Real Estate FAQs
1. Is it mandatory by law to hire a lawyer for selling and buying homes?
Yes. Only lawyers can access the provincial electronic land registration system and register the transfer of property.
2. What is title insurance?
Title insurance protects the buyer against financial loss from fraud related to ownership of the property. Most banks require homebuyers to have title insurance as it also protects them in the case that the buyers default on their mortgage due to title fraud.
3. What is a title search?
A title search in Ontario is a process of retrieving and examining Land Title records to determine and confirm legal ownership, description, as well as any claims, liens, charges, encumbrances registered on the real property. A title search is required for any real estate transaction to be completed.
4. Can both the vendor and purchaser have the same lawyer?
No. They cannot, but there are a few circumstances where it is possible. Representing both the vendor and purchaser is a conflict of interest and would jeopardize their fundamental obligations to their clients, such as maintaining confidentiality, providing proficient service and remaining loyal to their client.
5. What happens if I don’t close on the agreed upon date?
The seller can terminate the contract and the buyer’s deposit will be forfeited and kept by the seller. In addition, depending on the case, the seller may sue for damages.
6. When do I legally own my new home and when can I get the keys?
Once the balance of the purchase price has been settled and the deed and mortgage has been registered, the buyer officially owns the home and can get the keys from their lawyer.
7. What are the different taxes I need to pay when buying a home?
Land Transfer Tax (LTT) and Municipal Land Transfer Tax (if the home is in Toronto). If you’re a first-time homeowner you may be entitled to a LTT rebate. In addition, HST may be applied if the home is a “new-build”.