- Your lawyer represents only you.
- Deposits sit in a lawyer's trust account.
- Title transfers only when funds are in trust.
- Private-lender deals close the same way as bank deals.
1. Accepted offer and deposit
Have your lawyer review the offer before you sign. The deposit is paid into a lawyer's trust account, usually within 24 to 48 hours of acceptance.
2. Conditions
Typical conditions are financing, inspection and, for condos, document review. The buyer has a set number of days to remove them in writing. With private financing, the lender has already pre-qualified the buyer before the showing.
3. Lawyers do the paperwork
Your lawyer gets a mortgage payout statement, prepares the transfer and statement of adjustments (property tax, utilities, condo fees) and coordinates with the buyer's lawyer.
4. Closing day
The buyer's lender sends funds to the buyer's lawyer, who sends them to your lawyer in trust. The transfer is registered, your mortgage is paid out, and your lawyer sends you the balance. Keys are released once the deal is complete.
Typical seller costs at closing
| Cost | Typical amount |
|---|---|
| Real estate lawyer (seller side) | About $1,000 to $2,500 plus disbursements |
| Mortgage discharge / payout fees | Varies by lender |
| Land transfer tax | Usually paid by the buyer |
| Realtor commission | $0 when you sell privately |
Sell it yourself, with more buyers calling
Add the private-financing header to your ad and let our private lender qualify the buyers the banks turn away. No commission, no contract, no obligation. Listing takes about 5 minutes.
Frequently asked questions
How does closing work?
The same as a sale with bank financing. The private lender forwards the funds to their lawyer, who completes the transaction with the seller's lawyer. All paperwork goes through the lawyers.
Do both the buyer and seller need a lawyer in Canada?
Yes. Each side should have their own lawyer (or notary where allowed). With private financing, the lender also has a lawyer.
When do I get paid when I sell my house privately?
On closing day, after your lawyer receives the funds in trust, pays out your mortgage and registers the transfer. Your lawyer then releases the balance to you.
Is this a scam? Can my house be stolen?
No. Nothing is signed with us. Once the lender approves a buyer and they write an offer, the buyer, the lender and you each choose your own lawyer. The lender sends the funds to their lawyer, who closes with your lawyer, exactly like a bank-financed sale.
Related guides
General information for Canadian home sellers, not legal, tax or financial advice. Rules and fees change, so confirm the details with a real estate lawyer in your province before you sell.