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

May 22, 2025


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

Public Realm Improvements

Public realm improvements are enhancements to public spaces such as sidewalks, parks, plazas, and streetscapes, often funded or contributed by. more

Mortgagee in Possession

A mortgagee in possession is a lender who takes control of a property after borrower default, but before foreclosure or power of sale. The lender. more

Lease Surrender Agreement

A lease surrender agreement is a negotiated contract between a landlord and tenant that ends a lease before its scheduled expiration. Terms may. more

Green Infrastructure

Green infrastructure refers to natural or engineered systems that manage stormwater, reduce heat, and improve sustainability in developments.. more

Escrow Holdback

An escrow holdback is a portion of funds withheld at closing and held in escrow until specific conditions are met, such as completion of repairs,. more

Underused Housing Tax

The Underused Housing Tax (UHT) is a federal annual 1% tax on the value of vacant or underused residential property owned by non-resident,. more

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