negotiates next steps, which can include an extension with interest owed to you per day of delay, or treating the agreement as in default. This is a legal decision, not something to sort out informally with the buyer.
Where to go from here
- Contact your lawyer as soon as you accept an offer, so there's time to get your payout figure.
- Ask your lender for the exact payout amount and any penalty before setting a closing date.
- Tell your lawyer about anything registered against the property you're unsure has been cleared.
People also ask
How much notice does my lawyer need before closing?
Two to three weeks is typical, though less is often workable if your mortgage is simple.
Will I owe a penalty for paying off my mortgage early?
Possibly, depending on your mortgage type and time left in your term.
Who pays the real estate commission?
It comes out of your proceeds on closing, either paid by the brokerage or through your lawyer's trust account.
What if I still owe money on a home equity line of credit?
It has to be paid off and discharged from title at closing, like a mortgage.
This page is general information about Ontario law as of September 2026. It isn't legal advice about your situation.