The Seller's Lawyer

In Canada, the closing is handled by a real estate lawyer.

What does your lawyer do?

Once all the conditions in your offer have been fulfilled or waived (removed from the contract), the lawyer you have chosen and to whom you have asked your Realtor to send the documents, will proceed with the following:

Review the Agreement of Purchase and Sale

Your lawyer must examine the offer and become aware of all the parties involved, the particulars of the property and the transaction details.

Reply to Letter of Requisition

Certain detailed relevant information is needed by the buyers lawyer before the date spelled out on the agreement of purchase and sale. Your lawyer must respond to and correct, if necessary, any title issues or other deficiencies raised by the buyers lawyer Communication with the other solicitor continues up to and including the closing date.

 Request Discharges

Order payout statement for any registered mortgages being paid out on closing.

Tax Account

Confirm the payment of realty taxes to date. Taxes and any rental payments for water heaters, furnaces etc.must be  adjusted & allocated to the correct party for the day of closing.

Statement of Adjustments

Prepare statement of adjustment for buyers lawyers review. The Sellers lawyer prepares this accounting of the sale. It reflects credits given to the Buyer or Seller regarding such details as the deposit, municipal taxes and the balance of any mortgage to be assumed, and in the case of income properties, any rents & rental deposits.

Prepare Closing Documents

Prepare draft deed and other closing documents for buyers lawyers review 

Execution & Endorsement of Documents 

Meet with clients to review payout amounts including mortgage discharge statements, real estate invoice and any other amounts to be paid on closing . All pertinent paperwork is signed for a day or so before closing and arrangements are made for delivery of keys. 

Closing the Transaction 

On the completion date, close deal with buyers lawyer arrange for discharge of any registered mortgages, receive & distribute closing funds in exchange for the keys to the property and the deed is transferred to the new owners. The transaction is complete. 

Reporting and Accounting 

A letter containing the lawyers bill, details of accounting and any moneys held in trust will be sent to the client along with discharges within a few weeks after closing.

These functions are what are covered by the lawyers fee. There are, however, other costs which must be paid on your behalf, as seen below, which the lawyer will itemize on your statement of adjustments to receive reimbursement.

Standard Closing Costs (2011) Lawyers fee *Ask your solicitor, rates vary. Disbursements  (charges paid on your behalf) Law Society Levy $65.00 Discharges Subsearch charges 72.00 25.00 Couriers, faxes, copies  etc 25.00     HST 13% 24.31 TOTAL $211.31