Selling a home in Ontario without a realtor is more common than you might think. Many homeowners choose this route to save on commission fees and maintain full control over the process. This is often called FSBO, short for “For Sale by Owner.”
While the idea can sound straightforward, there are legal steps, risks and important details that you must follow. Ontario has specific rules for real estate transactions, and missing a requirement can cause delays or even cancel a deal.
In this guide, we will walk through exactly how to sell a house privately in Ontario, from setting the right price to finalizing the paperwork. You will see what works well, what risks to prepare for, and how a real estate lawyer can guide you through the process.
By the end, you will have an understanding of what it takes to handle the sale yourself while protecting your time, money, and peace of mind.
- Is Selling a House Privately Legal in Ontario?
- Essential Documents for a Private Sale
- Why Choose FSBO (Pros and Rewards)
- Risks and Drawbacks to Know
- ● Selling privately often results in less exposure to potential buyers
- ● Buyer agents may still expect a commission even in a private sale
- ● Selling privately means taking on all the work yourself
- ● Setting the wrong price is a risk when selling privately
- ● Mistakes in disclosures or paperwork can lead to legal problems
- ● Selling privately requires extra attention to safety during showings
- Step-by-Step: How to Sell a House Privately in Ontario
- The Lawyer’s Job in a Private Home Sale
- Final Thoughts
Is Selling a House Privately Legal in Ontario?
Yes. In Ontario, homeowners are not required by law to hire a licensed realtor when selling their property.
You have the legal right to handle the sale yourself. This approach is often called “For Sale by Owner” or FSBO. However, selling privately does not mean skipping the rules. You must still follow the same legal requirements that apply to any real estate transaction in the province.
This includes using the correct legal forms, making all required property disclosures, ensuring the title to your property is clear, and completing the transaction through a proper closing process. The closing must be handled by a real estate lawyer who is licensed to practise in Ontario.
A real estate lawyer can assist with the process ahead of closing the deal, such as drafting or reviewing the Agreement of Purchase and Sale to ensure it is legally sound and protects your interests. A real estate lawyer can explain key terms, advise on conditions such as financing or inspections, and negotiate amendments with the buyer’s agent if needed. They can also perform a title search to confirm that there are no legal issues such as liens, unpaid mortgages, or other claims attached to your property. If any issues are found, they will guide you in resolving them before closing.
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Insight Law Professional Corporation is a real estate law firm located in Toronto. If you’re ready to start, consider speaking with an experienced real estate lawyer to assist with the process.
Essential Documents for a Private Sale
Selling your home privately means you handle the legal documents yourself, with your lawyer’s help. The most important is the Agreement of Purchase and Sale. This is the signed contract between you and the buyer. It sets out the price, deposit, what’s included or excluded, and any conditions.
Every sale is unique, and the terms need to match your situation exactly. A lawyer can draft or adjust the agreement so your rights are protected and there are no gaps.
You may also need:
- A clear list of chattels and fixtures included or excluded from the sale
- Written disclosure of known defects
- Notices or declarations if the property has tenants
Why Choose FSBO (Pros and Rewards)
Selling your home privately in Ontario can save you money and give you complete control over the process.
What else does it offer? Let’s find out!
Selling privately helps you avoid paying realtor commission
One of the biggest reasons homeowners choose to sell a house privately in Ontario is to avoid paying a listing agent’s commission. In Ontario, this fee is often between 4% and 5% of the final sale price. For example, if your home sells for $800,000, that could mean $32,000 to $40,000 in commission costs.
Selling privately gives you full control over the process
When you sell privately, you make all the decisions. You set the asking price, decide when and how to hold showings, and choose how to negotiate offers. There’s no middle person managing the process, so you have direct contact with the buyer’s agent.
Selling to someone you know can be more efficient in a private sale
A private sale can be simple and efficient if you’re selling to someone you already know, like a friend, relative, or neighbour. You don’t need the same level of marketing or buyer outreach that you would if you were selling to the open market.
Selling privately allows you to keep all the equity
All of the money you save in commission stays with you. This extra equity can be used for your next home purchase, renovations, paying down debt, or investing.
Risks and Drawbacks to Know
Choosing to sell without a realtor also comes with challenges. They are:
Selling privately often results in less exposure to potential buyers
Without listing your home on the Multiple Listing Service (MLS) or REALTOR.ca, you may not reach as many potential buyers. While you can still advertise online through other platforms, MLS remains the main tool most buyers and agents use to find homes. Less visibility can mean fewer offers or a longer time on the market. This may also mean that you have fewer opportunities to sell at your desired price.
Buyer agents may still expect a commission even in a private sale
Even if you do not hire a realtor, many buyers will be represented by one. In most cases, their agent will expect you, as the seller, to pay a buyer’s agent commission—usually between 2% and 2.5% of the sale price. You can choose not to offer this, but it may reduce the number of agents willing to show your property to their clients.
Selling privately means taking on all the work yourself
Selling privately means you take on all of the tasks a realtor would normally handle. This includes preparing the home for sale, staging, taking photographs, creating listings, managing inquiries, scheduling and hosting showings, and negotiating offers. It requires time, organization, and patience.
Setting the wrong price is a risk when selling privately
Without a realtor’s market expertise, you could end up setting a price that is too high or too low. Pricing too high may cause your home to sit on the market without interest, while pricing too low means you could leave money on the table. A professional appraisal or detailed market research can help avoid this issue.
Mistakes in disclosures or paperwork can lead to legal problems
Ontario has strict rules around property disclosures. If you fail to disclose certain defects or legal issues with your property, the buyer could take legal action after closing. Incorrect paperwork or missing legal requirements can also delay or jeopardize the sale. Having a real estate lawyer involved from the start helps mitigate these problems.
Step-by-Step: How to Sell a House Privately in Ontario
Let’s walk through the process clearly:
1. Get Legal Support Early
Reach out to a real estate lawyer before you start. They help draft or review your Agreement of Purchase and Sale (commonly OREA Form 100), do a title search, clear liens, handle funds, and help set the stage for a clean closing.
2. Set a Smart Price
Do your homework. Look at recent sales nearby. Consider hiring an appraiser for an accurate number. You can also use online tools carefully and compare similar homes.
3. Prepare the Home
Clean, declutter, do minor repairs, and freshen with paint or simple staging. Good photos matter. If you can afford a professional photographer, that helps; if not, use a good camera with wide angles and lighting.
4. Market Your Home
Options include:
- Flat-fee MLS listing through a brokerage (about $300–500), so your home appears on REALTOR.ca.
- FSBO websites like PropertyGuys.com or PropertySold.ca, some costing $250 to $1,500 for basic to premium support and ads.
- Free platforms like Kijiji, Facebook Marketplace, classifieds, and social media. Be mindful of safety and privacy.
5. Handle Showings and Inquiries
Stay present or have a trusted person there during visits. Secure valuables. Provide a printed sheet with key property details.
6. Review and Negotiate Offers
Look closely at each offer. Check conditions, deposit, inclusions, and proposed closing date. Consult your lawyer before accepting or countering. Their guidance helps avoid legal mistakes.
7. Manage Paperwork and Closing
Your lawyer deals with all documents: the APS, disclosure documents, any tenant notices, title transfer, mortgage payoff, taxes, and closing costs.
The Lawyer’s Job in a Private Home Sale
In a private sale, you do not have access to a realtor who would normally handle the process before a lawyer takes over. You can still contact a real estate lawyer who can assist with the process prior to closing. This is recommended as the lawyer can assist with guidance from start to finish.
A real estate lawyer can prepare or review the contract, check the property title, deal with liens, confirm the sale meets Ontario’s legal requirements, and handle the transfer of funds on closing.
With so many legal steps involved, having a lawyer by your side can prevent costly mistakes and delays.
Final Thoughts
Selling your home on your own in Ontario can save you thousands of dollars in commission. You keep full control over decisions and can manage the process on your own terms.
It does, however, require time, careful planning, and legalities.
If you’re organized, well-informed, and willing to put in the work, selling a house privately in Ontario can be a smart choice. Plan each stage carefully and seek professional help when it’s needed.
The information provided above is of a general nature and should not be considered legal advice. Every transaction or circumstance is unique, and obtaining specific legal advice is necessary to address your particular requirements. Therefore, if you have any legal questions, it is recommended that you consult with a lawyer.
