Disclosure: DROZlegal publishes this guide and builds the closing-document generation tools described below. This article is general information about Ontario real estate closings, not legal advice, and does not create a solicitor-client relationship; it reflects Ontario law and publicly available research as of August 27, 2026.
What "generating" a closing document actually means
Four documents make up the closing-report package on an Ontario real estate file, and they are not interchangeable. The client reporting letter tells the client what happened with their money. The lender reporting letter tells the lender the mortgage registered and funds were used as instructed. The statement of adjustments is the financial ledger — purchase price, deposit, prorated taxes and fees, the balance due. The undertakings schedule lists what each side promised to do after closing and by when.
Per DROZlegal's own capability inventory, all four generate from a hand-authored, fixed-layout document registry (doc_registry.py) as firm-letterhead DOCX and PDF — one of ten fixed-layout real estate document types the registry now covers, the other six spanning a pre-closing requisition letter, additional closing-day paperwork (a direction re title and funds, a statutory declaration), and post-closing FCT discharge/payout/lender-final-report correspondence, none covered in this piece. "Fixed-layout" is the operative word: each document type has a defined structure the system fills with case data, rather than an AI model composing free-form legal correspondence from scratch. That distinction matters for a lawyer evaluating any closing tool — a fixed layout is easier to audit line-by-line against source documents than a paragraph an AI wrote on the fly.
Where the numbers come from before a document is even drafted
A statement of adjustments is only as good as the figures feeding it. Before a document generates, three separate, task-specific agents review the source paperwork for that file — a purchase review agent for the agreement of purchase and sale, a title search agent for the title search results, and a mortgage review agent for the lender's instructions. Each is scoped to one document type on real estate closings only, not a single generalist reviewer claiming to read the whole file.
None of the three acts on what it finds. Per DROZlegal's agent registry, the real estate review trio sits among the 17 of 22 platform agents marked auto_dispatchable=False — they observe and propose, and a lawyer decides what happens next. The deadline side works the same way: real_estate_transaction_service.py wires the file's dates through the platform's deterministic deadline engine using Rule 3.01's business-day, holiday-roll-forward computation, so a requisition or closing deadline lands on the calendar without a human doing the date math — but the deadline itself is a calculated fact for a lawyer to confirm, not an action the system takes.
The four documents, at a glance
| Document | What it reports | What a lawyer checks before signing |
|---|---|---|
| Client reporting letter | Purchase price, deposit, mortgage, net proceeds or amount due, closing summary for the client | Every dollar figure against the APS and mortgage instructions; correct legal names and property description |
| Lender reporting letter | Confirms registration and that mortgage funds were used as instructed | Mortgage amount and priority match the lender's instructions; conditions were actually satisfied |
| Statement of adjustments | Purchase price, deposit credit, prorated property tax/condo fees/utilities, balance due on closing | Proration math against the adjustment date; tax and condo-certificate figures against source documents |
| Undertakings schedule | What each side promised to do after closing, and by when | Every undertaking accurately described, with the right deadline and the right party named |
Source: docs/CAPABILITIES.md, Section 8 (real estate document generation) and Section 3 (agent dispatch and deadline engine).
None of that four-document review replaces a lawyer's own diligence, and none of it is optional to skip. The statement of adjustments touches trust money by definition — and trust money movement is one of DROZlegal's six permanent hard ceilings, never automated on this file or any other. DROZlegal drafts the numbers; a lawyer reviews the trust math and personally authorizes any disbursement.