Why Choose Zinati Kay?

As a local, family-owned business, we are deeply committed to our community. We provide outstanding, reliable service tailored to the specific needs of our neighbors in Toronto.

What areas do you serve?

We proudly serve Toronto, Markham, Pickering, Scarborough and the greater Toronto area.

John Zinati | Real Estate Closing Lawyer Toronto

Property Line Encroachment Laws in Ontario

Property Disputes & Litigation John Zinati

Property line disputes in Ontario: start with evidence, not the fence

Property line encroachment laws Ontario issues should be approached with evidence, not by moving a fence, cutting a tree or removing a structure. Check the title records and available plans first, and obtain an Ontario Land Surveyor’s opinion when the location of the boundary matters.

A boundary dispute is a disagreement about where one property ends and the next begins, or about the right to use land near that line. An encroachment is a physical intrusion onto another person’s land, such as a fence, shed, driveway, retaining wall, eaves or addition crossing the boundary. It may amount to trespass, but the facts, title and remedy still need to be assessed before either owner acts.

Do not assume that a fence, hedge, garden bed, satellite image or a neighbour’s recollection establishes the legal boundary. Removing or damaging something that is later found to be on the neighbour’s land, jointly owned, or permitted by an agreement can create a new dispute and possible liability under the Trespass to Property Act or at common law.

How to find your property line before you act

You can start identifying a property line by reviewing the legal description, parcel register and registered plans, but those records may not answer where the line falls on the ground. A current opinion from an Ontario Land Surveyor is often needed when a fence, structure or tree is close to the apparent line.

To look for records, search OnLand, Ontario’s land registration system, using the property’s address or legal description. The parcel register can identify the PIN, registered owners, instruments and legal description. Registered reference plans, subdivision plans and older survey plans may be available through the records, although interpreting them properly can require professional help.

If you are asking how to get a copy of a property survey in Ontario, first check the documents received when the property was purchased, ask the seller or former owner if appropriate, and ask the real estate lawyer who acted on the purchase whether a survey was provided. A surveyor may also be able to locate historic survey material, but an old plan may not show later construction or resolve a present-day disagreement.

How do you determine property lines without a survey? You can make a preliminary assessment from title documents, plans and visible survey monuments, but it is not conclusive. Online maps are approximate, and an old fence or landscaping may simply show where someone chose to build, not where the legal line lies.

When a survey is needed and who pays for it

The owner seeking certainty commonly arranges and pays for boundary work first, but the cost can be shared by agreement or addressed in a settlement or proceeding. There is no automatic rule that makes one neighbour pay merely because a boundary question has arisen.

An Ontario Land Surveyor can review the applicable evidence and perform the work necessary to express a professional boundary opinion. A Surveyor’s Real Property Report (SRPR) commonly depicts visible improvements in relation to the property boundaries and can identify apparent encroachments, but the scope of work should be discussed directly with the surveyor. A new or updated survey may be more appropriate where marks are missing, plans conflict, or a project is proposed close to the line.

For example, a buyer who owns a $1.1 million Toronto semi-detached home may discover that a proposed rear addition would sit close to the side lot line. Before paying a contractor or applying for permits, the owner could retain a surveyor to assess the boundary evidence and locate the relevant line. If the survey shows the planned wall would cross onto the neighbour’s land, redesigning before construction is ordinarily far less disruptive than negotiating access or removal after the work is complete.

Where both neighbours accept that the line needs to be located, they may agree in writing to jointly retain a surveyor and share the cost. If the facts are contested or an encroachment is significant, learn when it is useful to involve a property dispute lawyer near me before proposing terms or relying on survey material.

What to do when a neighbour may be encroaching

If a neighbour may be encroaching, preserve the evidence, verify the boundary and raise the issue calmly before demanding removal. Do not use self-help by tearing down a fence, moving a shed, blocking access or cutting a tree unless you have obtained advice appropriate to the facts.

Build a practical file before the conversation becomes contentious:

Take dated photographs and video of the fence, structure, driveway, tree, markers and surrounding area.
Save purchase documents, parcel registers, plans, surveys, municipal permits and correspondence.
Write a chronology showing when you first noticed the issue, when construction occurred if known, and each discussion with the neighbour.
Check whether title shows an easement, right-of-way, agreement or other registered interest that could explain the use.
Obtain professional boundary evidence if the issue affects land, access, construction, a sale or a substantial expense.

Once you have reliable information, explain the concern factually and give the neighbour an opportunity to respond. A written agreement should come before either party moves a structure or starts new work. It should identify the property, the issue, the agreed work, responsibility for costs, timing, access and what happens if work is not completed.

A residential dispute lawyer can review title, plans, survey evidence and the practical risks before sending a demand letter. The appropriate request may be removal, access for survey work, a temporary standstill, compensation, a negotiated right to use land, or simply more information; it depends on the evidence and the harm involved.

Trees and property lines

For a tree dispute, confirm the boundary before treating the tree as a boundary tree. A tree whose trunk grows on the boundary is jointly owned by the adjoining owners under section 10 of Ontario’s Forestry Act.

That rule does not mean either owner can unilaterally remove, damage or materially alter a boundary tree. The tree’s condition, risk, municipal tree-protection rules, the exact trunk location and any proposed pruning or removal all matter. An arborist may be needed to assess the tree’s health and risk, while a surveyor may be needed to establish the line.

Overhanging branches and roots involve different questions from ownership of a boundary tree. Damage, safety concerns, fallen trees and municipal bylaw requirements are fact-sensitive, so avoid cutting beyond the boundary or taking irreversible action before obtaining advice. This is particularly important where a mature tree supports a retaining slope, affects a structure, or is subject to municipal protection.

Fences and the Line Fences Act

The Line Fences Act addresses the construction, repair and cost of line fences and provides procedures involving fence-viewers in applicable circumstances. It does not authorize fence-viewers to decide a disputed legal property boundary.

Can you put a fence on the boundary line, and how close can you build a fence to it? Verify the boundary first, then check the applicable municipal zoning and fence bylaws, permit requirements and any title restrictions. A fence built just inside one owner’s land may avoid a boundary-location dispute, but it can still create practical maintenance, drainage or access issues.

Fence-viewers may assist with particular line-fence questions under the Act, but their process is not a substitute for a survey or a court determination where neighbours disagree about the true line. For a short explanation of long occupation, fences and ownership claims, read markham real estate lawyer guidance on property issues before treating an existing fence as decisive.

Are old or “grandfathered” property lines binding?

An old fence, shed or long-standing use does not by itself change the legal boundary. “Grandfathered” may describe how a municipal rule applies to an existing structure, but it is not a general rule that turns a fence line into an ownership line.

Historic occupation can still be legally important. For example, a claim based on adverse possession may require careful review of the occupation, the title history and whether the land is governed by the Land Titles Act or a transitional regime. Do not rely on an assumption that years of use either automatically transfers land or has no legal effect.

Consider a seller whose detached garage has stood near an old fence for decades and who receives a survey showing part of it may cross the line. Before listing the property, the seller should obtain legal advice on disclosure, title, the survey evidence and realistic resolution options. Waiting until a buyer’s lawyer raises the issue can delay the transaction and reduce the parties’ flexibility.

Resolving a boundary dispute without court

Many property line disputes can be resolved without court through informed negotiation, a lawyer’s letter, mediation and a signed settlement. The most useful settlement is specific enough to prevent the same disagreement from returning when either property is sold.

Mediation is voluntary unless the parties agree otherwise, and a neutral mediator helps them explore terms without deciding the boundary. A Toronto mediation lawyer can help a party prepare for mediation, assess proposed terms and document a settlement that reflects the title and survey evidence.

If the arrangement permits ongoing access, shared use or an encroachment to remain, obtain title advice before signing. A personal promise may not adequately protect either party on a future sale, and a permanent arrangement may require a properly documented interest or other legal solution. For maintenance questions involving registered access rights, see markham real estate lawyer information about easements and rights-of-way.

When court or a formal boundary process may be necessary

Court or a formal boundary process may be necessary when the parties cannot agree on the line, an important structure crosses it, or negotiations fail. Depending on the claim and evidence, the Ontario Superior Court of Justice may be asked for a declaration, damages, injunctive relief or another appropriate remedy.

The Boundaries Act may be relevant in appropriate boundary matters, but its availability and procedure depend on the circumstances and should be assessed before it is pursued. A lawyer will consider the survey evidence, title documents, delay, the parties’ conduct, the seriousness of the interference and whether the remedy sought is proportionate.

Is there a statute of limitations on a property line dispute?

There is no single limitation-period answer for every property line dispute because the deadline depends on the claim and remedy. Get advice promptly rather than relying on an old fence, a delay in objecting or a general assumption about the Limitations Act, 2002 or the Real Property Limitations Act.

A claim for damages, a request for injunctive relief, a title-related remedy and an adverse-possession issue can raise different timing questions. Delay may also affect evidence, negotiation leverage and a court’s assessment of the case even where a claim is not clearly barred. Preserve records and seek advice before starting a project, signing an agreement, listing the property or responding to a threatened lawsuit.

When to call a real estate lawyer

Call a real estate lawyer when the boundary evidence conflicts, the encroachment is more than minor, or a proposed solution will affect title, a sale or future use of the property. Early advice is particularly useful before either neighbour takes irreversible action.

Competing surveys, missing survey monuments or unclear plans;
A shed, driveway, retaining wall, addition, eaves or fence alleged to cross the line;
A conflict about a boundary tree, removal, damage or access for repairs;
A neighbour who refuses to discuss the issue or demands immediate action;
Proposed settlement, licence, access arrangement or shared-use terms;
A pending sale, purchase, refinancing or disclosure concern; or
A demand letter, threatened claim or formal proceeding.

Our real estate lawyers can review the title and survey material, identify the legal questions, communicate with the neighbour or their lawyer, and coordinate with the Ontario Land Surveyor where necessary. The aim is to help you make an informed decision about the next practical step.

Ontario property line dispute FAQs

What is an encroachment?

An encroachment is a structure, improvement or use that extends onto land belonging to someone else without a legal right. A fence, shed, garage, driveway, eaves, landscaping or retaining wall can be an encroachment, but the boundary and any registered rights must be checked first.

Can I get my neighbour’s survey?

You can ask your neighbour to share a survey, but they are not generally required to provide a private survey simply because you request it. You may locate registered plans through OnLand or retain your own surveyor if certainty is needed.

Can I build near the property line?

You can only plan safely near a property line after confirming the line and reviewing municipal bylaws, permits, setbacks, title restrictions and construction requirements. A contractor’s measurement from an existing fence is not a substitute for reliable boundary evidence.

What happens if a survey conflicts with a fence?

A survey that conflicts with a fence means the fence should not be treated as conclusive proof of ownership. Preserve the evidence, avoid moving the fence immediately, review the title history and obtain legal advice about the appropriate response.

Does title insurance cover an encroachment?

Title insurance coverage for an encroachment depends on the policy wording, the timing of the issue, exclusions, what was known and the particular facts. Review the policy and obtain advice before assuming that a claim will be covered; see markham real estate lawyer information on title insurance questions.

Speak with a Toronto real estate lawyer

Getting advice early can help you assess the boundary evidence, avoid self-help mistakes and document a workable response to a suspected encroachment.

Call 416-321-8766 or request a quote to discuss your matter with Zinati Kay.

Continue reading

Holding Property in Trust in Ontario: What to Know

Real Estate Tax John Zinati

Holding property in trust in Ontario means that the person shown on title may hold legal title for someone else who has the real economic interest in the property. That separation can affect a purchase, mortgage, estate plan, land transfer tax analysis and federal tax reporting, so it should be documented and reviewed before title is taken or changed.

Legal title is the right to deal with the land on the registry. Beneficial ownership is the right to the property’s value, sale proceeds, income and use, depending on the arrangement. They are often held by the same person, but they do not have to be.

Holding property in trust in Ontario: what it means

A trustee can hold registered title while a beneficiary holds some or all of the beneficial interest. The trustee’s name may appear on the parcel register, but the arrangement behind title can still matter to the Canada Revenue Agency (CRA), a lender, an estate trustee and parties to a property dispute.

For example, a parent may be placed on title to a $900,000 Toronto condominium because the lender requires additional borrowing support, while the adult child pays the down payment, mortgage, condominium expenses and receives the sale proceeds. That fact pattern may suggest that title and beneficial ownership are different, but the result depends on the documents, source of funds, lender documents and the parties’ actual intention.

A trust is not created merely because a transfer says “in trust,” a family member is added to title, or people later describe an arrangement as a trust. Ontario courts look at the legal requirements and evidence. Property owners should have a proposed arrangement reviewed by a real estate transactions lawyer before closing or before registering a transfer.

What is a bare trust?

A bare trust is an arrangement in which the trustee holds legal title but has no meaningful independent discretion over the property. The beneficiary is ordinarily entitled to direct the trustee about the property and receives the benefits and burdens of ownership.

The trustee’s role is therefore narrow: hold title, sign documents when properly directed and account for proceeds as the agreement requires. A bare trustee should not decide who receives income, choose investments or distribute property based on personal judgment. The beneficiary’s rights and the trustee’s limited duties should be clear in writing.

Arrangement	Control and duties	Common issue
Bare trust	The beneficiary directs a trustee with limited independent powers.	Whether the parties actually intended and documented that relationship.
Discretionary or living trust	The trustee may have active duties or discretion for beneficiaries.	Administration, tax treatment and estate-planning consequences can be more involved.
Resulting-trust claim	A person claims that titleholder should hold property for them, often after contributing funds.	The claim may be disputed and must be proved from the evidence and legal presumptions.

A resulting trust is not the same as an agreed bare trust. It is often raised when the parties did not document their intentions, such as after a parent contributes purchase money but title is placed in an adult child’s name. Cases including Rubner v. Bistricer and Lyttleton v. Lyttleton, considered by the Ontario Court of Appeal, illustrate why intention, evidence and the particular relationship matter in ownership disputes.

Declaration of trust and trust agreement for Ontario property

A declaration of trust Ontario property owners use is usually a written statement by the registered owner confirming that they hold specified property for a beneficiary. A trust agreement for property in Ontario is usually more detailed and records the obligations and rights agreed to by the trustee and beneficiary or beneficiaries.

Either document must fit the actual transaction. For land, writing is particularly important because section 4 of the Statute of Frauds generally requires signed written evidence to enforce a declaration or creation of a trust concerning land. A document prepared after a dispute begins may carry less weight than a contemporaneous agreement supported by the closing record.

A tailored trust agreement Ontario property owners consider should address:

the full legal names of trustees and beneficiaries;
the municipal address and legal description of the property;
each beneficial owner’s percentage or other defined interest;
the source of the purchase funds and responsibility for mortgage payments, taxes, insurance and repairs;
the trustee’s limited powers and how written directions are given;
rent, refinancing proceeds and sale proceeds;
what happens on death, incapacity, separation, default or a sale; and
signatures, dates and appropriate independent legal advice where interests may conflict.

A short form or informal email rarely resolves every issue created by a real property arrangement. It may also conflict with a mortgage commitment, a co-ownership agreement, a will or what was stated to a lender.

How a lawyer checks a proposed property trust

Before title is taken or changed, a lawyer should review the purchase funds, intended beneficial interests, registered title, mortgage and lender requirements, owner agreements and registration consequences. That review helps identify whether the intended structure can be documented consistently and whether another arrangement better matches the parties’ objective.

The review commonly includes the agreement of purchase and sale, transfer documents, mortgage instructions, declarations of source of funds, any existing trust or co-ownership agreement, and the estate-planning documents of those involved. If an existing mortgage is registered, changing ownership or beneficial interests without required lender consent can create serious problems.

Undocumented family arrangements carry particular risk. Consider two siblings buying a $1,100,000 duplex: one contributes $220,000 to the down payment, while title is registered 50/50 for financing convenience. If they disagree five years later after paying different amounts toward a $700,000 mortgage and renovations, title alone may not answer their dispute. A contemporaneous agreement can identify their intended shares, payments, authority to rent or sell, and how a buyout would be valued.

Can a bare trust avoid probate or land transfer tax?

A bare trust is not an automatic probate or land-transfer-tax solution. The consequences depend on who truly owns the beneficial interest, what changes hands, the purpose of the transaction, the estate documents and the applicable tax rules.

Does a bare trust avoid probate Ontario real estate owners may ask? It can sometimes mean that an interest passes outside an estate, but only if a valid arrangement existed and the beneficial interest was not owned by the deceased at death. A last-minute or undocumented claim that a registered owner held property “in trust” can lead to estate litigation rather than a simple probate solution.

Is probate always required in Ontario? No. Whether an estate needs a Certificate of Appointment of Estate Trustee depends on the assets, how they are held, the financial institution or land-registration requirements, and whether an estate trustee needs authority to deal with property. Probate planning should not be based solely on avoiding Ontario Estate Administration Tax; it must also preserve control, protect intended beneficiaries and work with the owner’s will.

For a parent-to-child title change, the legal ownership, beneficial ownership, mortgage and tax consequences should be assessed together. Our article, “How to Transfer Real Estate Title from a Parent to a Child,” explains the issues that commonly arise in that type of transfer.

Ontario land transfer tax and beneficial owners not on title

A trust agreement does not automatically create an Ontario land transfer tax exemption or a rebate entitlement for a beneficial owner who is not on title. Beneficial ownership must be analyzed before closing and before any transfer, because land transfer tax can apply to a disposition of a beneficial interest even when registered title does not change.

The Land Transfer Tax Act and the facts of the transaction determine the analysis. A buyer should not assume that an unregistered beneficial owner can claim a first-time homebuyer rebate, or that a person added only for financing will have no tax consequences. The question “Ontario land transfer tax rebate beneficial owner not on title trust agreement” cannot be answered safely without reviewing the purchase, funding, relationship and ownership documents.

For example, if a purchaser buys a $750,000 home and a relative contributes part of the down payment in exchange for a beneficial share, the parties should settle the ownership structure before closing. Changing the arrangement later may trigger additional tax, registration, mortgage and evidentiary issues. “How to Calculate Land Transfer Tax in Toronto — Complete 2026 Guide for Buyers” provides general context, but it cannot replace transaction-specific advice.

Trust reporting for real-estate arrangements

T3 Income Tax and Information Return and Schedule 15 obligations for a real-estate arrangement depend on the current federal rules, the CRA’s administrative position and the facts of the arrangement. A person should not assume that a nominee arrangement is exempt, or that every separation of legal and beneficial title has the same filing result.

The Income Tax Act includes enhanced trust-reporting rules, but their application to bare trusts and exceptions has changed through legislation, proposals and CRA administrative relief. A substantive trust with active trustee powers may require a different analysis from a genuine bare trust. Before a filing deadline, obtain current advice from a tax professional and ensure the legal documents accurately describe the arrangement.

For related discussion of beneficial ownership and tax records, read our trust income tax article. Owners should also keep closing records, declarations, directions, accounting records and evidence of who paid for the property.

Arrangements that need closer review

Adding a person to title for financing, using a nominee corporation, holding unequal economic shares, or relying on an informal family understanding all require closer review. These arrangements are not automatically trusts and are not automatically exempt from tax, reporting or lender requirements.

Parent added for mortgage qualification: Determine whether the parent acquired a beneficial share or is only intended to hold title, and whether the lender was told the complete arrangement.
Nominee corporation: Identify who directs the corporation, who is beneficially entitled to the land and sale proceeds, and whether corporate records and tax reporting align with the arrangement.
Different title and economic shares: A couple may hold title equally but agree that one owns 70% because that person paid more. The agreement should also deal with future payments and sale proceeds.
Informal family title: A child may be placed on title for convenience, but that can affect estate planning, creditor exposure, family-law issues and disputes among beneficiaries.

A property transfer lawyer can review a contemplated restructuring and the documents needed for it. Our corporate attorney connecticut eye group scarborough service page describes our property-transfer legal services despite the unusual page label.

Is a bare trust right for your situation?

A bare trust may be suitable only when its limited-control structure matches the parties’ real intention and the legal, lending, tax and estate consequences have been considered. It is not a substitute for a co-ownership agreement, a will, independent estate planning or accurate lender disclosure.

Before proceeding, ask:

Who will control a sale, refinance, lease or mortgage discharge?
Who is entitled to income and sale proceeds?
Will the lender consent, and do mortgage documents reflect the arrangement?
Is privacy worth the continuing record-keeping and reporting review?
What happens if a party dies, loses capacity, separates, becomes insolvent or wants out?
Can every party prove the intended beneficial shares from the closing documents and payment records?

A living trust is a different planning tool because it usually gives a trustee active powers and is intended to operate during the settlor’s lifetime. For “how to create a living trust in Ontario,” obtain coordinated estates, tax and real-estate advice before transferring land. If you need local transaction advice, a real estate lawyer in mississauga can also review an Ontario property structure.

FAQ about Ontario property trust agreements

What is a declaration of trust in Ontario?

A declaration of trust is written evidence that a titleholder holds identified property for a beneficiary on stated terms. It should identify the property, beneficial interest, parties and date, and it should be consistent with the transaction records and lender documents.

What are the requirements for a bare trust agreement in Ontario?

A bare trust agreement should clearly identify the property and parties, confirm the beneficiary’s beneficial interest and directions, and limit the trustee’s role appropriately. It should also address money, sale proceeds, expenses, death or incapacity, signatures and the interaction with mortgages and other agreements.

Is probate always required in Ontario?

No. Probate is not required for every estate, but it may be necessary to deal with estate assets or to obtain authority recognized by a financial institution or land registry. Whether a property passes through the estate depends on the actual ownership arrangement, not simply the label used by the family.

What should I do before signing a trust agreement or changing title?

Gather the purchase and mortgage documents, proof of contributions, existing title records, wills and any co-owner agreement. Obtain coordinated real-estate, estates and tax advice before implementation, rather than attempting to correct an unclear structure after a death, refinance or disagreement.

Speak with a Toronto real estate lawyer

Advice before a property trust is signed or title is changed can help ensure that the documents, lender requirements and intended beneficial ownership are considered together.

Call 416-321-8766 or request a quote to discuss your matter with Zinati Kay.

Continue reading

Underused Housing Tax: Filing and Exemptions

Real Estate Tax John Zinati

Underused housing tax rules can still matter for owners who had a filing obligation for 2022, 2023 or 2024, even though the federal tax has ended for later years. If you are asking what is underused housing tax, the key point is that it was a federal tax and reporting regime for certain owners of Canadian residential property, not a general tax on every Canadian homeowner.

Underused Housing Tax in Canada: the current status

The federal Underused Housing Tax applied for the 2022, 2023 and 2024 calendar years, while UHT reporting and tax are eliminated for the 2025 and later calendar years. A missed return, unpaid tax, interest or late-filing penalty for an earlier year can still remain payable.

The UHT was created under the Underused Housing Tax Act. It generally imposed a 1% annual tax on the taxable value of a reportable residential property when an affected owner could not claim an exemption. It was separate from income tax, land transfer tax and municipal vacant-home taxes.

The change for later years does not automatically erase earlier compliance issues. An owner who receives Canada Revenue Agency (CRA) correspondence, discovers a missed return during a sale, or held title through a trust or entity should review the relevant calendar year rather than assuming that the end of the UHT ends the issue.

Who had to file a UHT return?

For the years the UHT applied, excluded owners did not have to file, while affected owners generally had to file a separate return for each reportable residential property they owned on December 31. An affected owner could be required to file even where no tax was ultimately payable because an exemption applied.

Canadian citizens and permanent residents who held a home personally were often excluded owners. However, citizenship alone was not a complete answer where registered title involved a trustee, partnership, corporation, bare trust, life interest, estate arrangement or non-resident owner.

For example, a Canadian citizen and a non-resident sibling who each held a 50% registered interest in a $900,000 Toronto condominium had to assess their own status separately. If the non-resident sibling was an affected owner, that sibling could have had a filing duty for the condominium even if the Canadian co-owner was excluded. Joint ownership does not create one combined return for all owners.

Ownership structures require particular care because legal title and beneficial ownership may not be the same. Read more about holding property in trust Ontario before assuming that a nominee or bare-trust arrangement has no federal reporting consequence.

Categories of excluded owners changed during the UHT years, including changes affecting certain Canadian corporations, partnerships and trusts. A private company or trust should therefore be reviewed using the rules for the particular year, its ownership information and the capacity in which each person held title. This includes arrangements involving real estate investment trusts and other investment structures.

Which properties were reportable residential properties?

A reportable residential property was generally a Canadian residential property that included a detached house, semi-detached house, row house, cottage, condominium unit or a portion of a multi-unit residential building. The question was not simply whether the property was called a home in everyday conversation.

The statutory definition was narrower than all real estate. Some larger apartment buildings, hotel-style properties, commercial buildings and mixed-use properties may have been treated differently, depending on the building type and number of dwelling units. Review the registered title, municipal description and actual property type before deciding that no return was required.

A cottage can be residential property even if it is used only seasonally, and a condominium unit can be reportable even where the condominium corporation manages common elements. By contrast, owning a commercial plaza with no relevant residential component will not necessarily create the same UHT analysis. The asset held on December 31 and the owner’s legal capacity both matter.

When did an affected owner owe the 1% UHT?

An affected owner could have a UHT filing duty but still owe no 1% tax if a statutory exemption applied. The exemption had to be considered for the specific owner, property and calendar year, and supporting records were important.

Common categories included exemptions connected with qualifying occupancy, a primary place of residence in specified circumstances, limited availability of the property, a recent acquisition, a newly constructed property, the death of an owner, and certain location and personal-use conditions. These rules have detailed definitions, so an owner should not rely only on the label of an exemption.

Keep records that can show why an exemption was available, including:

signed leases, rent records and evidence of the dates occupants lived at the property;
utility bills, insurance records and other occupancy evidence;
renovation contracts, permits, invoices, photographs and insurance claims where habitability was an issue;
the agreement of purchase and sale, statement of adjustments and registered transfer for an acquisition; and
title searches, trust documents and corporate or partnership ownership records.

Consider an affected owner who bought a newly completed $1,000,000 Ottawa townhouse late in a calendar year and did not move in immediately. A new-owner or new-build exemption might be relevant, but the owner should retain the closing documents, construction-completion information and marketing records rather than merely describing the home as vacant.

UHT-2900, deadlines, and late-filing risk

Form UHT-2900, Underused Housing Tax Return and Election Form, was the return used for the UHT years, and it was generally due on April 30 after the relevant calendar year. Any UHT payable was generally due on the same date.

A filer may need a tax identifier and CRA account setup before filing. An individual may use a Social Insurance Number (SIN) or Individual Tax Number (ITN), while an entity may need a Business Number (BN) and an Underused Housing Tax program account. Allow time to obtain or confirm the correct identifier instead of waiting until the filing deadline.

The minimum late-filing penalty is generally $1,000 for an individual and $2,000 for a person other than an individual, per required return. Further penalties and interest can apply, and filing after the applicable extended period can restrict the use of certain exemptions when calculating tax for penalty purposes.

For example, a non-resident owner with two reportable condominium units who did not file two required returns for a UHT year may face a separate minimum penalty for each return, even if leases or other facts may have supported an exemption from the 1% tax. Promptly obtaining advice and filing corrected information is usually more productive than guessing at the exemption rules after a CRA notice arrives.

How the UHT was calculated when payable

When payable, the UHT was 1% of the property’s taxable value. The taxable value was generally based on the higher of the property’s assessed value and its most recent sale price, unless the owner made a qualifying election supported by an appraisal.

For example, if an affected owner had no exemption and the taxable value of a vacant detached Toronto home was $1,000,000, the UHT for that year would be $10,000. If the owner relied on an appraisal election instead, the appraisal had to meet the applicable requirements, so the report, valuation date and supporting documents should be retained.

The calculation is separate from the property’s eventual sale price, mortgage balance or rental income. A later sale does not, by itself, prove the taxable value used for a prior UHT year.

Ontario underused housing tax and vacant home tax: what applies in Toronto?

Ontario does not have a province-wide underused housing tax or vacant-unit tax, but Toronto has its own Vacant Home Tax declaration and tax system. Toronto’s system is separate from the federal UHT, so an owner may have had one obligation, both obligations or neither.

Toronto’s Vacant Home Tax rate for homes vacant in 2024 was 3% of the property’s assessed value. The City’s declaration deadline, exemptions and rate can change, so owners should check the City’s current requirements for the relevant vacancy year.

Issue	Federal UHT	Toronto Vacant Home Tax
Government	Federal government, administered by the CRA	City of Toronto
Relevant period	2022 to 2024 only	Annual municipal declaration and tax system
Who may be affected	Primarily affected owners under federal ownership rules	Toronto residential-property owners subject to City rules
Key action	Assess historic UHT-2900 filing and exemption issues	File the City declaration and review City exemptions

In other words, an empty homes tax search does not always lead to a single tax. A Canadian owner of a vacant Toronto house might have had no UHT filing duty but still need to meet Toronto’s declaration requirements. A non-resident owner may need to assess both systems separately.

What a real estate lawyer checks when title or a sale raises UHT issues

A real estate lawyer can review how title was held, identify closing risks and coordinate with the owner’s tax advisor on historic UHT issues. This is especially important where the property was held through a trust, partnership or corporation, or where a seller is non-resident.

Bring the agreement of purchase and sale, registered transfer or deed, current title search, ownership chart, trust or partnership documents, prior UHT filings, CRA correspondence and supporting exemption records. A transactions lawyer can also help identify what must be addressed in the closing process when the title history is unusual.

For a non-resident seller, UHT compliance may be relevant to a requested clearance certificate under Income Tax Act section 116. The section 116 process concerns withholding and clearance for a non-resident disposition; it is not a substitute for UHT compliance. Legal and tax advice should be coordinated well before the closing date, particularly where a purchaser may otherwise need to hold back funds.

Owners considering a purchase through an entity or trust can seek a property investment consultation before closing to understand title, documentation and transaction issues. For a York Region transaction, our real estate lawyers newmarket page explains the local service area.

FAQs about empty homes tax and UHT

Does Canada have a vacant home tax? Canada had the federal UHT for 2022 through 2024, but it is distinct from municipal vacancy taxes. Whether a vacant property created a federal obligation depended on the owner, property and available exemptions.

What is a vacant unit tax in Ontario? There is no Ontario-wide vacant unit tax. Municipal programs can apply in particular cities, and Toronto’s Vacant Home Tax is the main local issue for Toronto residential owners.

Do I pay tax on rent in Canada? Rental income is generally reportable for income-tax purposes, subject to deductible expenses and the owner’s circumstances. That income-tax question is separate from the historic UHT and from Toronto’s vacant-home declaration.

Who is eligible for the $7,500 tax credit in Canada? This commonly refers to the Multigenerational Home Renovation Tax Credit, not the UHT. It can provide a credit of up to $7,500 for qualifying renovation expenses for an eligible secondary unit for a qualifying individual, generally a senior or a person eligible for the disability tax credit, or an eligible relation.

Where beneficial ownership is unclear, review the CRA’s principal-residence, beneficial-ownership and trust-agreement considerations rather than relying only on the name shown on a tax bill: cra principal residence exemption beneficial ownership not on title trust agreement.

Speak with a Toronto real estate lawyer

Early advice can help identify title, trust, non-resident sale and historic UHT issues before they delay a purchase, sale or refinancing transaction.

Call 416-321-8766 or request a quote to discuss your matter with Zinati Kay.

Continue reading

Anti-Flipping Rules in Ontario: Selling Within 365 Days

Real Estate Tax John Zinati

“New rules Toronto real estate 2023” remains a common search, but the current issue is the federal anti-flipping rule that applies across Canada, including Ontario. The latest anti flipping rules can treat profit from certain residential property sales or assignment sales made within 365 days as business income, so buyers, sellers and investors should review the facts before listing or signing an assignment.

Anti-flipping rules in Ontario: the quick answer

Ontario does not have a separate provincial anti-flipping tax. The federal residential property flipping rule in the Income Tax Act (Canada), introduced through Budget 2022, can deem a profit from a qualifying residential property or a right to acquire one to be business income if it is sold within 365 days of acquisition.

The rule generally applies to dispositions occurring on or after January 1, 2023. It matters whether the seller owned the completed property or held contractual rights to buy it, when those rights or the property were acquired, and whether a listed life-circumstance exception genuinely explains the sale.

A short-notice sale does not automatically mean that a seller has done anything improper. It does mean the tax treatment, supporting documents, agreement terms and closing timetable should be reviewed early. Our team can help with your closing by reviewing the legal transaction, coordinating with the other side and addressing title, mortgage-discharge and closing-document issues.

What the 365-day rule changes

If the deeming rule applies, the seller’s gain is treated as business income rather than a capital gain. The seller cannot use the Principal Residence Exemption for that deemed gain, even if they lived in the home during the ownership period.

This distinction can materially change the tax result. A capital gain is generally subject to the capital-gains inclusion rules, while business income is included in income under different tax rules. The rule does not itself calculate the tax payable, and an accountant or tax adviser should determine the reporting position, available deductions and the seller’s resulting tax liability.

Possible tax treatment	What it means in practical terms
Deemed business income under the anti-flipping rule	A qualifying gain on a sale within 365 days is treated as business income, unless a statutory exception applies.
Capital treatment under general tax principles	A sale outside the deeming rule may still be capital in nature, but that depends on the facts and is not automatic.
Principal Residence Exemption	This may be available only if the legal and tax requirements are met; it is not available for a gain deemed to be business income under the anti-flipping rule.

For example, consider a buyer who closes on a $760,000 Toronto condominium, spends $35,000 on renovations and sells it ten months later for $855,000. Before assuming that the difference is a capital gain, the buyer should have a tax adviser review the purchase price, improvements, selling costs, reason for sale and whether the federal deeming rule applies. The real estate lawyer’s closing work and the tax adviser’s income-tax analysis are related but different tasks.

Properties and sales covered by the rule

The rule can apply to a residential property and to a right to acquire a residential property. That can include a house, condominium unit, cottage, rental property, pre-construction purchase and an assignment of a purchase agreement, depending on the facts and the statutory definition.

Homes, condos, cottages and mixed-use properties

A home does not need to be a principal residence to be caught. A cottage or other property used personally may be residential property, and a rental home can also fall within the rule. A property with both residential and commercial uses needs careful review because the precise asset sold and its use can affect the analysis.

Rental properties

Yes, anti-flipping rules can apply to rental properties; renting the property does not by itself remove it from the federal rule. Keep the lease, rent records, insurance, financing documents and records showing why a sale became necessary, rather than assuming a tenancy changes the tax result.

Pre-construction purchases and assignment sales

An assignment sale is the sale of contractual rights under an agreement of purchase and sale, not necessarily a sale of completed land. The anti-flipping rule can apply to a right to acquire residential property, so an assignor should not assume the 365-day question starts only when title would have transferred.

For example, a purchaser signs for a $690,000 pre-construction condo, pays deposits as required, and assigns the agreement eight months later for a $55,000 assignment profit. The assignment agreement, builder consent, original purchase agreement, deposit receipts and dates are central documents for both the closing and tax review. GST/HST issues on a new-home purchase or assignment are separate questions under the Excise Tax Act; read more about hst on new homes Ontario before treating an assignment profit as the only tax issue.

When a life-event exception may apply

A life-event exception may apply only if the sale can reasonably be considered to occur because of, or in anticipation of, the qualifying event. It is not enough that an event appears somewhere in the seller’s history or that it happened near the sale date.

The statutory exceptions include the following circumstances involving the taxpayer or, in several cases, a related person:

death;
a related person joining the household, or the taxpayer joining a related person’s household, including a birth, adoption or a need to care for a family member;
marital or common-law relationship breakdown;
a threat to personal safety;
serious illness or disability;
a qualifying work relocation or involuntary termination of employment;
insolvency; and
an involuntary disposition, including destruction of the property or expropriation.

For example, a couple who bought a $1.05 million townhouse and separate seven months after closing may need to sell because neither can carry the mortgage alone. Their separation agreement or correspondence, financing records, listing history and sale documents may help show the connection between the relationship breakdown and sale. A tax adviser should still assess whether the exception’s requirements are met and whether another tax rule affects the result.

Do not wait until a tax return is due to gather evidence. Medical letters, termination notices, relocation documents, insurance reports, records of safety concerns, correspondence about a separation and documents showing the sale timeline may all be relevant, depending on the reason relied on.

How to avoid the anti-flipping rule legally

There is no shortcut to avoid house flipping tax in Canada legally. The lawful approach is to report the transaction accurately, preserve evidence of a genuine qualifying event and obtain tax advice before making decisions based on timing.

Do not misstate where you lived, create records after the fact or delay a necessary sale solely because you assume a later closing guarantees a better tax result. Moving into a property briefly does not by itself establish eligibility for the Principal Residence Exemption, and renting it out does not itself change a deemed short-term gain into a capital gain.

If a sale is optional, obtain advice while there is still time to compare dates and transaction structures. If it is necessary, focus on completing the sale properly and documenting the actual reason rather than trying to fit the facts into an exception. A seller transferring title between family members should also speak with a property transfer lawyer because land title, lender-consent and land transfer tax issues can arise independently of income-tax treatment.

Selling after 365 days is not an automatic capital gain

Passing the 365-day holding period does not guarantee capital-gains treatment or access to the Principal Residence Exemption. It means the specific federal deeming rule may no longer apply, but the Canada Revenue Agency (CRA) can still assess the transaction under general income-tax principles.

Intention at purchase, the pattern and frequency of transactions, financing, renovation activity, marketing and other facts can matter. Repeated purchases, renovations and rapid resales may point toward a business venture even if a particular property was held longer than 365 days.

For example, an investor buys, renovates and sells three detached homes over several years, holding the most recent one for 14 months. The 365-day rule is not a safe harbour that decides the result; the investor should obtain tax advice on whether the overall activity is income in nature. More detail on sale characterization is available in our article on capital gains tax in Ontario.

What to keep and what to review before listing

Before listing a property held for less than a year, collect the documents that establish dates, costs, use and the real reason for sale. A complete file helps the legal closing proceed efficiently and gives a tax adviser the information needed to assess the reporting position.

the signed agreement of purchase and sale, amendments, waivers and closing statement from your purchase;
the new listing agreement and proposed agreement of purchase and sale;
for a pre-construction deal, the builder agreement, all amendments, assignment documents and builder consent;
mortgage commitments, payout statements and financing correspondence;
leases, rent records and documents showing occupancy or moving dates;
renovation contracts, invoices, permits and proof of payment;
receipts for deposits, legal fees, commissions and other transaction costs; and
records supporting any life-event exception, such as employment, medical, separation, insurance or expropriation documents.

An Ontario real estate lawyer can review the purchase and sale contract, title, mortgage discharge requirements, assignment mechanics, adjustments and documents required for electronic registration. A tax adviser must determine the seller’s income-tax reporting and tax position. For a sale in North York or elsewhere in the GTA, a north york real estate lawyer can also review the property transaction before closing deadlines arrive.

Keep copies after closing as well. CRA questions are fact-specific, and a dispute about a tax assessment may ultimately proceed through objection and, where appropriate, the Tax Court of Canada. Our discussion of cra real estate capital gains explains why the way an owner describes a transaction may not control its tax characterization.

Anti-flipping rules and other property-tax issues

The anti-flipping rule is separate from Ontario land transfer tax, municipal property taxes and the tax planning of a real estate business. It is also separate from GST/HST questions, which can arise on new homes, substantial renovations and assignments under different rules.

Buying, selling, transferring title or refinancing can each create their own costs and tax considerations. For a wider discussion of compliance and planning for flipping houses in Ontario, review the transaction before committing to a purchase or resale strategy.

Where to find houses for sale in Toronto

Buyers can find houses for sale in Toronto through a registered real estate brokerage, MLS-based search tools, direct builder listings and private listings. Before waiving conditions or signing a pre-construction agreement, review the price, deposit schedule, financing, assignment restrictions and expected closing dates.

A quick resale may be costly even where the purchase itself appears straightforward. Buyers should therefore buy with a realistic ownership plan, not an assumption that a short-term sale will receive capital treatment or principal-residence treatment.

Frequently asked questions about property flipping rules

Can a rental property be caught?

Yes. A rental property can be residential property for the federal anti-flipping rule, and the fact that tenants occupy it does not by itself prevent business-income treatment on a qualifying short-term sale.

Do assignments count?

They can. The rule can apply to a right to acquire residential property, so an assignment of a pre-construction purchase agreement requires a careful review of the relevant acquisition, assignment and closing dates.

Can living in the home avoid the rule?

No, not by itself. If the federal deeming rule applies, the Principal Residence Exemption is unavailable for that deemed gain; outside the rule, occupancy is only one part of the broader tax analysis.

What should I do if I must sell within a year?

Gather your purchase, financing and sale documents, preserve evidence explaining why the sale is necessary, and obtain tax advice before reporting the sale. Have a real estate lawyer review the agreement and closing requirements early enough to address title, lender and timing issues.

Speak with a Toronto real estate lawyer

If you may need to sell, assign or transfer an Ontario residential property within a year of acquiring it, early legal and tax review can clarify the closing requirements and documents you need to preserve.

Call 416-321-8766 or request a quote to discuss your matter with Zinati Kay.

Continue reading

Assignment Sale in Ontario: What Buyers Must Know

Condos & Pre-Construction John Zinati

An assignment sale is a transaction in which the original buyer transfers their contractual interest in an Agreement of Purchase and Sale (APS) to a new buyer before the original buyer takes title. In Ontario, the new buyer, called the assignee, ordinarily completes the purchase directly with the builder or original seller, subject to the original contract and any required consent.

A real estate assignment sale can create an exit for an original purchaser or an opportunity for a new buyer to acquire a unit in a project that may no longer be selling directly from the builder. It is not, however, a simple replacement for a regular resale: the original APS, every amendment, the builder’s requirements, deposits, financing and tax consequences all need to be reviewed before anyone commits.

What is an assignment sale in real estate?

An assignment sale transfers the original purchaser’s rights, and usually their obligations, under an APS to another purchaser before title transfers. The assignor does not sell a property they own; they sell or transfer their contractual position in the purchase.

In a condo assignment sale, the assignor may have signed for a pre-construction condominium several years before completion. If the assignment is permitted and completed properly, the assignee steps into that purchase arrangement and later takes title from the builder at final closing. The original APS remains a central document throughout the transaction.

For example, an original purchaser signs an APS for a $720,000 pre-construction Toronto condo, pays scheduled deposits of $108,000, and later decides not to proceed. A prospective assignee may agree to reimburse the $108,000 in documented deposits and pay additional negotiated assignment consideration. If the builder consents and all contractual requirements are met, the assignee, rather than the original purchaser, will generally be the person who completes the eventual purchase from the builder.

An assignment may also arise in a resale transaction where a buyer has signed an APS but has not yet closed. Whether it can proceed depends heavily on the wording of that agreement, the parties’ circumstances and any consent that is required.

Assignment sale vs. a regular resale

An assignment is not the same as a completed resale because the assignor has not yet taken title to the property. In a regular resale, an owner transfers their registered ownership to a buyer; in an assignment, the original contract is transferred before that ownership transfer occurs.

On a regular resale, the seller and buyer close with each other, and the buyer’s real estate lawyer registers the transfer in the Ontario electronic land registration system. On an assignment, the assignee commonly closes with the builder or original seller under the original APS, while the assignment agreement sets out what the assignee owes the assignor and which obligations are being assumed.

Pre-construction condos are the most familiar setting because construction and final closing may be separated by years. But an assignment sale Ontario transaction can involve a freehold townhouse, detached home or resale condominium purchase if the APS allows it or the necessary parties agree. A contract that prohibits assignments, requires consent, restricts marketing, or imposes conditions can materially change the deal.

Who is involved in an Ontario assignment sale?

An Ontario assignment sale usually involves an assignor, an assignee and the builder or original seller. Each has a separate role, and the assignor is not automatically released from obligations simply because an assignee has been found.

Assignor: the original purchaser under the APS who wants to transfer their contractual position.
Assignee: the incoming purchaser who agrees to acquire that position and, where required, assume the obligations in the original APS.
Developer or builder: the party selling a pre-construction home or condo under the original APS. The builder may have to approve the assignment and may impose conditions or fees under the contract.
Original seller: in a resale assignment, this is the property owner who originally signed the APS with the assignor.
Real estate broker or salesperson: may market the assignment and help negotiate business terms, but the listing is not a substitute for review of the APS and related documents.
Real estate lawyers: each party should have separate legal advice. The lawyers review and prepare documents, advise on risk and payment arrangements, and coordinate the eventual closing work.

Does an Ontario assignment of an Agreement of Purchase and Sale require developer consent? Often it does, particularly for a pre-construction purchase, but the answer comes from the original APS, amendments and the builder’s written requirements. An APS may permit assignments on stated conditions, prohibit them, require consent, charge an administrative fee, restrict advertising, or say whether the original purchaser remains liable after an assignment.

How an assignment sale works in Toronto and the GTA

An assignment sale in Toronto and the GTA generally starts with a review of the original purchase package and ends with the assignee completing the original purchase. The process should be documented in writing because several payments, deadlines and approvals may be involved.

Review the original APS package. The assignor’s lawyer reviews the APS, amendments, disclosure documents, upgrade agreements, incentives, deposit schedule, notices and assignment language. The assignee needs the same information before deciding whether to proceed.
Obtain the builder’s requirements. If a builder’s approval is required, the parties should obtain the required forms, fees, deadlines, credit or identity checks and any conditions in writing. Do not assume that verbal permission is enough.
Negotiate the assignment agreement. The agreement should identify the original APS, the assignment consideration, deposits to be reimbursed, conditions, timing, required consents, who pays particular fees, and what happens if the builder does not approve the assignment.
Address conditions and financing. An assignee may need time to review documents, obtain financing advice or satisfy a condition. The original APS may still have approaching deposit or other deadlines while these issues are being addressed.
Document and handle payments. The parties arrange how deposits and assignment consideration will be held, released or credited. A listing brokerage’s trust account or a lawyer’s trust account may be used where appropriate and agreed, with clear written instructions.
Complete occupancy and final closing. For a condominium, interim occupancy may occur before final closing. The assignee must be prepared for the obligations that arise at each stage and eventually close with the builder.

A buyer considering a pre-construction unit should obtain legal advice on the original contract early. Our lawyer for a condo purchase can review the purchase structure and the documents that affect occupancy and final closing before the buyer becomes bound.

For example, consider an assignee buying a $680,000 unit in a near-complete GTA condominium. The agreement may require the assignee to reimburse $95,000 in deposits, pay $35,000 in assignment consideration, take over one remaining $15,000 builder deposit, and later arrange funds for the balance due at final closing. If interim occupancy begins first, the assignee may also need to make occupancy payments before title can transfer. Those are distinct timing and cash-flow issues, not one single closing payment.

What an assignee should review before buying an assignment

An assignee should review the full original purchase package and confirm the assignor’s status before signing an assignment agreement. Assignment sale listings can identify a possible opportunity, but they do not replace the underlying contract, proof of payments and written builder requirements.

Before you buy an assignment, ask for and review the following:

the complete signed APS, all schedules and amendments;
the builder’s assignment clause, current assignment instructions and fee information;
all upgrade agreements, incentive agreements, décor selections and change orders;
proof of every deposit the assignor says they paid, including receipts and relevant trust records;
written confirmation, where available, of whether the assignor is in default or has missed any payment or notice deadline;
the remaining deposit schedule, estimated occupancy date and estimated final-closing date;
disclosure documents, expected occupancy charges, adjustments and any builder levies described in the APS;
the exact unit, locker, parking space and included features being transferred;
the assignee’s financing plan for both the assignment payments and the later builder closing; and
the builder’s consent requirements and whether the original purchaser remains liable after consent.

Original incentives and upgrades do not necessarily carry over simply because they appear in a listing. The assignment agreement and builder’s written position should state what transfers. A builder incentive may be personal to the original purchaser, conditional on closing, or affected by an assignment. Read more about builders and assignment incentive issues before treating an advertised incentive as part of the assignee’s purchase.

For a Toronto condo assignment, a lawyer should compare the listing details against the APS rather than relying on a description of the suite or projected completion date. Buyers seeking advice on a Toronto condo assignment should bring the original APS and every amendment to the review.

Deposits, assignment price and assignment fees

The assignee may reimburse the assignor’s documented deposits and pay separate assignment consideration, but the payment structure must be clearly set out in the assignment agreement. The APS and the assignment agreement should identify who holds each payment, when it is released and what happens if a condition or required consent is not satisfied.

“Assignment price” can describe different things in different listings. It may mean the amount paid to the assignor beyond reimbursement of deposits, or it may be presented alongside the original purchase price and the remaining builder balance. A buyer should ask for a full payment breakdown rather than assume that a headline price is the total cost.

Payment or cost	What it may cover	What to confirm
Deposit reimbursement	Amounts the assignor already paid to the builder	Receipts, total paid, holder of funds and release terms
Assignment consideration	Negotiated amount paid for the assignor’s contractual position	Amount, tax treatment, timing and conditions for release
Remaining builder deposits	Deposits still due under the original APS	Due dates, payment method and consequences of late payment
Builder assignment or administration fee	Fee charged under the original APS or builder policy	Amount, taxes, payer and timing
Final-closing funds	Balance of purchase price, adjustments and closing costs	Estimated amount, financing and closing date

Who pays the assignment fee? There is no universal answer. The original APS may identify the responsible party, or the assignor and assignee may allocate the cost in their agreement, subject to the builder’s requirements. The same practical point applies to legal fees and brokerage commissions: identify the responsibility in writing instead of relying on assumptions.

Costs and tax issues to review before signing

An assignment can involve costs at the assignment stage and separate costs when the assignee later closes with the builder. Before signing, both parties should budget for builder charges, legal costs, remaining deposits, occupancy obligations, HST issues and possible income-tax consequences.

The Canada Revenue Agency (CRA) may treat the GST/HST consequences of an assignment differently depending on the facts and the nature of the rights transferred. The treatment of assignment consideration, the assignor’s status and the terms of the transaction should be reviewed with a tax professional before the agreement is signed.

At the assignee’s final closing, the assignee may also face costs under the original APS, such as adjustments, utility or meter charges, development-related charges where applicable, and condominium closing items. If the property is in Ontario and the transaction is subject to Land Transfer Tax, the assignee should budget for that tax at final closing; a property in Toronto may also attract Toronto land transfer tax.

The GST/HST New Housing Rebate and the GST/HST New Residential Rental Property Rebate have eligibility rules that depend on the transaction and intended use. An assignee should not assume that a rebate will be available, assigned or paid on a particular timetable without current tax advice and review of the builder’s documents.

Income-tax treatment is also fact-specific. An assignment gain may be characterized differently depending on the taxpayer’s intentions, activities and surrounding facts, so an assignor should obtain accounting or tax advice rather than assume the gain will receive a particular tax result.

Risks that can derail an assignment sale—and what a lawyer checks

An assignment sale can fail when the original contract is misunderstood, the builder will not consent, financing is unavailable or payment terms are poorly documented. A lawyer checks the original APS and the proposed assignment agreement to identify these risks before they become a dispute or a missed closing.

Builder refusal or conditions: The builder may prohibit an assignment, require consent, charge fees, limit marketing or require the assignee to meet particular conditions.
Assignor default: The assignor may have missed a deposit, breached the APS or received a notice that affects the contractual position being transferred.
Missing deposit evidence: Without reliable proof of deposits, an assignee may not know whether they are reimbursing amounts actually paid.
Financing gaps: A lender’s approach to an assignment, interim occupancy and the final builder closing can differ by lender and file. Financing should be investigated early.
Changing market value: An appraisal or market change can affect financing and the economics of an assignment, even if the original APS price is fixed.
Undisclosed obligations: Upgrades, incentives, remaining deposits, occupancy charges and final-closing adjustments can change the real cost.
Payment-release risk: A payment released too early may be difficult to recover if consent is refused or another condition fails.

Neither party should treat an assignment as an automatic exit from the original APS. The original purchaser may remain exposed under the original contract unless the relevant documents and the builder’s written consent clearly provide otherwise.

Buying or selling an assignment: what to do next

Buyers and sellers should gather the original documents and obtain legal advice before making a binding commitment. Early review is particularly important for Toronto and GTA assignment sales because consent, deposits, occupancy and final closing may all be governed by separate timelines.

If you are selling an assignment

Collect the signed APS, schedules, amendments, receipts, upgrades and builder correspondence.
Ask the builder for current written assignment requirements, fees and consent steps.
Confirm upcoming deposit dates, occupancy information and final-closing estimates.
Use an assignment agreement that states the price, payment holder, release conditions and responsibility for fees.
Obtain tax advice on the proposed transaction before signing.

If you are buying an assignment

Review the original APS package before removing conditions or releasing money.
Verify deposits, unit details, parking, locker, upgrades, incentives and the assignor’s status.
Arrange financing early for the assignment stage and the later builder closing.
Budget separately for assignment payments, outstanding builder deposits, occupancy costs and final-closing costs.
Keep clear records of every payment, receipt, consent and amendment.

For an assignment involving Vaughan or the surrounding area, a lawyer vaughan can review the contract package and help coordinate the transaction documents before the agreed deadlines.

Assignment sale FAQ

How do I buy an assignment condo?

To buy an assignment condo, first obtain the original APS, amendments, proof of deposits and the builder’s assignment requirements. Then negotiate an assignment agreement that addresses consent, payment timing, financing and final closing, with legal advice before the agreement becomes firm.

Who pays the assignment fee?

The original APS may specify who pays the builder’s assignment fee, and the assignment agreement can allocate the cost between assignor and assignee. Confirm the builder’s current amount, applicable taxes and payment deadline in writing.

Who pays HST on an assignment sale?

Who bears HST economically is a matter that should be clearly addressed in the agreement, but the GST/HST treatment depends on the transaction facts and applicable rules. Both parties should obtain transaction-specific tax advice before agreeing on a price described as inclusive or exclusive of HST.

How much do assignments cost?

The cost of an assignment depends on the negotiated consideration, deposit reimbursement, builder fees, legal fees, financing, remaining deposits, occupancy obligations and final-closing charges. Ask for a written payment schedule that separates assignment-stage costs from the assignee’s later purchase costs.

What does it mean when a property is sold on assignment?

When a property is sold on assignment, the person advertising it is usually transferring their purchase contract rather than selling registered ownership of the property. The buyer should review the original APS to understand exactly what is being acquired and whether the transfer is permitted.

Are assignment sales only for pre-construction condos?

No. A sales assignment can arise in a pre-construction condo, townhouse or detached-home purchase, and sometimes in a resale purchase before closing. Pre-construction condos are common because the period between signing and final closing can be long, but the contract terms control in every case.

Speak with a Toronto real estate lawyer

An assignment sale should be reviewed before deposits or assignment consideration are released, because the original APS and builder requirements can determine whether the transaction can proceed. Early advice can help clarify the payment structure, consent requirements and final-closing obligations.

Call 416-321-8766 or request a quote to discuss your matter with Zinati Kay.

Continue reading

What Is APS in Real Estate? Ontario Guide

Agreements & Contracts John Zinati

What does APS mean in real estate?

APS meaning real estate is Agreement of Purchase and Sale: the written Ontario contract that sets the agreed terms for buying and selling a property. An APS identifies the buyer and seller, the property, the price, the closing date, the deposit arrangements and the promises each side must meet.

If you are asking what does APS stand for in real estate, it stands for Agreement of Purchase and Sale. It may also be called a purchase agreement, sale agreement or real estate sale purchase agreement. In practical terms, “what are the APS?” usually means: what does the contract say about this particular transaction, and what deadlines or risks does it create?

An APS is used for many Ontario transactions, including resale houses, condominiums, vacant land and some commercial properties. In an agent-assisted residential sale, the offer is often prepared on an Ontario Real Estate Association (OREA) form, commonly OREA Form 100, with schedules and additional clauses tailored to the deal.

A form is only the starting point. The typed-in terms, handwritten changes, attached schedules and later signed amendments can all be important. Before making or accepting an offer, a Toronto contracts agreements lawyer can review unusual clauses, conditions and deadlines in the context of your transaction.

When an APS becomes binding

An APS generally becomes binding when one party signs an offer and the other party accepts it in accordance with the offer’s terms before the irrevocability deadline. It remains binding even where it contains conditions, unless the condition wording provides a valid way for a party to end the agreement.

An offer normally states the date and time until which it is irrevocable. During that period, the buyer is generally committed to keep the offer open; if the seller accepts properly within that time and communicates acceptance as required, there is a deal. If it is not accepted in time, the offer generally expires.

Ontario does not give buyers or sellers an automatic lawyer-review period after signing. A legal-review condition can be negotiated, but it must be expressly written into the APS and should state whose benefit it is for, the deadline, and how notice of fulfilment, waiver or termination is delivered.

A signed APS should not be changed by a text message, a conversation at a showing or an assumption that everyone agrees. If the parties agree to change the closing date, purchase price, repair obligation, included item or another term, they should sign a clear written amendment.

What an Ontario APS form covers

An Ontario APS form records the core bargain and the deadlines needed to carry it out. Buyers and sellers should read the main form together with every schedule, because Schedule A can add, replace or qualify standard wording.

Parties and property: the legal names of the buyer and seller, municipal address, unit number where applicable, and legal description.
Price and deposit: the purchase price, deposit amount, delivery deadline, trust holder and payment instructions.
Completion date: the day the transaction is to close and funds, documents and possession are dealt with.
Inclusions and exclusions: fixtures, chattels, appliances, window coverings and other items that stay or leave.
Rental or financed items: contracts for equipment such as a water heater, furnace, air conditioner, alarm system or solar equipment.
Conditions: financing, inspection, insurance, status-certificate, legal-review or other negotiated protections.
Title terms: the requisition date, title requirements and the seller’s obligation to give good title subject to permitted matters.
Tax wording: whether Harmonized Sales Tax (HST) applies, is included, or is the buyer’s responsibility where relevant.
Schedule A: additional representations, warranties, notices, repairs, access rights, commercial provisions or other negotiated terms.

For a closer look at common provisions, read this explanation of an agreement to sale. A buyer should also ensure that the person named as purchaser matches the intended ownership plan before the APS is signed; changing the buyer later can require consent and may affect financing or tax advice.

Deposit, conditions and deadlines

The APS, not a universal Ontario percentage or deadline, sets the amount of the deposit, when it is due and who holds it. In a typical agent-assisted transaction, the deposit is held in the listing brokerage’s trust account; in some transactions, a lawyer holds it in trust.

The deposit shows that the buyer is committed, but it is not simply an advance payment that either side can keep whenever a deal fails. The APS, the reason the transaction did not close and the parties’ legal rights determine how a disputed deposit is handled.

A condition is a specific contractual protection that must be dealt with by the stated deadline. A financing condition may allow the buyer time to obtain financing satisfactory to the buyer under the wording used. An inspection condition may permit an inspection and a decision about whether the property is satisfactory. A legal-review condition may give a party time to obtain legal advice if the clause is properly drafted.

Conditions vary. Some require written notice of fulfilment or waiver by a certain date and time; some are for one party’s benefit and may be waived only by that party; some may allow the APS to end if they are not fulfilled. Missing the notice deadline can have serious consequences, so parties should not assume that silence, a mortgage pre-approval or an informal message is enough.

For example, a buyer offering $875,000 for a freehold home may make the offer conditional on financing until 6 p.m. on a stated date. If the lender’s approval is still incomplete, the buyer should review the exact condition with their lawyer and agent before the deadline rather than assume the seller has agreed to more time. An extension requires the seller’s agreement in a signed amendment.

Requisition date, title search and statement of adjustments

The requisition date is the contractual deadline by which the buyer’s lawyer raises title objections that the seller must address under the APS. It is different from the closing date and gives the parties time to resolve title issues before completion.

After receiving the signed APS, the buyer’s lawyer reviews title and conducts searches appropriate to the property and transaction. Depending on the issue, this may involve reviewing registered mortgages, easements, restrictive covenants, execution searches, tax information, surveys or other records. The seller’s lawyer addresses valid requisitions according to the APS and prepares documents needed to transfer title.

Not every registered item is a defect that must be removed. An APS often permits certain easements, utility rights, subdivision agreements or other matters, while requiring the seller to discharge mortgages and liens that are not assumed. The wording of the APS and the title record determine what must be dealt with.

The statement of adjustments is the closing calculation between buyer and seller. It starts with the purchase price and allocates agreed prepaid or accrued items, such as property taxes, condominium common expenses, fuel or rental charges, as applicable. It is separate from a buyer’s other closing costs, which can include Ontario land transfer tax, Toronto land transfer tax for eligible Toronto properties, legal costs, lender costs and title insurance.

For example, consider a buyer purchasing a Toronto condominium for $720,000 with a July closing. If the seller has already paid annual property taxes beyond the closing date, the buyer may reimburse the seller for the buyer’s share through the statement of adjustments. The buyer should budget separately for applicable provincial and municipal land transfer tax and for the funds required by the lender and lawyer.

Inclusions, exclusions and property-specific checks

Inclusions, exclusions, rental contracts and promised work should be described precisely in the APS because a listing description or verbal discussion may not settle a later disagreement. A clear clause says what stays, what goes, its condition if relevant, and what must happen before closing.

A fixture is generally an item attached to the property with sufficient permanence that it forms part of the real property, while a chattel is movable personal property. The distinction can be fact-specific, so the safer approach is to list important items expressly rather than rely on labels.

For example, a buyer of a $1.15 million detached home may expect the refrigerator, wall-mounted television, garden shed and dining-room light fixture to remain. The APS should state whether each item is included or excluded. If the seller agrees to repair a roof leak before closing, the agreement should identify the work, the standard or supporting documentation expected, and any access arrangements.

Buyers should also identify rented, leased or financed equipment. Assuming a water-heater rental contract, for example, may mean taking over ongoing payment obligations. The APS should state whether the buyer assumes the contract or whether the seller must arrange a buyout or discharge.

Condominium APS checks

A condo APS should identify the correct unit, parking space and locker, and should address the status certificate where appropriate. The status certificate provides important information from the condominium corporation, including financial and governance information and details about the unit that may affect a buyer.

A buyer should check that parking and locker rights are accurately described, because they may be separate legal units, exclusive-use areas or subject to other arrangements. A status-certificate condition should allow enough time to obtain and review the documents before its deadline.

Pre-construction and commercial terms

Pre-construction purchases and commercial transactions often use lengthy agreements with project-specific or business-specific terms. They may address occupancy, construction changes, development charges, HST, assignments, leases, environmental matters, financing, due diligence and remedies in ways that differ from a standard resale APS.

Commercial APS documents commonly include a detailed Schedule A and a negotiated due-diligence period. A buyer should obtain legal advice before waiving due diligence or accepting broad representations, indemnities or closing conditions.

What happens if someone cannot close or wants to change the deal

If a buyer or seller does not meet an APS obligation, the consequences depend on the contract wording, the facts, the loss suffered and the legal remedies available. A failure to close can lead to a deposit dispute, a damages claim or other court remedies, so a party should obtain legal advice promptly rather than simply stop responding.

A seller who cannot provide promised title, a buyer who cannot deliver closing funds, or either party who misses a condition notice can create urgent issues. The other party may agree to a solution, but there is no automatic right to an extension, price reduction or repair credit.

Changes are possible when both parties agree. An amendment can extend closing, change the purchase price, add access for a contractor, settle a repair issue or revise an inclusion. It should identify the APS being changed, set out the exact new terms and be signed by all necessary parties before anyone relies on it.

An “as is” clause can limit contractual promises about the property, but it does not automatically decide every possible issue that may arise after signing or closing. The meaning and effect of that clause depend on its language and the facts, including any alleged representations.

For practical discussion points before proposing a change, see these considerations for negotiating home sale terms.

What your Ontario real estate lawyer does after you sign

After an APS is signed, an Ontario real estate lawyer reviews the agreement and schedules, tracks key dates, investigates title issues and prepares the transaction for closing. The lawyer’s work connects the contract terms to the money, documents, lender requirements and electronic registration needed to complete the transfer.

Review the signed APS, Schedule A, amendments and condition deadlines.
Confirm the client’s legal name, intended ownership and identification requirements.
Conduct title and other appropriate searches, raise requisitions and respond to the other side’s requisitions.
Coordinate with the mortgage lender, review lending instructions and arrange required mortgage documents.
Prepare or review the statement of adjustments and explain closing funds required.
Arrange title insurance where it is appropriate to the transaction and client’s instructions.
Receive and disburse funds through trust, exchange closing documents with the other lawyer and electronically register transfer and mortgage documents where applicable.

Keys are released according to the closing arrangements after the lawyers complete the required exchange and confirmation process. Buyers should not plan a move, delivery or renovation around an assumed time until their lawyer confirms that closing has been completed.

Whether you are buying in Toronto or working elsewhere in the region, our real estate lawyers waterloo page explains the local service option.

APS checklist before you sign

Before signing an APS, confirm that the document says exactly what you intend to buy or sell, when each party must act and what happens if a condition is not met. The time to correct a name, deadline or inclusion is before acceptance, not on closing day.

Read every page, including Schedule A, attached schedules and handwritten changes.
Confirm the buyer and seller names, property address, legal description, unit number, parking and locker details.
Check the purchase price, deposit amount, deposit deadline, trust holder and completion date.
List important appliances, fixtures, chattels, exclusions, rental items and promised repairs clearly.
Understand every condition, who can waive it, what notice is required and when it expires.
Budget for the deposit, down payment, Ontario land transfer tax, Toronto land transfer tax where applicable, adjustments, legal costs, lender charges and insurance.
Confirm financing and arrange property insurance in time for closing if required by the lender.
For a condominium, obtain and review the status certificate and confirm parking and locker rights.
Send the complete signed APS and all amendments to your lawyer promptly.

Buyers and sellers who are unsure about legal review can read do i need a lawyer for a purchase agreement.

Speak with a Toronto real estate lawyer

An APS can create binding obligations well before closing, so early advice can help you understand conditions, title deadlines, amendments and closing costs before they become urgent.

Call 416-321-8766 or request a quote to discuss your matter with Zinati Kay.

Continue reading

Closing Costs When Refinancing in Ontario

Mortgages & Refinancing John Zinati

Closing costs when refinancing in Ontario usually include lender charges, legal work, title insurance, appraisal costs where required, mortgage discharge costs and registration costs. The expense that can matter most is often the prepayment charge for ending an existing closed mortgage before its term ends, rather than the ordinary legal and registration expenses.

Before accepting a new mortgage offer, ask the current lender for a written payout statement and ask the proposed lender for its written commitment and complete list of charges. A refinance can lower a rate, consolidate debt, fund renovations or provide access to equity, but the decision should be based on the total cost to change mortgages, not the advertised rate alone.

How much does it cost to refinance a mortgage in Ontario?

How much it costs to refinance a mortgage depends on the mortgage being paid out, the new lender’s requirements and the legal work required to register the new mortgage. There is no reliable single percentage of the home’s value for an Ontario refinance, because a prepayment charge, if one applies, can be far larger than the ordinary transaction costs.

At a minimum, homeowners should budget for the possibility of a lender appraisal, the real estate lawyer’s fee and disbursements, title insurance if the lender requires it, electronic registration of the new mortgage, and payout or discharge-related charges on the existing mortgage. The lender may also require interest adjustments to the closing date, and a new lender may have administrative charges or conditions that affect the amount available to the borrower.

For example, consider an owner refinancing a Toronto condominium appraised at $750,000. If the existing mortgage balance is $420,000 and the owner wants a new $500,000 mortgage to pay out the old mortgage and obtain funds for renovations, the owner should not assume the transaction costs are based on the $750,000 property value. The meaningful figures are the old lender’s payout amount, including any prepayment charge, and the new lender’s appraisal, legal, title-insurance and registration requirements.

For a broader purchase-and-sale comparison, see how much are closing costs in Ontario. Purchase closing costs and refinance closing costs are not identical.

The costs involved in refinancing a mortgage

The costs involved in refinancing a mortgage commonly fall into five groups: lender charges, appraisal costs, legal fees and disbursements, title insurance, and the cost of paying out and discharging the old mortgage. The exact amount and who pays each item must be confirmed in the lender’s commitment and the lawyer’s quote.

Lender charges: A lender may charge an administrative, processing, appraisal or other fee. Its commitment should identify the charge, whether it is deducted from advance funds, and whether the lender will absorb any third-party cost.
Appraisal: The lender may require an appraisal to assess the property’s value and the loan-to-value ratio. Some lenders arrange and charge for it; others may cover it subject to the offer’s terms.
Legal fee and disbursements: A real estate lawyer’s account generally separates the legal fee from disbursements such as electronic registration, title searches, title insurance and applicable taxes on fees.
Title insurance: A lender often requires a lender title insurance policy on a refinance. This protects the insured lender against specified title risks; it is not a substitute for understanding the mortgage terms.
Old-mortgage payout and discharge: The old lender must be paid according to its payout statement. It may charge a discharge or administration fee, and a prepayment charge may apply if the mortgage is being broken early.
New mortgage registration: The new mortgage is registered electronically against title. A refinance normally registers a new charge; it does not transfer ownership of the home.

Review the commitment carefully before waiving financing conditions or instructing counsel. These legal fees for refinancing mortgage questions can help identify what is included in a quote and what must be confirmed with the lender.

The cost that can change the decision: your mortgage prepayment charge

A mortgage prepayment charge can make refinancing uneconomic if a closed mortgage is ended before its term expires. The charge is set by the mortgage contract and lender’s payout calculation, so obtain it in writing rather than relying on an estimate.

For a variable-rate closed mortgage, the prepayment charge is commonly based on a stated number of months of interest, often three months. For a fixed-rate closed mortgage, the lender may calculate the charge using the greater of a stated interest amount and an interest rate differential (IRD), subject to the contract. The IRD method and the rates used can differ between lenders, which is why only the lender’s written payout statement can provide the figure for a particular mortgage.

A homeowner approaching renewal may be able to wait until the term ends, renew with the same lender, switch lenders, or negotiate a new arrangement without paying an early-break charge. Whether a penalty applies in any of those situations depends on the current mortgage terms, the renewal date and the lender’s offer. Do not assume that an early-renewal window or a lender transfer eliminates the charge.

For example, a homeowner with a $300,000 fixed-rate mortgage may see a new rate that would reduce future payments. If the current lender’s payout statement includes a $9,000 prepayment charge, plus discharge costs, the homeowner should add those amounts to the appraisal, legal, title insurance and registration costs before deciding whether the projected savings justify changing the mortgage now.

Same lender, new lender, or renewal: why closing costs differ

Closing costs can differ substantially between an internal refinance, a switch to a new lender and a refinance at renewal because each lender decides its own underwriting conditions and which costs it will cover. A lower advertised interest rate does not necessarily mean the lowest total cost.

Option	What may happen	What to compare
Refinance with the current lender	The lender may offer a blend-and-extend arrangement, a new loan amount, or a new term. It may avoid some change-of-lender work, but it can still require legal documentation, a title review or a new registered charge.	Rate, term, payout charge, funds advanced, legal requirements and whether any costs are financed.
Switch to a new lender	The new lender usually requires its own approval and mortgage registration. It may offer to pay or reimburse specified legal, appraisal or discharge-related costs, subject to conditions.	All lender conditions, old-lender payout, new registration, title insurance, legal costs, rate and term.
Refinance at renewal	If the old term has ended, an early-break charge may be avoided, but a refinance that increases borrowing can still require approval, appraisal and legal work.	Whether this is a simple renewal, a switch, or new borrowing secured by a new mortgage.

“Quicken Loans refinance closing costs” and similar searches cannot answer what an Ontario borrower will pay. A lender’s brand, country, product and offer may differ, and Ontario borrowers should compare the written terms of the actual mortgage commitments available to them.

To compare lenders, put the following on one page: the rate and term, payment, total amount borrowed, amortization, prepayment privileges, prepayment charge formula, appraisal requirement, lender fees, whether costs are paid by the lender or added to the debt, and the legal and discharge costs. A lawyer for a refinance can review lender instructions once a lender has approved the transaction and sent the required documents.

Can you refinance without closing costs?

You can sometimes avoid paying some refinance costs upfront, but an offer described as “no-cost” does not make the underlying costs disappear. The lender may pay selected costs, add them to the new mortgage, recover them through a higher interest rate, or limit the offer to particular products and borrowers.

Ask the lender exactly which costs it will pay, whether the payment is a credit or reimbursement, whether it is conditional on closing by a certain date, and what happens if the mortgage is paid out early. Also ask whether the old lender’s prepayment charge is excluded; lender-paid legal or appraisal costs do not ordinarily erase a charge imposed by the old mortgage contract.

Compare the payment and total interest with and without the lender credit.
Confirm whether the costs are being added to the principal.
Read the prepayment provisions of the proposed mortgage before accepting a higher-rate offer.
Obtain a written breakdown instead of relying on a verbal “no-cost” description.

Learn more about common assumptions around a closing cost for refinance before choosing an offer.

How to estimate whether refinancing is worth it

To estimate whether refinancing is worthwhile, add every cost of changing the mortgage and compare that total with realistic savings over the time you expect to keep the new mortgage. The calculation should include the prepayment charge, not just the ordinary closing costs.

A simple break-even method is:

Total refinance cost ÷ expected monthly savings = approximate months to break even.

Total refinance cost should include the old lender’s prepayment charge and discharge-related amount, new lender charges, appraisal, legal fees and disbursements, title insurance, and any interest adjustment. Expected monthly savings should be based on comparable payment schedules, terms and amortization periods. A lower payment caused mainly by extending amortization is not the same as an interest saving.

For example, suppose a homeowner expects payment savings of $225 per month after refinancing. If the written payout statement and quotes show $6,750 in combined costs, the simple break-even point is 30 months. If the homeowner expects to sell or refinance again in 18 months, the calculation calls for closer review. If the homeowner expects to keep the new mortgage longer, the comparison should also consider total interest and the new mortgage’s prepayment terms.

Before committing, request the current lender’s payout figure, the new lender’s commitment, confirmation of any appraisal requirement, and a legal quote. This is also a useful time to ask can you negotiate closing costs on a refinance, particularly where the lender has discretion over its own fees or credits.

What your Ontario real estate lawyer does on a refinance

An Ontario real estate lawyer reviews the lender’s instructions and title, obtains mortgage payout information, receives and disburses funds through trust, registers the new mortgage in Ontario’s electronic land registration system, and handles discharge steps for the old mortgage where applicable. This is not a buyer-seller closing, and Ontario does not use a US-style property “recording” process for a refinance.

The lawyer confirms who is on title, reviews registered interests that could affect the lender’s security, and prepares the documents required by the lender. The lawyer also coordinates with the old lender for a payout statement and discharge undertaking or discharge documentation, as applicable, and with the new lender for funds and registration instructions.

On closing, the lawyer uses trust funds to pay the old mortgage and other authorized amounts, registers the new mortgage electronically, and provides the reporting required by the lender and borrower. There is generally no buyer-seller statement of adjustments in an ordinary refinance; instead, the lawyer’s reporting and trust accounting show the advances, payouts, fees, disbursements and net funds.

A lawyer for mortgage financing can also identify practical issues early, such as an owner who must sign but is not borrowing, a private mortgage that needs special payout arrangements, or title that requires additional documentation.

Equity, appraisal and mortgage default insurance

In a conventional Ontario refinance, the total borrowing secured by the home is generally limited to 80% of its appraised value, subject to lender qualification and underwriting rules. Available equity is not simply the home value minus the current mortgage; the lender also considers the new loan amount, other secured debt, income, credit and property assessment.

For example, if a detached home appraises at $900,000, 80% is $720,000. If the owner owes $510,000 on the existing mortgage and wants to refinance, a lender may assess whether a new mortgage up to $720,000 fits its qualification requirements. The theoretical difference is $210,000, but it is not automatically available cash because payout costs, the lender’s approval and any other registered debt affect the transaction.

An appraisal may be required even when a homeowner believes the property value is clear from nearby sales. For more detail on what the lender’s valuation process can involve, read about the real estate lawyer woodbridge service if your transaction involves a Woodbridge property, and obtain the appraisal requirement directly from the lender.

Mortgage default insurance is commonly associated with high-ratio purchase mortgages. CMHC, Sagen and Canada Guaranty have product-specific rules, and borrowers should ask the lender whether mortgage default insurance, an insurance premium or any related charge applies to the proposed refinance rather than assuming existing insurance transfers to a new loan.

Costs that usually do not apply to an ordinary refinance

An ordinary refinance does not transfer title, so Ontario land transfer tax, Toronto municipal land transfer tax and first-time-homebuyer land-transfer-tax rebates are generally purchase issues, not ordinary refinance costs. A refinance normally changes the financing registered against the property rather than the owner of the property.

Likewise, US-style “origination” terminology, state transfer taxes, PACE references and property recording charges should not be treated as standard Ontario refinance costs. Ontario mortgages are registered electronically, and the relevant costs should appear in the lender’s commitment and the lawyer’s trust estimate.

A change in beneficial ownership, a title transfer between spouses, a corporate restructuring or another non-routine arrangement may raise separate tax and legal questions. Those facts need individual legal advice; they should not be assumed to be part of a standard mortgage refinance.

Refinance closing-cost FAQs

Are there closing costs on a refinance?

Yes. Even when a lender pays or finances selected items, a refinance commonly has legal, registration, title-insurance, appraisal, payout or discharge-related costs, and possibly a prepayment charge. The lender’s commitment and old lender’s payout statement are the documents that identify the actual costs.

Who pays the costs and when?

The borrower is ultimately responsible for costs unless the lender’s written offer says it will pay a specified item. Some amounts are deducted from mortgage advance funds on closing, while others may be paid to the lawyer in advance or included in the payout; see do you pay closing costs when refinancing for timing considerations.

How much does it cost to refinance a $300,000 loan?

A $300,000 refinance does not have a standard cost. Request the current lender’s payout statement, including any prepayment charge, and written quotes for the new lender’s charges, appraisal, legal work, title insurance and registration.

Does refinancing hurt credit?

A refinance application can involve a credit check, and the new lender assesses credit as part of its approval process. Ask the lender or mortgage professional what credit inquiries it expects to make and avoid making unnecessary new credit applications while the refinance is being considered.

What should I avoid before closing?

Avoid taking on new debt, missing payments, changing employment or moving large funds without keeping a clear paper trail until the lender confirms its conditions are satisfied. Tell the lender promptly if your financial circumstances or the property’s title information changes.

How much does it cost to refinance a mortgage in California?

This article is Ontario-only. California law, lender documents, taxes and closing practices differ, so an Ontario cost estimate should not be used for a California refinance.

Speak with a Toronto real estate lawyer

Early legal review can help you understand the lender’s instructions, the old mortgage payout and the costs that must be addressed before your refinance closes.

Call 416-321-8766 or request a quote to discuss your matter with Zinati Kay.

Continue reading

Closing Costs Ontario: Estimate Fees Before You Offer

Closing & Closing Costs John Zinati

Closing costs Ontario buyers pay are not one fixed percentage of the purchase price. To answer “how much are closing costs in Ontario,” build an itemized estimate of closing fees based on the property’s location, price, mortgage, deposit, property type and closing-date adjustments. The down payment is only one part of the cash you need; land transfer tax, legal work, lender charges and adjustments can materially change the amount your lawyer asks you to provide.

For a purchase, the most reliable number is the final trust request from your real estate lawyer after the statement of adjustments and mortgage instructions arrive. Until then, a careful estimate helps you decide whether an offer and financing plan leave enough cash available.

Estimate closing costs in Ontario before you make an offer

The practical way to estimate closing costs is to list each expected item, rather than relying on a general percentage. A buyer outside Toronto may have very different cash requirements from a Toronto buyer at the same price, and a new home, condominium or insured mortgage can add separate charges.

Begin with the purchase price and municipality, then add the transaction-specific costs. Ask a closing lawyer in Toronto for a written estimate early enough to compare it with your available savings and lender-approved down payment.

A useful working budget separates three things:

Deposit: money promised under the agreement of purchase and sale, commonly delivered shortly after acceptance and held in trust. It is generally credited toward the purchase price on closing.
Cash due through the lawyer on closing: the balance of the purchase price not funded by the mortgage, plus land transfer tax, legal and registration charges, title insurance where obtained, adjustments and applicable lender-related amounts.
Costs paid earlier or financed: an inspection, appraisal or insurance may be paid before closing; a mortgage default insurance premium is usually added to the mortgage, while Ontario retail sales tax on that premium is generally payable in cash at closing.

For example, a buyer offering $850,000 for a resale townhouse in Mississauga might pay a $42,500 deposit after acceptance and arrange a mortgage for $637,500. The deposit and mortgage do not eliminate the need to budget for Ontario land transfer tax, the lawyer’s quote, title insurance, registration-related disbursements and adjustments. If the seller prepaid annual property taxes beyond the closing date, the buyer’s share is also added to the funds required.

Do not treat a calculator total as a commitment from a lender or lawyer. It is a planning figure that must be revised as the agreement, financing and closing information become available.

What counts as closing costs when buying a home?

Closing costs when buying a home are the taxes, professional charges, lender charges and prorated property expenses needed to complete the purchase, apart from the purchase price itself. They are different from the deposit and down payment, although all may need to be funded from the buyer’s own cash.

For timing of the deposit, pre-closing invoices and funds due to the lawyer, read about closing costs when buying a house. For a broader list of buyer expenses, see real estate closing costs Ontario.

Most buyer estimates have four groups:

Government taxes: Ontario land transfer tax and, for property in Toronto, Municipal Land Transfer Tax. The Non-Resident Speculation Tax may apply to some purchases by foreign entities or taxable trustees.
Lawyer and title costs: the legal fee, Harmonized Sales Tax on the fee, disbursements and, where selected or required, title insurance.
Mortgage and lender costs: an appraisal, lender administration charges, mortgage registration and, for an insured mortgage, provincial sales tax on the insurance premium.
Adjustments and property-specific costs: prepaid property taxes, utility or common-expense adjustments, condominium documents, an inspection, a survey issue, insurance and new-home charges.

How to estimate your cash to close

Your cash to close is the balance your lawyer requires after crediting the deposit and mortgage funds and adding taxes, charges and adjustments. The exact amount is confirmed shortly before closing because the final statement of adjustments and lender instructions affect the calculation.

Confirm the purchase information. Record the purchase price, full property address, property type, closing date and whether the property is inside Toronto.
Record the deposit already paid. Keep the deposit receipt, since the deposit is normally shown as a credit on the buyer’s statement of adjustments.
Obtain mortgage details. Ask the lender or mortgage broker for the expected mortgage amount, whether the mortgage is insured, appraisal requirements and any lender charges.
Calculate transfer taxes. Estimate provincial land transfer tax and, if applicable, Toronto Municipal Land Transfer Tax. Identify possible first-time-buyer relief before assuming it applies.
Request an itemized legal quote. It should distinguish the legal fee, HST, anticipated disbursements and a separate title-insurance estimate where applicable.
Add known property costs. Include an inspection, appraisal, condominium status certificate, insurance premium or new-build charges that are not included elsewhere.
Estimate adjustments cautiously. Property taxes, common expenses, rent and utilities can be apportioned as of the closing date. Ask for an updated estimate once the seller’s information is available.

For example, consider a buyer purchasing a $620,000 freehold home in Ottawa with a $31,000 deposit and a $465,000 mortgage. The buyer first calculates the remaining purchase-price contribution of $124,000, then adds provincial land transfer tax and the lawyer’s estimated charges. If the mortgage is insured, the mortgage default insurance premium may be added to the mortgage balance, but the Ontario retail sales tax on that premium should be separately included in the cash budget. A property-tax adjustment may increase or decrease the final amount depending on what the seller has paid.

The lawyer’s final trust request is not simply the purchase price less the mortgage. It follows the completed statement of adjustments, the deposit credit and the lender’s actual funding instructions.

Ontario and Toronto land transfer tax

Ontario land transfer tax is generally payable when a buyer acquires land in Ontario, and a Toronto purchase can also attract Municipal Land Transfer Tax. These taxes are often among the largest buyer closing costs, so calculate them from the price and location before committing to an offer.

The provincial first-time homebuyer land transfer tax refund can reduce eligible buyers’ Ontario tax. An eligible Toronto first-time buyer may also qualify for a separate Toronto first-time homebuyer Municipal Land Transfer Tax rebate. Eligibility depends on the current program rules and the buyer’s circumstances, so do not assume a rebate merely because the buyer has not previously owned a home in Ontario.

Use our guide on how much is land transfer tax in Ontario for the calculation, Toronto’s second tax and current first-time-buyer rules.

A simple illustration shows why location matters. On a $700,000 resale purchase outside Toronto, the buyer estimates Ontario land transfer tax under the provincial brackets. On an otherwise identical Toronto purchase, the buyer must also estimate Municipal Land Transfer Tax, subject to any verified rebate. The lawyer collects the applicable taxes from the buyer’s closing funds and remits them as part of completion.

Closing cost legal fees and disbursements

Closing cost legal fees and disbursements are different charges and should be quoted separately. The legal fee pays for the real estate lawyer’s professional services; HST applies to that fee, while disbursements are transaction expenses paid to third parties or incurred to complete the file.

On a typical purchase, our real estate lawyers review the agreement, search and review title, investigate matters revealed by the search, receive and review mortgage instructions, prepare documents, calculate adjustments, receive money in trust, register electronically and account for the funds after closing. The work is performed in accordance with the lawyer’s professional obligations, including the Law Society of Ontario’s trust-account and client-identification requirements.

Disbursements may include land-title search charges, electronic registration-related charges, tax certificates or other searches, title insurance, bank charges and courier or identity-verification expenses where needed. The precise list varies with the property, lender, title issue and method of completing the transaction.

Fixed closing costs usually means a quoted legal fee for defined legal services. It does not mean that land transfer tax, HST, title-insurance premiums, government registration charges, lender fees, search costs, taxes or unexpected work to resolve a title problem are fixed. Request a written itemized quote and ask what work or disbursements could fall outside it.

For example, a buyer of a standard resale condominium may receive a legal-fee quote plus estimated disbursements and title insurance. If title review identifies an issue requiring additional documents, or the lender changes its instructions shortly before closing, the buyer should ask promptly how that affects timing and cost.

Other buyer costs that may apply

Other buyer costs are circumstance-specific, not automatic for every Ontario purchase. Confirm which costs apply to your property and mortgage rather than adding a generic allowance to every estimate.

Title insurance, inspection, appraisal and survey issues

Title insurance is generally a one-time policy premium, quoted in dollars for the transaction, that can protect an owner and lender against certain covered title risks. It does not replace the lawyer’s title review, and the coverage, exclusions and premium depend on the insurer and policy.

A home inspection is usually arranged before closing, often during a condition period, and is separate from legal closing costs. A lender may require an appraisal, particularly where it needs an independent view of value; the lender may charge the borrower or absorb the cost depending on the mortgage arrangement.

A survey is not always required. Where there is an existing survey, boundary concern, encroachment question or lender requirement, ask the lawyer what documents are needed rather than assuming title insurance answers every physical-boundary question.

Condominiums, mortgage insurance and new homes

Condominium buyers may need a status certificate and should budget for common-expense adjustments and proof of property insurance where applicable. The Condominium Authority of Ontario oversees elements of Ontario’s condominium system, but a status certificate remains an important transaction document prepared through the condominium corporation or its manager.

When a buyer makes a smaller down payment, mortgage default insurance may be required through CMHC or another approved insurer. The premium is commonly added to the mortgage, but Ontario retail sales tax on mortgage default insurance premiums is generally collected in cash at closing and cannot simply be added to the mortgage.

New homes can involve Harmonized Sales Tax treatment, builder adjustments, development-related charges, Tarion enrolment-related items and occupancy or interim occupancy payments for a pre-construction condominium. For details that are particular to a new unit, review closing costs for a condo.

Statement of adjustments and closing day in Ontario

The statement of adjustments allocates prepaid or unpaid property expenses between buyer and seller as of the closing date. It is not a US-style closing disclosure; it is an Ontario transaction document used by the parties’ lawyers to calculate the final funds due.

Common adjustments include property taxes, utilities, condominium common expenses, fuel, rental items and, for investment property, rents or deposits where the agreement requires an adjustment. If the seller has prepaid an annual property-tax instalment covering time after closing, the buyer normally reimburses the seller for the post-closing portion. If the seller has not paid an amount that is their responsibility before closing, the calculation can work in the buyer’s favour.

The usual closing sequence is:

The buyer provides cleared funds to the lawyer in advance of closing, following the lawyer’s trust instructions.
The lender sends mortgage funds to the lawyer when its conditions are satisfied.
The lawyers exchange closing documents and funds, and complete registration through Ontario’s electronic land registration system.
After completion, the seller’s side authorizes release of keys in accordance with the agreement and the parties’ arrangements.

Key timing is not guaranteed to be a particular hour; registration, lender funding and completion steps can affect it. Buyers should arrange movers with reasonable flexibility and follow the lawyer’s instructions about when the transaction has completed.

Closing costs Toronto calculator: inputs that change the result

A closing costs Toronto calculator is useful only if it includes Toronto’s Municipal Land Transfer Tax as well as Ontario land transfer tax. It should be treated as a planning tool, because it cannot know the final lender instructions, title findings or statement of adjustments.

Enter these inputs before relying on a result:

the full Toronto property address and purchase price;
each buyer’s verified first-time-buyer status;
the deposit already paid and planned down payment;
mortgage amount, lender and whether mortgage default insurance applies;
the lawyer’s legal-fee, HST and disbursement estimate;
title insurance, appraisal and inspection estimates;
the property type, especially condominium or pre-construction status; and
an allowance for property-tax, utility and common-expense adjustments.

For example, a Toronto buyer purchasing a $900,000 condominium cannot rely on a non-Toronto calculator. The estimate must reflect both transfer taxes, possible first-time-buyer rebates, condominium expenses and the seller’s prepaid common expenses or taxes. The lawyer’s final statement, not the online calculator, controls the funds requested.

Seller closing cost calculator Ontario

A seller closing cost calculator Ontario estimate starts with the sale price and subtracts the costs needed to deliver clear title and complete the sale. It is a net-proceeds calculation, not a buyer land-transfer-tax estimate.

A basic formula is:

Sale price − brokerage costs − legal fees and disbursements − mortgage payout and lender charges − seller adjustments = estimated net proceeds.

The mortgage payout is especially important. Request a payout statement from the lender early, because it may include the principal balance, daily interest to the payout date, a prepayment charge and an administration or discharge-related charge. The seller also normally bears costs required to discharge the existing mortgage and address title matters for which the seller is responsible.

Consider a seller with an $800,000 sale price, a mortgage balance of $410,000 and brokerage costs agreed in the listing arrangement. The seller should subtract those amounts, the lender’s stated payout amount, legal costs and any credit to the buyer for prepaid taxes or condominium common expenses. The actual net proceeds can change if the closing date changes because mortgage interest and adjustments are date-sensitive.

Avoid surprises: what to send your lawyer early

Send documents early so the lawyer can identify missing information and give a more useful estimate before closing pressure builds. Ask for an updated estimate whenever the closing date, mortgage lender or material deal term changes.

the accepted agreement of purchase and sale, schedules, amendments and waivers;
the deposit receipt and information about who paid it;
the lender or mortgage broker’s contact details and mortgage instructions when available;
government-issued identification and source-of-funds information requested by the lawyer;
confirmation of property insurance, when required by the lender;
for a condominium, the status certificate and relevant condominium documents;
for a new home, the builder agreement, amendments, Tarion material and any occupancy information; and
any notice of a private mortgage, gifted down payment, assignment, tenancy, estate issue or title concern.

Never send trust funds based only on an unverified email. Confirm payment instructions directly with the lawyer’s office using known contact information, particularly if instructions appear to change.

Closing costs Ontario FAQs

What are closing costs when buying a home?

They are the costs required to complete the purchase in addition to the purchase price, including applicable land transfer tax, lawyer charges, title insurance, lender charges and adjustments. The deposit is generally credited toward the price, but it is still cash the buyer needs to provide under the agreement.

How can I estimate closing costs?

Start with the price, municipality, deposit and mortgage, then add an itemized estimate for taxes, lawyer charges, title insurance, lender costs and adjustments. Ask the lawyer to update the estimate after mortgage instructions and the statement of adjustments are available.

Are fixed closing costs really fixed?

A fixed legal fee may be fixed for stated legal services, but the total closing amount is not fixed if it includes taxes, registration charges, title insurance, lender fees, HST, disbursements or unexpected title work. Read the scope of the written quote carefully.

What do closing cost legal fees and disbursements include?

Legal fees pay for the lawyer’s services, while disbursements are separate transaction expenses such as searches, electronic registration-related charges and bank or verification charges. Title insurance is often separately itemized because its premium depends on the policy and transaction.

How do I use a seller closing cost calculator Ontario?

Subtract brokerage costs, the lender’s mortgage payout, legal fees and disbursements, and seller adjustments from the sale price. Confirm the lender payout close to closing because daily interest and prepayment charges can change the result.

How much are closing costs in Toronto?

Toronto buyers generally need to budget for both Ontario land transfer tax and Municipal Land Transfer Tax, along with the other transaction-specific costs. A Toronto calculator is useful for planning, but the final amount depends on verified rebates, financing, adjustments and the lawyer’s final statement.

Can the Home Buyers’ Plan pay closing costs?

Funds withdrawn under the federal Home Buyers’ Plan can help a qualifying buyer fund a home purchase, but the program has eligibility, withdrawal and repayment rules. It is not an Ontario land transfer tax refund, so confirm the current rules before relying on it in a closing budget.

Speak with a Toronto real estate lawyer

An itemized estimate before an offer or well before closing can reveal whether land transfer tax, financing, adjustments or property-specific charges require more cash than expected. Early legal review is also useful when lender instructions, title issues or new-build charges are unclear.

Call 416-321-8766 or request a quote to discuss your matter with Zinati Kay.

Continue reading

Does the Seller Have to Be Out at Closing?

Closing & Closing Costs John Zinati

Does the seller have to be out of the house at closing in Ontario?

Does the seller have to be out of the house at closing? Usually, yes: if the Agreement of Purchase and Sale requires vacant possession, the seller should have removed all people and belongings by completion unless the buyer agrees otherwise in writing. The agreement, including its completion date, possession wording and any amendments, controls what each party must deliver.

Many Ontario Real Estate Association standard-form agreements provide for vacant possession on completion, but the wording in the signed agreement matters. A seller should not assume that leaving a few boxes, a vehicle in the driveway or an occupant in the home is acceptable simply because the lawyers are completing the transfer.

Vacant possession generally means the buyer can take possession free of the seller, the seller's belongings and anyone claiming a right to remain. It is different from delivering a house that is merely mostly empty. If a tenancy, a post-closing occupancy arrangement or another exception applies, it should be identified and documented well before the completion date.

For help reviewing the possession terms and the rest of a sale agreement, a real estate transaction lawyer can identify issues before moving arrangements and closing funds are affected.

Closing date, completion and possession: what time must the seller leave?

The closing date and the time the lawyers confirm completion are not always the same thing. A seller must follow the possession and vacant-possession terms in the Agreement of Purchase and Sale, but should plan to be fully out before the day begins rather than relying on a particular hour.

Ontario transactions may complete at different times during the business day. The lawyers must deal with closing documents, registration and funds, and an issue with financing, registration or documents can change the timing. Sellers should have the home empty, cleaned and ready for keys to be released without needing to return for possessions.

Buyers should not enter the property, move in or send movers until their lawyer confirms that the transaction has completed and keys may be released. A key handoff arranged through a brokerage is not, by itself, confirmation that title has transferred or that the buyer may take possession.

For example, a seller of a $925,000 Toronto townhouse who is purchasing another home on the same date should book movers for an early departure, arrange a backup storage option and keep essential items with them. If their purchase completes before their sale, or their sale completes later than expected, they will have a practical buffer instead of leaving furniture in the sold home.

What happens on closing day for a seller in Ontario

On closing day, the seller's and buyer's real estate lawyers complete the legal and financial steps that allow title and possession to change hands. There is usually no in-person closing table: much of the work is coordinated between the lawyers, lender and electronic land-registration system.

The seller's lawyer confirms the documents, obtains a mortgage payout statement where there is a mortgage, and calculates amounts owing through the statement of adjustments.
The lawyers settle adjustments for items such as property tax and, where applicable, utility adjustments, based on the period each party is responsible for.
The buyer's lawyer provides the required closing funds. The seller's lawyer gives the undertakings needed to pay out and arrange the mortgage discharge after closing.
The transfer is registered electronically in the Land Registry Office system, subject to the transaction's requirements and registrations.
Once the lawyers confirm completion, the seller's lawyer accounts to the seller for net sale proceeds and arrangements are made to release keys, fobs and other access items.

The seller does not normally need to prepare their own transfer or “deed.” Their lawyer prepares and registers the required transfer documents. Depending on the property and transaction, the buyer may obtain title insurance, but it is not a substitute for the seller meeting the agreed possession obligations.

A change in legal ownership without a sale has different documentation and tax considerations. If that is the issue, speak with a lawyer for a property transfer before signing documents or changing title.

Seller checklist before completion

A seller should have the property empty, in the agreed condition and ready to hand over before completion. Starting this work early reduces the risk that a moving problem becomes a possession dispute.

Read the Agreement of Purchase and Sale again, including schedules, amendments and any agreed repairs. Confirm which fixtures and chattels are included and must remain.
Remove personal belongings, garbage, recycling and items from the garage, shed, balcony, lockers and parking spaces unless they were specifically included in the sale.
Leave all available house keys, mailbox keys, garage remotes, alarm information, condominium fobs, parking passes and locker keys as instructed by the lawyers or brokerage.
Leave included appliances and other agreed chattels. Manuals, warranties and service records can be useful to the buyer, although the agreement determines what must be left.
Provide your lawyer with requested property tax information, mortgage details, payout information and condominium documents that are in your possession.
Arrange mail forwarding and contact utility providers about the move. Do not cancel essential services prematurely if the agreement requires them to remain active through completion.
Maintain property insurance until the transaction has completed, then ask your insurer when cancellation or changes should take effect.

For a condominium sale, reserve the elevator and follow the condominium corporation's moving rules well in advance. For an Ajax property, an ajax real estate lawyer can coordinate the legal closing with the parties involved in the local transaction.

Final inspection and the condition of the property

A buyer may inspect the property before closing if the Agreement of Purchase and Sale permits it, and the seller should make the property available as required. The purpose is generally to confirm that the property is in substantially the same condition and that included fixtures and chattels remain.

Sellers should not remove an included light fixture, built-in appliance or other fixture at the last minute unless the buyer has agreed in writing. They should also address agreed repairs and avoid damage while moving out. If the buyer raises a concern during an inspection, both parties should send it promptly to their lawyers rather than trying to negotiate an undocumented arrangement at the property.

For example, if an included refrigerator stops working while a seller is moving out of a $680,000 condominium, the seller should tell their lawyer immediately. The lawyers can review the agreement, the inspection information and the available options before completion instead of leaving the buyer to discover the issue after keys are released.

Can a seller stay in the house after closing?

A seller can stay in the house after closing only if the buyer agrees and the arrangement is documented before completion. An informal promise to stay “for a few days” can leave both sides uncertain about access, insurance, damage and what happens if the seller does not leave on time.

A lawyer-reviewed post-closing occupancy arrangement should address:

the exact date and time the seller must give up possession;
any payment, deposit, holdback or other security arrangement;
who maintains insurance and who is responsible for utilities during the occupancy period;
the seller's responsibility for damage, injury, belongings and access to the property;
the condition in which the property must be delivered, including keys and removals; and
the consequences and available steps if the seller overstays.

Calling the arrangement “rent” does not by itself determine the parties' legal rights. The written terms and the facts matter, so sellers and buyers should obtain legal advice before allowing possession to continue after closing.

Seller still in the house after closing: what should each side do?

If the seller is still in the house after closing when vacant possession was required, the buyer should document the situation and contact their lawyer immediately. The seller should not assume that extra time is available or that the buyer will accept a verbal extension.

The buyer should avoid escalating the situation personally. Photos, a record of communications, moving or accommodation invoices and details of the missing possession can help the lawyer assess the agreement and any claimed losses. The lawyers may be able to address an immediate practical solution, but the available contractual remedies depend on the signed agreement and the facts.

The seller should promptly tell their lawyer why they have not vacated, when they can leave and whether any written arrangement exists. A delayed mover, a failed same-day purchase or unfinished packing may explain the problem, but does not replace the seller's contractual obligation.

If the property is tenanted, is vacant possession available?

A sale does not, by itself, end a residential tenancy, so a seller cannot promise vacant possession simply because the property has been sold. The Residential Tenancies Act and the tenancy facts may affect how and whether a tenant can be required to leave.

A buyer who takes title may become the tenant's new landlord if the tenancy continues. Where a buyer wants the property for their own use, the proper process, notice requirements and timing must be addressed early; a vacant-possession clause alone does not override a tenant's rights. Sellers should obtain Ontario legal advice before listing a tenanted property as vacant on closing.

This issue is particularly important for investors, duplexes and condominium units. Give the lawyer a copy of the lease, any notices, correspondence and details of rent, deposits and agreed parking or storage before the agreement is finalized.

How to avoid a possession problem when selling and buying on the same day

Same-day sale-and-purchase moves need a contingency plan because neither transaction has a guaranteed completion hour. Sellers should arrange movers, storage, pets, medication, documents and overnight necessities on the assumption that access to the new home may not be immediate.

Tell both lawyers and your movers about the linked transactions, but do not rely on one closing completing first. Our post on can you move into your house on closing day explains practical completion-day planning in more detail.

FAQ about seller move-out after closing

How long does the seller have to move out after closing?

How long does the seller have to move out after closing depends on the possession terms in the Agreement of Purchase and Sale. Where vacant possession is required on completion, the seller should be out by completion, not after it.

Can the buyer move in immediately?

The buyer may move in only after their lawyer confirms the transaction has completed and possession may be released. Buyers should not schedule access around an assumed morning or afternoon completion time.

What should a seller leave at the property?

A seller should leave all included fixtures and chattels, plus the keys, fobs, remotes and access items needed for the buyer to use the property. The agreement and schedules determine whether a particular appliance, shelving unit or other item stays.

Who pays closing costs when a home is sold?

Seller-side amounts vary by transaction and can include real estate commission, mortgage payout amounts, property tax or utility adjustments, discharge-related charges and legal costs. Review the statement of adjustments and your lawyer's account rather than relying on a percentage of the sale price.

Speak with a Toronto real estate lawyer

Advice before completion can help sellers and buyers clarify vacant possession, post-closing occupancy and closing-day responsibilities before a moving problem becomes a dispute.

Call 416-321-8766 or request a quote to discuss your matter with Zinati Kay.

Continue reading

Why Prepay Property Taxes at Closing in Ontario?

Closing & Closing Costs John Zinati

Why do i have to prepay property taxes at closing? In Ontario, a buyer may need to bring extra funds because the seller has already paid municipal property taxes for a period after closing, or because the Statement of Adjustments allocates taxes to the buyer from the closing date onward. It is an adjustment between buyer and seller, not a new property tax charge.

Property-tax adjustments can change the cash required to close, so both parties should review the tax figures early with their real estate lawyer.

Who pays property taxes at closing in Ontario?

The seller is normally responsible for property taxes up to the closing date, and the buyer is normally responsible from the closing date onward. The lawyers settle the amount between the parties on the Statement of Adjustments, subject to the agreement of purchase and sale and the actual tax information available for the property.

In practical terms, the party who has paid too much for the period they will not own the property receives a credit. If the seller has paid taxes in advance, the buyer usually reimburses the seller for the post-closing period. If taxes are unpaid, the seller’s share of the year is usually credited to the buyer, who will be responsible for dealing with the municipality after closing.

That is why “who pays property taxes at closing” does not always have one simple cash answer. The buyer ultimately takes over the property-tax account, but the seller must account for the ownership period before closing.

Are property taxes part of closing costs?

A property-tax adjustment is part of the financial calculation at closing, but it is not a new tax and it is not the same as Ontario land transfer tax. It may increase the buyer’s funds needed on closing or reduce the seller’s sale proceeds, depending on whether taxes have been prepaid or remain unpaid.

Buyers commonly budget for their lawyer’s fees and disbursements, land transfer tax, mortgage-related costs where applicable, insurance and adjustments for items such as property taxes or condominium common expenses. Sellers commonly budget for legal costs, real estate commission if one is payable, mortgage payout costs and adjustments. For a broader budgeting discussion, see closing costs Ontario.

Ontario land transfer tax is generally payable by the purchaser on a transfer of land. In Toronto, a municipal land transfer tax may also apply. The Non-Resident Speculation Tax (NRST) can be a separate consideration for certain residential purchasers, while GST/HST or Harmonized Sales Tax (HST) issues can arise on new homes, substantially renovated homes and some commercial transactions; neither is an ordinary annual municipal property-tax adjustment.

How property-tax adjustments work

Property taxes are generally prorated at closing by allocating the annual tax amount between the seller’s and buyer’s ownership periods. The adjustment is ordinarily made as of the completion or closing date set out in the agreement, but the signed agreement and the Statement of Adjustments control the calculation for a particular transaction.

The lawyers review the annual tax levy or tax certificate, the amounts billed and paid, any arrears, instalment dates, and the closing date. The assessment information underlying a municipal tax bill may involve the Municipal Property Assessment Corporation (MPAC), but a closing adjustment is based on the municipal tax figures and the transaction documents, not on a fresh assessment calculation.

A lawyer for your purchase or sale can identify a tax adjustment before closing and explain whether it is a credit to the buyer or seller.

If the seller has prepaid property taxes

If the seller has paid property taxes beyond closing, the buyer normally credits the seller for the buyer’s post-closing share. This prevents the seller from paying taxes for a period when the buyer owns the property.

For example, assume a Toronto freehold home has annual municipal property taxes of $6,000, the seller has paid the full year, and closing is June 15 in a non-leap year. The daily amount is $6,000 divided by 365, or about $16.44. If the adjustment treats June 15 through December 31 as the buyer’s 200-day period, the buyer’s debit to the seller is about $3,287.67: $16.4384 multiplied by 200, rounded to cents.

That $3,287.67 is shown as an adjustment, not as a separate payment sent by the buyer directly to the City of Toronto. It increases the funds the buyer needs to provide to their lawyer and increases the amount credited to the seller on closing.

If property taxes are unpaid or the bill is not yet available

If property taxes are unpaid, the seller’s pre-closing share is normally credited to the buyer rather than charged to the buyer. Tax arrears must be identified and addressed because municipal taxes can affect title and cannot simply be ignored when a property is sold.

For example, using the same $6,000 annual tax amount and June 15 closing date, the seller’s January 1 to June 14 share is 165 days, or about $2,712.33. If no taxes have been paid, the Statement of Adjustments may credit that amount to the buyer, who will later pay the municipality according to the bill and payment arrangements. The lawyers must also deal with any actual arrears, penalties or tax-sale concerns disclosed by the tax information.

Where a final bill is not available, the lawyers may use the available levy, an interim bill, a tax certificate or an estimate permitted by the agreement. Ask to see the tax figure used and whether it reflects an instalment that has already been paid, is due shortly, or remains outstanding.

Why buyers may have to prepay property taxes at closing

A buyer may have to prepay property taxes at closing because the seller has already paid taxes for the buyer’s period of ownership, or because the adjustment requires funds to account for taxes that will become the buyer’s responsibility. There is no universal fixed answer to how many months of property taxes are collected at closing.

The amount depends on the closing date, the municipality’s billing cycle, what the seller has paid, and the adjustment terms in the agreement. A January closing can produce a very different result from an October closing. It is also possible for no property-tax adjustment to be required if the relevant amounts and dates produce no balance.

Your mortgage may change the cash-flow picture. Some lenders collect a monthly amount for property taxes with the mortgage payment and remit taxes under their own administration process; others require the owner to pay the municipality directly. A lender may also require a tax holdback or proof that taxes are current under the mortgage terms, which can affect the money required on closing.

What happens on closing day and after closing

On closing day, the lawyers finalize the Statement of Adjustments, exchange closing funds, complete the electronic registration process and report to their clients. The tax adjustment appears among the credits and debits used to calculate the buyer’s balance due and the seller’s net sale proceeds.

Buyers should take these steps after closing:

Confirm that the municipality has the correct ownership and mailing information for future tax bills.
Ask whether the lender will collect and remit property taxes, or whether the buyer must set up payment directly with the municipality.
Review the first tax bill carefully, including payment dates and available instalment plans.
Keep the final Statement of Adjustments with the purchase documents.

Sellers should provide the latest tax bill and payment information to their lawyer, arrange to clear known arrears, and retain the final statement for their records. A seller should not cancel a pre-authorized municipal payment arrangement until confirming how the municipality will process the ownership change and any final payment.

For a buyer preparing their funds and documents, these questions to ask before closing on a house can help identify issues before the closing date.

Property tax payments in Ontario after a sale

After a sale, the buyer is responsible for future property-tax payments, subject to any arrangement under the mortgage. Municipalities set their own tax bills, instalment dates, payment methods and late-payment rules, so there is no single Ontario-wide June deadline or 30-day rule for every buyer.

Buyers can generally use the payment options offered by their municipality, which may include online banking, pre-authorized payment plans or other local methods. If the lender collects taxes, the buyer should still review municipal notices and mortgage statements to ensure the account information and payments are being handled as expected.

Property owners in Aurora and surrounding areas can also work with our aurora real estate lawyers on purchase, sale and tax-adjustment questions.

“Escrow” property taxes at closing: the Ontario meaning

“Escrow property taxes at closing” is usually a U.S. search term, not the usual language for an Ontario purchase closing. In Ontario, the buyer’s and seller’s lawyers use trust accounts to handle closing funds, and the Statement of Adjustments records the property-tax credit or debit between the parties.

A lender may separately collect money for future taxes under its mortgage administration arrangement, but that does not turn the purchase deposit or the tax adjustment into an Ontario escrow account. Read more about what is escrow in real estate in an Ontario context.

FAQ: property taxes and other Ontario closing costs

How many months of property taxes are collected at closing?

There is no standard number of months. The amount reflects the annual tax amount, the closing date, and whether the seller has paid taxes beyond closing or has unpaid taxes for the pre-closing period.

Who is responsible for paying property taxes when selling a house?

The seller is ordinarily responsible for the share allocated to the period before closing. The seller may receive a credit from the buyer for taxes prepaid after closing, or the buyer may receive a credit for the seller’s unpaid pre-closing share.

Are property taxes included in closing costs?

They can appear as an adjustment in the closing calculation, but annual municipal property tax is a recurring ownership cost rather than a one-time transaction tax. The adjustment simply divides responsibility between the parties at the change of ownership.

Who pays Ontario land transfer tax?

The purchaser generally pays Ontario land transfer tax on closing. It is separate from municipal property taxes, and eligible first-time home buyers may have access to a provincial refund subject to the applicable requirements.

Who pays most closing costs?

Each party pays the costs assigned by the agreement, financing and applicable law. Buyers often have land transfer tax and purchase-related legal and lending costs, while sellers often have sale-related legal costs, commission if applicable and mortgage discharge or payout costs. If the transaction is a transfer rather than a conventional sale, see our property transfer services.

Buyers using financing should also understand when funds are due. See when do you pay closing costs on a house, and review how zinati kay addresses buyer closing challenges for practical closing preparation. The Canada Mortgage and Housing Corporation (CMHC), the Home Buyers’ Plan and other financing programs may affect a buyer’s broader plan, but they do not replace the municipal tax adjustment on the Statement of Adjustments.

Speak with a Toronto real estate lawyer

Reviewing the tax bill, mortgage arrangements and Statement of Adjustments before closing can help buyers and sellers understand the funds required and address unpaid taxes early.

Call 416-321-8766 or request a quote to discuss your matter with Zinati Kay.

Continue reading

When Is a Title Search Done When Buying a House?

Title, Transfers & Title Insurance John Zinati

When is a title search done when buying a house? In Ontario, the buyer’s real estate lawyer normally begins the title review after receiving the accepted Agreement of Purchase and Sale and early enough to raise title requisitions before closing. What is a real estate title search? It is the lawyer’s review of the registered land record and related documents to assess who can transfer title and what registered interests affect the property. How long does a title search take? That depends on the property’s records, the documents that need review and whether an issue must be resolved before closing.

An accepted offer is an important contractual step, but it does not itself put the buyer on title. Ownership is transferred when the transfer/deed is electronically registered and the purchase is completed. Retaining a lawyer promptly after acceptance gives the lawyer time to search, advise on concerns and communicate with the seller’s lawyer before the contractual deadlines become urgent.

When is a title search done when buying a house in Ontario?

A title search is usually done after the Agreement of Purchase and Sale is accepted and before the buyer takes title on closing. The buyer’s lawyer should receive the signed agreement, any schedules, the listing information and the closing date as soon as possible so the review can begin while there is time to deal with concerns.

In a typical Ontario resale purchase, the sequence is as follows:

The buyer and seller sign an Agreement of Purchase and Sale, often with conditions such as financing or inspection conditions.
The buyer retains a real estate lawyer and sends the complete signed agreement and documents to the lawyer.
The lawyer obtains and reviews the electronic land records, including the parcel register and, where needed, registered instruments.
The lawyer makes appropriate requisitions to the seller’s lawyer within the timeframe in the agreement or the applicable standard form provisions.
The parties and their lawyers address discharge documents, consents, releases, corrections or other requirements before the closing date.
On closing, funds and documents are exchanged through the lawyers, and the transfer and new mortgage, if any, are electronically registered through Teraview.

The exact order can vary. A short closing date, a rural property, a property with a long ownership history, a private sale or an estate sale may require earlier attention. Buyers using a mortgage should also remember that their lender will have its own instructions and may require the lawyer to confirm matters relevant to the loan before advancing mortgage funds.

For example, a buyer agrees to purchase a Toronto freehold home for $1,050,000 with a 30-day closing. The buyer sends the accepted agreement to the lawyer the next business day. The lawyer searches title, sees an existing mortgage registered against the property and asks the seller’s lawyer for a commitment to discharge it from the sale proceeds. That registered mortgage is common in a sale; the key question is whether satisfactory discharge arrangements are in place before the buyer’s transfer is registered.

If you are dealing with a purchase, sale, refinance or ownership change, a real estate transactions lawyer can review the contract, title and closing requirements in the context of the particular transaction.

Is a title search required when buying a house?

A buyer should have title reviewed by their real estate lawyer before taking title, even though there is no single rule that makes every Ontario purchase follow one identical search process. The Agreement of Purchase and Sale, the type of property, the land registration system, the lender’s requirements and the risks identified in the file all affect what the lawyer must review and what additional inquiries are appropriate.

An accepted offer does not guarantee that the seller can convey the title the buyer bargained for. The seller may be the registered owner but have a mortgage to discharge, an easement may affect part of the land, or a restrictive covenant may limit a planned use. The title review is intended to identify those matters before the buyer completes the purchase.

Title review is also not limited to detached homes. It matters for condominiums, townhouses, vacant land, cottages, mixed-use properties and commercial properties. A transaction involving a transfer between spouses or family members can also require a title review because the lawyer needs to confirm the current registered ownership and how the new ownership should be registered.

For example, consider a buyer purchasing a $720,000 townhouse in Durham Region from an estate. The registered owner may be the deceased person rather than the estate trustee personally. Before closing, the lawyer may need to review the estate-related authority and the transfer documents to determine whether the person signing for the estate has authority to convey the property. That is different from simply confirming the street address on the listing.

Buyers who are changing ownership outside a conventional sale can also read about a real estate title transfer, but the appropriate documents and tax analysis depend on the reason for the transfer.

What is a real estate title search in Ontario?

A real estate title search in Ontario is a review of the land registration records to confirm the registered owner, legal description, Property Identification Number (PIN) and registered interests affecting the property. The lawyer uses that review to assess whether the seller can transfer the promised title and whether registered claims, rights or restrictions need to be addressed.

Ontario land is generally registered under the Land Titles Act or, for some older properties, the Registry Act. The electronic record commonly starts with a parcel register, but a meaningful title search can require more than reading the entries on that register. A registration number may lead to an instrument that must be obtained and reviewed to understand its terms, land affected, parties and continuing effect.

The purpose of title search is to help a buyer understand what is being acquired and what registered matters come with it. It is not a promise that a property has no risk, and it does not replace physical inspection or other due diligence.

For example, a parcel register may show an easement registered decades ago. The brief entry alone may not say whether the easement affects the full lot, a narrow rear strip or a shared driveway. Reviewing the instrument can show the purpose and location of the right, which may matter greatly to a buyer planning a rear addition, pool or laneway access.

What your lawyer reviews on title

Your lawyer reviews the parcel register and, when necessary, the documents behind registered entries to identify matters that may affect ownership, financing or intended use. The review commonly checks the registered owner, the legal description, registered charges and restrictions, but the exact scope depends on the transaction and property.

A parcel register is an index of registered information for a PIN. It may show a transfer, mortgage, easement, notice, restriction or other registration, but it may not provide all of the operative detail. A registration that appears routine should not automatically be assumed to be irrelevant.

Registered issue	What it can mean in practice	Usual next step
Mortgage or charge	The seller’s lender has a registered security interest in the property.	The seller’s lawyer normally provides an undertaking or other satisfactory arrangements for discharge from sale proceeds.
Lien, writ or execution	A creditor’s claim may affect the seller’s ability to convey clear title.	The lawyers determine whether it affects the land and what release, discharge or court-related step is required.
Easement or right of way	Another person, utility or owner may have a right to use a defined part of the land.	Review the instrument, plans and intended use of the property before deciding whether it is acceptable.
Restrictive covenant	A registered restriction may limit building, use, design or other activities on the land.	Review the covenant’s wording and obtain planning or other advice if the buyer’s plan may conflict with it.
Legal-description concern	The land described in the agreement, survey, listing or PIN may require clarification.	Compare documents and seek clarification before registration; further survey or planning review may be appropriate.
Ownership or authority concern	The registered owner, estate representative, corporation or attorney may need to establish authority to sign.	Review the relevant authority documents and ensure the transfer is executed by the proper party.

Not every registered entry is a defect. A utility easement may be expected and acceptable; an existing mortgage can usually be handled as part of an ordinary sale. What matters is whether the entry is consistent with the agreement, whether it affects the buyer’s intended use and whether the seller can satisfy the buyer’s legitimate requisition before closing.

The review may also involve the Planning Act. For example, certain land divisions, transfers or rights of way can raise Planning Act compliance questions. A lawyer may need to consider whether a consent, exemption, municipal confirmation or other evidence is necessary for the particular transaction.

What a title search does not check

A title search does not tell a buyer whether the house is structurally sound, whether every renovation was properly completed or whether every municipal concern will be visible on the land register. Title review, off-title inquiries and a home inspection answer different questions and should not be treated as substitutes for one another.

A home inspection concerns the physical condition of the property. An inspector may identify concerns such as a deteriorated roof, moisture, an electrical issue, foundation movement or an aging furnace. Those are important buying decisions, but they are not usually resolved by reading a parcel register.

Off-title due diligence concerns records and information outside the registered title. Depending on the property and transaction, appropriate inquiries may include municipal tax information, outstanding work orders, building permit records, zoning information, utility information or other municipal searches. The right inquiries depend on what is being bought, the property’s location, the agreement and the buyer’s intended use.

For example, a buyer purchasing a $1,350,000 detached home intending to add a garden suite should not assume that clean title confirms the project is permitted. The buyer may need to investigate zoning, applicable municipal rules, site conditions, permits and servicing requirements. A registered restrictive covenant could be relevant too, but title review alone does not decide whether a future project will receive approval.

Similarly, a search does not guarantee the exact location of fences, sheds or additions. A current survey, site inspection, municipal information and title insurance may each have a role, depending on the facts. A lawyer can explain the risk identified on the file, but cannot inspect the property in place of a qualified inspector or surveyor.

What happens if the search finds a problem?

If a title search finds a problem, the buyer’s lawyer raises it with the seller’s lawyer before closing and seeks an appropriate response. Some issues are routine discharge matters, while others may require documents, negotiation, further investigation, an extension of the closing date or advice about whether the buyer should proceed.

The Agreement of Purchase and Sale and its requisition provisions matter. They may set a deadline for the buyer to object to title matters and a process for the seller to respond. Waiting until just before closing can reduce the time available to obtain a discharge, correction, consent or other solution.

Common examples include:

Seller’s mortgage: The seller’s lawyer may provide a written undertaking to obtain a discharge after using sale proceeds to pay the lender.
Construction lien or creditor claim: The parties may need a discharge, release, holdback arrangement or other resolution suitable to the facts.
Easement: The buyer may decide it is acceptable after reviewing its scope, or may need to reconsider plans for the affected land.
Restrictive covenant: The buyer may need advice on whether the restriction affects the intended use and whether it can be released, varied or otherwise addressed.
Missing authority or chain-of-title concern: Additional estate, corporate, power-of-attorney or corrective documentation may be required.

Consider a seller who has agreed to sell a $900,000 rural residential property with a shared laneway. The title search reveals a registered right of way that gives the neighbouring owner access over a defined lane. If the buyer intended to build a garage across that route, the lawyer would review the instrument and explain the concern before closing. The seller may not be able to remove a valid right of way, so the buyer may need to change the planned construction, negotiate if the contract permits or obtain further legal advice before deciding how to proceed.

Problems should be addressed rather than ignored. More information about common title issues on a house can help buyers understand why registered matters must be reviewed in their own context.

Can a buyer do a title search on OnLand?

A buyer can use available OnLand property-search options to obtain certain Ontario land records, but obtaining a parcel register is not the same as receiving legal advice on title. The record may identify the PIN, registered owner and registrations affecting the land, while the legal meaning of those entries may require review of the underlying instruments and the purchase agreement.

OnLand provides access to Ontario land registration information associated with Land Registry Office records. Teraview is the electronic system used by authorized professionals for electronic registration and related land registration work. A buyer may see a registration number or an abbreviated description online, but that does not necessarily explain whether the matter remains enforceable, affects the property being purchased or requires a response from the seller.

For example, a buyer may obtain a parcel register for a property showing a “notice” registered against title. Without reviewing the instrument, the buyer may not know whether it relates to a lease, litigation, a family law interest, a planning matter or something else. The buyer should send the record to their lawyer rather than assume a short entry is harmless or fatal.

A buyer can also make mistakes by searching the wrong PIN. A property marketed under one municipal address may involve more than one parcel, a common element, a parking unit or a locker unit. In a condominium transaction, separate units can have separate PINs and registrations. The legal description in the Agreement of Purchase and Sale is therefore important.

People looking for assistance in Durham Region can speak with our lawyers in bowmanville about the title and closing process for an Ontario transaction.

How long does a title search take, and what can delay it?

How long a title search takes depends on the property’s registration history, the documents that must be reviewed, the scope of additional inquiries and any problem discovered during the review. A straightforward electronic record may be reviewed promptly, but a title issue can take longer because the necessary discharge, authority document, municipal response or negotiation may not be immediately available.

Buyers should retain their lawyer immediately after acceptance rather than wait for mortgage approval or the final days before closing. Short closing periods leave less time to investigate a concern, deliver a requisition and obtain a meaningful response.

Timing can be affected by:

multiple PINs, older registrations or a long chain of instruments;
an estate sale, corporate seller, power of attorney or other authority issue;
an existing charge, lien, notice or execution that requires release or discharge;
the need to obtain an easement, covenant, reference plan or other registered instrument;
municipal, tax, zoning, permit or work-order inquiries; and
a request for an extension because the issue cannot be resolved within the original closing timeline.

For a focused overview of timing and transfer-related questions, see how long does a title search take in Ontario. The practical answer for a particular purchase depends on the documents and the closing date, not on a standard number of days.

What does a title search cost in Ontario?

The cost of title-related work in Ontario depends on the property, records obtained, off-title inquiries required and the lawyer’s fee arrangement. Buyers should ask for an itemized estimate that distinguishes legal fees, HST, land registration charges, search charges, title insurance if selected and other disbursements.

A title search is not always a separate universal line item. On one file, the work may mainly involve obtaining and reviewing a parcel register and ordinary registrations. On another, the lawyer may need to obtain several instruments, review multiple parcels, investigate a complicated ownership issue or order additional inquiries. The cost should reflect the scope of work actually needed.

For example, a buyer of a condominium unit with one parking unit and one locker may have several relevant PINs. If each unit has separate title records, the lawyer needs to ensure the agreement, title and transfer documents align. That is different from a small freehold property with one PIN and no unusual registrations.

Do not base a purchase decision solely on an advertised low legal fee. Ask what is included, which disbursements may be additional, whether title insurance is included or optional, and what additional work could arise if a significant title issue is found.

Title insurance and condo purchases

Title insurance can protect against specified covered title risks, subject to the policy’s terms, exclusions, conditions and coverage limits, but it does not replace the lawyer’s title work. The insurer, such as FCT or Stewart Title, determines the coverage available under the policy issued for the transaction.

A title insurance policy may be useful where an identified risk falls within its coverage, but buyers should not assume it covers every issue. It does not replace reading the Agreement of Purchase and Sale, reviewing registered interests, obtaining an inspection or investigating planned construction and use. For more context on the timing and role of a policy, read the importance of title search.

A condominium purchase requires more than a title search. Title review addresses the unit, any related parking or locker units, and registered interests affecting them. A status certificate is a separate document from the condominium corporation that provides important information about the corporation and unit, including financial and other prescribed information.

For example, a buyer purchasing a $680,000 Toronto condominium may find clean title to the unit and parking space, yet the status certificate may disclose an upcoming special assessment or litigation involving the condominium corporation. Conversely, a status certificate does not replace a lawyer’s review of the title records. Both forms of due diligence can matter before the buyer waives conditions or closes.

Title-search questions buyers ask

When do they do a title search?

They usually do it after the Agreement of Purchase and Sale is accepted and before closing. The buyer should send the signed agreement to their lawyer right away so the lawyer can review title and raise concerns before contractual deadlines.

Is a title search required when buying a house?

A buyer should have title reviewed by a lawyer before taking title, but the exact searches and inquiries depend on the agreement, property and lender requirements. An accepted offer is not the same as registered ownership, and title concerns should be identified before the transfer is registered.

What is a parcel register?

A parcel register is the Ontario land registration record associated with a specific PIN. It identifies registered ownership and registrations affecting the parcel, but it may not contain enough detail to explain the terms or effect of an easement, notice, charge or covenant.

Can I search title myself?

You may be able to obtain land records through OnLand, but a self-obtained record is not a legal opinion. Send any records you find to your lawyer, especially where there are multiple PINs, registrations you do not understand or plans to renovate, rent out or redevelop the property.

What proves ownership in an Ontario purchase?

In an Ontario purchase, registered title in the land registration system is central evidence of ownership. On closing, the buyer’s lawyer arranges for electronic registration of the transfer, subject to the requirements of the Land Titles Act or Registry Act system applicable to the parcel and the facts of the transaction.

What should I send my lawyer immediately after acceptance?

Send the complete signed Agreement of Purchase and Sale, all schedules, amendments, the listing where available, deposit information, identification and your lender or mortgage broker’s contact information. Tell the lawyer about your intended use, such as a rental suite, addition, home business, garden suite or planned redevelopment, because that context may affect the due diligence recommended.

Speak with a Toronto real estate lawyer

Early legal advice can help you understand title records, contractual deadlines and any issue found before you take title to an Ontario property.

Call 416-321-8766 or request a quote to discuss your matter with Zinati Kay.

Continue reading

What Does a Real Estate Lawyer Do in Ontario?

Hiring a Real Estate Lawyer John Zinati

What does a real estate lawyer do in Ontario? A real estate lawyer handles the legal work required to transfer, finance or otherwise deal with property, including document advice, title review, closing funds and electronic registration. The term “real estate attorney” is commonly used in the United States; in Ontario, the usual term is real estate lawyer.

For a purchase or sale, the lawyer’s work usually begins once there is a signed Agreement of Purchase and Sale and continues through closing and follow-up registration matters. Our real estate lawyer services can also assist with refinancing, title transfers, condominium transactions, leases and property disputes, depending on the legal issue.

Review the agreement and identify legal risks

A real estate lawyer reviews the Agreement of Purchase and Sale, amendments and schedules to explain what the parties have agreed to and identify legal risks. The wording of the agreement, its conditions and its deadlines control what must happen next.

A real estate agent may help a buyer or seller with pricing, marketing and negotiating the business terms of a deal. A lawyer focuses on the legal effect of the agreed terms, such as the closing date, deposit provisions, included chattels, exclusions, representations, conditions and remedies if a party does not close.

For example, a buyer agreeing to purchase a Toronto freehold home for $1,050,000 may have a financing condition, an inspection condition or both. The lawyer can explain the condition’s deadline, the required form of notice, and the risk of allowing a condition to expire without a valid waiver or fulfilment. If an amendment changes the closing date or adds an item to be left at the property, the lawyer can review how that change affects the transaction.

Title searches and verification

Title searches and verification involve reviewing the registered title to confirm the owner, legal description, mortgages, easements and other registered interests that may affect the property. The lawyer then raises or responds to title requisitions and works to resolve items that must be dealt with before closing.

In Ontario, this work is generally completed through the parcel register and related records in the Ontario land registration system, rather than by reviewing a fixed number of years of ownership. Depending on the property and transaction, the review may also consider executions, property tax information, surveys, condominium documents or other searches relevant to the file.

A title search is not a building inspection and does not guarantee that every problem with a property will be found. A buyer should still arrange appropriate inspections and investigate issues such as the condition of the roof, plumbing, electrical systems, permits and intended use.

Title insurance: what the lawyer arranges and what it does not replace

Title insurance is an optional insurance policy that can protect an owner or lender against certain title-related risks, subject to the policy’s terms, exclusions and limits. It is different from home insurance, which generally addresses physical loss or damage to the home and its contents.

A lawyer can arrange title insurance where it is appropriate and explain the available policy to the client. Coverage can vary, but policies may address certain existing title defects, fraud-related title issues, survey matters or problems with access or municipal compliance that fall within the policy wording.

Title insurance does not replace legal review, a property inspection, home insurance or careful review of the Agreement of Purchase and Sale. It also does not promise coverage for every issue a buyer knows about, accepts, creates after closing or encounters outside the policy terms.

Calculate closing money and register the transaction

A real estate lawyer calculates the money required to close, receives and pays funds through trust as appropriate, and registers the transfer and mortgage electronically. This is the point at which the legal documents, lender requirements and financial adjustments must line up.

The statement of adjustments is a key closing document. It apportions items such as property taxes, condominium common expenses or other prepaid amounts between buyer and seller as of the closing date. It is not the same as the legal account sent by the lawyer.

Closing cost item	What it generally covers
Legal fee	The lawyer’s professional work under the agreed scope of retainer.
Disbursements	Out-of-pocket transaction costs, which may include searches, courier charges and registration-related expenses.
Land transfer tax	Ontario land transfer tax payable on many transfers, with Toronto municipal land transfer tax also applying to qualifying Toronto properties.
Title insurance	The premium for an owner’s or lender’s policy if obtained.
Registration charges	Fees associated with registering documents electronically.

For example, a purchaser of a $780,000 condominium in Toronto needs more than the balance of the purchase price. The lawyer will use the statement of adjustments to calculate the final funds needed, account for the buyer’s deposit, arrange mortgage funding if applicable, and include applicable land transfer taxes, legal costs and registration expenses. On closing, the transfer and any mortgage are registered through the Ontario electronic land registration system, which is connected to the applicable Land Registry Office.

A clear quote should distinguish the legal fee from HST, disbursements, title insurance, land transfer tax and registration charges. This helps clients compare quotes without mistaking a partial legal fee for the full amount required to close. If you are approaching a closing date, a lawyer can help with your closing by identifying the documents, funds and instructions required for the file.

What happens if a problem comes up before closing?

If a problem arises before closing, the lawyer reviews the agreement, advises on the available options, communicates with the other side’s lawyer and records any solution in writing. The appropriate next step depends on the facts, the contract wording and how much time remains before closing.

Common complications include:

a mortgage lender requiring more documents or an appraisal that affects financing;
a title issue, such as an old mortgage that must be discharged or an easement that needs to be understood;
a condominium concern revealed by a Status Certificate, including arrears, litigation disclosures or a planned special assessment;
missing closing documents, identity-verification concerns or a delay in obtaining payout information; and
a disagreement about repairs, included items, access, deposits or another contractual obligation.

Consider a seller of a condo unit where the buyer’s lawyer raises a title requisition concerning a registered charge that was paid years earlier but never discharged. The seller’s lawyer can seek a discharge from the lender, provide evidence to the buyer’s lawyer and, if necessary, discuss a written arrangement that permits closing while the issue is completed. The solution should not be assumed: the timing, lender response and terms of the Agreement of Purchase and Sale matter.

A Status Certificate is particularly important when buying a condo, because it provides information about the condominium corporation and the unit that may affect the buyer’s decision or closing calculations.

What does a commercial real estate lawyer do?

A commercial real estate lawyer handles the legal aspects of buying, selling, leasing or financing business and income-producing property, with due diligence tailored to the property and deal structure. This work is often broader than a standard residential closing because the property’s use, income and liabilities can be central to its value.

For a retail plaza, industrial unit or apartment building, the lawyer may review the permitted use under zoning or municipal rules, existing leases, rent rolls, financing terms, environmental reports, service contracts and corporate or partnership structure. A purchaser of a $2.4 million mixed-use building, for example, may need to understand whether current commercial leases continue after closing, which repairs the landlord must perform and whether the intended business use is permitted.

Commercial due diligence is driven by the agreement and the property itself. Environmental concerns, tenant obligations, tax treatment and lender requirements should be identified early enough to be reviewed before applicable deadlines expire.

Do real estate lawyers go to court?

Most real estate lawyers work on transactional files and do not need to go to court for an ordinary purchase or sale. However, lawyers may advise on, negotiate or represent clients in disputes involving property when a transaction cannot be resolved through closing work alone.

Examples include an alleged breach of an Agreement of Purchase and Sale, a title or boundary dispute, an easement dispute, construction-related claims or a disagreement over jointly owned property. Ontario mortgage enforcement may also involve power of sale, which is commonly used by lenders, rather than treating “foreclosure” as the usual remedy.

What a lawyer does for a buyer

For a buyer, the real estate lawyer reviews the purchase documents, investigates title, explains mortgage documents, calculates adjustments and registers the transfer after closing. The lawyer also helps identify what must be addressed if a lender, seller or condominium corporation raises an issue before closing.

Read more about what does the lawyer do when buying a house, including steps to take before signing and before the closing date.

What a lawyer does for a seller

For a seller, the lawyer prepares sale documents, responds to title requisitions, coordinates mortgage payout and discharge information, and receives and accounts for sale proceeds on closing. The lawyer also reviews the statement of adjustments and ensures the seller understands deductions from the proceeds.

For a closer look at the seller-side process, see our guide to hiring a lawyer for sale.

Frequently asked questions

How much does a real estate lawyer cost in Ontario?

The cost depends on the type of transaction, its complexity and the scope of work. Ask for a written quote that separates the legal fee from HST, disbursements, title insurance, registration charges and taxes, because not all of those items are legal fees.

Do you need a lawyer to buy a house in Ontario?

In practice, buyers and sellers ordinarily retain Ontario real estate lawyers to complete the legal work, coordinate closing funds and register transfer and mortgage documents electronically. It is wise to retain a lawyer as soon as possible after signing, particularly where the deal has conditions, a short closing date, a condominium corporation or unusual terms.

How do you become a real estate lawyer in Ontario?

A person must complete the education, licensing and licensing-process requirements to practise law in Ontario and be licensed by the Law Society of Ontario. A lawyer may then develop real estate practice experience through transactional work, continuing professional development and work with clients on residential or commercial matters; the Canadian Bar Association is one professional organization lawyers may join.

What should I ask before hiring a real estate lawyer?

Ask what work the quote includes, which costs are separate, who will handle day-to-day communications, what documents the lawyer needs and when they need them. These questions to ask a real estate attorney can help buyers and condo purchasers prepare for the first conversation.

Clients outside Toronto can also work with real estate lawyers brampton on Ontario purchase, sale and refinancing transactions. For additional detail on the final stages of a transaction, see what does a real estate lawyer do at closing.

Speak with a Toronto real estate lawyer

Early legal advice can help you understand your Agreement of Purchase and Sale, closing costs, title concerns and the steps required before your closing date.

Call 416-321-8766 or request a quote to discuss your matter with Zinati Kay.

Continue reading

First-Time Home Buyer Land Transfer Tax in Ontario

Real Estate Tax John Zinati

First-time home buyer land transfer tax rebate in Ontario

First time home buyer land transfer tax relief in Ontario can reduce provincial land transfer tax by up to $4,000 for an eligible purchaser. If the home is in Toronto, the buyer may also qualify for a separate Toronto Municipal Land Transfer Tax rebate of up to $4,475.

This is a land transfer tax rebate, not a general first-time buyer benefit or a payment toward the purchase price. Eligibility depends on the buyer, their ownership history, their spouse’s ownership history in certain circumstances, citizenship or permanent-resident status, and their plan to occupy the home.

Do first-time home buyers pay land transfer tax in Ontario?

Yes. Ontario buyers generally pay land transfer tax when they acquire an interest in land, but an eligible first-time buyer can receive a provincial rebate and, for a Toronto property, a separate municipal rebate. The rebate reduces the tax otherwise payable; it does not remove the requirement to assess the tax in the first place.

Your real estate lawyer calculates the tax as part of the closing work and accounts for it in the closing documents, including the statement of adjustments and the lawyer’s trust ledger. A closing lawyer in Toronto can review eligibility before closing so that the available rebate can ordinarily be claimed when title is registered.

The buyer, not the seller, is normally responsible for land transfer tax. A transfer for no cash payment can still have land transfer tax consequences if the transferee assumes a mortgage or provides other consideration, so family transfers should not be treated as automatically tax-free.

Ontario land transfer tax rates and what the $4,000 rebate covers

Ontario land transfer tax is calculated at marginal rates, meaning each portion of the purchase price is taxed at its applicable rate. The maximum provincial first-time buyer land transfer tax rebate is $4,000, so it can eliminate the provincial tax on some lower-priced purchases but only reduces tax on a higher-priced purchase.

For most residential purchases, the Ontario rates are:

Portion of purchase price	Ontario land transfer tax rate
First $55,000	0.5%
Over $55,000 to $250,000	1%
Over $250,000 to $400,000	1.5%
Over $400,000 to $2 million	2%
Over $2 million for qualifying one- or two-family residences	2.5%

For example, a first-time buyer purchasing a $750,000 Ontario condominium outside Toronto would have provincial land transfer tax of $11,475 before any rebate. If eligible for the full $4,000 rebate, the remaining provincial tax would be $7,475, in addition to other closing costs such as legal fees, disbursements, title insurance and applicable adjustments.

The governing provincial legislation is the Land Transfer Tax Act. Tax can be based on more than the stated price in transactions involving non-arm’s-length parties, assumed debt or other forms of consideration, so a simple purchase-price calculation is not always enough.

Ontario first-time home buyer rebate eligibility

To qualify for the Ontario first-time home buyer rebate, a purchaser generally must be at least 18, have no prior ownership interest in an eligible home anywhere in the world, be a Canadian citizen or permanent resident, and occupy the purchased home as their principal residence within nine months after registration. The Ontario Ministry of Finance also applies spouse-related rules that can affect whether the buyer qualifies.

Age: The purchaser must be at least 18 years old.
Prior ownership: The purchaser must not previously have owned an interest in an eligible home, whether alone or with another person.
Status: The purchaser must be a Canadian citizen or permanent resident when the transfer is registered, or meet the applicable later-status and refund requirements.
Occupancy: The purchaser must occupy the home as a principal residence within nine months after registration.
Spouse: A spouse’s ownership of an eligible home while they were the purchaser’s spouse may affect eligibility.

These rules are not interchangeable with the tests for a First Home Savings Account, the Home Buyers’ Plan or the Canada Revenue Agency’s Home Buyers’ Amount. A buyer may meet one program’s definition of a first-time home buyer but not qualify for an Ontario land transfer tax refund.

Prior ownership, gifts and inheritances

Prior ownership can affect the rebate even if the interest was received through a gift or inheritance rather than purchased on the open market. Buyers should disclose every past ownership interest, including a fractional interest, inherited property, a foreign property and any interest held with family members.

Whether a past interest is disqualifying can turn on facts such as the type of property and whether it was an eligible home. Provide the documents and dates to your lawyer before waiving purchase conditions, rather than assuming a small or short-lived interest does not matter.

Spouses and joint buyers

A qualifying joint buyer may receive a rebate only for their proportionate interest when another buyer does not qualify. A spouse’s home ownership before the relationship is treated differently from ownership that occurred while the couple were spouses.

In particular, a purchaser may still qualify if their spouse owned a home before they became spouses, provided the purchaser otherwise meets the requirements. However, if the spouse owned an eligible home while they were spouses, the purchaser will generally not qualify for the rebate.

For example, consider two unmarried buyers purchasing a $700,000 townhouse outside Toronto in equal 50% shares. One has never owned a home and meets all other requirements; the other previously owned a condominium. The provincial tax before rebates is $10,475. The qualifying buyer’s potential provincial rebate is limited to 50% of the maximum, or $2,000, rather than the full $4,000.

Ownership shares should reflect the parties’ actual agreement and should be confirmed before signing and registration. Where an existing owner is being added or removed from title, a lawyer for transferring property can assess consideration, mortgage assumptions and land transfer tax before the transfer is completed.

Toronto's first-time home buyer municipal land transfer tax rebate

Toronto has a separate first-time buyer rebate of up to $4,475 for Toronto Municipal Land Transfer Tax, in addition to the provincial maximum of $4,000. A Toronto buyer can therefore potentially receive up to $8,475 in combined rebates if they meet the applicable conditions.

Toronto municipal tax is charged on purchases within the City of Toronto, while the provincial land transfer tax applies across Ontario. Buyers in other Ontario communities, including those working with our real estate lawyers brantford team, do not pay Toronto Municipal Land Transfer Tax merely because they are Ontario residents.

Toronto’s rates and rebate need to be calculated separately from the provincial tax. For a fuller city-specific explanation, read our land transfer tax first time home buyer Toronto guide.

How to calculate land transfer tax and estimate your rebate

To estimate land transfer tax, apply each marginal rate only to the part of the purchase price that falls within that bracket, then subtract any rebate for which you are actually eligible. For a Toronto purchase, calculate both the Ontario tax and the Toronto Municipal Land Transfer Tax separately.

The Ontario Ministry of Finance calculator is a useful starting point for a provincial estimate, and a Toronto-specific calculator can help with a Toronto purchase. Enter the agreed purchase price and first-time-buyer information, but do not treat a calculator result as approval of an Ontario first time home buyer rebate.

For example, a buyer purchasing a $750,000 Toronto freehold home may face $11,475 in provincial tax and $11,475 in municipal tax before rebates. If the buyer qualifies for both full rebates, the estimated combined tax after the $4,000 provincial and $4,475 Toronto rebates would be $14,475. The buyer should still budget separately for the deposit, mortgage costs, insurance, legal costs and adjustments such as prepaid property taxes or condominium common expenses.

How the rebate is claimed on closing

A real estate lawyer will ordinarily claim an available land transfer tax rebate when registering the transfer through Ontario’s electronic land registration system, crediting it against tax otherwise payable. This usually means an eligible buyer does not first pay the rebated amount and wait for it to be returned.

Before registration, the lawyer reviews the agreement, purchase price, title percentages, buyer declarations, citizenship or permanent-resident documentation where relevant, past ownership information and intended principal-residence occupancy. Accurate information matters because a rebate claimed without entitlement may have to be repaid.

If the rebate was missed on closing, or if a buyer obtains Canadian citizenship or permanent-resident status after registration, the buyer may need to pay the tax first and apply to the Ontario Ministry of Finance for an Ontario land transfer tax refund. The application process and deadline depend on the reason for the refund, so the buyer should obtain advice promptly and keep registration, status and occupancy records.

What first-time buyers should do before closing

Early disclosure gives your lawyer time to assess the rebate before funds are required for closing. Take these steps as soon as you have an accepted offer:

List all past home ownership anywhere in the world, including inherited, gifted and partial interests.
Explain your spouse’s ownership history and when your relationship or marriage began.
Provide Canadian citizenship or permanent-resident documents if requested.
Confirm each buyer’s intended percentage of title before signing final closing documents.
Budget for land transfer tax that remains payable after any rebate, plus other closing costs.
Keep evidence supporting your intended move into the property as your principal residence within the required period.

Is a new-build HST rebate the same as a land transfer tax rebate?

No. A GST/HST New Housing Rebate concerns GST/HST on a qualifying new or substantially renovated home, while a land transfer tax rebate reduces provincial or Toronto land transfer tax. They are separate programs with different eligibility rules, calculations and application processes.

A buyer of a pre-construction condominium may need to consider both tax issues, but qualifying for one does not establish entitlement to the other. Review Calculate HST on New Homes in Ontario: Essential Legal Guidance for Homebuyers before relying on a new-home rebate in your budget.

First-time home buyer land transfer tax rebate FAQs

How much is the Ontario first-time home buyer rebate?

The maximum provincial land transfer tax rebate is $4,000. If provincial tax is less than $4,000, the rebate is limited to the tax payable and does not create a cash surplus.

Can I get the $4,475 Toronto rebate as well?

Yes, an eligible buyer of property in the City of Toronto may qualify for a separate municipal rebate of up to $4,475. It is in addition to, not a replacement for, the provincial rebate.

Must I move into the home?

Yes. To receive the Ontario rebate, the purchaser must occupy the home as their principal residence within nine months after registration. A purchase intended solely as a rental or investment property will not meet that occupancy requirement.

Can joint buyers receive different rebate amounts?

Yes. Where one joint buyer qualifies and another does not, the qualifying buyer’s rebate may be limited to their proportionate ownership share. Tell your lawyer the intended title percentages before registration.

What if my lawyer did not claim the rebate on closing?

You may be able to apply for a refund from the Ontario Ministry of Finance if you were eligible, but documentation and time limits apply. Obtain advice quickly and keep your statement of adjustments, registered transfer and proof of occupancy.

Do the FHSA and Home Buyers’ Plan reduce land transfer tax?

No. The First Home Savings Account and Home Buyers’ Plan are federal savings or withdrawal tools, not Ontario land transfer tax rebates. They may help fund a purchase, but they do not automatically reduce land transfer tax.

Speak with a Toronto real estate lawyer

First-time buyer eligibility can depend on details that are easy to overlook, including a spouse’s timing of ownership, an inherited interest or immigration status. Reviewing those facts before closing helps ensure that land transfer tax is budgeted and any available rebate is properly considered.

Call 416-321-8766 or request a quote to discuss your matter with Zinati Kay.

Continue reading

Appraisal Methods in Real Estate: Ontario Guide

Mortgages & Refinancing John Zinati

Appraisal methods real estate professionals use help produce an independent opinion of value, but a property appraisal, house appraisal, or appraisal on house is not a guarantee that a property will sell for that amount. In Ontario, the effective date, purpose of the report and evidence available to the appraiser all matter, so an appraisal can differ from the agreed purchase price.

What is a property appraisal in Ontario?

A property appraisal is an appraiser’s independent, written opinion of a property’s value as of a stated effective date. It is commonly prepared for a lender, but it can also be used for an estate, a property transfer, family-law matter, tax planning or a commercial transaction.

Market value is generally based on what a willing buyer and willing seller would agree to in an open market, assuming each has appropriate knowledge and neither is under undue pressure. A signed Agreement of Purchase and Sale is important evidence, but it is only one piece of evidence; the appraiser may reach a different conclusion after considering comparable sales, condition and market data.

Appraisal reports prepared by members of the Appraisal Institute of Canada (AIC) commonly follow the Canadian Uniform Standards of Professional Appraisal Practice (CUSPAP). The precise scope still depends on the engagement: a lender’s mortgage appraisal may be brief and addressed to the lender, while an appraisal intended for litigation or an estate may require more analysis and supporting material.

When do you need a home appraisal?

You may need a home appraisal when a lender requires one for a purchase or refinance, or when a reliable value is needed for a legal, tax or ownership purpose. The intended use should be confirmed before anyone orders the report, because a report prepared for one purpose may not be suitable for another.

Purchase financing: A lender may order an appraisal to support its mortgage underwriting. This can occur whether the buyer has a large or small down payment; requirements are lender- and file-specific.
Refinancing: The lender may assess current value before approving new borrowing or a new mortgage term. A mortgage refinancing lawyer can review lender instructions, register the new charge and address title issues required for closing.
Before listing: An owner may obtain an independent opinion before setting an asking strategy, particularly for an unusual property or one with limited recent sales.
Estate and family-law matters: A retrospective appraisal can provide an opinion of value as of a past date, such as the date of death or separation, where that date is legally relevant.
Tax and change-of-use planning: Fair market value may be relevant when property use changes or property is transferred. The Canada Revenue Agency (CRA) may require support for values reported in particular circumstances.
Insurance: Replacement-cost assessments address the cost to rebuild, not necessarily market value. Ask the insurer what type of valuation it requires.

How the Ontario property appraisal process works

An Ontario property appraisal usually moves from engagement and inspection to research, analysis, report delivery and, for a mortgage file, lender review. The appraiser values the property; a real estate lawyer separately reviews title, lender instructions and the closing documents.

Engagement and scope: The client identifies the property, intended user, purpose, effective date and deadline. The appraiser confirms what will be inspected and which valuation approach is appropriate.
Inspection: The appraiser examines the site, building, layout, condition and features relevant to the assignment. Provide access to all areas and documents for material renovations, leases or condominium information where available.
Research: The appraiser reviews land-use information, market activity and comparable sales or leases. They may verify facts with public records, market participants or other reliable sources.
Analysis and report: The report explains the property, evidence, assumptions and valuation conclusion. It should identify its effective date and any limiting conditions.
Lender review: A lender may accept the report, request clarification, use a valuation-management process or decide that additional information is required. Mortgage approval remains the lender’s decision.

What appraisal methods do real estate appraisers use?

The three major appraisal methods in real estate are the direct comparison approach, the income approach and the cost approach. An appraiser chooses and weighs the approaches that are credible for the property and assignment rather than applying every method mechanically.

Method	How it works	Common use
Direct comparison	Compares the subject with recent sales and adjusts for meaningful differences, such as location, size, condition, parking or unit features.	Houses, townhomes and condominium units where good comparable sales exist.
Income	Analyzes sustainable income, vacancy, operating expenses and market capitalization or discounted cash-flow assumptions.	An apartment building appraisal, retail property, office space and other income-producing property.
Cost	Considers land value plus the current cost to replace improvements, less depreciation or obsolescence.	Newer, special-purpose or less frequently traded buildings; it may also be relevant to insurance work.

For example, an investor buying a 12-unit Toronto apartment building for $3,600,000 may need more than nearby sale prices. The appraiser may review actual rent rolls, market rents, vacancy, expenses and the building’s condition, then reconcile the income analysis with sales of comparable rental buildings.

What affects an Ontario home appraisal?

An Ontario home appraisal is affected by the property’s legal use, location, physical characteristics, condition, recent comparable evidence and market conditions as of the effective date. Improvements can contribute to value, but their contribution does not automatically equal their construction cost.

Appraisers consider lot size, floor area, layout, bedrooms, bathrooms, parking, age, maintenance, building quality, zoning and whether a feature is legally permitted. A finished basement, secondary suite or addition may be treated differently if permits, legal use or market acceptance are uncertain.

For a Toronto condominium, comparable analysis can turn on details that are easy to overlook: the exact building, monthly common expenses, parking and locker ownership, floor level, view or exposure, balcony, unit layout, building age and amenities. The financial and operational condition of the condominium corporation can also matter to a prudent buyer.

Cleanliness generally makes inspection easier and helps a property present well, but it does not cure deferred maintenance or change the legal status of an improvement. For a practical preparation list, read what does a home appraiser look for.

How much does a house appraisal cost in Toronto and Ontario?

House appraisal cost in Toronto and Ontario is quote-dependent, not standardized. The fee can change with the property type, location, urgency, intended use, complexity, availability of comparable data and whether the assignment needs income analysis or a historical effective date.

Before instructing an appraiser, obtain a written quote that confirms:

whether HST is included or additional;
the inspection and report being provided;
the intended user and permitted reliance on the report;
the effective date and delivery target;
any rush fee, travel charge or charge for additional analysis; and
what happens if access is unavailable or the scope changes.

A lender may arrange its own appraisal and may charge the borrower under the mortgage product terms. Ask the lender directly who is responsible for the fee and whether you will receive a copy of the report.

How long does a house appraisal take?

How long a house appraisal takes depends on both the inspection and the time needed to complete the analysis and report. A straightforward inspection can be much shorter than the overall turnaround, while an income property, rural property or retrospective valuation can require substantially more research.

Access, missing documents, unusual construction, limited comparable sales, tenant coordination, historical effective dates and lender review requirements can all affect timing. A buyer relying on a financing condition should arrange financing and any lender-required appraisal promptly, rather than waiting until the condition deadline is close.

What happens if the appraisal is lower than the purchase price?

If an appraisal is lower than the purchase price, the lender may calculate the mortgage using the value it accepts rather than the contract price. That can leave the buyer needing more cash, a revised financing arrangement or a negotiated change to the transaction.

For example, a buyer agrees to purchase a freehold home for $900,000 and plans to borrow 80% of the lender’s accepted value. If the lender accepts an appraisal of $850,000, an 80% loan would be $680,000 rather than $720,000, leaving a $40,000 funding gap before considering closing costs. The buyer might seek a price reduction, contribute additional funds, approach another lender or rely on a properly drafted and still-valid financing condition.

The Agreement of Purchase and Sale, the wording of any financing condition and the lender’s instructions govern the available options. Do not assume a lower appraisal automatically ends the deal, and do not waive or let a condition expire without understanding the consequences. A financing lawyer in Toronto can review the closing implications when financing changes or is at risk.

How do you get a home appraisal and choose an appraiser?

To get a home appraisal, first identify who needs the report and why. For a mortgage, the lender may select or approve the appraiser; for an estate, transfer, tax or dispute matter, the owner or legal representative may retain an appraiser directly.

Choose an appraiser with local experience and qualifications suited to the assignment. Canadian Residential Appraiser (CRA) and Accredited Appraiser Canadian Institute (AACI) are AIC designations, but the appropriate designation and scope depend on the property and intended use.

Confirm experience with the same property type and market area.
Ask whether the report will be CUSPAP-compliant and suitable for the intended recipient.
Confirm independence and identify the client, intended users and any permitted reliance.
Give accurate information, including leases, renovation records, condominium documents or prior reports where relevant.
Do not pressure the appraiser toward a target value; explain factual corrections or provide relevant comparable information instead.

A real estate agent’s comparative market analysis or opinion of value can be useful for pricing and marketing, but it is not necessarily a formal appraisal that a lender, court, insurer or Canada Revenue Agency will accept.

Property appraisal FAQ

What does an appraiser do?

An appraiser inspects the property, researches relevant market evidence, applies suitable appraisal methods and prepares an opinion of value for a defined purpose and effective date. They do not approve the mortgage, negotiate the sale price or provide legal advice.

Can a realtor formally appraise a property?

A realtor can provide a market opinion or comparative market analysis, which can be helpful when selling. Whether a formal appraisal is required depends on the recipient and purpose, so confirm the required report with the lender, court, insurer, lawyer or tax adviser before ordering one.

What should you not say or do during an appraisal?

Do not conceal defects, provide inaccurate information or attempt to influence the conclusion. It is appropriate to provide factual documents, details of material improvements, leases and relevant sale information, then let the appraiser perform an independent analysis.

Does cleanliness change an appraisal value?

Ordinary cleaning does not usually change market value by itself, but a clean and accessible property lets the appraiser observe its condition. Repairing a leak, addressing safety issues and providing records for completed work may be more relevant than cosmetic tidying alone.

When can a lawyer help with an appraisal-related matter?

A real estate lawyer can help where a valuation affects financing, a purchase closing, title transfer, estate administration or a property dispute. Legal advice is especially important if financing is uncertain, parties disagree on value or a deadline under an agreement is approaching.

If your transaction is in southwestern Ontario, learn more about working with a real estate lawyer chatham-kent.

Speak with a Toronto real estate lawyer

When an appraisal affects your financing, purchase, refinance, transfer or dispute, early legal advice can help you understand the contractual deadlines and closing steps involved.

Call 416-321-8766 or request a quote to discuss your matter with Zinati Kay.

Continue reading

Real Estate Contingencies in Canada: Ontario Conditions

Agreements & Contracts John Zinati

Contingency in real estate usually means a condition in an Agreement of Purchase and Sale (APS) that must be dealt with before the deal becomes firm. Real Estate Contingencies in Canada are handled differently by province; in Ontario, the exact wording of the condition determines whether, when and how a buyer or seller may end the deal.

What does contingency mean in Ontario real estate?

In Ontario, a “contingency” is usually called a condition in the APS. It is commonly a condition precedent: an event or approval that must occur, or be waived or fulfilled in the required way, before the agreement becomes firm.

Ontario buyers and sellers often use OREA form agreements, but an APS can contain negotiated schedules that change the standard terms. A condition is not simply a general right to change one’s mind. It should identify the risk being investigated, who receives the benefit of the condition, the deadline, and what notice must be given.

For example, a buyer may make an offer on a $925,000 freehold home conditional on obtaining financing satisfactory to the buyer by a stated date. If the condition is for the buyer’s sole benefit and the APS permits the buyer to give written notice of waiver or fulfillment, the buyer must follow that process exactly.

How an Ontario condition works from offer to firm deal

A conditional APS is binding, but completion remains subject to the stated condition being fulfilled or waived as the agreement permits. The deal becomes firm only when the condition has been properly dealt with, or when the APS otherwise says it becomes firm.

First, read who benefits from the condition. A financing condition may be for the buyer’s benefit alone, while another condition may benefit both buyer and seller and require both parties’ agreement to waive it. Second, calendar the precise deadline and the APS’s notice-delivery rules, which may specify delivery to the parties, their representatives, or another stated recipient.

Notice is often delivered as a written Notice of Fulfillment or waiver, but the document and delivery method must match the APS. Missing a deadline, sending notice to the wrong person, or using unclear wording can have serious consequences. Before sending or responding to notice, have a real estate contract lawyer review the signed APS and all schedules.

Ontario courts have considered disputes about conditions, waiver and notice, including Ontario Court of Appeal decisions referred to as VanderMolen Homes Inc. v. Mani, High Tower Homes Corporation v. Stevens, and Grayson v. Creasy. Their application depends on the actual contract language and facts, rather than a general rule that applies to every conditional offer.

Conditions to consider in a home purchase offer

The conditions to include in a home purchase offer are the ones needed to investigate real, material risks before you commit to closing. They should be tailored to the property, financing and buyer’s circumstances, not copied blindly from another transaction.

Financing: time to obtain mortgage financing satisfactory to the buyer.
Home inspection: time to arrange and assess a professional inspection.
Condominium documents: time to review a status certificate and relevant condominium-corporation records for a condo purchase.
Insurance availability: time to confirm that appropriate property insurance is available on acceptable terms.
Sale of the buyer’s property: time to sell the buyer’s current home where its proceeds are needed.
Assignment rights: an express term addressing whether the buyer may assign the APS.

A condition should be specific enough to be enforceable while preserving the protection actually negotiated. It should not promise a result that a third party cannot guarantee.

Financing and home inspection conditions

A financing condition lets a buyer investigate whether mortgage financing is satisfactory, and a home inspection contingency lets a buyer investigate the home’s condition. Neither should be treated as an unlimited right to reopen the bargain after acceptance.

A mortgage pre-approval is useful, but it is not necessarily final approval for a particular property. The lender may still review the appraisal, the buyer’s income and debts, the property type, condominium information, and outstanding document requirements. A buyer should provide requested documents promptly, avoid major credit or employment changes, and ask the lender what remains outstanding.

A home inspection condition gives the buyer an opportunity to obtain professional advice about observable concerns such as the roof, foundation, electrical system, heating, plumbing and drainage. It does not automatically require the seller to complete repairs or grant a price reduction. If the inspection identifies concerns, the parties may negotiate an amendment, the buyer may satisfy or waive the condition if permitted, or the buyer may rely on the condition according to its wording.

For example, a buyer of a $740,000 detached house could arrange an inspection immediately after acceptance and discover evidence of a costly roof issue. Before the condition deadline, the buyer might negotiate a price adjustment, obtain further contractor information, or deliver a notice that accords with the APS. The buyer should not assume that an informal text message or an oral discussion extends the deadline.

The lawyer reviews the APS, schedules, notices and proposed amendments, while the buyer remains responsible for completing the agreed due diligence.

Buying a condo with few conditions

Buying into a condo with low contingency, or with no conditions, increases the risk because the buyer may be committed before reviewing key financial and governance information. A buyer should review available condominium documents before waiving a condition or making a firm offer wherever possible.

A status certificate can disclose information about the unit’s common expenses, arrears, legal proceedings, reserve fund and special assessments, while the attached documents may include the declaration, by-laws, rules and budget information. The condominium corporation’s records can also help a buyer understand restrictions on pets, parking, leasing, renovations and use of common elements.

For example, a buyer considering a $610,000 Toronto condominium may learn from the status certificate that a special assessment has been approved but not fully collected. That information can affect the buyer’s budget and the APS negotiations. The buyer should also confirm what is included, such as a parking space or locker, and whether those interests are properly described.

Home insurance, appraisal and title concerns

Insurance availability should be checked early because a lender commonly requires proof of adequate property insurance before closing. This is particularly important for homes with older electrical systems, oil heating, prior claims, rural features, vacancy concerns or other underwriting issues.

A home insurance contingency clause can give a buyer time to determine whether suitable coverage can be obtained, but its effectiveness depends on its exact language. Buyers should ask an insurer or broker about coverage as soon as the APS is accepted rather than waiting until the closing date.

Appraisal concerns commonly arise through the financing process, not through a separate standard Ontario appraisal condition. If a lender’s valuation is lower than the purchase price, the buyer may need additional funds, a different loan arrangement or a negotiated amendment; see this explanation of the real estate sales agreement and its clauses.

Ontario practice also differs from a US-style “title contingency.” The real estate lawyer searches title, reviews registered instruments and raises appropriate closing requisitions. The lawyer also examines matters such as execution requirements, outstanding mortgages to be discharged, easements, restrictive covenants and other title issues that may affect the property.

Home sale conditions and escape clauses

A home sale contingency, also called a sale-of-property condition, protects a buyer who needs to sell an existing property before being able or willing to complete the new purchase. It must clearly state what constitutes a satisfactory sale and when the condition expires.

Consider a buyer who agrees to purchase a $1,150,000 family home but needs the net sale proceeds from a current condominium to fund the down payment. The buyer’s condition might give time to sell that condominium on terms satisfactory to the buyer. If the current property does not sell by the stated deadline, the APS wording governs whether the buyer can end the deal and how notice must be delivered.

For a fuller look at coordinating the two transactions, read about real estate transaction lawyer support when real estate lawyers etobicoke clients are buying and selling at the same time. A seller may be concerned that a sale condition leaves the property tied up while the buyer’s own sale remains uncertain.

An escape clause is a negotiated APS mechanism that may allow the seller to continue marketing the property and, after receiving another acceptable offer, give the first buyer a notice requiring a decision within the period set by the APS. What is an escape clause in real estate? It is not a statutory Ontario right and its notice procedure, response period and consequences must be written into the agreement.

The first buyer may need to waive or fulfill the sale condition, amend the deal, or allow the seller to proceed with the later offer, depending on the clause. Sellers and buyers should not act on an escape-clause notice without reviewing it carefully; negotiation after an inspection has its own considerations, including the appropriate post-inspection response.

Right to assign a purchase agreement

A right to assign a purchase agreement should be expressly addressed in the APS because a buyer does not have an unrestricted right to transfer contractual rights and obligations to another person. An assignment clause should say whether seller consent is required and whether the original buyer remains liable.

Assignment is not a substitute for satisfying financing, inspection or other conditions. For example, an investor buying a $680,000 pre-construction unit should not assume that finding another purchaser removes obligations under the original APS. The developer’s agreement may restrict assignments, require approval and charge an administrative fee, so legal advice is important before relying on a right to assign contingency clause.

What happens if a condition is not met or is waived?

What happens if a condition is not met depends on the APS wording, deadline, beneficiary and notice provisions. An unfulfilled condition is different from a buyer or seller simply refusing to close after the agreement has become firm.

If a condition is properly not fulfilled by its deadline, the APS may terminate or permit a party to terminate, but the result is contract-specific. If the beneficiary properly waives a condition, the transaction can become firm despite that unresolved risk. Conditions need to have deadlines in practical terms because an APS needs a clear point at which the parties know whether they are proceeding, but the deadline is negotiated rather than fixed by a universal Ontario rule.

Do not assume the deposit is automatically returned or automatically forfeited. The deposit is normally held in trust, and entitlement can depend on the APS, the parties’ conduct, any release signed, and the legal issues in dispute. A party facing a missed deadline, disputed waiver or closing refusal should obtain advice before directing the deposit holder to release funds.

Ontario contingency clause checklist before you sign

A sound Ontario contingency clause identifies the risk and provides a workable, documented path to a firm deal or a proper end to the APS. Review the following points before signing.

Define the condition and state whether it benefits the buyer, seller or both parties.
Set a precise deadline, including the time if needed, and verify the APS language on whether time is of the essence.
State how fulfillment or waiver must be made and how notice must be delivered.
Start financing, inspection, insurance and condo-document work immediately after acceptance.
Check whether an amendment, extension or escape clause requires signatures from all necessary parties.
Have a lawyer review non-standard schedules, assignment language and implications for closing.

The consequences of late action can be significant; learn why time is of the essence real estate language deserves careful attention.

FAQ about real estate contingencies in Ontario

What is an example of a contingency contract?

An example is an APS for a $800,000 home that is conditional on the buyer obtaining financing satisfactory to the buyer by a specified date and giving written notice as required by the APS. It remains a binding agreement, but whether it becomes firm or ends depends on the condition and proper notice.

Do sellers dislike contingent offers?

Sellers may prefer a firm offer because conditions can create uncertainty, but a conditional offer can still be acceptable when its risks, deadlines and notice terms are clear. Price, closing date, deposit, the type of condition and the buyer’s overall ability to close can all affect the seller’s decision.

How do I get out of a contingency contract?

You can only rely on a condition in the way the APS permits. Read the signed agreement, meet the deadline, preserve written evidence of your due diligence, and obtain legal advice before delivering any waiver, fulfillment or termination notice.

Can a seller refuse an asking-price offer?

Yes. Unless and until the seller accepts an offer, the seller can decide whether to accept, reject or make a counteroffer, even where an offer matches the asking price. Once an APS is accepted, its exact terms control; start with what is aps in real estate if you need the basic framework.

Speak with a Toronto real estate lawyer

Advice before you waive, fulfill or respond to a real estate condition can help you understand the APS deadlines, notice requirements and closing risks involved.

Call 416-321-8766 or request a quote to discuss your matter with Zinati Kay.

Continue reading

Foreclosure Prevention: How to Stop Foreclosure in Ontario

Mortgages & Refinancing John Zinati

Stop foreclosure in Ontario: act before the property is sold

Foreclosure prevention in foreclosure Canada searches usually means trying to stop foreclosure before an Ontario lender sells the property. Acting quickly may preserve options, but Ontario homeowners usually need to deal with a power-of-sale enforcement file, not the U.S.-style foreclosure process described on many websites.

Do not ignore a missed-payment notice, demand letter or Notice of Sale Under Mortgage. The amount required to resolve the problem can increase with interest, legal costs and other enforcement expenses, while the time available to make decisions can narrow quickly.

Take these steps the same day you receive a lender notice:

Read the notice carefully and record its date, the sender, the mortgage account number and every deadline.
Contact the lender or servicer, ask for the current mortgage arrears and available options in writing, and keep a record of every call and email.
Gather your mortgage documents, payment history, renewal papers, property tax information, proof of income and any notice from the lender’s lawyer.
Do not sign a private mortgage, transfer, listing agreement or cash-buyer offer without understanding its cost, conditions and effect on your equity.
Obtain Ontario legal advice promptly, particularly once a Notice of Sale has arrived or the lender has retained a lawyer.

A lender may consider a payment arrangement, deferral, capitalization of arrears, renewal change or refinance, but none is automatic. If refinancing is realistic, our lawyers can assist with refinancing your mortgage in Toronto and reviewing the closing requirements before a deadline expires.

Foreclosure in Canada versus power of sale in Ontario

Power of sale is the usual Ontario mortgage-enforcement remedy; foreclosure is a different, court-based remedy and is less common. Both can follow Mortgage Defaults, but they have different procedures and consequences.

Under a power of sale, the mortgagee uses a contractual or statutory authority to sell the property after giving the required notice. The lender does not become the owner merely by sending a notice. Its goal is generally to sell the property, apply the proceeds to the secured debt and enforcement costs, and account for any surplus.

Foreclosure is a court remedy in which the lender seeks an order that can ultimately extinguish the owner’s equity of redemption and vest ownership in the lender. A lender may instead commence a court action by issuing a statement of claim in some circumstances, but court foreclosure should not be assumed to be the standard Ontario path.

The labels “judicial foreclosure” and “non-judicial foreclosure” often appear in U.S. articles and do not give an Ontario homeowner enough practical guidance. For a fuller comparison of the remedies, read power of sale vs foreclosure in Ontario.

What to do when you miss a payment or receive a demand letter

Contact the lender early, ask for the current arrears and options in writing, and make a realistic plan rather than promising payments you cannot make. A demand letter is serious, but it is also an opportunity to confirm the numbers and explore a solution before a Notice of Sale is issued.

Ask the lender for an itemized statement showing unpaid instalments, interest, fees, property-tax advances if any, legal costs claimed to date and the amount needed to bring the mortgage current. Check it against your records, but do not withhold communication simply because you dispute an item. Identify the disputed charge and ask for supporting details.

Depending on the lender, the mortgage and your financial circumstances, possible discussions may include:

a short-term payment arrangement to clear mortgage arrears over a defined period;
a payment deferral, where the lender offers one;
capitalizing arrears into the mortgage balance, where the lender agrees and underwriting permits it;
a renewal, term change or amortization adjustment; or
a payout through a conventional refinance or another source of funds.

For example, consider an owner of a Milton townhouse worth $820,000 with a $510,000 first mortgage and $9,000 in arrears after a job interruption. If the owner has resumed work and can afford the regular payment plus $1,500 monthly toward arrears, a written arrangement may be more realistic than borrowing $20,000 privately at a high rate. The owner should still obtain the lender’s written acceptance and confirm whether enforcement costs are included in the payment plan.

A “mortgage modification helpline” may describe possible lender changes, but the terms need careful review before acceptance. A lawyer can also help identify questions for a lawyer for mortgage issues, including what the lender can demand, what security is being registered and whether a proposed solution actually resolves the default.

Notice of Sale in Ontario: deadlines and how to stop the process

A Notice of Sale is serious but does not itself mean your home has been sold; the redemption period is the key time to obtain a payout figure and cure or replace the debt. Send the notice and mortgage to an Ontario real estate lawyer immediately, because the notice date, type of power and terms of the mortgage affect the deadline.

Under Ontario’s Mortgages Act, a lender generally cannot give a Notice of Sale until at least 15 days after default. The notice is generally required to give at least 35 days to redeem where the mortgage contains an express power of sale, and at least 45 days where the lender relies on a statutory power of sale. The applicable period must be confirmed from the mortgage, the notice and the enforcement file.

During the redemption period, the owner’s equity of redemption remains. In practical terms, that is the owner’s opportunity to cure the default, pay out the mortgage, arrange replacement financing or complete an owner-directed sale before the lender completes a power-of-sale transaction. The precise amount required may be more than missed instalments, so request a current payout or reinstatement figure rather than estimating it.

A lawyer should promptly review:

the mortgage, renewal documents and any guarantees or collateral-mortgage terms;
the date and method of service of the demand letter and Notice of Sale Under Mortgage;
the arrears calculation, interest rate, default interest if applicable and claimed legal costs;
title searches, other mortgages, tax arrears and registered claims; and
the realistic timing of a refinance, sale or other payment source.

For example, a Toronto homeowner receives a Notice of Sale dated June 1 under an express power of sale. The lawyer confirms the deadline stated in the notice, obtains the lender’s payout figure, and learns that the owner has a firm conventional refinance commitment that can close before the redemption period ends. The lawyer must still ensure the new loan’s conditions, appraisal, insurance and title requirements can be satisfied in time; a verbal indication from a broker is not a completed solution.

Your practical options to avoid losing the home

The viable option depends on income, equity, total debt and the legal stage, not simply on how much arrears is owing. An option that buys a few weeks but creates an unaffordable payment or puts the property at greater risk may not be a solution.

Option	When it may fit	Key issues to check
Reinstatement or cure	You can pay the required amount promptly and resume regular payments.	Obtain the exact amount and written confirmation of what is required to stop enforcement.
Payout or conventional refinance	Income, credit, equity and lender conditions support new financing.	Review the interest rate, term, lender charges, closing date and whether the new payment is sustainable.
Private mortgage	A short, credible bridge is needed and substantial equity supports the transaction.	Review fees, interest, lender fees, broker fees, repayment date, default terms and a genuine exit plan.
Owner-directed sale	Keeping the home is no longer sustainable but there may be equity to protect.	Allow enough time for marketing, closing and discharge of all registered claims.

Private financing can stop an immediate enforcement step only if it closes in time and produces enough money to satisfy the required payout. It is not automatically safer because it is fast. A second or private mortgage can be expensive, can have a short maturity date and may expose the owner to another default if there is no credible sale, refinance or income-based plan at maturity.

For example, an owner of a detached home valued at $1,050,000 has a $620,000 first mortgage, a $35,000 line of credit and a $28,000 power-of-sale payout requirement. A private lender proposes $90,000 for one year. Before signing, the owner needs to know whether the new mortgage will register behind the first mortgage, every fee deducted from the advance, the total annual borrowing cost, the payment obligation and how the $90,000 will be repaid. Equity alone does not make an unaffordable loan workable.

Mortgage brokering and administration in Ontario are regulated by the Financial Services Regulatory Authority of Ontario (FSRA). The Financial Services Commission of Ontario (FSCO) was the predecessor provincial regulator whose functions were transferred to FSRA. Verify the licence status of a mortgage broker or agent and obtain independent legal advice before signing any financing documents.

When selling may protect more equity than waiting

If keeping the mortgage is not sustainable, an owner-directed sale may offer more control than waiting for enforcement. A timely listing can give the owner more input on pricing, marketing, offers and closing timing, although the lender’s deadline and all registered debts still matter.

Ask the lender whether it will pause or defer enforcement while the property is listed, and seek a written response. A sale must generate enough net proceeds to discharge the mortgage and other claims that must be cleared on closing, unless each affected lender agrees to a different arrangement.

If the expected sale price is lower than the mortgage payout and closing costs, the lender’s consent is needed to complete a sale. This is sometimes called a short sale in general conversation, but it is not a separate Ontario process that erases the debt. Read about the short sale meaning and why written lender terms matter.

Consider a seller with a condominium expected to sell for $590,000, a mortgage payout of $575,000, real estate commission and HST, legal fees, condominium arrears and property taxes. The net proceeds may be insufficient even though the purchase price seems close to the mortgage balance. The seller should know the projected shortfall and the lender’s written conditions before accepting an offer.

Be cautious with unsolicited cash-buyer offers, agreements that require a transfer before full payment, rent-back arrangements and documents described as “just a refinance.” The speed of an offer does not replace a proper review of the price, deposits held in trust, conditions, closing date, mortgage payout and effect on title.

What happens if the lender sells under power of sale

Sale proceeds are applied to the secured debt and enforcement costs, and any surplus is not simply the lender’s profit; a shortfall may remain an issue. A power-of-sale sale does not necessarily end every financial obligation connected with the property.

After a sale, the lender must account for the proceeds and apply them according to the applicable legal and priority rules. The transaction can involve the mortgage debt, interest, legal expenses, real estate commission, property taxes, condominium charges, other registered interests and the costs required to complete the sale. A lawyer can assess title, the sale accounting and whether the lender followed the applicable process.

If money remains after claims with priority are addressed, the borrower may be entitled to a surplus. If the net sale proceeds do not satisfy the debt and enforceable costs, the lender may seek to recover a shortfall, subject to the mortgage terms, applicable law and facts. Do not assume that handing over possession, moving out or allowing a sale releases a borrower or guarantor.

Owners should also get legal advice about possession and closing steps. A Notice of Sale is not an eviction notice, and a lender’s right to possession may require separate steps depending on the circumstances. For further Ontario context, see mortgage default Canada.

How a real estate lawyer helps with an urgent Ontario enforcement file

A lawyer can identify the remedy, calculate the legal deadline, review the notice and mortgage, communicate with the lender’s lawyer, and advise on refinancing or sale documents. Early review is particularly useful because a lender’s deadline, a new lender’s closing requirements and a buyer’s closing date must all work together.

A real estate lawyer does not replace financial advice from a qualified financial professional, but can explain the legal documents and transaction risks. This may include reviewing the lender’s claimed costs, obtaining a payout statement, searching title, reviewing a private mortgage commitment, negotiating closing documents and determining whether an owner-directed sale can close before enforcement proceeds.

Bring the following to an urgent consultation:

the original mortgage, renewal and amendment documents;
every demand letter, Notice of Sale, email and letter from the lender or lender’s lawyer;
the latest mortgage statement, arrears or payout statement and proof of payments made;
property-tax and condominium information, if applicable;
proof of income, a budget and details of other debts secured against the property;
any refinancing commitment, private mortgage proposal, broker disclosure or appraisal; and
any listing agreement, offer to purchase, cash-buyer proposal or transfer document.

If the property is outside the GTA, location does not change the Ontario mortgage-enforcement rules. Our real estate lawyers guelph page explains the local service available for Ontario property transactions.

Foreclosure prevention FAQ for Ontario homeowners

Can I stop the process after it starts?

Sometimes, but the available route and amount required depend on the notice, mortgage terms and stage of enforcement. A cure, payout, completed refinance, lender-approved arrangement or owner-directed sale may still be possible, so obtain the current figures and legal advice immediately rather than assuming it is too late.

How long does Ontario enforcement take?

There is no single timeline because the mortgage terms, notice type, service, lender decisions, refinancing and sale timing all matter. A Notice of Sale generally has a statutory minimum redemption period, but a file may continue longer or move quickly after that period, so use the actual notice deadline rather than a general internet estimate.

How can I lower a mortgage payment when I am in arrears?

Ask the lender whether it will consider a temporary arrangement, deferral, capitalization, term change or amortization change, and assess whether the revised payment is sustainable. A refinance may also change the payment, but it may add fees, extend repayment or increase the total borrowing cost.

Who offers affordable options to temporarily pause the foreclosure process in Canada?

Your existing lender is usually the first party to ask about a temporary arrangement, but it is not required to grant one. Be cautious of companies advertising guaranteed pauses, guaranteed approvals or very fast financing; confirm licensing, total cost and legal consequences before signing.

Can a homeowner in Milton stop foreclosure?

Yes, a Milton homeowner may have the same potential options as other Ontario owners, including curing arrears, refinancing or selling, depending on the file. Milton follows Ontario law, and the mortgage documents and notice deadline, rather than the municipality, determine the immediate legal issues.

Does advice about stopping foreclosure in Calgary apply in Ontario?

No, Calgary and Alberta operate under a different provincial legal regime, so Ontario owners should obtain Ontario advice. General budgeting ideas may be useful, but notice periods, remedies and lender rights should not be copied from Alberta material.

What are foreclosure-prevention Reddit or forum posts missing?

Online posts cannot review your mortgage, title, notice date, lender charges or financing documents, which are the facts that determine your options. Use forums for general questions only; do not rely on anonymous advice to miss a deadline or sign a transfer, private mortgage or sale agreement.

Speak with a Toronto real estate lawyer

When mortgage arrears, a demand letter or a Notice of Sale puts your Ontario property at risk, early legal advice can help you understand the deadline, documents and available transaction options.

Call 416-321-8766 or request a quote to discuss your matter with Zinati Kay.

Continue reading

When Are Closing Costs Due in Ontario?

Closing & Closing Costs John Zinati

When are closing costs due? In Ontario, some costs are paid before closing, but the final amount needed to complete the purchase is normally delivered to your real estate lawyer before the closing date. Your lawyer calculates that amount from the purchase price, the deposit already paid, mortgage funds and the statement of adjustments.

Buying a home involves more than arranging the down payment. The timing of each payment matters because a late deposit, delayed bank draft or lender funding issue can put completion at risk. A real estate transactions lawyer can explain the funds required for your particular agreement and coordinate the legal steps before completion.

When are closing costs due in Ontario?

Closing costs are due at different points in the transaction, but the balance required to close is usually provided to your lawyer shortly before completion. Your lawyer will give you a trust-funding request after reviewing the purchase, the lender’s instructions and the statement of adjustments.

Some expenses arise earlier, such as a home inspection, an appraisal requested by the lender, or condominium document review. The larger closing balance is generally required before the lawyer can register the transfer, pay Ontario land transfer tax and send the seller’s lawyer the money needed to complete the sale.

Do not rely on a general percentage of the purchase price. Ontario land transfer tax, Toronto municipal land transfer tax for Toronto properties, the type of property, lender requirements and adjustments can materially change the final amount. For a breakdown of what closing costs do buyers pay, obtain an estimate based on the address, price and financing.

The Ontario payment timeline from offer to closing

The Agreement of Purchase and Sale sets the deposit deadline, while the closing date controls when the remaining purchase money is due. There is no Ontario-wide rule saying that every deposit is due within a particular number of days after signing.

After the offer is accepted: The buyer delivers the deposit by the deadline written in the agreement. It is commonly held in the listing brokerage’s trust account, although the agreement may direct it to a lawyer’s trust account.
During any conditional period: A buyer may pay for a home inspection, appraisal, insurance arrangements or other due diligence as the service is obtained. A lender may also ask for documents to satisfy financing conditions.
Before closing: The lawyer reviews title, obtains mortgage instructions and prepares or reviews the statement of adjustments. The buyer receives the amount to provide to the lawyer’s trust account and the approved payment method.
On closing day: Mortgage money is advanced if the lender is ready, the lawyers exchange documents and funds, and the transfer and mortgage are registered electronically.

For example, a buyer purchasing a $850,000 Toronto condominium may pay a $42,500 deposit under the agreement, pay an inspector separately during a condition period, and later receive a lawyer’s request for the remaining down payment, land transfer taxes, legal disbursements and adjustments. The precise balance cannot be calculated from the purchase price alone because the deposit credit, mortgage advance and condominium adjustments affect it.

Deposit, down payment and closing costs are different

A deposit is money paid under the purchase agreement, a down payment is the buyer’s portion of the purchase price not funded by the mortgage, and closing costs are additional transaction expenses. The deposit is generally credited toward the purchase price and therefore forms part of the buyer’s down payment at completion.

The statement of adjustments records this credit. It starts with the purchase price and then shows items that must be added or credited between buyer and seller, including the deposit already held in trust. The buyer does not normally pay the same deposit a second time on closing, but must still have enough money to cover the rest of the down payment and closing costs.

For example, consider a buyer purchasing a freehold home for $700,000 with a $35,000 deposit and a $560,000 mortgage. The deposit is credited toward the $140,000 down payment, leaving $105,000 of down payment to be supplied, plus land transfer tax, legal costs and any adjustments. The final request from the lawyer will reflect the actual figures.

If you are asking when is down payment due, it is normally part of the closing funds delivered to the lawyer before completion, after credit for the deposit. Do not wait until moving day to arrange it, particularly where a bank draft or financial-institution transfer is required.

How closing costs are paid to the right people

The buyer normally provides the required balance to their lawyer, usually by bank draft or another method the lawyer has approved, and the lawyer distributes funds from trust. The lawyer uses the closing funds to pay required taxes and registration charges, complete the seller’s payment and pay permitted disbursements connected with the transaction.

Do not send money until your law firm provides verified trust-funding instructions. Fraudsters may send convincing messages with changed banking details. Confirm any instructions or changes by calling a known firm telephone number, not a number contained in an unexpected email.

Banking lead time matters. A bank draft may require advance ordering, and electronic or wire delivery can be subject to bank cut-off times, holds or confirmation requirements. Your lawyer cannot complete until cleared buyer funds and lender funds are available as required.

From the lawyer’s trust account, closing payments may include Ontario land transfer tax, and Toronto municipal land transfer tax where applicable, electronic registration charges, the seller’s net proceeds and amounts shown on the statement of adjustments.

What your lawyer checks before asking for closing funds

Your lawyer checks the legal and financial information needed to calculate the correct closing balance before asking you for money. The transaction-specific statement of adjustments, rather than a U.S.-style closing disclosure, shows the final amount owing between buyer and seller.

Depending on the property and transaction, that work can include title and off-title searches, review of the purchase agreement, mortgage instructions, insurance confirmation required by the lender, deposit confirmation and review of tax or condominium adjustments. The lawyer also prepares a trust ledger that accounts for money received and paid out.

If the lender needs proof of the buyer’s contribution, keep down-payment funds traceable. Be prepared to provide account statements, gift documentation where applicable, and records of transfers. Buyers using the Home Buyers’ Plan (HBP) or a First Home Savings Account (FHSA) should start withdrawal steps early and confirm the lender’s documentary requirements.

Mortgage loan insurance is different from routine closing costs. Where a mortgage is insured, the insurer may be CMHC, Sagen or Canada Guaranty, but the lender and mortgage professional should confirm how any insurance premium is handled in that mortgage arrangement.

What happens on closing day in Ontario

On closing day, the lawyers exchange the required documents and funds, register the transfer electronically and release funds once registration is confirmed. Keys are released according to the arrangements made for the transaction, often through the real estate broker after confirmation of closing.

The buyer’s lender generally sends mortgage funds to the buyer’s lawyer under its funding instructions. Once all required money is available and closing documents are in order, the buyer’s lawyer completes the electronic registration and sends the seller’s lawyer the balance required to close.

If your lender funds late or your own money is delayed, tell your lawyer and mortgage professional immediately. A delay can affect possession, moving plans and the seller’s onward transaction.

Seller closing costs and buyer closing costs

Buyers and sellers each have closing costs, but the agreement and statement of adjustments determine the allocation in a particular transaction. Buyers commonly pay their own legal costs, applicable land transfer taxes and financing-related expenses; sellers commonly pay costs connected with discharging their mortgage and their selling arrangements.

Property taxes, condominium common expenses, fuel and similar items may be apportioned to reflect who owns the property for each part of the relevant period. Read more about who pays property taxes at closing.

Parties can negotiate price, inclusions, credits and other contractual terms before the agreement is firm, but a buyer should not assume that a seller will pay the buyer’s land transfer tax or title insurance. For a practical list of what does buyer pay at closing, review the expected items early.

Can closing costs be added to your mortgage?

Do not assume that closing costs can be added to your mortgage. Whether mortgage proceeds can cover any particular amount depends on the lender’s approved loan amount, property value, loan-to-value requirements and mortgage instructions.

Mortgage loan insurance may apply where the mortgage meets the applicable insured-mortgage requirements, but it is not a substitute for having cash available for land transfer tax, legal costs and adjustments. Confirm your available funds with your mortgage professional before waiving a financing condition or committing to a closing date.

Avoid last-minute closing delays

Early preparation gives you time to correct a shortfall, document a gift or resolve a lender condition before completion. Use this checklist as soon as the transaction is firm:

Ask your lawyer when the final trust-funding request is expected.
Keep down-payment and closing funds in accounts that can be documented for the lender.
Arrange a bank draft or approved transfer early enough to meet bank cut-off times.
Review the statement of adjustments and ask about any item you do not understand.
Verify trust instructions independently and never act on an unverified change by email.
Tell your lawyer promptly if mortgage proceeds, an HBP withdrawal, an FHSA withdrawal or your own funds may be delayed.

A lawyer handling land conveyance can coordinate the documents and funds required for an Ontario purchase, sale or refinancing.

FAQ about when closing costs are paid

How do I pay closing costs?

You normally provide the final closing balance to your real estate lawyer by bank draft or another lawyer-approved method. Your lawyer then pays the appropriate recipients from trust as part of completion.

Who are closing costs paid to?

Closing funds may ultimately go to the provincial government for land transfer tax, the land registration system for registration charges, the seller’s lawyer, service providers and your lawyer for authorized fees and disbursements. The trust ledger and reporting documents explain the payments made for your transaction.

When does the seller pay closing costs?

The seller’s lawyer generally pays the seller’s transaction costs from sale proceeds on closing, subject to the agreement and available proceeds. Those costs can include mortgage payout amounts and other seller obligations.

When is my first mortgage payment due after closing?

Your first mortgage payment is due on the payment date set out in your mortgage terms, not necessarily on the closing date. Confirm the date, payment frequency and amount directly with your lender after the mortgage has been funded.

For buyers outside Toronto, a real estate lawyer Innisfil can also help identify the closing funds and timing for an Ontario transaction.

Speak with a Toronto real estate lawyer

Knowing when to deliver your deposit, down payment and closing funds can help prevent avoidable pressure as your closing date approaches. Early legal review can clarify the statement of adjustments, lender instructions and the money required to complete.

Call 416-321-8766 or request a quote to discuss your matter with Zinati Kay.

Continue reading

What If I Can’t Afford Closing Costs in Ontario?

Closing & Closing Costs John Zinati

What if I can't afford closing costs in Ontario? Do not assume they can simply be added to your mortgage: identify the gap as early as possible, then speak with your lender or mortgage broker and your real estate lawyer before closing arrangements are made. Closing costs are separate from your down payment and can include land transfer tax, legal and registration costs, title insurance, lender charges and adjustments owed to the seller.

A shortage does not automatically end a purchase, but it can put the transaction at risk if the buyer cannot deliver the required funds on the closing date. The practical question is not a generic percentage of the purchase price; it is the exact amount shown on the lawyer’s draft statement of adjustments and trust ledger after the lender’s final instructions arrive.

What if I can’t afford closing costs in Ontario?

If you cannot afford closing costs, tell your lender or broker and real estate lawyer immediately, before taking on new debt or moving money between accounts. The available solution may be a properly documented gift, lender-approved borrowing, a negotiated amendment with the seller, or, in some cases, a change to the financing arrangement.

Do not wait until the day before closing. A mortgage lender may need to re-underwrite the file if you borrow money, receive a large transfer, change the down payment source, or ask for a lender credit. Your lawyer also needs time to review the agreement, lender instructions and final figures before confirming the amount that must be delivered to the lawyer’s trust account.

For example, a buyer purchasing a $780,000 Toronto condominium may have a mortgage approved and a down payment saved, but may not have budgeted for Ontario land transfer tax, Toronto Municipal Land Transfer Tax, title insurance, legal disbursements and a share of prepaid condominium expenses. If the statement of adjustments shows a larger balance than expected, the buyer should first ask the lawyer for a line-by-line explanation and contact the lender or broker before arranging any additional funds.

Buyers who need help reviewing the purchase agreement, lender conditions and closing figures can work with a transactions lawyer early in the transaction.

Which closing costs must be paid with cash before or on closing?

The buyer’s exact closing balance is usually paid from funds available before or on closing, not from an assumed mortgage increase. Your lawyer calculates that balance using the purchase price, deposit credit, mortgage funds, the draft Statement of Adjustments and the lender’s final instructions.

Some expenses arise before closing, such as a home inspection, appraisal requested by the lender, insurance arrangements, or a condominium status certificate review. Other amounts are collected by the lawyer for closing, and some are reflected as credits or charges between buyer and seller on the Statement of Adjustments.

Item	How it commonly affects the buyer’s funds
Deposit	The deposit held in trust under the agreement is normally credited toward the purchase price, but it does not eliminate other closing costs.
Ontario Land Transfer Tax	Payable on most purchases, subject to available rebates and exemptions.
Toronto Municipal Land Transfer Tax	An additional land transfer tax generally applies when the land is located in Toronto, subject to available rebates and exemptions.
Legal fees, disbursements and electronic registration	The lawyer’s account may include professional fees, title search and registration-related disbursements, and other file-specific expenses.
Title insurance	A one-time policy premium may be required by the lender or recommended for the transaction, depending on the file.
Lender charges	These can include appraisal, lender administration or mortgage-related charges, depending on the mortgage commitment.
Adjustments	The buyer may reimburse the seller for prepaid property taxes, condominium common expenses, fuel or other items specified by the agreement and statement.

A condominium purchase may also involve adjustments for common expenses or other amounts collected by the condominium corporation. A newly built home can have additional builder, utility, tax or occupancy-related amounts, so a pre-construction buyer should not use a resale estimate as a substitute for reviewing the agreement.

The lawyer’s preliminary estimate is useful for budgeting, but the draft Statement of Adjustments is the working document that turns the estimate into a closing balance. For a fuller breakdown of the items that can apply, see how much is closing cost on a house.

Can I borrow money for closing costs?

Can I borrow money for closing costs? Sometimes, but only if the mortgage lender permits it and the source of funds is disclosed and acceptable under the lender’s underwriting requirements. A line of credit, personal loan, family gift or lender credit can change your debt ratios, your available down payment and the lender’s view of the file.

Do not open a new credit account, draw on a line of credit or accept an unexplained cash transfer without first asking the lender or broker what documentation is needed. The lender may require updated bank statements, proof of the loan or line of credit, a gift letter, identification of the donor, or other source-of-funds evidence.

A gift may be permitted where the lender’s policy allows it, but the lender decides whether the gift is acceptable and whether it can be used for the down payment, closing costs or both. A gift should be documented before funds are sent, rather than described informally after the money appears in the buyer’s account.

For example, consider a buyer of a $640,000 freehold home outside Toronto who has paid the deposit and has $9,000 left for closing. The lawyer’s estimate later identifies land transfer tax, legal costs, title insurance and tax adjustments that create a $5,500 gap. If the buyer plans to use a line of credit, the buyer should have the broker confirm whether that new debt is permitted before drawing it, then provide the requested documentation to the lender and arrange the funds in time for the lawyer’s trust deposit deadline.

If financing terms, private borrowing or a mortgage condition needs legal review, a loans for lawyer can review the transaction documents and closing process.

Can closing costs be rolled into a mortgage in Canada?

Can closing costs be rolled into a mortgage in Canada? It depends on the mortgage product, the property value, the loan-to-value limit and the lender’s approval; it is not an automatic option available on every purchase. If the lender permits additional borrowing, the buyer may pay less cash at closing but will generally borrow more and may pay interest on that amount over the mortgage term.

In many purchases, the lender advances only the approved mortgage amount after its conditions are satisfied. The buyer must still provide the balance required to complete the purchase and pay the amounts shown on the lawyer’s trust ledger. A lender cannot advance extra funds simply because the buyer’s legal statement is higher than expected.

For example, if a buyer has a mortgage commitment based on a $700,000 purchase and the lender’s approved loan amount, adding another amount for closing costs may require a revised application, valuation review and approval. It can also affect whether the mortgage remains within the lender’s permitted financing ratio. Read more about negotiation and financing questions in can you roll closing costs into mortgage.

Can the seller or lender cover closing costs?

A seller may agree to a credit or price adjustment toward closing costs, and a lender may offer a credit under some mortgage products, but both arrangements must be documented and accepted where lender approval is required. Neither option means that government charges are automatically waived.

A seller concession should be negotiated before the agreement becomes firm or documented in a written amendment signed by the parties. The wording matters: it should state what the seller is providing, how it will be shown on the Statement of Adjustments, and whether the buyer’s lender has approved the arrangement.

A lender credit may reduce the cash the buyer needs at closing, but it can be associated with a different interest rate, product feature or other mortgage cost. Ask the lender or broker to explain the financial effect in writing and send the revised commitment or instructions to the lawyer.

For example, a seller of a $900,000 resale house may agree to a $7,500 adjustment after a financing issue is identified during the conditional period. That agreement does not create $7,500 of new mortgage proceeds. Instead, if properly documented and accepted by the lender, it may reduce the net amount the buyer must provide on closing.

Is there closing-cost assistance or a free grant in Ontario?

Ontario buyers should not rely on a universal free closing-cost grant. Programs and municipal initiatives can change, and a buyer should confirm current eligibility, funding availability and application deadlines before making an offer that depends on assistance.

The Ontario First-Time Home Buyer Land Transfer Tax Rebate may reduce Ontario land transfer tax for qualifying first-time buyers. A qualifying Toronto first-time buyer may also be eligible for a rebate of Toronto Municipal Land Transfer Tax, but the rules are separate and should be confirmed for the specific purchase.

An FHSA can help an eligible buyer save and make a qualifying withdrawal toward a first home, while the Home Buyers’ Plan (HBP) may allow an eligible participant to withdraw funds from an RRSP under the program rules. These are purchase-funding tools, not automatic payments of a lawyer’s account, and the buyer should confirm tax, account and withdrawal requirements with the financial institution and an appropriate tax adviser before relying on them. Canada Mortgage and Housing Corporation (CMHC) insurance may be relevant to an insured mortgage, but it does not remove the need to satisfy the lender’s down payment and closing-fund requirements.

Buyers should also be cautious about advertisements for “free grants to help with closing costs.” Confirm who offers the program, whether the funds are a grant or repayable loan, and whether the lender permits the source of funds.

How to afford closing costs without putting your purchase at risk

The safest approach is to confirm the shortfall early, preserve your mortgage approval and use only funding sources your lender accepts. Do not try to solve a closing gap with last-minute undisclosed borrowing or untraceable transfers.

Review the signed agreement, deposit receipt and mortgage commitment as soon as the offer is accepted.
Give your lawyer the agreement, lender or broker contact information, condominium documents where applicable, and any amendments promptly.
Ask for an early closing-cost estimate, then review the draft Statement of Adjustments when it is available.
Compare the expected trust balance with funds that are already available and documented.
If family will provide a gift, ask the lender for its gift-letter and document requirements before the transfer is made.
If you are considering a line of credit or other borrowing, obtain lender approval first and ask how it affects the mortgage conditions.
Only renegotiate the agreement, seek an extension or consider a different financing structure with legal and mortgage advice.

For example, a buyer with an accepted offer closing in 30 days may learn two weeks before closing that Toronto land transfer tax was omitted from the original budget. The buyer should immediately ask the lawyer for a revised figure, have the broker confirm whether a documented family gift is permitted, and arrange the approved funds well before the lawyer’s requested delivery date.

What your real estate lawyer does when funds are tight

A real estate lawyer reviews the legal and closing documents, calculates the buyer’s required funds and communicates the closing requirements early where possible. The lawyer cannot make lender conditions, land transfer tax or contractual obligations disappear, but can identify the amount owing and explain the legal consequences of a shortage.

On a typical Ontario purchase, the lawyer reviews title in the Ontario land registry system, raises appropriate title requisitions, reviews the agreement and lender instructions, obtains title insurance where required or appropriate, and prepares the closing documents. The lawyer also prepares or reviews the Statement of Adjustments, accounts for the deposit, receives approved funds into trust and provides the final reporting after closing.

On closing, the buyer’s lawyer uses electronic registration to register the Transfer that changes ownership and the Charge/Mortgage where financing is registered on title. The lawyer then completes the financial exchange in accordance with the closing arrangements.

Local support can also be useful for a transaction outside central Toronto; our real estate lawyers king city page explains the services available for King City-area property matters.

What happens if the shortfall is discovered close to closing day?

If a shortfall is discovered shortly before closing, notify the lawyer and lender or broker immediately and do not promise funds that have not been approved. Late funds can delay completion because the lawyer must have cleared, usable funds and lender funding before registration and release arrangements can be completed.

Ask the lawyer how funds must be delivered and by what deadline. Depending on the amount and the law firm’s procedures, this may involve a bank draft, wire transfer or another verified method; bank cut-off times, transfer limits and hold periods can matter. Never send funds based solely on a changed email instruction without independently verifying the instruction with the law office using a trusted phone number.

On a typical Ontario closing day, the lender sends mortgage funds after its conditions and funding process are complete, the buyer’s lawyer combines those funds with the buyer’s trust funds, and the lawyers complete the electronic registration process. Once the Transfer and any Charge/Mortgage are registered and the seller’s lawyer confirms completion, the buyer’s lawyer receives authority to release the keys or closing information according to the transaction arrangements.

If funds are late, registration and key release may be delayed. The purchase agreement may also contain remedies or interest consequences for a failure to close, so a buyer facing a serious shortfall needs immediate legal and mortgage advice rather than assuming an extension will be granted.

FAQ about paying closing costs upfront

Do you have to have closing costs upfront?

You need a plan for the buyer’s required closing balance before the transaction can complete, unless an approved lender, seller or other permitted source is covering part of it. Some expenses are paid before closing, while land transfer tax, adjustments and other amounts are generally handled through the lawyer’s trust account on closing.

Can you use a line of credit for closing costs?

You may be able to use a line of credit for closing costs if your lender approves that source of funds and you meet the lender’s documentation requirements. Drawing on a line of credit without disclosure can affect your mortgage approval because it changes your debt obligations.

Is there a no-closing-cost mortgage in Canada?

There is no single standard “no-closing-cost mortgage” that removes every Ontario closing expense. A lender may offer a credit or product feature that reduces upfront lender-related costs, but land transfer tax, legal work, adjustments and other transaction costs can still remain.

How can I get closing costs waived?

Most closing costs cannot simply be waived because they are taxes, third-party charges or amounts required under the agreement. You may reduce the amount through a qualifying rebate, a negotiated seller credit, a lender-approved credit or careful timing and budgeting, but each option must be confirmed for the transaction.

How early should I engage a lawyer?

Engage a real estate lawyer soon after signing the agreement, and earlier if you need advice before making an offer or removing a financing condition. Early review gives more time to identify lender conditions, estimate the closing balance and address a funding gap before the final days.

For more detail on timing, including the difference between pre-closing costs and closing-day funds, read when are closing costs due.

Speak with a Toronto real estate lawyer

When closing costs are tight, early legal review can help you understand the statement of adjustments, lender requirements and funds needed to complete your Ontario purchase.

Call 416-321-8766 or request a quote to discuss your matter with Zinati Kay.

Continue reading

Does a Real Estate Purchase Agreement Need Notarization?

Agreements & Contracts John Zinati

Does a real estate purchase agreement need to be notarized? All you need to know is that, in Ontario, an Agreement of Purchase and Sale (APS) does not normally need notarization to be binding. What matters is whether the parties have made and accepted a properly documented agreement with clear terms; notarization does not repair an unclear, incomplete or improperly accepted deal.

An APS is the contract that sets the purchase, sale and closing process in motion. Whether you are using a brokerage form or arranging a private sale, it is wise to understand the agreement before acceptance, because a signed APS can create serious obligations for both buyer and seller.

Does a real estate purchase agreement need to be notarized in Ontario?

No. An Ontario Agreement of Purchase and Sale is not normally notarized in order to be legally binding, and a notary public’s signature or stamp is not a standard requirement for an APS.

Notarization and signing before a witness are different from having a sound contract. A notary public may perform certain notarial acts, but notarization does not confirm that every APS term is fair, complete, enforceable or suitable for the property. It also does not replace a real estate lawyer’s review of title, closing obligations, financing instructions or the agreement itself.

Some closing documents may need to be signed, witnessed, commissioned or handled in a particular way depending on the document and lender’s instructions. That is separate from the question of whether the APS itself needs notarization.

What makes an Ontario Agreement of Purchase and Sale binding?

An APS generally becomes binding when one party makes an offer and the other accepts it in writing within the offer’s stated irrevocable period, with the essential terms identified and the required parties signing. For a contract concerning land, section 4 of Ontario’s Statute of Frauds generally requires a written memorandum signed by the party to be charged or that party’s authorized agent.

The agreement should identify the buyer and seller, the property, the purchase price and the key obligations. It should also state the closing date, deposit arrangement, included and excluded items, and any conditions. Once accepted, neither party should assume they can change a term simply because circumstances have changed; an amendment normally requires both parties’ agreement.

Conditions can affect whether the transaction becomes firm. For example, a financing condition may give a buyer until a stated date and time to give written notice that the condition has been satisfied or waived. The precise wording, notice method and deadline in the APS control, so parties should read them rather than rely on a general rule about how long an offer or condition lasts.

For a fuller explanation of the clauses commonly found in a contract to purchase, review the agreement before signing rather than treating the APS as a routine form.

What to check before you sign an APS

Before signing an APS, check that it accurately identifies the parties, the property, the price, deadlines and everything that is included in the deal. The safest time to correct a missing term or negotiate a special protection is before the offer is accepted.

Correct parties and property: Use the legal names of all buyers and sellers, and confirm the municipal address, unit and parking or locker details where applicable. A condominium purchase may involve separate legal descriptions for the unit, parking and locker.
Purchase price and deposit: State the price, deposit amount, who receives it, when it is due and how it will be held.
Closing date: Confirm that the date works with financing, a related sale, moving plans and any tenancy arrangements.
Inclusions and exclusions: List fixtures and chattels clearly, such as appliances, window coverings, a wall-mounted television, garage-door openers or a rented water heater.
Conditions: Set out financing, inspection, condominium-status-certificate, lawyer-review or other conditions with a clear deadline and notice procedure.
Notices and schedules: Check the email, brokerage and notice provisions, plus every attached schedule. A schedule can materially change the printed form.
Amendments: Put negotiated changes in writing and make sure all required parties sign or otherwise properly accept them.

A buyer or seller with a private agreement, an unusual schedule, a tenanted property or a substantial condition may want a real estate contract lawyer Toronto to draft or review the document before it is accepted. The practical question behind “do I need a lawyer to review real estate contract” is often whether a rushed form deals with the risks unique to the property and transaction.

For example, a buyer offering $850,000 for a freehold home might agree to a $40,000 deposit due within 24 hours of acceptance, a financing condition ending at 5:00 p.m. five business days later, and a closing date 45 days away. If the APS says the refrigerator, stove, dishwasher and washer and dryer are included, those items should be specified, rather than described only as “all appliances.”

Deposit and conditions: two protections that are not notarization

A deposit and properly drafted conditions can protect the parties in ways notarization cannot. The deposit shows the buyer’s commitment under the APS, while conditions can give a buyer or seller a defined contractual route to proceed, waive a condition or have the agreement end if the condition is not met.

In a brokerage transaction, the deposit is commonly delivered to and held in the listing brokerage’s trust account. In a private sale, the parties may arrange for a lawyer to hold the deposit in a lawyer’s trust account, but that arrangement should be expressly set out before money changes hands. The APS should not leave the deposit holder, due date, release terms or interest arrangement uncertain.

Conditions need specific language. “Subject to financing” without a deadline, notice provision or clear benefit of the condition can produce avoidable disputes. A condominium buyer may also need time to review the status certificate, budget, insurance information and rules; a rural buyer may need terms addressing well, septic system, access or other property-specific issues.

Do not assume that a missed deadline is harmless or that a verbal extension is enough. If the parties agree to extend a condition date or alter a deposit deadline, they should document the amendment properly and promptly.

Can you draft your own purchase agreement for a private Ontario sale?

Yes, parties can make their own purchase agreement for a private Ontario sale, but having a lawyer draft or review it before acceptance is prudent where possible. A private sale removes neither the legal consequences of the agreement nor the need for clear closing instructions.

Brokerage forms and templates may not address a particular property or transaction. Private-sale agreements often omit the full legal description, a workable deposit clause, allocation of adjustments, tenant arrangements, a condition process, appliance details, HST treatment where relevant, or remedies if a party fails to close.

Consider a seller privately selling a condominium unit for $620,000 with one parking space and one locker. If the agreement mentions only the unit’s street address and says “parking included,” the parties may later disagree about which registered space is being sold. A lawyer can help ensure that the APS, condominium documents and transfer instructions identify the interests being conveyed.

Learn the basic meaning of aps real estate terminology, but do not rely on a generic online form to resolve issues particular to your home, investment property or commercial-residential arrangement. For a discussion of when legal review is useful, see do i need a lawyer to review real estate contract.

What a real estate lawyer does after the agreement is signed

After an APS is signed, a real estate lawyer does much more than witness signatures. The lawyer reviews the APS and schedules, investigates title and applicable off-title matters, deals with lender instructions, prepares closing documents, calculates adjustments and coordinates the funds and registration process.

For a purchase, the lawyer will ordinarily review title and raise requisitions within the time allowed by the APS. Depending on the property, the review may involve registered easements, mortgages, restrictive covenants, condominium information, tax matters, execution searches and other issues relevant to closing. The buyer should promptly provide identification, insurance information, mortgage details and funds when requested.

For a sale, the lawyer obtains mortgage payout information, prepares the transfer and other required documents, responds to requisitions and arranges for closing proceeds after valid adjustments, payouts and obligations are addressed. The statement of adjustments sets out financial items apportioned between buyer and seller, which may include property taxes, condominium common expenses or prepaid charges where applicable.

Buyers and sellers who need help with your closing should send the accepted APS to their lawyer as soon as possible, rather than waiting until the week of closing.

What happens on closing day in Ontario

On closing day, the APS is carried out through closing documents, trust funds and electronic registration; the APS itself is not the document registered to transfer title. The lawyers coordinate the transaction using Ontario’s electronic land registration system.

The lawyers finalize the statement of adjustments and confirm the buyer’s required closing funds.
The buyer’s lawyer receives mortgage funds where financing is involved and prepares the transfer, mortgage and other closing documents required for the file.
The seller’s lawyer provides documents needed to transfer title and address mortgage discharge arrangements.
The buyer’s lawyer registers the transfer and, where applicable, the mortgage electronically.
Once registration and closing arrangements are complete, funds are released and the lawyers coordinate the release of keys.

The exact timing can depend on the lender, registration system, document readiness and any issue discovered before closing. A buyer should not assume keys will be available simply because they have signed documents or delivered funds; completion is coordinated through the lawyers.

Common APS mistakes buyers and sellers should avoid

The most common APS mistakes are unclear terms, missed deadlines and relying on conversations that never made it into the signed agreement. Notarization does not cure any of these problems.

Relying on verbal promises: If the seller agrees to repair a leak, remove furniture or leave a particular appliance, put the obligation and deadline in the APS or a signed amendment.
Using vague inclusions: Identify disputed items precisely, especially leased equipment, electric-vehicle chargers, security equipment, sheds, hot tubs and window coverings.
Missing a condition deadline: Calendar the exact date and time, who must receive notice and what notice is required.
Signing an unreviewed private form: A short agreement may fail to address deposits, title issues, occupancy, adjustments or default consequences.
Assuming a seal fixes an unclear term: A notarized signature does not turn an incomplete description, uncertain condition or omitted obligation into a clear bargain.

Offer terms are about more than the price. Before making or accepting an offer, read back to basics: making the offer — it’s about more than price and consider how closing date, conditions and included property affect the overall deal. For negotiating practical terms without creating unnecessary ambiguity, see real estate contract negotiation.

FAQ about notarizing Ontario real estate agreements

Does an agreement need to be notarized to be legally binding?

No. An Ontario APS does not normally need notarization to be legally binding; written terms, proper offer and acceptance, signatures and compliance with its conditions and deadlines are more important. Whether a particular agreement is enforceable can still depend on its wording and the facts.

Does notarization protect against real estate fraud in Ontario?

Notarization alone does not prevent real estate fraud in Ontario. Careful identity-verification practices, secure instructions, title review, attention to unexpected changes in payment directions and legal advice are more relevant safeguards in a transaction than adding a notarial act to an APS.

What documents are handled at closing?

Closing commonly involves the transfer, mortgage documents if there is financing, lender-required forms, the statement of adjustments and other documents required for the property or transaction. The documents and registration process are handled under Ontario practice, not the rules of a U.S. state, British Columbia, Nova Scotia or Quebec.

Where can I find legal help outside Toronto?

Ontario buyers and sellers can seek local guidance appropriate to the property and transaction. If your matter is in eastern Ontario, our kingston real estate lawyers page explains the services available for purchases, sales and refinances in that area.

Speak with a Toronto real estate lawyer

Getting advice before accepting an APS can help you understand the contract, deadlines, deposit terms and closing obligations that apply to your Ontario transaction.

Call 416-321-8766 or request a quote to discuss your matter with Zinati Kay.

Continue reading

What Does a Law Clerk Do in Ontario Real Estate?

Hiring a Real Estate Lawyer John Zinati

What does a law clerk do on an Ontario property deal? A real estate law clerk supports the lawyer and transaction team by organizing the file, preparing and coordinating documents, communicating practical updates, and tracking requirements through closing. These law clerk responsibilities help a purchase, sale, refinance, or title transfer move forward, but the lawyer remains responsible for legal advice and legal judgment.

[caption id="attachment_535" align="aligncenter" width="700"] Zinati Kay Lawyer vs Clerk

Image: iStock.com/PrathanChorruangsak[/caption]

What does a real estate law clerk do in Ontario?

A real estate law clerk handles much of the detailed administration and document coordination on an Ontario real estate file under the lawyer’s supervision. They help ensure that the right information, documents, searches, instructions, signatures, and funds-related details are available when they are needed.

On a typical residential transaction, a clerk may open the file after an agreement is accepted, collect contact and identification details, communicate with the real estate agents and lender, prepare routine correspondence, and follow up on outstanding items. A clerk may be the person a buyer or seller hears from most often for status updates.

The work is important because real estate transactions have many moving parts and firm deadlines. A missing mortgage instruction, unsigned document, unresolved adjustment, or title concern can delay closing if it is not identified and escalated promptly.

Are law clerks lawyers?

No. A real estate law clerk is not the lawyer who provides legal advice, interprets a contract for a client, or makes legal decisions on a file.

A clerk can explain practical next steps, request documents, relay information, and help arrange signing. If you need advice about an offer, a condition, title concern, financing problem, tenancy issue, boundary question, family-law claim, or whether to proceed with a transaction, ask to speak with the responsible lawyer.

This distinction matters before a client makes a decision with legal consequences. For example, if a buyer discovers shortly before closing that the seller has not removed property promised in the agreement, the lawyer should advise on the available options and communications, rather than the clerk deciding how the issue should be handled.

Law clerk vs lawyer on an Ontario real estate deal

Law clerks and lawyers work together, but their roles are different. The exact division of work varies with the firm and the complexity of the file.

Real estate law clerk	Real estate lawyer
Opens and organizes the file; requests routine information and documents.	Reviews the transaction and provides legal advice tailored to the client.
Coordinates searches, lender materials, correspondence, documents, and practical deadlines.	Reviews significant title, contract, financing, and other legal issues.
Prepares and tracks routine closing documents and signing requirements.	Explains legal documents, addresses questions requiring legal judgment, and oversees the legal work.
Flags discrepancies and unresolved items for lawyer review.	Advises on solutions, negotiations, amendments, claims, and decisions where a legal issue arises.
Provides administrative updates about the file.	Acts as the responsible legal professional for the matter.

For a clearer overview of the services a legal team can provide from offer through registration, see our real estate lawyer services.

A real estate law clerk job description: work before closing

Before closing, a real estate law clerk helps move the file from an accepted agreement toward a workable closing package. The clerk’s work is structured around collecting information, coordinating documents, monitoring deadlines, and bringing concerns to the lawyer’s attention.

Common legal clerk responsibilities before closing include:

opening the file and confirming the parties, property, closing date, agents, lender, and relevant agreement documents;
collecting identification and details needed for the firm’s client-verification process;
ordering or coordinating title searches and other appropriate searches or inquiries;
reviewing incoming documents for missing information and preparing routine requisitions or correspondence for lawyer review where appropriate;
tracking mortgage instructions, insurance requirements, conditions, deposits, and documents needed for signing; and
preparing draft closing documents, statements, and reporting materials for the lawyer and client.

For example, a buyer purchasing a $825,000 Toronto condominium with a 30-day closing may need to provide identification, mortgage contact information, proof of condo insurance when required by the lender, and funds for closing. The clerk can track these items and arrange signing, while the lawyer reviews the agreement, title matters, condominium documents relevant to the file, and any legal concerns that emerge.

What happens on closing day

On closing day, the clerk coordinates practical file steps while the lawyer oversees the legal work and handles issues that require legal judgment. Ontario real estate closings commonly involve electronic registration, communications between the buyer’s and seller’s law offices, and the transfer of closing funds through lawyers’ trust accounts.

The clerk may help confirm that signed documents and lender instructions are complete, update the statement of adjustments, communicate with the other law office, and monitor the closing sequence. The statement of adjustments sets out credits and charges between buyer and seller, such as prepaid property taxes or condominium common expenses where applicable.

A deposit is often held in a real estate brokerage’s trust account under the agreement of purchase and sale, although the agreement or circumstances can provide otherwise. On closing, the lawyers account for the deposit, purchase price, adjustments, mortgage funds, land transfer tax where payable, and other closing amounts.

Once the required documents can be registered electronically and funds have been dealt with according to the transaction, the seller’s lawyer authorizes release of keys through the agreed process. After closing, the law office sends reporting documents and attends to remaining file administration.

How law clerks help identify problems early

Careful file management can bring missing documents, title-search concerns, adjustment questions, financing deadlines, and inconsistent information to the lawyer’s attention early. A clerk does not give the legal solution, but their organization helps the lawyer assess the issue before it becomes a last-minute problem.

For example, consider a seller of a $1.1 million freehold home whose tax bill shows an arrears balance that was not expected. The clerk may identify the discrepancy while preparing closing figures, obtain the relevant information, and flag it for the lawyer. The lawyer can then advise the seller on the legal and practical steps needed to deal with the amount before funds are released.

Early escalation is particularly useful where a parcel register reveals an unexpected registration, a lender’s instructions arrive late, a buyer’s name differs across documents, or the agreed closing date needs to be changed. A client should notify the law office immediately if their financing, contact information, marital status, occupancy plans, or closing funds change.

Commercial real estate law clerks

A commercial real estate law clerk supports transactions that may involve more parties, lease documents, corporate records, financing materials, and broader due diligence than a routine home purchase. The clerk coordinates the information and documents required for the lawyer to review and advise on the transaction.

For example, a corporation buying a small mixed-use building may require corporate signing resolutions, lease reviews, lender documentation, insurance evidence, and searches relating to the property. The lawyer advises the client on the legal issues and transaction structure; the clerk helps organize the closing process and follows up on outstanding requirements.

Commercial and residential transactions both benefit from clear responsibility for the file. If your matter involves a purchase, sale, refinance, or title transfer, a real estate transactions lawyer can explain the legal work and the practical steps involved.

Does a law clerk have a law degree or need to pass the bar?

Law clerks are not lawyers, so they do not practise law as lawyers and do not need to qualify as lawyers in order to work as law clerks. Education, training, and work backgrounds vary from person to person and from firm to firm.

Many people develop relevant skills through college programs, legal-office training, real estate experience, or on-the-job learning. What matters to a client is not a universal educational route, but knowing which person is coordinating the file and which lawyer is responsible for legal advice and decisions.

Law clerk vs paralegal

A law clerk generally supports lawyers and legal teams with document, file-management, research, and administrative work. A paralegal is a different role; in Ontario, licensed paralegals may provide certain legal services within the scope permitted by the Law Society of Ontario.

For a purchase, sale, refinance, or title transfer, ask who will handle administrative communications and who will provide your legal advice. The answer should make it clear when you can speak directly with the lawyer responsible for your transaction.

Questions to ask your real estate law firm

Ask these questions before retaining a firm or as soon as your file is opened. Clear answers help you understand who is doing what and when you need to act.

Who is the lawyer responsible for my file?
Who will provide day-to-day status updates?
When will I speak with the lawyer about my agreement, title, financing, or other legal questions?
What identification, payment, lender, insurance, or property documents do you need from me, and by when?
How will an issue be escalated to the lawyer if it affects my rights, obligations, or closing date?
What will happen at signing, on closing day, and after closing?

Buyers can also prepare by reviewing these questions to ask real estate lawyer before committing to a property.

Frequently asked questions

What is a law clerk in Canada?

A law clerk is a legal support professional who helps lawyers and legal teams organize files, prepare documents, coordinate information, and manage procedural and administrative work. In a real estate practice, the role is focused on helping transactions progress efficiently under lawyer supervision.

What are the four main responsibilities of a clerk?

Four core responsibilities are organizing the file, coordinating documents and communications, tracking deadlines and closing requirements, and identifying incomplete or inconsistent information for lawyer review. The precise duties depend on the firm and transaction.

Is being a law clerk difficult?

It can be demanding because the work requires accuracy, organization, communication, and the ability to manage several deadlines at once. Real estate files can change quickly when financing, title, documents, or closing arrangements require attention.

How do you become a law clerk in Ontario?

There is no single path for every law clerk position in Ontario. Relevant education, legal-office training, real estate experience, strong writing and organizational skills, and familiarity with real estate procedures can all be helpful.

How much does a law clerk make in Canada?

Compensation varies by role, employer, location, experience, responsibilities, and current market conditions. Published salary ranges can quickly become outdated, so a person considering the career should consult current job postings and reliable labour-market information.

Learn what a home sale lawyer does during a sale.
Read about do you need an attorney to buy a house and how Ontario practice differs from that terminology.
Find out do i need a lawyer when selling my house.
Consider when to hire a real estate attorney when you are buying in Ontario.
For a property matter in London, Ontario, see our real estate lawyer london page.

Speak with a Toronto real estate lawyer

Understanding the difference between clerk support and lawyer advice can help you ask the right questions before an Ontario real estate transaction reaches a deadline or closing day. Getting legal advice early is particularly important when a contract, title, financing, or closing issue needs a decision.

Call 416-321-8766 or request a quote to discuss your matter with Zinati Kay.

Continue reading

About: John Zinati

Property line disputes in Ontario: start with evidence, not the fence

How to find your property line before you act

When a survey is needed and who pays for it

What to do when a neighbour may be encroaching

Trees and property lines

Fences and the Line Fences Act

Are old or “grandfathered” property lines binding?

Resolving a boundary dispute without court

When court or a formal boundary process may be necessary

Is there a statute of limitations on a property line dispute?

When to call a real estate lawyer

Ontario property line dispute FAQs

What is an encroachment?

Can I get my neighbour’s survey?

Can I build near the property line?

What happens if a survey conflicts with a fence?

Does title insurance cover an encroachment?

Speak with a Toronto real estate lawyer

Holding property in trust in Ontario: what it means

What is a bare trust?

Declaration of trust and trust agreement for Ontario property

How a lawyer checks a proposed property trust

Can a bare trust avoid probate or land transfer tax?

Ontario land transfer tax and beneficial owners not on title

Trust reporting for real-estate arrangements

Arrangements that need closer review

Is a bare trust right for your situation?

FAQ about Ontario property trust agreements

What is a declaration of trust in Ontario?

What are the requirements for a bare trust agreement in Ontario?

Is probate always required in Ontario?

What should I do before signing a trust agreement or changing title?

Speak with a Toronto real estate lawyer

Underused Housing Tax in Canada: the current status

Who had to file a UHT return?

Which properties were reportable residential properties?

When did an affected owner owe the 1% UHT?

UHT-2900, deadlines, and late-filing risk

How the UHT was calculated when payable

Ontario underused housing tax and vacant home tax: what applies in Toronto?

What a real estate lawyer checks when title or a sale raises UHT issues

FAQs about empty homes tax and UHT

Speak with a Toronto real estate lawyer

Anti-flipping rules in Ontario: the quick answer

What the 365-day rule changes

Properties and sales covered by the rule

Homes, condos, cottages and mixed-use properties

Rental properties

Pre-construction purchases and assignment sales

When a life-event exception may apply

How to avoid the anti-flipping rule legally

Selling after 365 days is not an automatic capital gain

What to keep and what to review before listing

Anti-flipping rules and other property-tax issues

Where to find houses for sale in Toronto

Frequently asked questions about property flipping rules

Can a rental property be caught?

Do assignments count?

Can living in the home avoid the rule?

What should I do if I must sell within a year?

Speak with a Toronto real estate lawyer

What is an assignment sale in real estate?

Assignment sale vs. a regular resale

Who is involved in an Ontario assignment sale?

How an assignment sale works in Toronto and the GTA

What an assignee should review before buying an assignment

Deposits, assignment price and assignment fees

Costs and tax issues to review before signing

Risks that can derail an assignment sale—and what a lawyer checks

Buying or selling an assignment: what to do next

If you are selling an assignment

If you are buying an assignment

Assignment sale FAQ

How do I buy an assignment condo?

Who pays the assignment fee?

Who pays HST on an assignment sale?

How much do assignments cost?

What does it mean when a property is sold on assignment?

Are assignment sales only for pre-construction condos?