Real Estate
For many, the purchase of a home is the single largest investment they will make in a lifetime. The importance of working with a qualified, knowledgeable Real Estate lawyer cannot be overstated.
We can assist with the following residential real estate matters:
Ferron Legal is here to help ensure any real estate transaction goes over as smoothly as possible.
In even the simplest matters, there is much to consider.
From protecting your rights and ensuring all obligations under a purchase or sale agreement are fulfilled to certifying property titles and preparing financing documents — there are many murky waters to navigate.
We commit to making the process easier and more understandable each and every step of the way.
Real Estate FAQs
Real Estate 101
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A lawyer can assist with a variety of real estate matters and transactions by providing guidance as well as preparing and finalising all necessary documentation. In Ontario, you must retain a lawyer in order to transfer property. A lawyer can either represent the buyer or the seller in a real estate transaction – but not both.
Ferron Legal can help you with all real estate matters including, but not limited to: title transfers, survivorship applications and probate orders. To learn more about what we can do for you specifically, please get in touch with us!
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In Ontario law, “matrimonial home” is a term used exclusively to refer to the home that a married couple is living in when they separate. It’s important to note that this term only applies to married couples, not common-law relationships. This is important because this term comes with a specific set of rules that dictate how the asset (i.e., the matrimonial home) is handled under the law.
For more information on matrimonial homes, visit the Ontario Government’s Steps to Justice website.
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In Ontario, there are two common co-ownership structures: joint tenancy and tenancy in common. The main difference between the two lies in survivorship rights, i.e., what happens to the property when one tenant passes away.
In a joint tenancy, all co-owners have equal ownership of the property. Accordingly, in the event where one tenant dies, the other (“surviving”) tenant(s) inherit their share of the property. This structure is used by most legally married couples–when one partner passes away, the surviving spouse automatically becomes the exclusive owner of the house.*
In contrast, when a co-owner dies in a tenancy in common arrangement, their share of the home does not automatically go to the other tenant(s). Instead, their interest in the property will be distributed according to their will and/or Ontario’s inheritance laws.
*Note that even though the right of survivorship is automatic, a survivorship application is necessary in order to formally remove the deceased from the title – which is something we would be happy to help you with!
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Like with many things in law, the answer to this question is: it depends. In order to properly address this question, one must first have an accurate understanding of the term “matrimonial home” as defined in Ontario law. If you are not familiar with the definition, please see “What is a “matrimonial home” in Ontario?” and return here afterwards.
So, now we know that in Ontario the laws that govern home ownership differ depending on a variety of factors and when it comes to the sale of a home, the one that’s most important is the “status” of the relationship. In a marriage, consent is required from both spouses in order to put the matrimonial home for sale. Comparatively, in a common-law relationship, the property can be sold by either partner, as long as they are on the title, without the consent of the other.
Mortgage
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Simply defined, a mortgage is a loan given by a financial institution or mortgage company specifically to help with the purchase of a home. You may have heard the term “charge” used synonymous with “mortgage” and wondered what difference, if any, there is between the two terms. The answer to this question is: nothing. There is no difference – just different words used to refer to the same thing, more legal fun! However, there are two different types of charges (or mortgages): collateral and standard charge.
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A standard charge, also known as a traditional or conventional charge, only secures the one mortgage loan for the actual amount of the loan.
For example, if someone were to secure a mortgage loan in the amount of $200,000 by standard charge, the lender would register the charge for the exact amount requested: $200,000. This means that if ever they wanted to borrow more, they would need to go through a potentially tumultuous process. This is the key distinction between the two types of charges.
Unlike a standard charge, a collateral charge may be for an amount greater than the actual amount of the mortgage loan. .
For example, if someone requires a $200,000 loan to purchase the property, they may secure a loan in the amount of $250,000. Because in this scenario the loan is secured for $50,000 more than the “required” amount, there’s a chance that the client could borrow additional funds without registering a new charge.
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Mortgage refinancing is a process wherein the existing mortgage is revised and then replaced with a new mortgage. Whether or not you should refinance your mortgage depends on your unique situation. Often, the reason for a refinance is to acquire more favourable terms like a lower interest rate and monthly payments.
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As mentioned above, refinancing a mortgage involves reviewing the current mortgage and replacing it with a more favourable one. Taking out a second mortgage, on the other hand, involves an additional new mortgage. This new (second) mortgage is inferior to the original mortgage, meaning that the original lender takes priority over the new one. Finally, a mortgage switch or transfer mortgage is the process of moving your mortgage from one lender to another. Unlike the other options, a mortgage switch does not involve a completely new mortgage.
Fees
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In Ontario, when you purchase land or an interest in land*, you are required to pay the province’s land transfer tax (LTT). According to the Ontario government, LTT is typically determined based on the amount paid for the land and the amount remaining on any associated mortgage or debt.
For more information on land transfer tax, visit the Ontario Government Website.
*What is an “interest in land”?
An interest in land refers to the right(s) that someone has with respect to a parcel of land.
We will help illustrate this through use of a common example where you will act as the hypothetical sole owner of a particular parcel of land. As the owner, you have the exclusive right to occupy that land. However, you may choose not to occupy the land yourself and instead, have someone else stay there based on some mutually agreed upon contract. In this scenario, the other party now holds an interest in your land by way of a lease.
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The Non-Resident Speculation Tax (NRST) applies on real estate transactions involving foreign nationals (non-citizens or temporary residents of Canada), and Ontario’s residential properties. As of October 2022, the NRST rate is 25 per cent.
For more information on non-resident speculation tax, visit the Ontario Government Website.
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Disbursements are additional costs and fees that apply to real estate transactions. They are paid by the lawyer to the respective third parties* in order to facilitate the transaction, and are later added to the client’s total fees for reimbursement.
Common disbursement expenses include:
Title Search Fees
Tax Search Fees
Registration Fees
Title Insurance Policy Fees
Office Expenses–*These are in-office administrative charges incurred by the lawyer in order to facilitate the transaction and commonly includes fees for expenses such as courier, postage, photocopies, faxes, file administration charges, etc.
Title Transfers
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First, let’s define “title”: In real estate, “title” is a legal term used to refer to the concept of property ownership and its accompanying rights. Someone obtains title to a property once the deed (physical transfer document) has been signed over to them by the (now prior) owner. This process is known as a transfer of title–where someone is either added or removed from the property ownership by the owner.
This is where survivorship applications may come into play. In the event where a joint tenant co-owner passes away, the surviving tenant(s) must submit a survivorship application in order to officially remove the deceased from title. While survivorship rights do automatically apply, formally removing the deceased from title via survivorship application is necessary to ensure the ease of future transactions such as a mortgage or sale.
Title transfers, like Survivorship Applications, require the assistance of a real estate lawyer and at Ferron Legal, we are well-experienced and willing to assist you with both of these processes.
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A “title”, as defined in the answer above, is the concept of property ownership (and its accompanying rights). Correspondingly, title insurance is intended to protect property owners and their lenders against any related losses.
As title insurance is not a legal requirement in Ontario, whether or not one needs it is dependent entirely on the individual and their life circumstances. This is why you’re encouraged to discuss the question with qualified and experienced professionals, like us here at Ferron Legal.
For more information on title insurance, visit the Financial Services Regulatory Authority of Ontario’s webpage.
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When it comes to the transfer of ownership from a deceased person, there are two processes available: a probate order or a survivorship application. Which path to take depends on the status of the title, which is something that we at Ferron Legal can help you with. Once this has been determined, we can proceed to the appropriate next step.
If the deceased is:
the sole registered owner OR co-owner registered as a tenant in common, probate* is needed;
a joint tenant co-owner, a survivorship application is required.
*For more information on Probate, visit our page on wills and estates.
LEGAL DISCLAIMER
The material presented on this site is intended to be used for general information purposes only; it does not constitute legal or other professional advice. See the full disclaimer here.