Real Estate Lawyer Toronto

Land transfer tax is a provincial tax levied when a client acquires a property and is calculated based on the value of the property. Land Transfer Tax is paid at the time of registration of a transfer. Properties acquired in Toronto are subject to municipal tax in addition to the provincial tax payable to the City of Toronto.

First-time home buyers may be eligible for a refund of all or part of the Land Transfer Tax. This refund applies to new or resale homes. To be eligible for this refund, you must be 18 years of age, the new property must be your principal residence within 9 months of closing, and you cannot have previously owned a home anywhere in the world. Eligibility is also impacted by your spouse owning or having an interest in a residential property after marriage.

Some other costs could include adjustments for taxes, title insurance, property
insurance, registration fees and moving expenses. There may be additional costs if the transaction is not closed as scheduled.

Traditionally, a lawyer’s opinion on title was used for confirmation of accuracy of title. However, no lawyer can completely assure a buyer that there are no errors in government records. Tittle insurance is a form of coverage for unknown liens against the property, conflicting ownership interests, encroachment issues, and fraud from your closing date and onward. It protects your title to the property. When there is a mortgage on the property, the majority of Lenders require title insurance as a mandatory requirement.

Mandated by the Ontario New Home Warranties Act, every new home requires a warranty provided by the builder and guaranteed by Tarion Warranty Corporation. Coverage of this warranty includes protection against defects in the property itself, delayed closings or delayed occupancies without proper notice, and for condominiums, includes common areas of the building.

If you are purchasing a condominium, the condominium corporation will provide you with adequate coverage for the building. However, you may want to look into personal content coverage as well. When purchasing a house, home insurance is a requirement that most institutional lenders require before advancing your mortgage funds.

Through an accountant, you will have to apply for a non-residency clearance certificate. 25% of the property gross sale price will be held back (by the seller’s lawyer, in trust) until the clearance certificate is obtained by your accountant and will need to be submitted within 10 days of closing. Normally this process can take from 60 to 90 days.

If you are legally married, your spouse must consent to the sale of your matrimonial home. A property is considered a matrimonial home when one party has an interest, and it is ordinarily occupied by that person and spouse. If one party does not provide consent, the documents will not be accepted by the Real Estate Lawyer acting on the buyer’s behalf. Different rules apply for common law.

A status certificate is a document provided by the condominium corporation that provides a buyer of an overview of the unit. This must be provided within 10 days of the request and can result in the buyer incurring costs of up to $100.00. It is important to have this status certificate reviewed prior to signing the Agreement of Purchase and Sale as information on this document can indicate whether the current owner is in default of monthly common expenses and other information that may impact your choice in purchase.