In our latest webinar on residential real estate law, hosted by The Legal Innovation Forum in association with LEAP and Closer, we brought together legal and technology leaders to examine the shifting terrain of residential transactions in Canada. With market conditions in flux (on account of rising financing complexities, client uncertainty, and greater operational pressure) our panel explored how lawyers are adapting their workflows, enhancing client communication, and leveraging legal tech to navigate this moment of disruption.
Attendees heard firsthand how firms are dealing with presale risks, evolving lender expectations, and tighter transaction timelines, while also embracing tools that streamline conveyancing and improve service delivery.
The panel featured Lisa Niro, Managing Partner at Bell Alliance LLP; Ali Sodagar, Lawyer at Sodagar & Company; David Richardson, Business Development Manager at LEAP; and Harrison Kelly, Co-Founder and CEO of Closer. The session was chaired by Andrew Bowyer, Founder and CEO of The Legal Innovation Forum.
This three part blog series distills key insights from the conversation, with select video excerpts to explore the discussion further.
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The Canadian residential real estate market has shifted dramatically since the highs of 2021–2022. As transaction volumes cool and inventory builds in major centres like Toronto and Vancouver, legal professionals are now operating in a landscape that is leaner, more complex, and increasingly dispute-prone.
“Nothing feels like a simple deal anymore,” noted Lisa Niro, Managing Partner at Bell Alliance LLP. “Every file has a bit of hair on it.”
This sentiment is echoed by Ali Sodagar, Lawyer at Sodagar & Company, who highlighted how cooling demand and tightening credit have reshaped transaction dynamics.
“We’re seeing more conservative financing, especially in the presale space. Developers who once had firm commitments are now renegotiating under pressure, often involving private lenders.”
Lawyers are being called upon not only to execute deals but to problem-solve. With more subject-to clauses appearing in contracts and lenders reassessing risk, lawyers are stepping into a central advisory role. Pre-sale contract defaults, increased litigation, and more intricate negotiations are becoming part of the daily rhythm.
And as Harrison Kelly, Co-Founder and CEO of Closer, pointed out: “Transactions are getting more complex… if we can eliminate low-value manual tasks, then lawyers can focus where it matters most.” This underscores a key shift in how firms are thinking about resourcing and technology. “When things are slower, there’s pressure to do more with what you have, or to do more with less.”
Beyond the operational challenges, this transition has significant strategic implications. In a slow market, firm profitability can suffer unless new value propositions are developed, often by rethinking pricing models, improving internal efficiency, and doubling down on client service.
“Volume is down, but complexity is up,” added David Richardson, Business Development Manager at LEAP. “Firms are managing multiple complex deals simultaneously, and disconnected systems make that even harder.”
Meanwhile, lawyers are contending with heightened client anxieties, tighter timelines, and more nuanced title and financing structures. Many are working within fixed-fee models, where profit margins are increasingly thin. The result: A growing premium on legal acumen, responsiveness, and the ability to navigate uncertainty with confidence.
“I think we all thought 2025 would be the turnaround year,” said Niro. “But with delays in interest rate relief and global uncertainty, the rebound may take longer. That said, there’s a huge amount of pent-up demand waiting in the wings. When the rebound comes, it could be fast and fierce.”
Ali Sodagar agreed that capital is still present, just waiting for the right conditions. “There’s still a lot of capital in the market. When interest rates shift or geopolitical uncertainty eases, that capital will re-enter. But for now, we’re in a holding pattern.”
In this bottlenecked market, lawyers who can guide clients through difficult deals, anticipate the next shift, and deliver meaningful counsel, especially under pressure, are the ones who will come out ahead. As the environment continues to evolve, staying close to the ground and closer to clients will define which firms are best positioned to lead the recovery.