When Should I Hire a Real Estate Lawyer?

Quick Answer

Ideal timing: Before signing your Agreement of Purchase and Sale

Minimum timing: Within 24-48 hours of firm offer acceptance

Required timeline: 3-6 weeks before closing date

Protection strategy: Add "subject to lawyer review" conditional clause to offers

TL;DR Summary

The optimal time to hire a real estate lawyer is before you sign any binding agreements. This allows them to review terms, identify problems, and add protective conditions. At minimum, engage a lawyer within 24-48 hours of a firm offer to ensure they have 3-6 weeks before closing to complete title searches, resolve issues, and prepare documents. Hiring too late limits your options, increases costs, and risks deal collapse.

David found his dream home on a Saturday. By Monday morning, he'd signed an offer with no conditions in a competitive multiple-offer situation. When he called a real estate lawyer Wednesday afternoon, two days after the seller accepted, he got news he wasn't expecting: "You needed to call us before you signed that offer."

His Agreement of Purchase and Sale had concerning clauses he hadn't understood, a closing date that gave his lawyer barely three weeks to complete everything, and a deposit structure that put $50,000 at risk. The lawyer could still help, but David's options were now severely limited because the contract was already binding.

Timing matters in real estate. Hiring a lawyer at the wrong stage can cost you thousands in avoidable mistakes, limit your negotiating power, and create unnecessary stress during what should be an exciting milestone.

Key Terms Defined

Agreement of Purchase and Sale (APS):A legally binding contract between a buyer and seller that outlines the terms, conditions, purchase price, closing date, and all other details of a real estate transaction. In Ontario, the standard form is the OREA (Ontario Real Estate Association) Agreement.

‍Firm Offer:An accepted offer with all conditions satisfied or waived, creating a binding contract that obligates both parties to complete the transaction.

‍Conditional Offer:An offer that includes conditions (such as financing, inspection, or lawyer review) that must be satisfied before the agreement becomes binding.

‍Closing Date:The date when ownership legally transfers from seller to buyer, funds are exchanged, and keys are delivered. Also known as the completion date.

‍Title Search:A comprehensive examination of public records to verify legal ownership, identify liens, mortgages, easements, or other encumbrances affecting the property.

‍Subject to Lawyer Review Clause:A conditional clause in an Agreement of Purchase and Sale that allows the buyer's lawyer to review and approve the agreement within a specified timeframe (typically 2-5 business days), providing an exit option if serious issues are discovered.

The Ideal Timing: Before You Sign Anything

The absolute best time to hire a real estate lawyer is before you sign your Agreement of Purchase and Sale. This gives you maximum protection and flexibility.

Under Ontario's Statute of Frauds, R.S.O. 1990, c. S.19, real estate contracts must be in writing to be enforceable. Once you sign an Agreement of Purchase and Sale, you are legally bound to complete the transaction according to its terms. Pre-signing legal review prevents you from committing to unfavorable or problematic terms.

When you engage a lawyer before signing, they can:

• Review and explain the offer terms in plain language before you're legally bound
• Identify problematic clauses that could cost you money or trap you in unfavorable terms
• Suggest protective conditions like "subject to lawyer review" to give you an exit strategy
• Flag unrealistic timelines that don't allow sufficient time for due diligence
• Verify that chattels and fixtures are properly listed (no one wants to discover the seller took all the appliances)
• Ensure deposit protection so your money is held safely in trust
• Negotiate amendments on your behalf before you're committed

This approach is particularly critical for first-time homebuyers who may not recognize red flags in standard real estate contracts.

The "Subject to Lawyer Review" Clause

One powerful protection is adding a conditional clause to your offer that states the agreement is "subject to lawyer review and approval within [X] business days." This gives you an escape hatch if your lawyer discovers serious issues.

This condition is especially valuable in:

• Competitive markets where you need to move quickly
• Private sales without real estate agents
• Complex transactions involving multiple parties or unique property features
• Situations where you're using a template agreement rather than working with a realtor

However, in hot markets, sellers may reject offers with lawyer review conditions in favor of "cleaner" offers. This makes pre-signing consultation even more critical—you need professional guidance before making an unconditional commitment.

The Minimum Timeline: Within Days of Firm Offer

If you've already signed and the offer is now firm (meaning all conditions are satisfied or waived), you need to hire a lawyer immediately—ideally within 24-48 hours of the offer becoming binding.

Why the urgency? Your lawyer needs sufficient time to:

• Conduct a comprehensive title search to verify ownership and identify liens, easements, or encumbrances
• Review zoning and property restrictions that could affect your intended use
• Coordinate with your mortgage lender to obtain and review instructions
• Prepare and register all necessary legal documents
• Arrange title insurance and resolve any issues that arise
• Ensure all closing requirements are met before your closing date

These tasks take time. Your lawyer can't perform miracles if you call them three days before closing expecting everything to be ready.

The Three-to-Six Week Rule

For a smooth real estate closing in Ontario, your lawyer should have at least three to six weeks between when you hire them and your closing date.

This timeline allows for:

• Week 1-2: Initial document review, title search, and identification of any issues
• Week 2-4: Resolution of title problems, coordination with lenders, and preparation of closing documents
• Week 4-6: Final review, signing appointments, funds transfer, and registration

Tighter timelines are possible many transactions close successfully in three weeks but this leaves little margin for unexpected complications like:

• Title issues requiring negotiation with the seller
• Delays in mortgage approval or lender instructions
• Missing documents or information from other parties
• Problems with property surveys or status certificates

When drafting your own agreement, ensure your closing date gives your lawyer adequate time. A 30-day closing period from firm acceptance is a reasonable minimum.

Consequences of Hiring a Real Estate Lawyer Too Late

Limited Ability to Address Problems

Title searches sometimes reveal unexpected issues: unpaid property taxes, undisclosed liens, boundary disputes, or zoning violations. Resolving these problems requires negotiation with the seller and potentially extending the closing date. If you hire a lawyer with only days to spare, there's no time to fix issues—you may be forced to either complete the purchase with known defects or walk away and lose your deposit.

Rushed Due Diligence

Proper legal review takes time. When lawyers are rushed, important details can be missed. This increases your risk of signing documents you don't fully understand or discovering costly problems after closing when it's too late to address them.

Lender Delays

Mortgage lenders typically don't provide final instructions to your lawyer until shortly before closing. If your lawyer receives these instructions with only days remaining and discovers problems, there's no time to resolve them before your deadline. This can jeopardize the entire transaction and put your deposit at risk.

Expensive Rush Fees

Some firms charge premium fees for rush closings because they require lawyers to work evenings and weekends. What could have been a standard legal fee becomes significantly more expensive due to poor timing.

Risk of Deal Collapse

If problems arise and there's insufficient time to resolve them, the deal may collapse entirely. You could lose your deposit, the seller might pursue legal action under contract law for breach of contract, and you're back to square one in your home search—except now you're out thousands of dollars. Understanding mutual releases becomes critical in these situations.

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How Deeded Makes Early Engagement Easy

At Deeded, we've designed our services to make it simple to engage a lawyer at the right time—before you need emergency help.

Our approach:

• Early Consultation: Connect with us before signing offers to get guidance on what to look for and how to protect yourself
• Agreement Review Service: Our 24-hour purchase agreement review identifies risks and explains terms clearly
• Transparent Pricing: Flat-rate fees mean no surprises—$1,099 for purchases, $999 for sales
• Virtual Service: Complete your entire transaction online without office visits
• Real-Time Updates: Track your transaction progress through our digital platform
• Experienced Lawyers: Our team has handled thousands of transactions across Ontario, BC, and Alberta
• SOC 2 Certified: Bank-level security for your sensitive documents and information
• Regulatory Approved: Participant in Law Society of Ontario's Access to Innovation (A2I) Program

We make it easy to do things right from the start, rather than scrambling to fix problems later.

Frequently Asked Questions

Q: Can I use the same lawyer as the seller?

A: In most cases, no. Under the Law Society of Ontario Rules of Professional Conduct, Rule 3.4, lawyers must avoid conflicts of interest. Buyers and sellers have fundamentally different interests in a transaction. You need your own legal representation. In very limited circumstances with independent legal advice, joint representation might be possible, but it's generally not recommended.

Q: My real estate agent said they'd recommend a lawyer after the offer is accepted. Is that okay?

A: While many agents do recommend lawyers after offers are accepted, ideally you should have a lawyer lined up before making an offer. This allows for pre-signing consultation and the option to include a lawyer review condition. That said, if you've just had an offer accepted, contact a lawyer immediately—don't wait any longer.

Q: How much does it cost to have a lawyer review an offer before I sign?

A: At Deeded, our purchase agreement review service provides comprehensive analysis within 24 hours. Many lawyers offer consultation services for a reasonable fee ($200-$500). The cost of pre-signing review is minimal compared to the thousands you could lose from signing a problematic agreement without legal guidance.

Q: Is three weeks enough time before closing?

A: Three weeks is the minimum for a straightforward transaction with no complications. It's possible but tight. Four to six weeks is better as it provides cushion for unexpected issues. If you're in a situation with only three weeks, contact a lawyer immediately and ensure all your documentation is ready to go.

Q: What if I'm pre-approved for my mortgage? Do I still need to hire a lawyer early?

A: Yes. Mortgage pre-approval is just one part of the transaction. Your lawyer handles title searches, document preparation, title insurance, registration under the Land Titles Act, and numerous other legal requirements that are completely separate from your mortgage approval process.

Q: Can I change lawyers if I'm unhappy with the one I hired?

A: Yes, but it's disruptive and may delay your closing. The new lawyer needs to get up to speed on your file, which takes time. It's better to choose the right lawyer from the start through careful research.

Q: Do I need a lawyer if I'm buying a property from a family member?

A: Absolutely. Even in family transactions, you need proper legal documentation, title transfer, and compliance with tax regulations under the Income Tax Act and provincial land transfer tax legislation. Family deals can actually be more complicated because people tend to be informal about important legal details. A lawyer protects everyone involved by ensuring everything is done correctly.

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