Example: When purchasing a home, you may want some items owned by the seller, such as furniture, to be included in the deal. These are called chattel. It's essential to clearly state what you want in the agreement when buying and selling. Your real estate agent should specify the items you prefer. Sometimes, what you expect to receive (a leather sofa chair) may not be what you find when you move in (perhaps they left a simple chair). This can happen if the agreement only mentions "chair" without providing details. Therefore, it's crucial to be precise in the agreement to avoid surprises later.
For example, if three people own a property as joint tenants and one of them dies, the remaining two automatically become the sole owners of the property, each now holding a 50% interest.
For example, if Anne and John, who are married, own a house as joint tenants, and Anne passes away, John automatically becomes the sole owner of the house.
For example, if Mike, Sarah, and Emma own a property as tenants in common, with Mike owning 50% and Sarah and Emma each owning 25%, each of them can sell their share independently. If Mike passes away, his 50% share can be inherited by his heirs, not automatically passed to Sarah and Emma.
If you fit the definition of a first-time buyer, you may be eligible for a refund of the provincial land transfer tax — an expense that’s typically part of the closing costs you’ll be required to pay.
For conveyances or dispositions that occur before January 1, 2017, the maximum amount of the refund is $2,000.
Beginning January 1, 2017, the maximum amount of the refund is $4,000. The increased limit of $4,000 applies only to conveyances or dispositions that occur on or after January 1, 2017, regardless of the date the agreement of purchase and sale was signed.
Beginning January 1, 2017, no land transfer tax would be payable by qualifying first time purchasers on the first $368,000 of the value of the consideration for eligible homes. First time purchasers of homes greater than $368,000 would receive a maximum refund of $4,000.
To qualify for the full refund, you must:
To qualify for the refund, you must apply for it within 18 months of registration.
For married homeowners, a spouse’s property history can affect the size of the refund. If your spouse acquired property individually while the two of you have been married, for example, neither of you would be eligible to claim the exemption, even if the next purchase is your first home. But if your spouse’s property was purchased or inherited before you got married, you may still be able to claim a full or partial refund.
You cannot re qualify as a first time homebuyer. This rule may be different from other federal programs for first time homebuyers (e.g., the Canada Revenue Agency Home Buyers' Plan).
When you buy a condominium unit, you acquire exclusive ownership of the unit and a shared interest, along with other unit owners, in the rest of the complex.
……If buying a new condominium unit, buyers have the right to cancel the contract within ten days for any reason. This option isn't available when buying a resale condominium
…..There are restrictions on what you can do within and with your unit.
…..The Tarion New Home Warranty Program is also applicable to new condominium units.
When you buy a condominium, you might not just be buying the apartment itself. You might also be buying a parking space and a locker. These are different types of ownership, and each one needs its own title search. Sometimes, the numbers on the lockers and parking spaces don't match their official legal numbers.
Your lawyer has several tasks to do. They need to understand the legal structure of the condominium. They check if the seller has paid all their condo fees and if there are any legal claims (liens) against the condo for unpaid fees. The lawyer also checks if the property manager knows about any repairs that need to be done to your unit, along with the rules of the condominium.
All this information is in a set of documents called a "status certificate," which you get from the property manager. If this certificate shows any problems, the purchase agreement should be changed to make the seller fix these issues before you buy. If not, these problems will become your responsibility after the purchase.
Status certificates are particularly important for prospective buyers of resale condos as these documents contain key information about a unit of interest and the corporation. Anyone can request a Status certificate, and the condominium corporation must provide it within 10 days of receiving payment.
Status certificates may contain:
Status Certificates contain critical information and supporting documents that help buyers make informed decisions. Buyers should review these with their legal counsel.
If you’ve purchased a new pre-construction condo, you must have come across two concepts of closing – the ‘Interim Closing or Interim Occupancy,’ and the ‘Final Closing.’
First, when your unit is ready to move into, you pay part of your down payment. Then, for several months, you'll pay a fee called an "occupancy fee" to the builder. This fee is like rent. You pay this until the title of the condo can be transferred to you. The builder can only transfer ownership after the entire condominium project is officially registered by the Ontario government, which happens once all units are nearly finished. You'll pay the rest of the purchase price on the final closing date. This is also when your mortgage and the Land Transfer Tax are registered.
It's important to remember that this information is very general. Not every point may apply to your specific situation. Always consult your own lawyer to understand how these issues apply to you.
Before purchasing rural property in Ontario, it's essential to understand the building and zoning implications, as they significantly influence how you can use and develop the land. Zoning by laws vary by municipality and dictate permissible uses for land, types of structures allowed, and their sizes. If your plans include construction or major renovations, obtaining building permits is mandatory to comply with local building codes for safety and design. Rural properties often fall under the scope of environmental and conservation regulations, especially if near sensitive areas like wetlands or water bodies. Additionally, septic and well regulations are crucial for rural setups lacking municipal services. Prospective buyers should also consider land division controls for future subdivisions, the potential heritage designation of properties, legal access issues, property tax implications, and any upcoming area development plans. Seeking advice from a real estate lawyer in rural properties is advisable for navigating these complexities.
When considering the purchase of a rural property in Ontario, it's common to encounter properties that rely on a well for water and a septic system for wastewater disposal. Before proceeding with the purchase, it's crucial to include specific conditions in the Agreement of Purchase and Sale to ensure these systems are in good working order.
In the Agreement of Purchase and Sale for a rural property in Ontario, the buyer is entitled to have a professional inspection of the well system to evaluate its overall condition, including the physical state of the well and its components. Additionally, the buyer has the right to conduct water quality tests on the well water to check for potability and contaminants such as bacteria and nitrates/nitrites, ensuring that the water meets the safety standards set by local health authorities.
Under the Agreement of Purchase and Sale, the buyer is responsible for arranging a thorough inspection of the septic system by a certified inspector, who will evaluate the tank, pipes, and drainage field for their condition and compliance with environmental and health regulations. Following the inspection, the inspector will provide a detailed report, highlighting any necessary repairs or modifications needed to meet regulatory standards.
Including these conditions in your Agreement of Purchase and Sale helps protect your interests by ensuring that you have essential information about the well and septic system before finalizing the purchase. This approach provides an opportunity to address any concerns and negotiate repairs or adjustments to the purchase price based on the inspection results.
When purchasing a rural property, road access can be more complex compared to urban properties. Typically, in urban areas, the roads leading to properties are public and maintained by the municipality. However, in rural settings, properties are often situated next to private roads. If the private road isn't part of the property you're buying, it's crucial for your lawyer to ensure that you have legal access to your property. This access could be through an owned segment of the road or via a legally established easement. This verification is a key step in the purchasing process to avoid future access issues.
Rural properties are generally not part of a plan of subdivision, CBS Law Professional Corporation will check for any Planning Act contraventions as part of our title search process.
During the title search process, will verify that rural properties, which typically aren't included in a subdivision plan, comply with the Planning Act and don't have any related infringements.
Backing out of a real estate deal at closing can lead to significant legal implications. When a party, either buyer or seller, fails to complete a transaction as per the agreement, they can be sued for breach of contract. The consequences often include the forfeiture of the deposit made by the buyer. Additionally, the party at fault might be responsible for additional financial damages. For instance, if a buyer backs out, they might have to cover the difference if the seller is forced to sell the property at a lower price later on. Furthermore, they could be liable for other seller-incurred costs such as legal fees, marketing expenses, and carrying costs of the property until it's sold again. These legal and financial risks underscore the importance of fulfilling contractual obligations in real estate transactions.
The case of Gamoff v. Hu, 2018 ONSC 2172, is a significant legal precedent in Ontario real estate law, particularly relevant to the risks and consequences of backing out of a real estate deal at the closing stage.
In this case, the Ontario Superior Court of Justice addressed a situation where the buyers backed out of a real estate purchase agreement. The key issue was the financial impact on the sellers due to the buyers' failure to close the transaction. The buyers had agreed to purchase a property from the sellers for a specific price. However, the buyers failed to complete the purchase on the agreed-upon closing date.
The court's decision focused on the losses incurred by the sellers as a result of this breach. The sellers were forced to resell the property at a significantly lower price due to changing market conditions, resulting in a considerable financial loss. The court ruled that the buyers were liable for the difference between the original contract price and the resale price, as well as additional costs incurred by the sellers, such as carrying costs, legal fees, and real estate commission fees.
The case emphasizes the importance of fully understanding and committing to the terms of a real estate purchase agreement. Buyers should be aware that backing out at the last minute can lead to substantial financial penalties and legal repercussions. It also illustrates the necessity for both buyers and sellers to seek legal advice in real estate transactions to understand their rights and obligations under the law.
There are legal ways to back out of a deal. If the sale and purchase agreement contain specific contingencies (also known as conditions) that remain unfulfilled, then the buyer is entitled to terminate the agreement. If any of the stipulated conditions are not met, such as significant problems revealed during a home inspection, a lower-than-expected property appraisal, or the buyer's inability to sell their existing home, the deal automatically becomes void. Moreover, a sale and purchase agreement might be invalidated due to factors unrelated to the contract's specific conditions. Typical instances leading to a deal's termination include the discovery of a lien on the property, significant damage occurring to the property before closing, or evidence surfacing that the seller significantly misrepresented the property's condition knowingly.