Frequently Asked Questions

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In Ontario, a real estate lawyer is required.  This applies to all real estate purchases, sales, transfers and refinances.

A real estate agent is responsible for finding a property to buy or managing the sales aspects of selling a property. In contrast, a real estate lawyer handles all the supporting paperwork, legal aspects, and documentation of property sales and purchases. 

Due to The Law Society of Ontario's Rules of Professional Conduct, lawyers are generally not permitted to represent both sides in residential property purchases since many conflicts may arise. However, in some circumstances, exceptions may apply. 

Title insurance protects residential or commercial property owners and their lenders against losses related to the property’s title or ownership, such as fraud. It provides homeowners and lenders no-fault protection against title risks associated with real estate transactions.  It covers them against losses or damages arising from fraud and other title defects. 

Title insurance is not mandatory in Ontario. However, purchasers have the option to rely on a solicitor’s opinion when deciding whether or not to get insurance.

Yes, getting an appraisal is necessary before refinancing. The bank or lender can check the overall condition of your property before they loan you money. By doing this, they're able to come up with a comparable market value.  

Yes, however, there are many rules and regulations that non-residents must follow when purchasing property in Ontario. It's crucial for the purchasers to have a valid passport, as well as the ability to obtain a Canadian mortgage and a Canadian bank account. These are essential for making transactions related to the property.

When selling or purchasing property, a non-resident must apply for a clearance certificate. This certificate, which is a crucial document, can be obtained from the Canada Revenue Agency (CRA).

When purchasing or selling property in Ontario as a non-resident, it's crucial to seek legal assistance. This ensures you're fully aware of all legal requirements and obligations regarding the transaction, providing you with a sense of security and confidence.

Until January 1, 2025 , non-Canadians will be unable to purchase residential property in Canada for two years to help cool of Canada's housing market.

Temporary residents who satisfies prescribed conditions, a refugee, or a foreign individual who is purchasing residential real estate with their spouse who is a Canadian citizen or permanent resident, may still be eligible to purchase residential property.

 Ontario has four basic ways for two or more individuals to own real estate, including sole ownership. When purchasing an estate, each person involved in the transaction should obtain independent legal advice for potential liabilities according to each method of ownership listed.

1. Joint Tennant:

For a joint tenant ownership, each owner owns equally. This means that each owner has an equal share of the property and the right of survivorship. The right of survivorship typically means that should one of the owners become deceased, the remaining owner(s) on the title will inherit the deceased's interest in the property. Spouses most often use this type of ownership.

2. Tenants in Common:

Tenants in Common ownership offer a flexible approach, allowing two or more individuals to own a property together, each with a specific, undivided share. This flexibility extends to the transfer of ownership upon the death of an owner, which can be according to the owner's Will or the Law of Ontario. Should an owner become deceased, that deceased person's interest in the real estate will be transferred according to that person's Will, which doesn't necessarily include the other tenant. Otherwise, their interest will be transferred according to the Law of Ontario.

3. Partner Agreement:

A Partner Agreement is a protective measure, ensuring that all owners are recognized on the title, even if only one person provides the funds. This agreement also includes provisions for reimbursing each buyer for their initial cash contribution and any additional funds invested in property improvements. One aspect of this agreement is to compensate each buyer for their initial cash contribution when completing the transaction and any additional funds invested in property improvements.

4. In Trust: 

A Trust situation should be discussed with a lawyer. Generally, it is a legal arrangement where one party, known as the trustee, holds and manages property or assets for the benefit of another party. In other words, the trustee is not the true owner. This method can be used for estate planning or to protect assets from creditors.