Real Estate Transactions: What a Notary Public Can (and Can't) Do

The Real Estate Confusion

Many people assume a Notary Public can handle all their real estate paperwork. In Ontario, the reality is more nuanced.

Let's clarify what notaries can and cannot do in property transactions.

What a Notary Public CAN Do

1. Witness Signatures on Documents

Notaries can witness your signature on various real estate-related documents:

• Authorization letters
• Consent forms
• General agreements

2. Certify Document Copies

Need certified copies of property-related documents?

• Title deeds
• Property surveys
• Tax assessments
• Mortgage statements

3. Administer Oaths and Affidavits

For real estate matters requiring sworn statements:

• Affidavit of residence
• Statutory declarations about property
• Gift declarations for down payments

4. Notarize Power of Attorney

If someone else is signing real estate documents on your behalf, we can help with Power of Attorney witnessing:

• Witness POA signing
• Verify identity of the grantor
• Apply official seal

What a Notary Public CANNOT Do

❌ Complete Real Estate Closings

In Ontario, only lawyers can:

• Transfer property title
• Register documents with the Land Registry
• Handle the legal closing process

❌ Prepare Real Estate Contracts

Notaries cannot:

• Draft purchase agreements
• Prepare mortgage documents
• Create lease agreements

❌ Provide Legal Advice

Notaries cannot advise you on:

• Property rights
• Contract terms
• Legal implications of transactions

❌ Search Title

Title searches and due diligence must be done by a lawyer.

When You Need a Notary for Real Estate

Scenario 1: Gift of Down Payment

Your parents are gifting you money for a down payment. The lender requires a gift letter or statutory declaration confirming the money is a gift, not a loan.

Notary service: Statutory declaration

Scenario 2: Power of Attorney for Closing

You'll be out of the country on closing day and need someone to sign on your behalf.

Notary service: Witness POA signing

Scenario 3: Foreign Property Purchase

You're buying property abroad and the foreign jurisdiction requires notarized documents.

Notary service: Notarized signatures, certified copies

Scenario 4: Rental Property Documentation

You need certified copies of property documents for a mortgage refinance.

Notary service: Certified true copies

Scenario 5: Estate Property Transfer

As executor, you need sworn statements about the deceased's property.

Notary service: Affidavits, statutory declarations

Common Real Estate Documents

The Gift Letter Explained

One of the most common notary services in real estate is the gift letter or statutory declaration for down payment gifts.

Why It's Required

Lenders want to ensure your down payment is:

• Truly a gift (no repayment expected)
• From a legitimate source
• Not a hidden loan

What It Should Include

1. Donor's full name and relationship to you
2. Amount of the gift
3. Statement that repayment is not expected
4. Source of the funds
5. Donor's signature (witnessed by notary)

Sample Wording

"I, [Donor Name], hereby confirm that I am providing a gift of $[Amount] to [Recipient Name] for the purpose of purchasing property at [Address]. This is a true gift with no expectation of repayment."

Power of Attorney for Real Estate

If you can't be present for signing, you'll need a specific Power of Attorney.

Types of POA for Real Estate

Important Considerations

• POA should specifically mention real estate transactions
• Some lenders require specific POA wording
• Have a lawyer prepare the POA document
• Notary witnesses the signing

Costs

Compare this to real estate lawyer fees:

• Real estate closing: $1,000-2,000+
• Title search: $200-400
• Registration fees: Varies by transaction

Working Together: Notary + Lawyer

For most real estate transactions, you'll work with both:

1. Lawyer handles:

   • Legal advice
   • Contract review
   • Title search
   • Closing and registration

2. Notary handles:

   • Gift letters
   • Certified copies for mortgage applications
   • POA witnessing
   • Various sworn statements

Tips for Real Estate Documents

1. Plan Ahead

Gift letters and POAs should be prepared well before closing. Don't wait until the last minute.

2. Check Lender Requirements

Different lenders have different requirements for gift letters. Get the specific requirements from your mortgage broker.

3. Keep Copies

Make certified copies of important property documents for your records.

4. Ask Your Lawyer

If you're unsure whether you need a notary or lawyer for a specific document, ask your real estate lawyer.

Need Real Estate Document Services?

At Minute Notary, we handle gift letters, certified copies, and other notary services for your real estate transactions.

Contact us today with your requirements.

Related Articles

• Power of Attorney in Ontario: What You Need to Know
• Affidavit vs. Statutory Declaration: Which One Do You Need?
• Certified Copies vs. Notarized Copies: What's the Difference?