In Ontario, a lawyer isn’t optional — it’s required by law for every real estate transaction. All title transfers must be completed by a licensed lawyer registered in Ontario. Yet many buyers don’t contact their lawyer until a week before closing — by which point any title issues, missing documents, or non-resident seller complications become urgent problems rather than manageable ones. Here’s what your lawyer actually does and when to engage them.

Your Lawyer’s Role at Each Stage

The Tax Clearance Certificate: What Buyers Must Know

This is the most commonly misunderstood closing requirement — and the most consequential if missed.

Under Section 116 of Canada’s Income Tax Act, if the seller of a property is a non-resident of Canada for tax purposes, the buyer is legally required to withhold a portion of the purchase price (typically 25% of the gross sale proceeds) and remit it to the Canada Revenue Agency — unless the seller obtains a Tax Clearance Certificate from CRA confirming no outstanding Canadian tax obligations.

If the buyer pays the full purchase price to a non-resident seller without ensuring clearance, the buyer can be held personally liable for the seller’s unpaid Canadian taxes — potentially up to 25% of the purchase price.

Typical Lawyer Cost Breakdown

Note: Land Transfer Tax (LTT) — both provincial and municipal (Toronto only) — is a separate cost paid at closing, calculated on the purchase price. This is distinct from lawyer fees.