Legal Fees

Understand legal fees in Canadian real estate: what services they cover, how much they cost, and why they’re crucial to finalizing a transaction.

Legal Fees



What are Legal Fees?

Legal fees are the charges paid to a lawyer or notary to complete the legal requirements of a real estate transaction.

Why Do Legal Fees Matter in Real Estate

In Canadian real estate, legal professionals are essential to transferring ownership, registering mortgages, conducting title searches, and handling closing documentation.


Typical services covered include:
  • Title search and registration
  • Reviewing and finalizing the Agreement of Purchase and Sale
  • Managing trust accounts for deposit and closing funds
  • Coordinating with lenders and land registry offices


Legal fees vary based on location, firm, and complexity, and often range from $1,000 to $2,000. Disbursements (additional costs for registration, title insurance, courier, etc.) may be billed separately.


Understanding legal fees ensures buyers and sellers properly budget for closing costs and receive full legal protection during the transaction.

Example of Legal Fees in Action

A buyer in British Columbia pays $1,200 in legal fees and $400 in disbursements to finalize a condo purchase.

Key Takeaways

  • Covers legal work required to close property deals.
  • Usually paid by the buyer.
  • Includes both fees and disbursements.
  • Ensures ownership and mortgage registration.
  • Required in most provinces.

Related Terms

Additional Terms

Recourse Loan

A recourse loan is a type of loan where the lender can pursue the borrower’s personal assets, beyond the collateral, in the event of default.. more

Pari Passu

A pari passu clause is a contractual provision ensuring that multiple creditors share equally in repayment priority from the borrower’s assets.. more

Non-Recourse Loan

A non-recourse loan is a type of loan where the lender’s only remedy in case of default is to seize the collateral property; the borrower is not. more

Net Operating Income

Net operating income (NOI) is the total income generated by a property after operating expenses are deducted but before taxes and financing costs.. more

Mechanic's Lien

A mechanic’s lien is a legal claim by a contractor, subcontractor, or supplier for unpaid work or materials provided for a property.. more

Lis Pendens

Lis pendens is a legal notice filed in the land registry indicating that a property is subject to ongoing litigation that may affect its title.. more

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