October 29, 2025 | Selling
What Are the Legal Fees for Selling a House in Ontario?
Selling a house can be an expensive endeavour. Just ask anyone who has been through the process. In addition to the cost of repairs or renovations, real estate commissions, and staging fees, you also have moving expenses and the cost of shopping for new furniture.
However, if the time has come to move on, all of these investments tend to be worthwhile. A successful outcome opens up new possibilities for whatever comes next in your life. A big part of selling means a clear understanding of the true cost of selling a house in Ontario, including any real estate fees. Today, we’ll dive into legal fees to sell a house.
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Do You Need a Real Estate Lawyer?
There are two sets of real estate lawyer costs, one for the seller and one for the buyer. Whatever side of the transaction you are on, you want your own legal counsel. This ensures that you have dedicated representation and someone who knows what they are doing looking out for your best interests.
Both parties should not use the same lawyer, as this could create a conflict of interest. If an issue were to arise, it would be difficult, if not impossible, for the lawyer to remain impartial.
In Ontario, a separate lawyer for both the buyer and the seller isn’t just recommended—it is actually required to close the transaction. In either case, some fees will be involved, which are generally higher when purchasing a home. Nevertheless, it is typically a small price to pay compared to what you would face if the transaction were to fall through or some clause were to be challenged.
What Do Real Estate Lawyers Do?
The buyer needs a lawyer to run a title search, obtain title insurance, and register the property in their name.
The seller must have a real estate lawyer to ensure a clear title, to clear any liens and encumbrances, and to correctly disburse all funds from the sale. The lawyer will also ensure that the seller owns the property free and clear and has the authority to offer it for sale in the first place.
Although no one likes to hand over their hard-earned money to a lawyer, in this case, it really is a necessary expense. When everything is handled correctly at the time of the transaction, you can be reasonably assured of protection from future lawsuits or disputes over property boundaries or unpaid taxes.
Do you want to be sure you hit the ground running with a price point that honours your home value and leads to a successful sale? Start by booking your free home evaluation.
Who Pays Lawyer Fees When Selling a House?
Since each party has their own counsel, this question is simple. There is no doubt or argument over who covers the bill.
- If you are the buyer, you pay the buyer’s lawyer.
- If you are the seller, you pay the seller’s lawyer.
Looking for even more tips to sell your house successfully and with minimal stress? You’ll find plenty in the posts below:
- How to Sell Your House Fast
- What Not to Fix or Renovate Before Selling a House
- How NOT to Sell a House
Average Lawyer Fees for House Closing
Lawyer fees contain two components: the costs for their service and any third-party costs, also known as disbursements.
An example of a disbursement is the bank fee to close out any remaining mortgage you have on the home. Typically, the lawyer pays on your behalf and then recoups their cost in the final bill.
It’s not possible to quote an exact estimate of what fees are associated with selling a house. Each transaction is unique, and every lawyer has a different fee structure.
- Some lawyers charge a flat legal fee.
- Others charge based on the purchase price or hourly based on the amount of time spent on your transaction.
In addition to the legal fee, be prepared for Disbursements, which are out-of-pocket costs your lawyer incurs in the transaction. Examples of Disbursements include fees for registering your title and obtaining title insurance. Since hiring a lawyer constitutes a service in Ontario, be sure to also account for HST on the final bill.
Should you consider buying a house in Pickering after your home sells? The posts below might get you off the fence:
Legal Fees for Non-Standard Closings
Legal fees for a non-standard closing will increase accordingly. Examples include when you have more than one mortgage against your home or a faster-than-average closing. Alternatively, you may be trying to sell a house that is co-owned by someone other than your spouse or an inherited home.
If selling on behalf of someone who is deceased, the estate must first go through probate before the lawyer can transfer the title to a new owner. Any debts must be settled, and if there are multiple beneficiaries on the title, all parties must sign off. Working with a Realtor® like Geeta Rajpal with SRES® and ASA™ designations can help during challenging transactions like estate sales or selling on behalf of someone else.
This process takes more time and is more complicated. Since most lawyers charge by the hour, the cost to close the transaction will generally be higher.
When one owner on the title wants to sell and the other does not, the lawyer will first try to negotiate an amicable resolution. If that doesn’t happen, they will file the application for an order for sale under the Partition Act, and the legal bills can really begin to add up. That is a whole other topic on its own!
Even if the title search uncovers only minor flaws, closing costs can increase over the standard amount. Fortunately, these situations are rare, and most transactions proceed without issues.
Understanding the total costs of selling a house in Ontario is vital to a straightforward move. To ensure no last-minute surprises, be sure to provide all pertinent details to your lawyer, then ask for a written, all-inclusive quote. If you need access to trusted lawyers in Pickering, our local real estate team will be happy to help.
Do you have more questions about buying or selling your home? Our Pickering real estate agents are happy to guide you and provide the answers you need. Reach out today at info@teamrajpal.com or call 647-372-2997 to get started.
Have Questions?
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