What Does A Real Estate Lawyer Do At Closing? Everything You Need to Know

When you're buying or selling property, the closing day is the final step in the real estate journey—but it's also the most complex. Behind the scenes, your real estate lawyer plays a crucial role in making sure everything goes smoothly, legally, and without costly surprises. Whether you’re a first-time homebuyer or an experienced investor, understanding what a real estate lawyer does at closing can empower you to navigate the process confidently.

In this guide, we’ll break down everything a real estate lawyer or residential real estate attorney does to ensure a successful closing—from title checks and document reviews to financial transactions and risk mitigation. If you're working with a real estate lawyer in Montreal or exploring services from Montreal law firms, this article will also highlight jurisdiction-specific practices you should be aware of.

Why You Need a Real Estate Lawyer at Closing

While your real estate agent handles showings and negotiations, your real estate attorney ensures that the legal and financial components of your real estate transaction are accurate, binding, and complete.

Closings involve:

• Title transfers

• Mortgage documentation

• Property taxes

• Insurance

• Utility adjustments

• Legal disbursements

Mistakes in any of these areas can lead to real estate litigation, financial penalties, or even a failed deal. This is why legal representation is not just a formality—it's a necessity.

1. Reviewing the Agreement of Purchase and Sale

Your real estate lawyer begins their work well before the closing date by reviewing the Agreement of Purchase and Sale (APS). This document outlines the terms and conditions of the sale.

Key areas they examine:

• Purchase price and deposits

• Conditions (financing, inspection, etc.)

• Title details

• Inclusions/exclusions (fixtures, appliances)

• Closing date and penalties for delay

A seasoned real estate litigation attorney can identify any red flags, ambiguous clauses, or potentially unenforceable terms that could lead to disputes down the line.

2. Conducting a Title Search

One of the most vital tasks of a real estate attorney is to verify that the property has a clear title—meaning it's free of liens, encumbrances, boundary disputes, or ownership claims.

This involves checking:

• Property ownership history

• Easements or rights-of-way

• Outstanding taxes or utility charges

• Mortgages registered against the property

• Legal restrictions or zoning issues

In Quebec, where the real estate lawyer Montreal operates under the civil law system, land registry and title verification may also involve collaboration with a notary. Still, title clarity remains paramount across all jurisdictions.

3. Facilitating Real Estate Financing and Mortgage Registration

If you’re a buyer using a mortgage, your real estate lawyer will:

• Coordinate with your lender

• Review the mortgage commitment terms

• Ensure the property appraises correctly

• Register the mortgage with the land registry office

They’ll also explain your mortgage responsibilities, interest rates, and penalties for early repayment or default.

For investors or commercial clients, this step might involve more complex real estate financing structures, such as bridge loans, refinancing agreements, or multi-property financing strategies. An experienced real estate litigation attorney can also step in if there are delays or disputes with lenders.

4. Preparing the Statement of Adjustments

On closing day, financial adjustments are made to account for prepaid expenses and costs incurred by the seller. This ensures that the buyer pays their fair share and the seller is reimbursed for what they’ve already covered.

Common adjustments include:

• Property taxes

• Condominium fees

• Utilities

• Rental income or deposits (in investment properties)

Your real estate attorney will draft the Statement of Adjustments that outlines:

• Purchase price

• Credits (deposit, mortgage advance)

• Debits (adjustments and legal fees)

• Total balance due on closing

This document must be accurate down to the cent to avoid post-closing real estate litigation.

5. Ensuring Insurance and Legal Compliance

Your residential real estate attorney will confirm that:

• You’ve secured home insurance (a requirement by lenders)

• Property use complies with zoning and municipal regulations

• Any permits (e.g., for renovations) are in place

If buying a condo, your lawyer will also review:

• Status certificate

• Reserve fund details

• Condo board regulations

For buyers working with Montreal law firms, understanding French-language condo documents or Quebec-specific property regulations requires legal fluency and local expertise.

6. Handling Legal Disbursements and Trust Funds

Your real estate lawyer holds funds in a trust account to:

• Disburse payment to the seller’s lawyer

• Pay land transfer taxes

• Cover title insurance premiums

• Settle legal and registration fees

They also ensure the seller’s mortgage is paid off and discharged. All payments are tracked, reported, and finalized through legal trust accounting.

Mismanagement of these funds is not only unethical but can lead to serious consequences—including criminal charges or civil real estate litigation. This is why hiring a lawyer with a strong track record and reputation is critical.

7. Title Transfer and Registration

Once all funds are confirmed and documents are in order, your lawyer will register:

• The transfer of title (ownership)

• The mortgage

• Any easements or right-of-way agreements

In Quebec, these steps often involve both the real estate lawyer in Montreal and a notary who finalizes the deed of sale (acte de vente).

Once registered, the buyer becomes the legal owner of the property. The registration details are also sent to the municipality for tax purposes.

8. Managing Last-Minute Issues and Delays

Closings don’t always go smoothly. Sometimes:

• The seller hasn’t vacated on time

• A last-minute lien appears on the title

• A mortgage isn’t advanced on schedule

• The walkthrough reveals major damage

A skilled real estate litigation attorney can step in to:

• Delay the closing legally (without breaching contract terms)

• Hold back funds in escrow

• Negotiate temporary occupancy agreements

• File legal action if needed

Having legal representation at closing ensures your rights are protected if anything unexpected arises.

9. Providing the Buyer or Seller With Final Documentation

Once the closing is complete, your real estate attorney will provide you with a final report that includes:

• Deed/title documents

• Mortgage documents

• Tax registration forms

• Adjustments statement

• Proof of payment and legal fees

Buyers should store these documents safely, as they will be needed for future sales, estate planning, or real estate litigation if ownership is ever disputed.

Real Estate Lawyers in Montreal: A Civil Law Perspective

In Montreal and throughout Quebec, real estate transactions fall under civil law, which differs from the common law used in the rest of Canada.

What’s different?

• A notary is often required to legally validate and register property sales.

• The role of a real estate lawyer Montreal is often advisory or for dispute resolution rather than direct transactional execution.

• All contracts and documents must comply with Quebec’s Civil Code, and many are written in French.

That said, Montreal-based law firms with bilingual lawyers often play a dual role, handling both legal and notarial oversight, especially in complex or commercial property closings.

Why Choose the Right Real Estate Lawyer for Closing?

Closing on a property isn’t just a paperwork exercise—it’s a legal, financial, and often emotional turning point. Choosing the right real estate attorney ensures:

• You meet all legal obligations

• You avoid costly errors or oversights

• You gain peace of mind during one of life’s biggest decisions

Look for a lawyer with:

• Strong reviews and reputation

• Deep knowledge of local laws and municipal systems

• Experience in real estate financing

• Access to paralegals, notaries, and litigators when needed

Whether you’re buying a condo in downtown Montreal or selling an investment property in Toronto, an experienced residential real estate attorney makes all the difference.

Final Thoughts: Your Lawyer Is Your Last Line of Defense at Closing

Closing day is a milestone, but it’s also a legal turning point where ownership and responsibility officially transfer. Your real estate lawyer is the key professional ensuring that nothing gets missed, misfiled, or mismanaged.

From title checks to mortgage registration, from document review to financial disbursements, their role is indispensable. For clients in Quebec, working with a skilled real estate lawyer Montreal or one of the trusted Montreal law firms guarantees that your transaction is compliant with civil law and local regulations.

And should anything go wrong—late payments, undisclosed damages, or breaches of contract—a real estate litigation attorney becomes your advocate for protecting what’s rightfully yours.