Category: Title Tips

Why a Clear Title Is Important in Real Estate Transactions

Selling or buying a home? Protect yourself from any liabilities or obstacles during the closing process by ensuring the property has a clear title. Addressing any title defects early can help pave the way for a smooth real estate transaction.

... Why a Clear Title Is Important in Real Estate Transactions

Fixing Title Defects with a Real Estate Lawyer

Real estate title defects costs Canadians millions of dollars every year. A reputable real estate lawyer can help protect a seller’s and buyer’s interests by performing several tasks, including the common title search.

... Fixing Title Defects with a Real Estate Lawyer

Navigating Toronto’s Real Estate Landscape: A Comprehensive Guide to Bidding Wars, Hidden Defects, Title Issues, and Closing Costs

Navigating the Toronto real estate market might seem like it takes several science degrees and a law degree to ensure all your investments are protected. Buying a home is an exciting time but it can quickly become overwhelming and uncover challenges such as bidding wars, hidden defects, title issues, and expensive closing costs.

This is why it is imperative to enlist the help of a reputable lawyer to act as a Toronto real estate guide. To understand the potential pitfalls that can be seen in Toronto’s 2023 real estate market, this article looks at the foundation of the local landscape.

... Navigating Toronto’s Real Estate Landscape: A Comprehensive Guide to Bidding Wars, Hidden Defects, Title Issues, and Closing Costs

Will You Inherit Your Property if Your Spouse Dies?

What happens to my property if my spouse dies? Unfortunately, this is a common question property lawyers in Scarborough receive. The answer depends largely on whether a legal Will exists.

... Will You Inherit Your Property if Your Spouse Dies?

Why Is It Important to Conduct a Proper Title Search on a Property?

Hiring a title search lawyer in Toronto when you purchase a property can protect your biggest investment and may also prevent legalities. Aside from ensuring the seller has a legal claim to the property, a title search can provide a wealth of knowledge for the buyer before closing on the sale.

A title search may be ordered by a real estate agency, financial lending institutions, insurance companies, land surveyors, appraisers, municipalities, private investigators, and paralegals. Reviewing all documentation of a property provides the buyer peace of mind knowing that there will not be any issue from a third party.

... Why Is It Important to Conduct a Proper Title Search on a Property?

Beware of These Points While Doing a Title Transfer

A title transfer is a legal document that represents ownership of a property and/or structure when the real estate at stake is to become under new ownership. It is a common process with any sale of a house or property that is declared once the Agreement of Purchase and Sale has been signed and monies have exchanged hands.

... Beware of These Points While Doing a Title Transfer

7 Interesting Facts to Know about Property Titles

A title transfer refers to legal changes to the ownership of a property. This can entail the sale of a property or adding or removing the name and rights of interested parties. The property title protects the owner from potential land scams or issues at the time of a sale.

Changes to titles require proper identification documentation, banking confirmation, insurance, and other legal paperwork. The important things to know about title ownership are outlined in this article.

... 7 Interesting Facts to Know about Property Titles

Types of Real Estate Fraud in Toronto and How to Prevent Them

Real estate fraud in Canada is on the rise, particularly with mortgage payments being deferred in recent years due to the economy. Real estate lawyers in Toronto have been helping Canadians deal with the surge of fraudsters now more than ever. 

... Types of Real Estate Fraud in Toronto and How to Prevent Them

What Is a Title Transfer and Why Do You Need One?

Title transfers are a routine legal component of any real estate transaction. Whether you’re purchasing a new home or inheriting a property, there are many different reasons why a title transfer is necessary. 

Ontario law mandates that only licensed real estate lawyers can file the paperwork for a title transfer. In the process of purchasing or selling a property, it’s important to secure the services of a good real estate lawyer in Toronto or the area in which the transaction is taking place. 

If you’re in the midst of completing a commercial or residential real estate transaction, then there are some things you need to know about title transfers and how they work. Keep reading to learn about the different types and why title transfers are necessary in Toronto and the GTA. 

... What Is a Title Transfer and Why Do You Need One?

How to Transfer a Real Estate Title in Toronto

A real estate title or deed is a physical legal document that indicates a specific individual or party has ownership rights to a property. In the event that property is sold, the title is then transferred to the buyer during the sales transaction. A real estate lawyer is typically the one who fills out and files the official paperwork on behalf of their client. Keep reading if you have questions or need clarification on how real estate title transfers in Toronto work.

... How to Transfer a Real Estate Title in Toronto

An Interview with John Zinati on the Future of Home Buying

In March, our very own John Zinati, an expert real estate lawyer in Toronto, sat down with the CEO of Veritas Investment Research, Anthony Scilipoti, to discuss the current real estate market. As a real estate closing lawyer in Toronto with decades of experience, John is uniquely positioned to educate us on what the market is telling us right now.

The interview was part of the Veritas Fact-Finding series. Designed in the wake of the COVID-19 pandemic as a way to find the truth about investment opportunities and pitfalls, this series speaks with industry professionals on the ground to better understand how the pandemic will affect our life and our investments.

Here are some of the key points John and Anthony discussed.

... An Interview with John Zinati on the Future of Home Buying

Avoid These Common Home Title Transfer Mistakes

When you’re doing a title transfer in Toronto, things can get complicated. Without the support of an expert lawyer for title transfers in Toronto, there’s a risk that a costly mistake could be made. That’s why you should work with a top real estate lawyer in Toronto to minimize the possibility of errors and to ensure that your title transfer goes smoothly.

Below, we’ll enumerate just a few of the title tips that’ll you can use to guarantee a successful, error-free transfer.

... Avoid These Common Home Title Transfer Mistakes

Title Tips – There is No Cooling-off Period on New Home Purchases

With the market as busy as it is, including purchases of new homes from builders, we thought it would be important to address a significant mistake we are seeing. Many people know that there is a 10 day cooling off period when a buyer buys a new build Condominium. Unfortunately, they also presume that this applies to new home freehold purchases. It does not. The 10 day cooling off period applies only to purchases of new Condominium units. It does not apply to the purchase of a new freehold home from a builder. If a buyer wishes to have a chance to review a new freehold home purchase agreement from a builder there must be a clause in the agreement making the transaction conditional on Solicitor's review of the new home purchase agreement. It is not automatic, like it is with the condominium. With all purchases of new homes we recommend the inclusion of a Solicitor's review condition, especially with all of the extra charges and other builder advantages we are seeing in these agreements. Even if it is hard to change these agreements in the current market, it is still helpful to know what is in them.

... Title Tips – There is No Cooling-off Period on New Home Purchases

What Are the Risks of Adding Someone to Your Property Title?

For many people, their homes will be the single biggest investment of their lives and their largest source of equity. As such, no decision regarding ownership of said equity should ever be taken lightly. As any experienced real estate lawyer in Toronto will tell you, you should consider the risks carefully before adding another name to your property title.

Remember that by adding a person to your property title, you are legally granting them a bundle of rights including control, enjoyment, possession, exclusion, and disposition of the property that were formerly exclusive to you. This is a major decision and requires careful thought and planning.

The best real estate lawyer in Toronto will advise you of all the risks that adding someone to your property title entails. These risks are no small matters either, and if ignored, can lead to significant consequences.

Here are some risks to consider.

... What Are the Risks of Adding Someone to Your Property Title?

Title Tips – It’s not what you make, it’s what you keep! – Is it time to set up your PREC?

Personal Real Estate Corporations (PREC)

Lawyers, doctors and dentists have long had the ability to incorporate for tax purposes. Finally, Tax Fairness for Ontario agents has come about with the passing of Bill 145, Trust in Real Estate Services Act, 2019, bringing long overdue Tax Fairness for Ontario real estate agents by allowing them to incorporate a Personal Real Estate Corporation (PREC) and enjoy the benefits of low corporate income tax rates.

ADVANTAGES  OF INCORPORATION: 1. Lower corporate income tax rates. 2. Wealth creation through tax deferral. 3. Lower effective personal tax. 4. Income splitting opportunities

... Title Tips – It’s not what you make, it’s what you keep! – Is it time to set up your PREC?

Most Common Real Estate Title Transfer Problems

Finding your dream home is a milestone. But that doesn’t mean the home buying process is over. A common question we field is whether or not a property buyer should purchase title insurance. Title insurance is a form of insurance used to insure the buyer and their lender against loss or damage as a result of title defects. ... Most Common Real Estate Title Transfer Problems

9 Hidden Costs of Selling a House

So, you’ve decided to sell your home—congratulations! Whether you’ve chosen to upgrade to a larger home or downsize to a smaller, cozier property, selling your home is a big deal. Working with the right real estate agent and real estate lawyer can help make this exciting process as stress-free and smooth as possible; they can also help you prepare for all the necessary fees, especially the hidden costs of selling a house. How much does it actually cost to sell your home and what fees should you prepare for? Keep reading as we break down some of the hidden costs of selling a house. ... 9 Hidden Costs of Selling a House

Everything You Need to Know about Status Certificates

If you’re currently looking to purchase a new condo, it’s important to do your research as well as to work with an experienced real estate lawyer. The last thing you want to do is purchase a condo on a whim and later find out that there are maintenance fees or regulations you weren’t aware of. So, how do you ensure that you have all the important information you need about your prospective new home before you sign on the dotted line? That’s where a condo status certificate can help. You’ve likely heard the term “status certificate” before, but what exactly is a status certificate and why is a status certificate important? Here’s what you need to know about this invaluable document and the purpose of getting a status certificate. ... Everything You Need to Know about Status Certificates

Pros and Cons of Buying a House Before Selling

Even though the housing market has slowed during the global COVID-19 pandemic, the industry has adapted to the challenges and is taking advantage of online tools to accommodate people who are still interested in buying or selling. Buyers who already own a home will need to decide whether to buy a new house before selling the old one, or vice versa. Here’s what you need to know about how to buy a house while selling your own in Canada. ... Pros and Cons of Buying a House Before Selling

Title Tips – Closings, Real Estate Law and Covid-19 – Where We Stand

Firstly, we hope you and all of your families are doing well and observing as much as possible the directive to stay home and work from home as much as you can. These are difficult times and this is the best way to get through them. However, although most of us are home as much as possible, many of you have questions about the impact of Covid-19 measures on existing or new closings. Below is the essential information that you need to know. The Bottom Line is that Real Estate transactions are still closing:

  1. The Land Registry Office and Teraview system are digital and there is no expectation that they will be shut down at this time.
  2. Lawyers have been declared an essential service and as such can remain open to complete real estate closings, although many are adjusting to working from home.
  3. The Law Society has relaxed rules on Commissioning Affidavits and Declarations so lawyers are allowed to Commission sworn documents and Identify clients remotely using digital signatures and video interviews. Lawyers are signing clients remotely and banking online as much as possible. Also, the current circumstance has people thinking about estate planning and Wills, which often requires making sure title is held in joint tenancy so that if one person passes away the property automatically passes to the survivor. The Ministry of the Attorney General has advised that an emergency Order In Council has been made under s. 7.1 of the Emergency Management and Civil Protection Act with respect to the virtual commissioning and execution of wills. This means that people can both have their Wills and any Title Transfer required completed virtually.
  4. Lenders are allowing lawyers to sign their documents through digital signature and remotely on mortgages for purchases and refinances, although some lenders are not or are doing so on an ad hoc basis.
  5. Title Insurance companies have confirmed that their fraud coverage will apply to cover buyers and lenders accepting digital signatures and remote signing.
  6. The law is not clear on whether Covid-19 measures can excuse the performance of a Residential Real Estate contract. The two most likely elements or doctrines of law to apply to the situation are Force Majeure clauses and Frustration of Contract.
  7. Force Majeure: Unlike most Commercial agreements there are no Force Majeure clauses in the standard Orea Residential Resale forms. These are clauses which allow parties to be discharged from the obligations in the event of serious unforeseen circumstances.
  8. Frustration of Contract: This applies to discharge parties from their obligations when through no fault of their own unforeseen events make completing the contract something almost completely different than what they had bargained for. Essentially, the parties’ reasons for entering into the contract have to be destroyed by the unexpected event. It would be difficult to establish this in a Residential Real Estate transaction. Frustration of Contract is a final options which require the parties to almost have no other alternatives or workarounds to limit or avoid losses. Given that registry systems, law offices and banks remain open it is unlikely to apply to residential real estate transactions.
  9. Cooperation between the Parties and Lawyers: Given that the law is not clear, lawyers and clients are being advised not to take hardlines in instances where Covid-19 measures impact a party's ability to close, as it is expected that courts will not look favourably on a party who is not reasonable or takes advantage of the current circumstance.
  10. Covid-19 Clauses: Covid-19 clauses have been drafted to factor this reality into an greement:
  11. Covid-19 Clause – more ways out, better for buyers as they are more likely to need a way out- although it does give both the buyer and seller more ways out: The parties agree and acknowledge that in the event that either the BUYER, SELLER, or any of their respective lawyers/notaries, relevant service providers, branches of Canadian Banks or other Lenders, Land Registry Offices or other Government Agencies become the subject of a Voluntary or Mandatory Covid-19 virus quarantine, closure or travel restriction prior to the time of completion herein which results in the Buyer or Seller being unable to complete the transaction on the completion date stated herein, the completion date herein shall be automatically extended at the request of either party for a period of up to ten (10) business days after such quarantine, closure or travel restriction order is lifted. Such extension shall be up to a maximum delay of sixty (60) days unless the parties otherwise mutually agree to further extensions. Upon the expiration of the maximum 60 day extension period either party may elect to terminate this Agreement, in the event of which both parties will be released from any liability or obligation to each other.
  12. Covid-19 Clause -less ways out, better for sellers as the are less likely to need a away out- although it does give both buyers and sellers less ways out and confirms an obligation to Close: The parties herein acknowledge and agree that they are required to close this transaction notwithstanding any impacts of Covid-19, save and except the closing of the Land Registry Offices and all financial institutions. In the event that the closing herein cannot happen because of a shutdown/disruption in the operation of the Land Registry System and/or financial institutions, the completion date herein shall be automatically extended to the fifth business day following the date upon which the said shutdown/disruption ends and the Land Registry System and financial institutions reopen.
  13. With many law offices closed, or lawyers working from home, clients should expect to have to wire funds to lawyers and key exchange arrangements to be made between buyers and sellers, perhaps with the help of agents.
  14. Tarion has amended its rules about times for extensions and many builders are using the “Unavoidable Delay” provision to extend transactions.
  15. Lawyers and all participants in the industry are being advised to be on high alert for possible instances of fraud because of the relaxed rules and video signing.
The situation is fluid with regular updates from the Law Society, Title Insurance, Lenders, and Governments so all of this is subject to possible change. We wish you good luck, health and safety during these difficult times. Title Tips is not intended and should not be relied on as legal advice. For specific questions or situations, please feel free to call John Zinati for assistance.