What Private Sellers Need to Know About Ontario Real Estate Law

Ontario Law Supports Private Sales

The Trust in Real Estate Services Act (TRESA), which came into effect in December 2023, explicitly acknowledges the right of Ontario homeowners to buy and sell property without agent representation. This is not a loophole — it is a codified right.

TRESA replaced the old Real Estate and Business Brokers Act (REBBA) and modernized how real estate services work in Ontario. One of its key provisions is that consumers can choose their level of representation, including no representation at all.

The Agreement of Purchase and Sale (APS)

Ontario's standard residential purchase contract is the Agreement of Purchase and Sale (APS), commonly known as OREA Form 100. This is the legal document that binds buyer and seller once signed.

The APS covers the purchase price, deposit amount and how it is held, completion and possession dates, chattels and fixtures included in the sale, conditions (financing, inspection, lawyer review), and representations and warranties.

While OREA forms are designed for use by registered agents, private sellers can use them or work with their lawyer to draft a similar agreement. Many Ontario lawyers are familiar with private transactions and can prepare the APS for you.

The SPIS: Optional But Strategic

The Seller Property Information Statement (SPIS) is not legally required in Ontario. However, completing one can work in your favour.

The SPIS is a detailed questionnaire about your property's condition, history, and any known issues. If you fill it out honestly, it becomes a record of what you disclosed at the time of sale. If a buyer later claims you hid a problem, the SPIS demonstrates your transparency.

Important: once you start filling out the SPIS, you must complete it truthfully. Partial or misleading answers can create more liability than not providing one at all. When in doubt, write what you know and mark anything uncertain.

Land Transfer Tax and Closing Costs

Ontario buyers pay Land Transfer Tax (LTT) on closing. In Toronto, there is an additional municipal LTT. As a seller, you do not pay this tax, but you should be aware of it because it affects your buyer's total cost and their willingness to pay your asking price.

As a seller, your main closing costs are your lawyer's fees ($1,400 to $2,200), any outstanding mortgage discharge fees ($200 to $400), and the real estate commission you are not paying by selling privately.

On a $900,000 Toronto home, the typical agent commission of 5% would be $45,000. Even after paying your lawyer, you keep tens of thousands more by selling directly.

Working Without an Agent in Ontario

When a buyer who has their own agent wants to view your home, you are not obligated to pay their agent's commission. This is a negotiation point. Some private sellers offer a cooperating commission (typically 2% to 2.5%) to attract agent-represented buyers. Others choose not to and focus on unrepresented buyers who are also saving money.

TRESA requires that if an agent is involved on either side, they must follow specific disclosure and service obligations. As a private seller, you are not bound by these rules — but your lawyer should review any offers regardless of how they arrive.

The Bottom Line

Ontario's legal framework fully supports private home sales. TRESA codifies your right to self-represent, your lawyer handles the same closing process regardless of agent involvement, and the APS protects both parties.

The real question is not whether you can sell privately in Ontario — it is why you would pay $45,000 in commissions when you do not have to.

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