Private Mortgage Legal Services
Independent legal representation for private lenders and borrowers navigating first, second, and alternative mortgage transactions in Ontario.
Protected Counsel for Private Lending
Private mortgage transactions move fast and require strict adherence to Ontario real estate regulations. Because private loans involve custom term sheets, higher interest rates, and specialized commitment letters, independent legal advice protects both borrowers and private lenders from legal exposure.
At KS Law, we draft and review private mortgage commitments, register legal charges against title, verify equity positions, and ensure funds flow securely on closing day.
Private Mortgage Solutions
Private Lender Representation
Securing your investment by preparing mortgage commitments, title searches, and registering charge documents.
Borrower Representation & ILA
Providing Independent Legal Advice (ILA) and explaining custom loan terms, fees, and obligations before signing.
2nd & 3rd Mortgages
Structuring sub-ordinate charges while coordinating priority agreements with institutional first lenders.
Bridge & Construction Loans
Drafting legal documentation for short-term funding, draw schedules, and renovation financing commitments.
Extensions & Renewals
Preparing formal mortgage extension agreements, rate adjustments, and updated repayment terms.
Discharges & Enforcement
Handling mortgage payout statements, legal discharges from title, and advice on default proceedings.
How the Transaction Works
Commitment Review
We examine the private mortgage commitment letter, interest rates, lender fees, and legal conditions.
Title & Subordination Search
We verify existing property charges, legal title standing, tax status, and priority standings.
Independent Execution
Both parties sign legal security documents with independent legal representation as required by law.
Funding & Registration
We securely disburse mortgage proceeds, pay off prior charges if needed, and register the mortgage in Teraview.
The KS Law Approach
Private real estate financing requires meticulous attention to detail and swift execution:
- Strict Regulatory Compliance: Full alignment with Law Society of Ontario private lending rules.
- Fast Turnaround Times: Accelerated document preparation for time-sensitive private transactions.
- Complete Fee Transparency: Clear breakdowns of legal fees, disbursements, broker fees, and registration costs.
- Objective Counsel: Unbiased guidance ensuring borrowers and lenders understand exact risks before funding.
Frequently Asked Questions
Do private mortgages require separate lawyers for lender and borrower?
Yes. Under Law Society rules in Ontario, the lender and the borrower must generally retain separate, independent lawyers for private mortgage transactions to avoid conflicts of interest.
What is Independent Legal Advice (ILA) in a private mortgage?
ILA is an independent review where a lawyer explains the terms, interest payments, risks, and legal obligations of a mortgage commitment so you fully understand what you are signing.
How fast can a private mortgage close?
Private mortgages can close much faster than institutional loans—often within 48 to 72 hours once title searches are completed and instructions are finalized.
Need Assistance With a Private Mortgage?
Contact our law office to review your loan commitment or schedule an independent legal advice consultation.