The Importance of Due Diligence in Toronto Real Estate: What to Look for Before Closing

Buying real estate in Toronto is a significant investment, and for many, it marks one of the most important decisions in life. Whether you’re purchasing a condo downtown or a house in the suburbs, due diligence is a critical part of the process. It helps you avoid surprises, manage risks, and ensure that the property you’re buying meets your expectations. At Mayfair Law Group, we specialize in Toronto real estate law, ensuring buyers are well-informed and protected at every step.

In this blog, we’ll walk through the essential aspects of due diligence you need to cover before closing on a property and explain how an experienced Toronto real estate lawyer can make a difference.

Title Search: Verifying Ownership and Liens
A key part of due diligence is conducting a title search. This step ensures that the seller has legal ownership of the property and that there are no unexpected liens, mortgages, or encumbrances attached to it. Buyers must confirm that the title is clear to avoid issues that could complicate the sale or ownership down the road.

A Toronto real estate lawyer from Mayfair Law Group will conduct a thorough title search and address any red flags to ensure you have clear ownership at closing.
Condo Status Certificate Review
If you are buying a condo, reviewing the status certificate is an essential part of due diligence. The status certificate outlines the financial health of the condo corporation, including:
- Any outstanding debts or special assessments
- The reserve fund balance
- Rules and restrictions affecting the unit (e.g., pet policies or short-term rentals)
This document offers insights into potential future costs or limitations. A Toronto real estate lawyer can review the status certificate and advise whether it raises any concerns that could affect your purchase.
Zoning and By-Law Compliance
Zoning regulations dictate how properties can be used in specific areas. Whether you are buying a home for personal use or planning to renovate or build, it’s essential to ensure that the property complies with Toronto zoning by-laws. If you plan on future renovations, you’ll need to know if zoning restrictions could affect your project.

An experienced Toronto real estate lawyer can help you understand the legal framework and ensure that the property meets all zoning requirements before you proceed.
Home Inspection: Identifying Structural Issues
While many buyers are tempted to skip the home inspection, it remains one of the most critical components of due diligence. A licensed inspector will evaluate the home’s condition and identify any structural, electrical, or plumbing issues that could become expensive problems in the future.

The findings of a home inspection could also provide leverage in negotiating repairs or a price reduction with the seller. A Toronto real estate lawyer from Mayfair Law Group can help facilitate this process, ensuring any necessary adjustments are included in the final agreement.
Mortgage and Financing Review
Another essential part of due diligence is confirming your financing. Ensure your mortgage terms are in place and aligned with your purchase plans. It's also crucial to review the fine print on your mortgage commitment to avoid surprises at closing. Some lenders may impose additional conditions that need to be addressed before funds are released.

A Toronto real estate lawyer will work closely with your lender to ensure all financing conditions are satisfied and that the closing process runs smoothly.
Closing Costs and Budget Planning
Due diligence also involves understanding the total closing costs. Beyond the purchase price, buyers need to account for additional expenses, including:
- Land transfer tax (with specific rules for Toronto)
- Legal fees
- Title insurance
- Home insurance
- Property taxes
A Toronto real estate lawyer will ensure you’re fully aware of these expenses, so you can budget accordingly and avoid last-minute financial surprises.
Ensuring All Agreements Are in Writing
A common pitfall for first-time buyers is relying on verbal promises made during negotiations. Whether the seller agrees to include appliances or make repairs, it’s crucial to have all agreements documented in writing and reflected in the purchase agreement. A Toronto real estate lawyer ensures that any special terms are legally binding and accounted for in the contract to protect your interests.

Why Work with Mayfair Law Group?

Purchasing real estate is a complex process that involves multiple steps and legalities. Without proper due diligence, buyers could face unexpected challenges ranging from undisclosed liens to unplanned repair costs or zoning issues. Working with an experienced Toronto real estate lawyer ensures that you avoid potential pitfalls and move forward with confidence.

At Mayfair Law Group, we specialize in Toronto real estate law, helping clients with everything from title searches and zoning compliance to mortgage coordination and closing procedures. We are committed to making your real estate journey as smooth and stress-free as possible.

Mayfair Law Group is here for you

Ready to buy property in Toronto or the GTA? Let the experienced team at Mayfair Law Group help guide you through the process. Whether you’re purchasing a condo, house, or investment property, our Toronto real estate lawyers will ensure your transaction is legally sound and your interests are protected at every step.

Contact Mayfair Law Group today to schedule a consultation and make your real estate purchase a seamless and successful experience!

With the Toronto real estate market as competitive as ever, performing thorough due diligence is essential to avoid costly mistakes. With the support of an experienced Toronto real estate lawyer at Mayfair Law Group, you can navigate every step of your property transaction with confidence and peace of mind.