Buying or selling property privately — without a realtor — can seem like a great way to save money. But while you might skip the commission, you shouldn’t skip legal protection.
At Willing Law, we regularly assist clients who entered private deals that later became expensive, stressful, or legally complicated. Here are the four biggest legal pitfalls in private real estate transactions — and how to fix them before they cost you.
1. Poorly Drafted or Incomplete Agreements
In private sales, buyers and sellers often use online templates or self-drafted contracts that miss key legal terms — such as representations, warranties, deposit handling, title issues, or remedies for breach.
Why it matters: A vague or incomplete agreement can make it difficult to enforce your rights or recover your deposit if the deal goes sideways.
How to fix it: Have a lawyer draft or review your Agreement of Purchase and Sale before signing.
2. Missing Key Conditions (Inspection, Financing, or Lawyer Review)
Private buyers often feel pressured to make “clean” offers without conditions — especially when negotiating directly with a seller. But skipping essential conditions can trap you in a risky deal.
Why it matters: Without conditions like home inspection, financing approval, or lawyer review, you could miss hidden defects, funding issues, or contractual errors and find yourself in a contract you’re already legally bound to close.
How to fix it: Always include these key conditions:
Home inspection – to uncover structural or safety issues.
Financing – to ensure your lender has formally approved your mortgage.
Lawyer review – to confirm the agreement protects you.
At Willing Law, we help clients structure their offers with smart, protective conditions that reduce risk while keeping your deal competitive.
3. Assuming Vacant Possession When Tenants Occupy the Property
If the property you’re buying is currently rented, you can’t automatically assume the tenants will move out by closing — even if the seller promises they will.
Why it matters: Under Ontario’s Residential Tenancies Act (RTA), tenants have significant rights. Unless they receive proper legal notice (such as a valid N12 or N13) and vacate before closing, they are legally entitled to remain in the unit.
If the tenant does not vacate:
You become the new landlord, bound by the existing lease terms and rent amount.
You cannot evict the tenant immediately — eviction must go through the Landlord and Tenant Board (LTB), which can take months.
Your financing or move-in plans may collapse if vacant possession was a condition of your mortgage or your intent to occupy.
How to fix it:
✅ Confirm in writing that the seller will deliver vacant possession.
✅ Have your lawyer review all tenancy documentation and notice forms for legal compliance.
✅ If you need the property vacant, include a condition making your offer contingent on the tenant vacating before closing.
At Willing Law, we identify these red flags early and protect your interests long before closing day — ensuring you don’t become an accidental landlord.
4. Improper Handling of Deposits and Closing Funds
Without a realtor’s brokerage trust account or a lawyer's trust account, deposits in private deals are often paid directly between buyer and seller — a serious risk if the transaction falls through.
Why it matters: Recovering your deposit can become a legal battle if the deal collapses or one party refuses to release the funds.
How to fix it: Always have your deposit held in trust by your lawyer.
Protect Your Private Deal Before It’s Too Late
A private real estate deal doesn’t have to mean risky business. With the right legal oversight, you can close confidently, protect your investment, and avoid costly surprises.
Whether you’re buying, selling, or refinancing privately, the team at Willing Law can help.
Contact Willing Law today to speak with a real estate lawyer who can safeguard your private deal.
Call ys today 519-9803476 to get started.