Spring in Peterborough and the Kawarthas means open houses, bidding wars, and the excitement that comes with imagining yourself in a new home. If you're in the middle of that right now, you're probably focused on listings, open houses, and kitchen countertops. Good! That's the fun part.
My job is the less glamorous part: making sure that the home you fall in love with doesn't come with legal surprises, and that your purchase and closing are smooth and as stress-free as possible.
After decades of helping people buy homes across Peterborough and the Kawarthas, my firm has put together this checklist of the legal steps involved, in roughly the order you will encounter them.
Before You Make an Offer
Get your mortgage pre-approval in writing. This tells you what you can afford and signals to sellers that you're serious. Just keep in mind that a pre-approval is not a guarantee. Your lender still needs to approve the specific property, and conditions can change between pre-approval and closing.
Talk to a lawyer before you sign anything. Many of our clients reach out before they make an offer, and I'm always glad when they do. Once you sign an Agreement of Purchase and Sale, you are bound by its terms. It's much easier to catch a problematic clause or a missing condition before the ink dries, than after.
Do not waive conditions unless you truly understand the risk. In a competitive market, there is pressure to submit clean offers. I understand the temptation. But a financing condition protects you if your mortgage falls through, and an inspection condition protects you from hidden defects. Waiving these to win a bidding war can put you in a very difficult position. There can be occasions when it is worth it, but you need to go in with your eyes open and a clear understanding of the risks.
After Your Offer Is Accepted
Send us the signed Agreement right away. The sooner we have it, the sooner we can start the title search and flag anything that needs attention. Within 24 hours is ideal.
Book your home inspection early. Good inspectors fill up fast in spring. If your offer has an inspection condition, the clock is already ticking.
Stay on top of your financing. Your lender needs the property details to issue a firm commitment. Keep that process moving so you're not scrambling when the condition deadline arrives.
What Your Lawyer Is Doing Behind the Scenes
While you are arranging inspections and financing, we're conducting a title search on the property. This is one of the most important parts of the transaction.
We confirm that the seller actually owns the property and can legally sell it. We check for liens, mortgages, and other claims against the title. We review easements, rights of way, and restrictive covenants. We verify that property taxes are current and that there are no outstanding municipal work orders. If anything comes up, we'll walk you through it and help you decide how to proceed.
Closing Day
In Ontario, real estate closings happen electronically. There is no dramatic moment where you sit across a table from the seller. Instead, our office and the seller's lawyer coordinate everything: the transfer of title, your mortgage registration, and the flow of funds.
A few days before closing, we'll meet with you and discuss the Statement of Adjustments, a detailed accounting that tells you exactly how much money you need to complete the closing. On the day itself, we register the transfer, register your mortgage, and arrange for you to get your keys.
Closing Costs Worth Knowing About
Beyond the purchase price, a few costs catch first-time buyers off guard:
- Land transfer tax. On a $500,000 home in Ontario, this comes to $6,475. First-time buyers may qualify for a rebate of up to $4,000.
- Legal fees and disbursements. Our fee covers the title search, document preparation, registration, and closing. Disbursements are the out-of-pocket costs we pay on your behalf (search fees, registration fees, couriers, and so on).
- Title insurance. Typically $250 to $400 for a residential purchase.
- Home inspection. Usually $400 to $600, depending on the size of the property.
- Property tax adjustments. Depending on your closing date, you may owe the seller a credit for prepaid property taxes.
- Mortgage default insurance. If your down payment is less than 20%, your lender will require this. The premium is usually added to your mortgage balance.
Thinking About a Cottage Instead?
If you're looking at recreational property rather than a primary residence, be aware that cottage purchases come with their own set of legal considerations: crown land patents, shore road allowances, septic compliance, and rural zoning, to name a few. We have a dedicated practice area for cottage and recreational property, and you can download our free Recreational Property Buyer's Guide.
Ready to Get Started?
The best time to call a real estate lawyer is before you make an offer. We can review your agreement before you sign, walk you through the process, and make sure there are no surprises on closing day.
Call us at (705) 749-0628.
This article is for general information only and does not constitute legal advice. Every situation is unique. Please consult with a lawyer before making estate planning decisions.
