Real Estate

Yes. Ontario law effectively requires lawyer involvement in real estate purchases. Only lawyers have authority to electronically sign documents transferring land title through the Teraview registration system. Without a lawyer, you cannot complete the transaction. Beyond legal necessity, a lawyer protects your interests by reviewing the agreement of purchase and sale, searching title for defects and encumbrances, ensuring proper property taxes and adjustments, coordinating with your lender, and handling the complex closing process.

Yes. You can purchase property directly from a seller without agents (a "private sale"). However, you still need a lawyer to complete the transaction. Without an agent, you handle negotiations, viewing arrangements, and offer preparation yourself. The advantage of a private sale is avoiding agent commissions. The disadvantages include lack of market expertise, limited access to listings, and no professional negotiation assistance. Whether to use an agent is your choice; using a lawyer is not optional.

Real estate lawyers typically charge between $1,000 and $2,500 for a standard residential purchase, depending on the complexity of the transaction. This fee covers reviewing the agreement, conducting title searches, preparing closing documents, coordinating with your lender, and handling the closing. Additional disbursements (out-of-pocket costs) including title insurance, registration fees, and searches typically add $500 to $1,000. Sales transactions are usually less expensive than purchases. Flat fee quotes are provided upfront so you know the total cost before proceeding.

Ontario land transfer tax is calculated on a sliding scale: 0.5% on the first $55,000; 1% on $55,001 to $250,000; 1.5% on $250,001 to $400,000; 2% on amounts over $400,000; and 2.5% on amounts over $2,000,000 for residential properties. For a $500,000 home, the provincial land transfer tax would be $6,475. First-time homebuyers may qualify for a rebate of up to $4,000. Toronto properties are subject to an additional municipal land transfer tax at similar rates.

Title insurance protects you against losses from defects in title to your property that existed before you purchased it. Coverage includes fraud, title defects, survey issues, and certain municipal work order violations. Most lenders require title insurance, and it provides valuable protection for homeowners as well.

An up-to-date survey shows the exact boundaries of the property, the location of structures, and any encroachments or easements. Surveys cost $1,000 to $2,000 or more if a new one is required. Title insurance often eliminates the need for a survey for most residential transactions by providing coverage for survey-related issues. For typical residential purchases, title insurance without a survey is the common practice.

Title fraud occurs when someone fraudulently transfers ownership of property without the true owner's knowledge, often by forging signatures or using false identification. The fraudster then mortgages the property and disappears with the funds. Title insurance is the primary protection against title fraud, covering losses if you are victimized. Title fraud is more common on mortgage-free properties and properties where owners are elderly or absent.

A status certificate is a document issued by a condominium corporation that provides essential information about the unit and the corporation's financial health. It includes: the monthly common expenses; the corporation's reserve fund status and any planned special assessments; outstanding lawsuits; rules and by-laws; insurance coverage; and any violations by the current owner. For condominium purchases, obtaining and reviewing a status certificate is essential.

On closing day, your lawyer ensures all funds are in place, registers the deed transferring ownership, pays any required land transfer taxes, discharges the seller's mortgage (if applicable), registers your mortgage (if applicable), and confirms everything is properly registered. Once these steps are complete, you receive confirmation that you own the property and can collect keys from your real estate agent.

Failing to close on the scheduled date is a breach of contract with potentially serious consequences. The other party may: extend the closing date (often for a fee); declare the agreement terminated and retain your deposit; or sue for damages beyond the deposit. If you anticipate a problem, communicate immediately with your lawyer and real estate agent. Extensions are possible if both parties agree.

It depends on the circumstances. If your offer includes conditions (financing, home inspection, lawyer review) that are not satisfied or waived, you can typically withdraw without penalty. If the agreement is firm (no conditions or all conditions waived), backing out constitutes a breach of contract. You may forfeit your deposit and face a lawsuit for damages. Do not submit an unconditional offer unless you are certain you can and will complete the purchase.

Bridge financing is a short-term loan that "bridges" the gap when your new home closes before your old home. For example, if you purchase a new home on Monday but your current home does not close until Friday, you need funds to complete the purchase before receiving the sale proceeds. Bridge financing provides those funds, secured against your pending sale. If possible, scheduling closings so your sale precedes your purchase avoids the need for bridge financing.

Yes, with some restrictions. The federal Prohibition on the Purchase of Residential Property by Non-Canadians Act restricts non-Canadian purchases of residential property in certain areas until January 1, 2027, though numerous exceptions exist. Additionally, non-residents must pay the Non-Resident Speculation Tax (NRST) of 25% on the purchase price for residential properties in Ontario. Rebates are available if you subsequently become a permanent resident or Canadian citizen.