Skip to main content

Posts

Legal Fees and Disbursements in Ontario Real Estate Transactions

Buying or selling a home in Ontario is one of the biggest financial steps most people ever take. Between signing the offer, arranging financing, and preparing for moving day, it’s easy to lose sight of the legal side of the process — and the costs that come with it. When you hire a real estate lawyer, you’ll encounter two main types of charges: legal fees and disbursements. Knowing the difference between the two can help you understand what you’re paying for and ensure there are no surprises on closing day. What Legal Fees Cover Legal fees are the lawyer’s professional charges for handling your transaction. These fees compensate your lawyer for the time, expertise, and responsibility involved in guiding your purchase or sale to completion. For a purchase, your lawyer’s work begins long before you receive the keys. They review the Agreement of Purchase and Sale to confirm that the terms protect your interests and that deadlines and conditions are clear. The lawyer performs title searche...
Read more
Recent posts

How Ontario Land Transfer Taxes Work

  Understanding Land Transfer Tax in Ontario When you buy a home or any real estate in Ontario, you must pay a Land Transfer Tax (LTT) to the provincial government. This tax is calculated based on the purchase price of the property and is due at closing—the day your lawyer transfers the title into your name. For buyers in the City of Toronto, there’s an additional municipal land transfer tax, meaning Toronto homebuyers pay two sets of taxes—provincial and municipal. How Is Land Transfer Tax Calculated? Ontario uses a tiered tax rate system. The higher your purchase price, the higher the percentage you pay on each bracket: Purchase Price Range Tax Rate Up to $55,000 0.5% $55,000 to $250,000 1.0% $250,000 to $400,000 1.5% $400,000 to $2,000,000 2.0% Over $2,000,000 (for one or two single-family residences) 2.5% Example: If you buy a home for $600,000, your Ontario land transfer tax is roughly $8,475. If the same home is in Toronto, you’d also pay a municipal LTT calculated using the ...
Read more

A Comprehensive Guide to the Power of Sale Process in Ontario

Falling behind on mortgage payments is a stressful experience for any homeowner. In Ontario, when a borrower defaults on their mortgage, lenders have legal remedies to recover the money they are owed. The most common of these is the "power of sale," a legal process that allows a lender to force the sale of a property. While it may sound similar, a power of sale is fundamentally different from a foreclosure. Understanding this distinction, along with the detailed steps and timelines involved, is crucial for both borrowers and potential buyers navigating Ontario's real estate market. Power of sale vs. foreclosure: What's the difference? The primary difference between a power of sale and a foreclosure in Ontario lies in the property's ownership. Power of Sale: The borrower retains ownership of the property throughout the sale process. The lender acts as a vendor to sell the property and collect the outstanding debt. Once the sale is finalized, any surplus funds—after...
Read more

Common Real Estate Disputes in Ontario

Even the most straightforward property deal can encounter problems. Here are the most common real estate disputes in Ontario and how a skilled lawyer can help resolve them. 1. Breach of Contract If one party fails to close or meet obligations, your lawyer can negotiate, enforce, or seek compensation through court action. 2. Misrepresentation by the Seller Undisclosed defects like water leaks or structural issues may lead to legal claims for misrepresentation . 3. Title or Ownership Disputes When liens, fraud, or unclear ownership arise, your lawyer works with the Land Registry Office and title insurance to resolve them. 4. Boundary and Easement Issues Neighbour disagreements about fences or property lines can be clarified with surveys and legal documentation. 5. Deposit Disputes If a deal collapses, lawyers determine who legally keeps the deposit under Ontario contract law. 6. Mortgage and Financing Issues When financing fails, your lawyer can negotiate an extension or alternative so...
Read more

Understanding Title Insurance and Home Insurance

When purchasing a home in Ontario, understanding the types of insurance you will need is crucial to protecting your investment. Many buyers often confuse title insurance with home insurance, but these two serve very different purposes. This article will clarify the differences between the two and provide insights into the typical insurance coverage for homes in Ontario. Title Insurance vs. Home Insurance Title insurance is designed to protect homeowners from potential issues related to the legal ownership of their property. When you buy a home, you are not just purchasing the physical structure; you are also acquiring the title to the land and any associated rights. Title insurance safeguards against risks such as title fraud, undisclosed liens, or other encumbrances that could jeopardize your ownership rights. In Ontario, title insurance is generally a one-time premium payment made at the time of closing, ensuring you have peace of mind regarding the authenticity of your property titl...
Read more

Can I Make Changes After Signing the Agreement of Purchase and Sale?

If you’re a home buyer and have recently signed the agreement of purchase and sale, you might be wondering if it’s still possible to make changes. This is a common concern for many first-time buyers and even seasoned investors. Understanding the implications of signing this crucial document is essential for a smooth transaction and for making informed decisions moving forward. First, it's important to clarify what the agreement of purchase and sale entails. This legal document outlines the terms of the property transaction, including the sale price, closing date, and any conditions that must be satisfied before the sale is finalized. Once this agreement is signed by both parties—the buyer and seller—it generally becomes a binding contract. However, there's still room for flexibility, depending on the specifics of the agreement and the circumstances involved. One of the first things you should assess is whether your changes involve significant terms of the contract, such as the ...
Read more

Why You Need a Lawyer When Buying Your First Home in Ontario

Purchasing your first home is an exciting milestone, but it can also be one of the most complex transactions you’ll ever encounter. The process entails numerous legal documents, negotiations, and potential pitfalls. While it’s naturally thrilling to find your dream home, it’s vital not to overlook the importance of having a knowledgeable lawyer by your side throughout this journey. Here’s why hiring a lawyer when buying your first home in Ontario is not just a recommendation but a necessity. Understanding the Legal Framework The real estate market in Ontario is governed by a myriad of laws and regulations. A qualified real estate lawyer will have a deep understanding of these legal frameworks, ensuring that you comply with all applicable laws. They can help you with the Ontario Land Transfer Tax, which is calculated based on the purchase price of the home, among other legal considerations. Additionally, understanding zoning laws and legal restrictions related to your property can save ...
Read more