Lawyer vs. Paralegal vs. Law Clerk: The 2026 Guide to Ontario Legal Representation
Why the "Big Three" Transactions Require a Lawyer’s License
The Executive Summary: In Ontario, the legal landscape is divided between distinct professionals: Lawyers, Licensed Paralegals, and Law Clerks. While they all work within the justice system, they serve very different functions. A common misconception is that a paralegal is simply a "cheaper lawyer" who can handle any file. In reality, Real Estate, Corporate Law, and Wills & Estates fall into a "protected scope" that strictly requires a Lawyer. Understanding this difference—and the role of the Law Clerk who supports them—is key to ensuring your transaction is valid, insurable, and secure.
At Cabinet Sauvé Law, we field questions every day from clients in Ottawa, Rockland, and Barrie who are trying to decide which professional they need.
The confusion is understandable. In other provinces (and on American TV suits), "paralegals" are often portrayed as general support staff. In Ontario, however, Paralegals are independent practitioners with their own Law Society license.
But independence has limits. When it comes to the "Big Three" milestones of your life—buying a home, building a business, or planning your legacy—the law is clear: You need a Lawyer.
To make the best decision for your family or business, you need to understand the three distinct roles that operate inside a modern law firm.
Section 1: The Players on the Board
Before we explain who does what, let’s define the licenses.
1. The Lawyer (L1 License)
- Education: Undergraduate Degree + Law Degree (JD/LL.B) + Articling + Bar Exams.
- Scope: Unlimited. A lawyer can practice in any area of law, from constitutional Supreme Court arguments to simple traffic tickets.
- The Key Role: Ultimate liability. The lawyer is the one who carries the insurance and the authority to give "Undertakings" (legal promises) that make transactions happen.
2. The Licensed Paralegal (P1 License)
- Education: Accredited College Program + Licensing Exam.
- Scope: Limited and Specific. They are independent practitioners authorized to represent clients in lower courts (Small Claims) and tribunals (Landlord & Tenant Board).
- The Key Role: Advocacy in disputes. They are "litigators" for everyday legal problems.
3. The Law Clerk (No Independent License)
- Education: College Diploma (Law Clerk) or on-the-job training, and/or years of experience.
- Scope: Support Only. A Law Clerk cannot represent you in court or give legal advice. They work strictly under the supervision of a Lawyer.
- The Key Role: The engine room. In Real Estate and Corporate law, the Clerk does the drafting and the searching, but the Lawyer must review and sign everything.
Section 2: Real Estate – The "Undertaking" Rule
The most common question we get is: "Can a paralegal close my real estate deal to save me money?"
The Answer: No. In Ontario, a Licensed Paralegal cannot close a real estate transaction.
This isn't just about "protecting turf"; it is about how the land registration system works. Ontario’s system relies on a concept called the Solicitor’s Undertaking.
When you buy a house, money often changes hands before the title is officially updated. The bank releases the mortgage funds only because a Lawyer gives a personal, legally binding promise (an Undertaking) that they will register the mortgage and pay off the seller's debts.
- The Restriction: Only a Lawyer can give a Solicitor’s Undertaking. A Paralegal cannot. Therefore, a Paralegal cannot secure the mortgage funds required to buy your home.
"But I spoke to someone who wasn't a lawyer..."
You likely spoke to a senior Law Clerk. At Cabinet Sauvé Law, our Real Estate Law Clerks are incredibly skilled. They prepare the Transfer, communicate with the city regarding tax adjustments, and draft your mortgage documents.
However, they are not acting independently. Every document they prepare is reviewed by the Lawyer, and on closing day, it is the Lawyer’s digital signature that registers the deed in the Teraview system.
Section 3: Corporate Law – Liability & Opinions
Many business owners assume that incorporating is just "filling out forms." If it were that simple, AI could do it. But Corporate Law is about Liability Protection, not just paperwork.
While a Paralegal or Law Clerk can file a basic Articles of Incorporation, they cannot provide the structural advice that protects you.
The "Legal Opinion" Requirement
Eventually, your business will need money. Whether it’s a bank loan for a new truck or a line of credit for expansion, the lender will require an Independent Legal Opinion (ILO).
- The Rule: Only a Lawyer can sign an ILO confirming that your corporation is valid and that the directors have the authority to borrow.
- The Structure: Complex moves like Section 85 Rollovers (which we discussed in our previous Blog post) involve interpreting the Income Tax Act. If a non-lawyer sets this up incorrectly, you could trigger a massive personal tax bill. A Lawyer’s liability insurance covers this advice; a Paralegal’s insurance generally does not.
Section 4: Wills & Estates – The Capacity Test
Drafting a Will appears simple—it’s just a list of who gets what, right? Wrong. In Ontario, Licensed Paralegals are generally not permitted to draft Wills or apply for Probate (Certificates of Appointment) independently.
Testamentary Capacity & Undue Influence
A Will is the most contested document in law. If you leave one child out, or if you sign it while suffering from early-stage dementia, that Will can be challenged.
- The Lawyer's Job: A Lawyer is trained to conduct a formal "Capacity Assessment" during the meeting. We take detailed notes to prove that you knew what you were doing and were not being pressured by a greedy relative. These notes are often the only thing that saves a Will in court 10 years later.
- The Trust Factor: Lawyers can create "Henson Trusts" for disabled children or "Spousal Trusts" for blended families. These are complex legal instruments that go far beyond the scope of a Paralegal license.
Section 5: The Paralegal’s Domain – Specialized Disputes
If Lawyers handle the "Big Three" Transactions, what is the role of the Licensed Paralegal at Cabinet Sauvé Law?
Paralegals are the masters of Specialized Disputes and Speed. They shine in high-volume, procedural areas where paying a Lawyer’s hourly rate would be inefficient.
1. Landlord & Tenant Board (LTB)
The LTB is a tribunal, not a court. It has its own rules, forms, and culture.
- Why use a Paralegal? Our Paralegals are in the LTB trenches every week. They know exactly how to draft an N4 notice so it doesn't get thrown out for a technicality. Hiring a senior lawyer for a standard eviction is often overkill; our Paralegals get the job done efficiently and cost-effectively.
2. Small Claims Court
For disputes under $50,000 (e.g., unpaid invoices, contractor disputes, fence wars), Small Claims Court is the venue.
- The Value: In Small Claims, you cannot recover large legal fees. If you pay a lawyer $5,000 to chase a $5,000 debt, you have lost before you started. Our Paralegals provide affordable, skilled advocacy to ensure your pursuit of justice makes financial sense.
3. Notary Services
In Ontario, Paralegals are now authorized to act as Notaries Public.
- The Convenience: If you need a travel consent letter notarized or a "certified true copy" of a document, you don't need a legal opinion. You need speed. Our Paralegals are available to get you stamped and signed quickly, often without the wait time associated with a Lawyer.
The Cabinet Sauvé Advantage: THE Integrated team
This is where the "Peace of Mind" motto truly applies.
At many firms, you have to choose: Do I hire a "cheap" paralegal firm and risk being out of my depth? Or do I hire an "expensive" law firm and overpay for simple matters?
At Cabinet Sauvé Law, you don't need to make the choice. We assign the most talented and appropriate team members to your matter, with service and value always in mind.
- Buying a House? Our Lawyers handle the Title and Undertakings, supported by skilled Law Clerks to keep costs down.
- Evicting a Tenant? Our Paralegals handle the LTB hearing efficiently.
- Need a Will? Our Law Clerks assist our Lawyers in drafting the document to ensure it stands the test of time.
- Incorporating a Business? Our skilled Law Clerks will prepare all of the required documents, suggest time-saving and value-oriented options, and work hand-in-hand with our Lawyers and your Accountant to provide the services you need.
- Need a Document Notarized? Our Paralegals and/or Lawyers are available by appointment to meet with you, to review and sign what you require.
We respect the boundaries of each license to ensure you are always protected, always compliant, and always paying the right price for the service you need.
Contact us today to discuss your legal needs. Whether it’s a transaction or a dispute, we have the right professional ready to help.
