What “the deal failed” usually means

Most Ontario residential deals use a standard OREA Agreement of Purchase and Sale (Form 100) or a close cousin of it. While financing, inspection, status, or other conditions are still open, a party can often walk away under those conditions without it being a breach. Once every condition is waived or fulfilled, the deal is firm. After that, failing to close on the scheduled completion date — without a contractual excuse — is generally a breach.

This post is about what happens after that breach: who can claim money, how courts usually measure it, what happens to the deposit, and how long you have to sue. It is not about whether you can still back out before the deal is firm. For conditions and exit routes while the agreement is still conditional, see Ontario real estate conditions. For how the APS itself is built, see the Agreement of Purchase and Sale.

Casualties before closing sit under a different rule. Fire or substantial damage is usually handled by the APS insurance clause, not by a simple damages claim for walking away. That path is covered in fire or damage before closing in Ontario.

When the buyer breaches

The classic case is a buyer who cannot raise the balance of the purchase price, loses financing after waiving the condition, or simply refuses to close a firm deal. If the seller was ready, willing, and able to complete, and the buyer was not, the seller’s claim is usually for damages for breach of contract.

Ontario courts ordinarily measure the seller’s loss of bargain as the difference between the contract price and the market value of the property around the date of breach — often shown by a reasonable resale price — plus reasonable carrying costs while the seller still owns the house. Carrying costs can include items such as mortgage interest, property taxes, insurance, and utilities for the period between the failed closing and a reasonable resale. Relisting costs and legal fees thrown away on the aborted closing are often claimed as well. Exact heads of damage depend on the evidence and the agreement.

The seller has a duty to mitigate. That usually means relisting within a reasonable time and accepting a reasonable market offer. The buyer who wants to cut the claim must generally show that the seller’s mitigation was unreasonable — for example, sitting off-market for months without a good reason, or insisting on an asking price the market will not support. A Toronto real estate lawyer looking at a failed closing will pull the timeline, the listing history, and the deposit paperwork before anyone starts guessing at numbers.

The deposit: forfeiture, credit, and relief

A true deposit is security for performance. When a purchaser repudiates a firm agreement and fails to close, Ontario courts generally treat the deposit as forfeited even if the seller later resells at the same price or higher and proves no loss. That principle has been applied repeatedly, including by the Ontario Court of Appeal.

If the seller also proves damages (for example a shortfall on resale plus carrying costs), the forfeited deposit is generally credited against those damages — not kept on top of them. In Azzarello v. Shawqi, 2019 ONCA 820, the Court of Appeal held that the deposit had to be applied as a credit toward the damage award so the seller was not compensated twice for the same bargain.

Courts can grant relief from forfeiture under section 98 of the Courts of Justice Act. That relief is exceptional. A change of heart, buyer’s remorse, or an inability to complete financing after the financing condition was waived does not usually get the deposit back just because the story is sympathetic. Our guide to real estate deposits in Ontario goes deeper on trust holding, mutual releases, and when money moves.

When the seller breaches

Sometimes the seller is the one who will not or cannot close: they refuse to move, cannot clear title, or try to sell to someone else for more money. The buyer’s usual claim is also for damages — typically the difference between the contract price and the market value of the property around the breach, so the buyer is put in a position similar to having obtained the bargain.

Buyers sometimes also claim costs thrown away (legal fees, inspection, appraisal) and, where the facts support it, extra costs of buying a replacement home. Assessment of those claims is fact-specific. A rising market and a delayed repurchase can change the numbers, but only within the rules on mitigation and remoteness.

Specific performance after Semelhago

Specific performance is a court order forcing the sale to complete. For a long time, land was treated as unique almost automatically. The Supreme Court of Canada changed that approach in Semelhago v. Paramadevan, [1996] 2 S.C.R. 415. A buyer who wants specific performance generally has to show that damages are inadequate — often that the property is unique for that buyer in a way money does not fix.

For ordinary residential homes in established neighbourhoods, Ontario courts often find that damages are an adequate remedy. Specific performance is still granted in some residential cases, but it is not the default. Whether the property is unique enough is a factual question, not a slogan.

The assessment date for damages usually follows from that choice. The ordinary measure is the difference between contract price and market value at the date of breach. Trial-date assessment is generally reserved for true damages in lieu of specific performance — where the buyer was entitled to specific performance and elected damages instead. The Ontario Court of Appeal restated that distinction in Preiano v. Cirillo, 2024 ONCA 206. A later assessment date can also be appropriate where the innocent party could not reasonably re-enter the market until later, despite proper mitigation. None of that is automatic; the evidence matters.

Time is of the essence and chain closings

Most residential APS forms say time is of the essence. That means the scheduled closing date is not a soft target. Missing it without an agreed extension or a contractual excuse can crystallize a breach. Extensions happen all the time in practice, but they need to be documented — usually by amendment signed by both sides.

Chain closings raise the stakes. If your sale fails and you still have to fund a purchase the same day, you can end up in default on the purchase even though the problem started on the sale. Same-day purchase and sale and bridge financing in Ontario explain how lawyers try to keep both legs alive. When a chain collapses into a damages file, the paper trail of who was ready to close, who asked for an extension, and what funds were actually available becomes the case.

The real estate closing process still has to be followed until the deal is clearly dead. Do not treat a panicked text as a formal termination. Have your lawyer put the tender, the default notice, and any termination or reservation of rights in writing.

Limitation period

Under section 4 of the Limitations Act, 2002, a court proceeding generally must be started within two years of the day the claim was discovered. Section 5 sets out when a claim is discovered: when you knew, or ought to have known, that loss occurred, that it was caused by an act or omission, that the act or omission was the other party’s, and that a proceeding would be an appropriate way to seek a remedy.

In a failed closing, discovery is often on or very close to the missed completion date, but discoverability is still case-specific. Waiting “to see if they come around” can burn the clock. There is also a 15-year ultimate limitation period in section 15, but residential failed-deal claims are almost always fought on the two-year window. Get advice early if money is at stake.

Practical steps if your deal is falling apart

Talk to your lawyer as soon as a firm deal looks shaky — not the morning of closing. Keep every email, text, amendment, and banking document. If you are the seller, be ready to show you could close (discharge statements, keys, vacant possession plans). If you are the buyer, be ready to show financing and funds.

If the other side is in breach, your lawyer will usually want a clean paper trail: readiness to close, tender where appropriate, and a clear reservation of rights on the deposit and damages. If you are the one who cannot close, do not ghost the other side. A negotiated mutual release, an agreed extension, or a documented settlement on the deposit often costs less than a lawsuit — but only if everyone signs the right documents.

Seller disclosure and title problems can also feed a failed closing. A late-discovered defect or a title objection that was not resolved by the requisition date can land on either side of the fault line. See seller disclosure in Ontario if that is part of the story. Numbers in online articles are not your damages. Your file is.

Frequently Asked Questions (FAQ)

What an easement or right of way actually is

An easement is a right to use someone else’s land for a specific purpose. The land that gets the benefit is often called the dominant land. The land that carries the burden is the servient land. The owner of the servient land still owns it. They just cannot stop the other owner from using it the way the easement allows.

A right of way is the most common kind of easement on a house. It lets one owner cross another’s land, usually to reach a garage, a backyard, or a lane. A mutual driveway is often two rights of way that mirror each other. Utility easements, for hydro, gas, telephone, cable, or sewer lines, are the other kind most buyers run into.

Most easements are tied to the land, not to the people who signed them. When either house sells, the right or the burden usually goes with it. That is why a real estate lawyer in Toronto reads them on every purchase, even when the listing calls the driveway “mutual” and everyone seems to get along.

How mutual driveways usually work in Toronto

Mutual driveways are common on older Toronto streets, especially between semi-detached houses and detached houses on narrow lots. Often the property line runs down the middle of the driveway. Each owner owns their own strip and has a registered right of way over the neighbour’s strip, so both can get a car to the back.

That is the typical setup, not the only one. Sometimes only one house has the right of way. Sometimes the rights were registered decades ago and the wording is short. Sometimes nothing was ever registered, and the shared use is just a habit between neighbours. Each of those leads to a different answer when there is a disagreement or a sale.

The listing will rarely tell you which one you have. The parcel register, the registered documents themselves, and the survey will.

How easements are created in Ontario

Most residential easements are created in writing. A transfer or easement document is registered on title, often describing the area by reference to Parts on a registered reference plan. That document sets the rules: where the easement runs, what it is for, and sometimes who repairs it.

Some easements are not written at all. Courts can find an easement implied in certain situations, for example where land would otherwise have no access. Others are claimed by long use, called prescription. Ontario’s Real Property Limitations Act deals with claims to a way or other easement that has been actually enjoyed, without interruption, for a full twenty years. Use that happens with the owner’s permission generally does not support a prescriptive claim.

Most Ontario land is now in the Land Titles system. Section 51 of the Land Titles Act says that no right or interest in Land Titles land that is adverse to the registered owner can be acquired by any length of possession or by prescription. So, as a rule, a neighbour cannot earn a new right of way over Land Titles land just by using it for years. A right that was fully earned before the land moved into Land Titles can be a different question, and that takes a lawyer looking at the history.

Not every easement shows up on the parcel register

This surprises people. Section 44(1) of the Land Titles Act says that registered land, unless the register says otherwise, is subject to certain rights that may be subsisting, and the list includes “any right of way, watercourse, and right of water, and other easements.”

In plain terms, an easement that never made it onto the register can, in some cases, still bind the land. The parcel register is the starting point, not the whole answer. A survey, a look at the property, and the right questions to the seller fill in what the register leaves out. Our guide on how a title search works in Ontario covers what the register does show.

What the Agreement of Purchase and Sale says about easements

The standard OREA Agreement of Purchase and Sale (Form 100) has a title clause in paragraph 10. It requires title to be good and free of registered restrictions and encumbrances, except as the agreement provides, and it lists exceptions. Two of them are about easements:

“(c) any minor easements for the supply of domestic utility or telecommunication services to the property or adjacent properties; and (d) any easements for drainage, storm or sanitary sewers, public utility lines, telecommunication lines, cable television lines or other services which do not materially affect the use of the property.”

So an ordinary utility easement usually is not grounds to walk away. A right of way that lets a neighbour drive across your land is a different kind of easement and is not in that list. Whether it gives the buyer a valid objection depends on the whole agreement, including anything added in a schedule and anything the buyer already agreed to accept.

Timing matters too. The agreement sets a requisition date for title objections. Paragraph 10 says that, except for a valid objection made by that day and any objection going to the root of the title, the buyer is “conclusively deemed to have accepted Seller’s title.” A buyer who learns about a problem driveway after that date usually has much less room. Our walkthrough of the Agreement of Purchase and Sale explains the other key dates.

What a buyer should check before firming up

Start with the listing and ask the agent directly whether the driveway is mutual or the property has any right of way. If the answer matters to how you plan to use the house, build time for a lawyer’s review into your offer. A condition in the offer is the cleanest way to get that time.

Once you have an accepted offer, your lawyer should pull the parcel register and read the actual registered documents behind each easement entry, not just the one-line summary. The wording decides what the right covers. Ask the seller for any survey they have, and compare it with what you see on site: fences, gates, sheds, parking pads, and where cars actually go.

Ask about the neighbours too. Is there a parking arrangement? Has there been a dispute? Who clears the snow and who paid for the last repaving? A seller generally has to be honest when answering, and our guide to seller disclosure in Ontario explains where those duties start and stop.

Title insurance is worth discussing as well. It can cover some losses from title and survey problems, subject to its terms and exclusions. It does not remove an easement, and known problems may be excluded. See title insurance in Ontario for how a policy works.

Common mutual driveway disputes

Parking is the big one. A right of way is usually a right to pass over the land. Whether it also lets anyone park there depends on the wording of the registered document and the facts. Many disputes start when one neighbour parks in a way that blocks the other’s access to the back.

Repairs are next. Older rights of way are often silent on who maintains the driveway, who pays to repave it, and how the cost is split. Neighbours who agree on that in writing usually have fewer fights later.

Changes cause the rest. A new fence or gate, a narrowed driveway, a front-yard planter, a garage rebuild, or a laneway or garden suite can all affect the other owner’s right to pass. Before a renovation that touches the driveway, check what the easement allows and whether permits are needed.

Utility and municipal easements

Utility easements are usually quieter. They may let a utility or the municipality run lines or pipes through part of the lot and come onto the land to service them. Most owners never notice them.

They matter when you want to build. A pool, an addition, a deck on footings, or a large shed may not be allowed over an easement area, or the easement holder may be able to remove it to reach their equipment. If you are buying with a project in mind, have the easement read and checked against the survey before you firm up.

For sellers: deal with it before listing

If your house has a mutual driveway or another right of way, gather the paperwork early: the registered documents, any survey, and any written arrangement with the neighbour. Tell your agent so the listing describes it accurately.

If something is off, such as a shared driveway with no registered right of way, a fence over the line, or an old arrangement nobody wrote down, talk to your lawyer before you list. Registering a new easement or a release takes a signed document, usually a reference plan from an Ontario land surveyor, and the cooperation of the neighbour and sometimes their lender. That can take weeks. Fixing it before a buyer’s lawyer finds it is usually faster and cheaper than fixing it under a closing deadline. For the wider picture of who owns what on title, see property law basics in Ontario.

Frequently Asked Questions (FAQ)

Why families think about adding a child to title

The idea usually goes like this. A parent owns the family home. They add an adult child to title as a joint tenant. When the parent dies, the child takes the home by right of survivorship, outside the estate, and the estate pays less estate administration tax (what most people still call probate tax).

Sometimes it works as planned. But a title change made today to save tax at death gives the child real rights now, and it can unravel in ways that cost more than the tax. This guide walks through the Ontario rules to check before anyone signs a transfer.

A Toronto real estate lawyer registers the transfer. Whether it should be registered at all is first an estate-planning and tax question, so independent estates and tax advice is usually worth getting before the title changes.

What estate administration tax actually costs

Ontario’s Estate Administration Tax Act, 1998 charges tax on the value of an estate when an estate certificate (formerly called probate) is applied for and issued. The Ministry of Finance says that if no certificate is issued, no tax is owed.

For certificates applied for on or after January 1, 2020, the Ministry of Finance says there is no tax on an estate valued at $50,000 or less. Above that, the tax is $15 for every $1,000 (or part of $1,000) of the estate’s value over $50,000. The first $50,000 is taxed at $0.

Ontario real estate is counted at its value on the date of death, less registered encumbrances such as a mortgage. So on an estate whose only asset is a $1,000,000 Ontario home with no mortgage, the tax would be $14,250 under the current rates.

That is a real number. It is also a little under 1.5% of the home’s value in that example, paid once, by the estate, after death. Every risk below should be weighed against that figure, not against the word “probate.”

How joint tenancy is supposed to avoid the tax

Joint tenants own the whole property together, with a right of survivorship. When one dies, the survivor takes the deceased’s interest automatically, and the will does not control it. The Ministry’s guidance tells estates not to include jointly owned assets that automatically become the other owner’s.

If the transfer is silent, Ontario treats co-owners as tenants in common, and a tenant-in-common share passes through the estate. The transfer has to say joint tenants. Our guide to joint tenants vs tenants in common explains the difference. After the death, the survivor registers a survivorship application to take the parent off title.

The same Ministry guidance also tells estates to include “all property of the deceased that was held in another person’s name.” That line is where the plan often breaks.

Pecore: the child may be holding the home for the estate

In Pecore v. Pecore, 2007 SCC 17, the Supreme Court of Canada held that when a parent transfers property to an adult child for no payment, the law presumes the child holds it in trust for the parent. This is called a resulting trust. The child has to prove, on a balance of probabilities, that the parent meant it as a gift.

Pecore involved joint bank accounts, but the presumption applies to gratuitous transfers generally, and Ontario courts have applied it to transfers of land. The Court also recognized that a parent can give a child the right of survivorship while keeping the beneficial ownership during life. What the parent intended at the time of the transfer decides which it is.

This cuts two ways. If the child cannot prove a gift, the home may belong to the parent’s estate after all. It is then distributed under the will, and estate administration tax may apply to it anyway. If the child does prove a gift, the child keeps the whole home, even where the will splits everything equally among several children.

Either way, the family may end up in court arguing about what a parent who is no longer alive intended. Clear written evidence of intention, prepared with independent advice, reduces that risk. It does not solve the problems below.

The child gets real rights now

A joint tenant is an owner today, not just at death. The parent can no longer sell, refinance, or borrow against the home without the child’s signature. If the parent later loses capacity, the parent’s attorney under a power of attorney for property and the child will both have to sign.

Joint tenancy is also easy to undo. One joint tenant can generally sever it without the other’s consent, for example by transferring their interest to themselves. Once it is severed, the owners hold as tenants in common and survivorship is gone. A co-owner can also generally apply under Ontario’s Partition Act for a court-ordered partition or sale.

If the parent is married and the home is a matrimonial home, the Family Law Act generally requires the parent’s spouse to join in or consent to a disposition of an interest in it. Adding a child to title transfers an interest, so that consent is usually part of the file.

The child’s creditors and separation become the home’s problem

If the child is sued, goes bankrupt, or has a judgment against them, the child’s interest in the home may be exposed to those creditors. A writ of execution filed against the child can hold up a later sale or refinance even when the parent owes nothing.

If the child separates from a spouse, the child’s interest may be drawn into a family law claim. The Family Law Act excludes some property received by gift after the date of marriage from the property-sharing calculation, but there are exceptions, including where the property is a matrimonial home. The result depends on the facts, and a family lawyer should look at them.

Income tax and the first-time buyer refund

CRA says that if you give capital property as a gift, you are generally treated as having sold it at fair market value. If the home has been the parent’s principal residence for every year they owned it, the principal residence exemption may shelter the gain on the share given away. For 2016 and later tax years, CRA generally allows the exemption only if the disposition is reported.

If the property is a cottage, a rental, or a second home, giving away a share can trigger a taxable capital gain now. That tax can be larger than the estate administration tax the plan was meant to save.

The child’s share raises a separate question. CRA’s principal residence rules generally limit a family unit to one principal residence per year, and the home generally has to be ordinarily inhabited by the owner or certain family members. A child who lives elsewhere, especially one who owns their own home, may not be able to shelter future growth on their share. If the child holds only as a trustee for the parent, the tax result can be different. An accountant should run these numbers on the family’s own facts.

There is also the first-time buyer refund. Ontario’s Ministry of Finance says a buyer cannot claim it after owning a home or an interest in a home anywhere in the world, however it was acquired, including by gift. A child added to a parent’s title as a real owner may lose that refund on their own first purchase. Toronto’s municipal rebate has its own first-time buyer test. See first-time land transfer tax rebates in Ontario.

Land transfer tax, the mortgage, and the lender

Adding a child is a title transfer, so the land transfer tax rules apply. The Ministry of Finance says the Land Transfer Tax Act does not exempt gifts of land. On a true gift with no mortgage and nothing else given, the consideration may be nil.

A mortgage changes that. The Ministry’s land transfer tax FAQ says that where a parent transfers a half interest to a child and there is a mortgage, the consideration includes half of the principal and accrued interest still owing, plus anything else given for that interest. Tax can be payable on that amount, and inside Toronto the municipal land transfer tax can apply too.

Most mortgages also require the lender’s written consent before an owner is added. Transferring title to family in Ontario covers the gift-versus-trust paperwork and the mortgage math in more detail.

Alternatives to look at first

A properly drafted will, made with an estates lawyer, is the usual starting point. It keeps control with the parent, can be changed, and treats each child the way the parent actually intends.

Some Ontario families use multiple wills. The Ministry of Finance confirms that when a court issues a certificate limited to the assets in one will, only those assets count toward the tax. Which assets can sit in a will that is not probated, and whether a home can be one of them, is a question for an estates lawyer.

If the real goal is help with bills and decisions as the parent ages, a continuing power of attorney for property may cover it without changing ownership. And if the parent truly wants to give the child the home now, that can be a valid choice. It should be documented as a gift, with the tax and family consequences priced in first.

Frequently Asked Questions (FAQ)

What a statement of adjustments is

The statement of adjustments is the closing-day math sheet. It starts with the purchase price, credits the buyer with the deposit, and then adds or subtracts costs that one side paid for the other side’s time as owner. The bottom line is the balance due on closing: the amount the buyer’s lawyer sends to the seller’s lawyer to finish the deal.

On most Ontario resale deals, the seller’s lawyer prepares the statement and sends it to the buyer’s lawyer in the days before closing. It is one step in the wider closing process, and it is where small per-day amounts add up.

A real estate lawyer in Toronto acting for the buyer checks every line against the agreement, the tax certificate, and (for a condo) the status certificate before asking the client for closing funds. Our legal fees start at $2,299 + HST for a purchase and $1,999 + HST for a sale.

What the agreement says gets adjusted

The adjustments come from the agreement of purchase and sale, not from habit. The standard OREA freehold form (Form 100) says: “Any rents, mortgage interest, realty taxes including local improvement rates and unmetered public or private utility charges and unmetered cost of fuel, as applicable, shall be apportioned and allowed to the day of completion, the day of completion itself to be apportioned to Buyer.”

The OREA condo resale form (Form 101) lists common expenses as well. It also says there is no adjustment for the seller’s share of the condominium corporation’s assets or liabilities, including any reserve or contingency fund the seller paid into.

Two points follow. First, under those standard forms the closing day itself belongs to the buyer, so the buyer carries that day’s share of tax and fees. Second, only the listed items adjust automatically. A repair credit, a price reduction after inspection, or a split of a known special assessment shows up on the statement only if the agreement or a signed amendment says so.

OREA revises its forms from time to time, and clause numbers move. Read the adjustments clause in the version you actually signed, plus any Schedule A terms.

Price, deposit, and the balance due

The first lines are simple. The sale price is a credit to the seller. The deposit is a credit to the buyer, even when a brokerage is holding it in trust rather than either lawyer.

Every adjustment below then nudges the number up or down. The result is the balance due on closing. That figure is not the buyer’s full cheque. Land transfer tax, legal fees, title insurance, and the mortgage advance sit on the buyer’s lawyer’s own trust ledger, not on the statement of adjustments. Our guide to first-time buyer closing costs walks through that wider list.

If you are selling and buying on the same day, the balance due on your sale feeds the funds for your purchase. A late or wrong statement on one side can hold up both. See same-day purchase and sale in Ontario for how lawyers line up a chain.

Property tax: usually the biggest adjustment

Many Ontario municipalities, Toronto included, send an interim tax bill early in the year and a final bill later. Owners then pay in installments, or monthly on a pre-authorized plan.

The seller’s lawyer compares what the seller has actually paid for the year with the seller’s share up to the day before closing. If the seller has paid ahead, the buyer credits the seller for the rest of the year. If the seller is behind, the seller credits the buyer, who will pay the next installments.

Lawyers confirm the figures with a tax certificate from the municipality, not just the seller’s word. When the final bill for the year is not out yet, the adjustment may be based on the interim bill or an estimate. Whether anyone revisits that later depends on the undertakings the lawyers exchange on closing.

The standard OREA form also has a property assessment clause. It says neither side will make a claim for changes in property tax caused by a reassessment, except for taxes that accrued before completion. In Toronto, the tax check also covers Vacant Home Tax charges, which the City can add to the tax roll.

Condo common expenses

Condo fees are usually paid monthly in advance. If the seller has paid the fee for the closing month, the buyer credits the seller for the days from closing to month-end.

The status certificate confirms the monthly common expenses and whether the unit is in arrears. Arrears are cleared from the seller’s side; they should not land on the buyer through the statement.

There is no adjustment for the reserve fund under the standard condo form. A special assessment is different: the form does not split it automatically, so any sharing of installments has to be written into the agreement.

Rent and tenants

When a tenant stays after closing, the buyer becomes the landlord. The rent for the closing month is apportioned. The seller has usually collected that month’s rent already, so the buyer gets credit for the days from closing to month-end.

The buyer also usually gets a credit for the tenant’s last month’s rent deposit, plus any interest owing on it, because the buyer is the one who must apply it at the end of the tenancy. Ontario’s Residential Tenancies Act, 2006 governs rent deposits and the interest landlords pay on them. More on the seller side is in selling a tenanted home in Ontario.

Utilities, fuel, and rental equipment

Metered utilities like hydro and gas are normally closed out with a final meter reading and a final bill to the seller, not a line on the statement. That matches the standard clause, which covers unmetered charges.

Unmetered fuel is different. If the home heats with an owned oil or propane tank, the fuel left in it can be adjusted, because the standard clause lists the unmetered cost of fuel.

A rented hot water tank or furnace usually passes to the buyer as an assumed rental contract, so there is no adjustment unless the deal requires the seller to buy it out. The chattels vs fixtures guide covers how rental equipment is written into an offer.

Checking the statement before closing

The buyer’s lawyer checks that the price and deposit match the agreement and every amendment. The closing date and per-day splits should be right, with the closing day charged to the buyer under the standard forms.

Tax figures should match the tax certificate. Condo fees should match the status certificate. Rent and deposit credits should match the lease and the seller’s rent records. Any negotiated credit should appear exactly as signed.

If the closing date moves, the statement has to be redone, because every per-day figure changes.

Mistakes still happen. Ontario closings commonly include an undertaking from the seller to readjust errors or omissions in the statement of adjustments after closing. The exact wording matters, so if you spot a problem later, raise it with your lawyer rather than the other side directly.

Bottom line

The statement of adjustments decides how much changes hands on closing day. Most lines come straight from the adjustments clause, so know what your agreement says before the statement arrives. If a number looks off, raise it before closing, not after the keys change hands.

Frequently Asked Questions (FAQ)

What a condo special assessment is

A special assessment is an extra common-expense charge the condominium corporation levies on owners. It sits on top of the regular monthly maintenance fees (common expenses). The Condo Authority of Ontario describes it as an additional payment used when the yearly budget cannot cover a shortfall — often for a single event that hits the corporation’s finances.

It is usually framed as one-time, though boards sometimes spread the same levy across several installments. Your share is generally calculated with the same common-expense percentage the declaration assigns to your unit. This post does not invent dollar amounts; what you owe depends on that percentage and the board’s resolution for that project.

A Toronto real estate lawyer reads the status certificate package so a planned or pending assessment is not a surprise after you waive conditions. Purchase legal fees start at $2,299 + HST; sales start at $1,999 + HST.

Special assessment vs regular common expenses

Regular common expenses fund day-to-day operations and the ongoing contribution to the reserve fund. They appear as the monthly condo fee on the listing and in the unit’s status pages.

A special assessment is not a quiet fee increase baked into next year’s budget. It is an additional levy — often tied to a shortfall, a major repair that the reserve cannot absorb alone, litigation costs, or another unexpected hit. A fee increase changes the ongoing monthly number. An assessment adds a separate obligation for a defined need.

Both are still common expenses under the Condominium Act, 1998. Unpaid amounts can lead to a lien against the unit. The label “special” does not make the charge optional.

Why corporations levy them

The CAO lists common drivers: unforeseen major expenses (equipment that fails early), under-budgeting when a repair costs more than planned, and litigation costs. Corporations may also use assessments when the reserve and operating accounts cannot cover work that has to happen now.

Ontario corporations must keep a reserve fund for major repair and replacement of common elements and assets, supported by periodic reserve fund studies and a plan for future funding. A thin reserve, a study that shows a funding gap, or a project that outruns the study are classic paths to a special assessment — or to a sharp rise in reserve contributions that looks like a fee spike.

Boards should follow the corporation’s declaration, by-laws, and rules when communicating and implementing an assessment. Exact notice and voting mechanics turn on those documents and the Act. Do not assume every building uses the same process.

How buyers learn about special assessments

On a resale condo, the primary disclosure tool is the status certificate. Under the Act and CAO guidance, the certificate package includes (among other things) budget and financial statements, reserve-fund information, unit common expenses and arrears, approved fee increases, and a statement about special assessments charged since the current year’s budget — with reasons.

Put a status-certificate condition in the agreement of purchase and sale with enough days for the corporation to deliver the package and for counsel to read it. Waiver without review is how buyers close into a levy they would have seen in the paper.

Also watch board minutes, AGM packages, notices of future funding after a reserve study, and any owner letters about a project or loan. Marketing copy (“low fees”) is not disclosure. The certificate and governing documents are.

Courts have treated incomplete or unclear status-certificate disclosure seriously in some cases — including situations where a purchaser who relied on the certificate was treated as exempt from a later assessment for as long as they owned the unit. Outcomes are fact-specific. Clear disclosure in the certificate matters for both buyers and corporations; it is not a slogan you can apply without reading the actual package and getting file advice.

Condition periods and waiver risk

While the status condition is alive, you can usually walk if counsel flags a material assessment, reserve hole, or related risk — subject to the exact Schedule A wording and notice deadlines. Once you waive or fulfill and the deal is firm, that protective pause is gone.

Firm does not erase a disclosed assessment that becomes due after closing. If the certificate (or later notice you received before waiver) put you on notice, expecting the seller to keep paying after title moves is usually wishful thinking unless the APS allocates that cost in writing.

First-time buyers stacking LTT, insurance, and adjustments should still map cash for a known assessment the same way they map other closing costs.

Arrears follow the unit

Unpaid common expenses — including unpaid special assessments treated as common expenses — can follow the unit. The corporation’s lien rights under the Act are a collection tool against the unit, not only against the person who missed the payment.

On purchase, counsel checks the status pages for arrears and any registered lien. Sellers should expect requisitions to clear what is owing so the buyer does not inherit a shortfall. Exclusive-use rights (balcony, parking, locker) do not excuse unpaid fees — see condo exclusive-use areas in Ontario.

Seller disclosure and requisition notes

Sellers should not hide a known assessment or a board notice about one. The status certificate the buyer orders will speak for the corporation. A mismatch between what the seller said verbally and what the certificate shows is a classic condition fight.

Practically, if an assessment is already levied or clearly disclosed, parties often negotiate who pays installments that fall before or after closing — in the APS, an amendment, or the statement of adjustments. There is no single statutory split for every file. Write it down.

If the certificate is silent or vague about a project the board already knows may drive a levy, that is a corporation disclosure problem as much as a seller problem. Buyer’s counsel still flags it before waiver.

What counsel checks on the file

Whether a special assessment has already been charged, approved, or clearly contemplated in the status package — and the reason given.

Reserve fund balance against the latest study and any notice of future funding. A thin reserve with a large upcoming project is how assessments get born.

Unit arrears, approved fee increases, litigation, insurance deductibles or claims that could hit owners, and whether parking/locker and exclusive-use allocations match the offer.

APS timing: enough condition days; any express clause allocating a known assessment between buyer and seller.

Residential purchase legal fees start at $2,299 + HST. The review is part of buying the building’s balance sheet, not only the unit’s paint colour.

Bottom line

A condo special assessment in Ontario is an extra common-expense levy when the regular budget and reserve path are not enough for a shortfall or major hit. Buyers find it in the status certificate, minutes, and funding notices — not in the listing’s monthly fee alone. Sellers and boards get cleaner closings when disclosure is clear and early. Read the paper before you waive.

Frequently Asked Questions (FAQ)

What a same-day purchase and sale actually is

You sell your current home and buy the next one on the same calendar day. The equity you need for the purchase is still sitting in the sale. That money has to arrive, clear mortgages and sale costs, and then leave again for the purchase — all before both deals’ closing windows end.

Lawyers and agents often call this a chain closing or a back-to-back closing. Your sale funds the purchase. Someone else’s purchase may fund their next buy. One slow step can pressure every linked file.

A real estate lawyer in Toronto maps both files early so sale proceeds, mortgage advances, and registrations line up. This post is an Ontario residential overview — not a promise that every chain closes on schedule, and not advice for your file.

Why same-day closings are common in Ontario

Many buyers do not want (or cannot afford) to carry two homes. They prefer to move once. Sellers often want vacant possession the day they close. Aligning both completion dates feels efficient on paper.

Ontario residential closings also run almost entirely through electronic registration and lawyer trust accounts. Money and title move together under escrow arrangements between counsel. That system can support a same-day sequence — when every wire and every lender condition arrives on time.

Same-day is common. It is not risk-free. The cheaper path is not always the calmest path.

How the money usually sequences

On a typical resale chain, your buyer’s lawyer receives their client’s cash-to-close and mortgage advance in trust. Those funds are wired to your sale lawyer. Your sale lawyer pays out your existing mortgage (if any), sale costs, and commissions, then accounts for the net equity.

That net equity — plus any new mortgage on the purchase and any cash you still owe — funds the purchase. Your purchase lawyer wires the seller’s lawyer and registers the transfer and new charge through Ontario’s electronic land system once both sides are ready under their document registration agreement.

The choreography is the point. Sale proceeds are not “already in your pocket” at 9 a.m. They become available only after your buyer’s side funds and your sale payouts clear. For the single-file version of this day, see the real estate closing process guide.

Time is of the essence — and why minutes matter

Standard Ontario residential agreements of purchase and sale commonly include a “time is of the essence” clause and a completion deadline on the closing date (often by 6:00 p.m. in the widely used OREA residential form). Exact wording depends on the form version and any amendments on your deal. Read your agreement — do not assume a blog paraphrases your clause.

Ontario courts have enforced clear closing-time language strictly in some cases, including situations where funds arrived only minutes late. Outcomes turn on the contract wording, the parties’ conduct, and whether the party relying on the deadline was ready, willing, and able to close. A chain does not create a free extension. If your sale slips past the window, your purchase may still be due that same day.

Lawyers often keep a transaction “on the wire” while expected funds are genuinely in transit and both sides still want to complete. That is cooperation, not a right you can demand. If the day ends without registration, the usual path is a negotiated extension — sometimes with per-diem compensation — or, in a worse case, default remedies under the agreement.

Where chains break

Late mortgage funding. A lender condition cleared at noon can still push the wire past a bank’s same-day cutoff.

Buyer cash arriving the morning of closing. Large transfers initiated late often land next business day.

A shortfall on the statement of adjustments — even a small tax credit missed in the wire amount.

Title or discharge snags on an earlier link in the chain. Your buyer cannot fund you until their own purchase (or refinance) clears.

A casualty or other APS election that pauses or redirects a file. Fire or damage before closing has its own rules — see fire or damage before closing in Ontario.

When one deal delays, the person in the middle can be squeezed: still bound to close the purchase, without sale proceeds ready. That is the domino risk agents warn about.

Same-day chain vs bridge financing

They solve different timing problems. A same-day chain tries to use sale proceeds the same day to close the purchase. Bridge financing in Ontario is a short-term loan against equity in the home you are selling so the purchase can close first (or with a buffer), with the bridge repaid when the sale closes.

Same-day can avoid bridge interest if everything lands. Bridge can buy hours or days so movers, keys, and lender cutoffs are not on a knife edge. Some files use a short stagger — sale one business day before purchase — without a formal bridge, if proceeds can sit in trust overnight and still fund. Ask counsel and your lender which path fits your dates; do not invent the product from a blog.

Deposits, conditions, and locking the dates

Your purchase deposit already sits in trust and credits to the price on closing. It does not replace the down-payment cash or sale equity still to arrive. Mix-ups between deposit and funds-to-close are common — see real estate deposits in Ontario.

If you cannot carry two properties, a sale-of-buyer’s-property condition can keep the purchase from going firm until your exit is real. Once both deals are firm on the same date, that protective pause is gone. Timing risk moves to closing day.

First-time buyers stacking LTT, insurance, and adjustments on top of a chain should still map the full wire in first-time buyer closing costs in Ontario.

What counsel coordinates on both files

On the sale: receive buyer funds, pay out the existing charge, clear title undertakings, and release net proceeds for the purchase.

On the purchase: receive your cash-to-close and new mortgage advance, satisfy lender conditions, register the transfer and charge, and release funds under the document registration agreement.

Residential purchase legal fees start at $2,299 + HST and sales at $1,999 + HST. Dual same-day files are more coordination than a single quiet closing. What stays inside a flat fee and what does not is in real estate legal fees.

A practical checklist before you pick the same day

Confirm both completion dates in writing and tell both lawyers early — not the week of closing.

Ask your purchase lender when mortgage funds will actually wire, and clear conditions days ahead.

Send your cash-to-close so it is in your lawyer’s trust account at least one business day before closing when possible. Confirm the exact amount and payee by phone on a number you already trust.

Avoid booking non-refundable movers or hotels until counsel says both files are funding-ready — or accept that risk consciously.

Ask whether a one-day stagger or a bridge is safer than a pure same-day chain for your gap.

Keep phones on closing day. Chains move in the afternoon; silence helps nobody.

Bottom line

A same-day purchase and sale in Ontario is a funds-and-registration sequence, not a magic calendar trick. It works when every linked lawyer, lender, and wire hits the window. Plan the chain as carefully as the offer price — and have a backup conversation about stagger or bridge before you need one.

Frequently Asked Questions (FAQ)

What bridge financing is on an Ontario purchase and sale

You found the next home. The purchase closing date is firm. Your current home is also under a firm deal — but that sale closes days or weeks later. The equity you need for the down payment is still locked in the house you are leaving.

Bridge financing (a bridge loan) is a short-term loan that advances part of that equity so you can close the purchase on time. When the sale closes, the net proceeds repay the bridge. Major Canadian lenders describe the same idea: temporary money to carry two properties across a timing gap, secured against the home you are selling.

A Toronto real estate lawyer coordinates the bridge advance on the purchase closing and the payout on the sale closing. This post explains the usual Ontario residential path — not a rate sheet, and not advice for your file.

How the money usually moves

The bridge is typically registered as a charge against the property you are selling. The lender advances funds to your lawyer’s trust account for the purchase. On sale closing day, sale proceeds pay out the existing first mortgage (if any), the bridge, and the rest of the sale costs. What remains is your net equity.

Bank product pages frame the amount around equity in the current home, less an estimate for closing costs on that sale. Exact formulas, interest, and admin fees are lender-specific. Do not price a bridge from a blog. Ask your mortgage professional for a written cost disclosure for the gap you actually have.

For how purchase and sale closings fit together on a quiet file, see the real estate closing process guide. A bridge adds a second funding stream and a second discharge to that choreography.

What most institutional lenders require

Bridge financing is not automatic with a mortgage approval. You apply for it. Typical institutional requirements look like this:

First, a firm, unconditional sale agreement on the home you are selling — not a listing, and not a deal still under conditions. The lender wants a clear path to repayment.

Second, approval for the new mortgage (or other qualifying product) on the purchase. Many banks will only bridge if they are also the purchase lender.

Third, enough equity and credit to support the advance under that lender’s rules. TD’s bridge financing explainer, for example, describes carrying mortgages on two properties for a limited window (often described as up to about 90 days) and requiring both sale and purchase agreements plus approval on the new property. Other lenders set their own caps and documents. Confirm yours in writing.

If your sale is still conditional, most bank bridges are off the table until conditions are waived or fulfilled. That is why a sale-of-property condition in Schedule A is planning tool as much as a legal clause: it can protect you from going firm on a purchase before you have a firm exit on the current home.

Timing risk: short gaps, same-day chains, and failed sales

Interest usually accrues daily for as long as the bridge is outstanding. A two-week gap costs less than a two-month gap. Delays on the sale — a buyer financing snag, a title issue, a missed condition cure — stretch that clock.

The serious downside is a sale that does not close. You may then hold two properties, the new mortgage, and a bridge that was supposed to be repaid from proceeds that never arrived. Extensions or refinance are negotiated with the lender; they are not a free pause. That risk is why firm-sale requirements exist.

Same-day purchase and sale closings are a different pressure point. Funds have to sequence through lawyers’ trust accounts in the right order. Bridge product rules and same-day chain logistics overlap but are not identical — chain closings deserve their own map. For this post, the practical point is early coordination between your lawyer, your broker, and both other sides.

That map is here: same-day purchase and sale / chain closings in Ontario.

What your lawyer actually does on a bridged file

On the purchase: receive bridge funds and your cash-to-close, satisfy lender conditions, register the transfer and the new charge, and complete the buy.

On the sale: receive the buyer’s funds, pay out the existing mortgage and the bridge, clear the bridge charge from title, and account for the balance to you.

Those steps sit on top of ordinary title work. Residential purchase legal fees start at $2,299 + HST and sales at $1,999 + HST. A bridge can knock a file out of a simple flat-fee path because of the extra charge, dual closings, and lender paperwork. Fee structure and what changes a quote are in real estate legal fees.

How the new mortgage is registered — standard charge versus collateral charge — still matters for renewals and later borrowing. That is a separate title question covered in collateral charge vs conventional mortgage in Ontario.

Cash to close, deposits, and family money

A bridge covers a timing gap in equity. It does not erase land transfer tax, adjustments, title insurance, or other closing costs. First-time buyers should still map the full stack in first-time buyer closing costs in Ontario.

Your deposit already sits in trust and credits toward the price on closing. Mix-ups between deposit, down payment, and bridge advance are common — see real estate deposits in Ontario.

If the gap is small, some buyers look at an existing line of credit or documented family help instead of a bank bridge. Family cash still needs clean gift-or-loan language for underwriting. That path is in bank of mom and dad in Ontario. Private or alternative bridge products exist when a bank will not bridge a listed-but-unsold home; those terms are lender-specific and often cost more. Get them in writing.

Bottom line

Bridge financing lets an Ontario buyer close a purchase before sale proceeds arrive by temporarily unlocking equity in the home being sold. Most institutional lenders want both deals firm, enough equity, and a clear repayment on sale closing. Ask about the bridge when you shop the purchase mortgage — not the week before keys — and keep counsel in the loop on both closing dates.

Frequently Asked Questions (FAQ)

What happens if the house burns between firm offer and closing

A signed Ontario Agreement of Purchase and Sale can still be weeks away from keys. In that window, fire, flood, storm, or another casualty can gut the dwelling. The question is not abstract: who bears the risk of loss, and what can each side do under the contract.

At common law, the doctrine often called equitable conversion can put the risk of accidental loss on the buyer once the contract is binding. Ontario residential deals almost never leave that harsh result alone. The standard OREA-form insurance clause reallocates risk and gives the buyer a defined election when damage is substantial.

A Toronto real estate lawyer reads that clause against the rest of the APS, the insurance particulars the seller can produce, and the closing calendar. This post maps the usual Ontario path — not a national summary and not advice for your file.

Equitable conversion: the common-law starting point

Equitable conversion is a property-law idea: once a valid contract binds the parties, equity may treat the buyer as owner of the land and the seller as entitled to the purchase money. Older cases used that idea to put accidental destruction of buildings on the buyer before legal title passed.

That default is harsh. A buyer who has not yet taken possession can, in theory, still owe the full price for a shell. Canadian commentary and courts have long noted that standard-form insurance clauses exist to soften that result. Do not assume equitable conversion is the last word on a modern OREA APS.

The OREA insurance clause: seller’s risk, buyer’s election

On the usual Ontario residential form, buildings and other things being purchased remain at the seller’s risk until completion. Pending completion, the seller holds any insurance policies — and the proceeds — in trust for the parties as their interests may appear.

If there is substantial damage, the buyer may either terminate the agreement and have monies paid returned without interest or deduction, or take the proceeds of any insurance and complete the purchase. Insurance is not transferred on completion. Mortgage assumptions or vendor take-backs can add separate proof-of-insurance duties for the buyer on closing.

Those are contractual rights. They are not a guarantee that a policy exists, that coverage will respond, or that the payout will rebuild the home. The Supreme Court of Canada’s decision in Wile v. Cook ([1986] 2 S.C.R. 137) is the leading reading of a closely worded insurance clause: the seller is under no duty to take out insurance in any particular amount, and the buyer who elects to close takes whatever proceeds are available — not a guaranteed cheque.

Whether damage is “substantial” is fact-specific. A scorched countertop is not the same file as a total loss. Do not invent a percentage threshold from a blog.

What the buyer can — and cannot — demand

The election is usually binary under the standard wording: terminate and recover the deposit (and other monies paid), or close and take insurance proceeds. Courts have said the buyer is entitled to insurance particulars and a reasonable opportunity to assess the options. The clause does not give an open-ended right to wait and see whether the insurer will pay.

Ontario’s Superior Court applied that framework in McDonald v. Lowrie (2025 ONSC 1397). After a fire destroyed the dwelling before closing, the buyer insisted on a seller guarantee of a minimum insurance payout as a condition of closing. The court treated that demand as a variation the seller did not have to accept, found the buyer was not ready, willing, and able to close on the APS as written, and left the deposit with the seller. Facts matter; that case is an illustration, not a prediction for every casualty file.

Practical takeaway: if the payout or coverage looks unsafe, the contractual off-ramp is often termination under the insurance clause — not rewriting the bargain on closing day. File-specific strategy belongs with counsel, not with a template email.

What sellers and listing counsel usually do

Notify the insurer promptly. Preserve the scene as the insurer directs. Keep the policies and any proceeds in trust as the APS requires. Give the buyer’s lawyer enough policy and claim detail to make a real election. Extensions of closing are negotiated; they are not an automatic right to sit out the adjuster’s timeline.

The seller is generally not obliged under the standard clause to rebuild before closing, to abate the price, or to guarantee that the insurer will pay a named sum. Those outcomes need a fresh agreement or a different Schedule A. For the ordinary step-by-step of an Ontario closing once the deal is firm, see the real estate closing process guide.

Insurance, title insurance, and disclosure — three different tools

Home (property) insurance is forward-looking: fire, water, theft, and similar perils. Title insurance in Ontario is not a substitute. Title policies look at ownership, fraud, and certain pre-existing title risks. Physical fire damage is home-insurance territory, not title-insurance territory.

Seller disclosure duties about latent defects are also a different lane. A fire that happens after a firm APS is a casualty under the insurance clause, not a classic latent-defect disclosure fight. Pre-existing hidden defects that made the home unfit are covered in seller disclosure in Ontario. Do not collapse those topics.

Firm deal timing: why conditions still matter

The insurance-clause headache lands hardest after the deal is firm. While financing, inspection, or status conditions are still open, the buyer may have other exit routes written into Schedule A. Once every condition is fulfilled or waived, walking away is breach unless another clause (including insurance) applies. The condition map is in Ontario real estate conditions.

Deposits sit in trust and are credited on closing. If the buyer validly terminates under the insurance clause, monies paid are generally returned under that wording. If the buyer repudiates a firm deal instead, forfeiture risk looks more like the ordinary deposit rules in real estate deposits in Ontario. The APS form language controls; read yours.

What lawyers actually do on a casualty file

Buyer’s counsel: get the clause in front of the client immediately, demand policy and claim particulars in writing, calendar the closing and any extension, and document the election. Do not invent a guaranteed payout the APS does not give.

Seller’s counsel: confirm coverage notice, assemble the trust paperwork for policies and proceeds, avoid over-promising what the insurer will do, and keep time-of-the-essence alive unless both sides extend in writing.

Lenders care too. A mortgage commitment written against an intact dwelling may not fund a burned lot on the same terms. Coordinate early. Residential purchase legal fees start at $2,299 + HST and sales at $1,999 + HST; a casualty file can still add urgency, extended closing work, and insurer paperwork beyond a quiet resale. Fee structure is in real estate legal fees.

For how the standard form is built before anything goes wrong, the overview of the Agreement of Purchase and Sale is the companion piece. Casualty risk is one clause among many — but when fire hits, it is the clause that decides the file.

Bottom line

Equitable conversion explains why standard forms bother with an insurance clause. On a typical Ontario residential APS, the seller carries the risk until completion, and substantial damage gives the buyer a terminate-or-take-proceeds election — without a guaranteed rebuild cheque. Call counsel the day you learn of the loss. The closing clock rarely pauses on its own.

Frequently Asked Questions (FAQ)

The wire before keys is more than LTT and the legal bill

First-time buyers in Ontario usually budget two big closing line items: land transfer tax (and any rebate), and the lawyer’s fee. Those matter. They are not the whole stack.

The rest shows up on the trust statement, the mortgage commitment, or invoices you pay before closing day: title insurance, high-ratio mortgage default insurance when you put less than 20 percent down, lender appraisal or application charges, prepaid tax and utility adjustments, condo status extras, interest adjustment, and the practical cash you still need after registration.

The Financial Consumer Agency of Canada tells buyers to plan for one-time upfront costs beyond the mortgage — often described as roughly 1.5% to 4% of the purchase price, depending on the deal. That range is a planning band, not a quote for your file.

A Toronto real estate lawyer builds the exact figure from your Agreement of Purchase and Sale, your lender’s instructions, and the searches on title. This article is the stack beyond LTT and legal fees — not a second rebate guide and not a legal-fee breakdown.

What this post covers — and what it links out to

Provincial and Toronto land transfer tax, and first-time rebates, live in the first-time land transfer tax rebate guide and the land transfer tax in Ontario overview. Do not treat a short summary here as the rebate rules.

How the lawyer’s bill is built — fee versus disbursements versus third-party closing costs — is in real estate legal fees. All-inclusive residential purchase fees start at $2,299 + HST; sales start at $1,999 + HST. Those published starting figures are not the rest of the closing stack.

For a shorter map of common buyer closing costs, see closing costs when buying a home in Ontario. Below is the first-time buyer focus: what else still has to clear before you get keys.

Title insurance (lender policy, and usually an owner policy)

On a financed purchase, the lender almost always requires a lender’s title insurance policy. Many buyers also take an owner’s policy. They are not the same coverage. The lender policy protects the bank’s interest; the owner policy protects your equity.

The premium is a one-time amount set by the insurer from the purchase price and property type. It is paid on closing through the lawyer’s trust account. It is separate from the legal fee. Details and the lender-versus-owner split are in title insurance in Ontario. This post does not invent a flat dollar premium.

Mortgage default insurance when the loan is high-ratio

If your down payment is under 20 percent of the purchase price, Canadian lenders generally require mortgage default insurance (often called CMHC insurance, though Sagen or Canada Guaranty may insure the loan instead). The insurance protects the lender if you default. You usually pay the cost.

CMHC publishes a premium schedule for purchase insurance by loan-to-value band. Rates change. Do not memorize a percentage from a blog. Read the current CMHC Purchase premium schedule and the numbers on your own mortgage commitment.

The premium is often added to the insured loan amount so you finance it over time. That does not erase cash you may still need at closing. Ask your lender, in writing, whether any provincial tax on the premium is payable in cash, and whether any lender or insurer fees sit outside the financed premium. Ontario’s Retail Sales Tax rules on insurance premiums are a separate topic from the federal insurance premium itself — confirm what your commitment shows for an Ontario purchase.

Parents helping with the down payment should sort gift versus loan language before underwriting locks in. That path is covered in bank of mom and dad in Ontario.

Appraisal, application, and other lender-side fees

Some lenders order an appraisal to confirm value. Some waive it. Some charge an application or commitment fee. Broker compensation may be paid by the lender, or it may show as a cost you need to understand before you sign.

There is no single Ontario bank fee table that applies to every commitment. Read the cost-of-borrowing disclosure. Ask what is payable before funding and what is deducted from the advance. Do not budget from a generic “$300–$600 appraisal” internet range as if it were your file.

Adjustments on closing (taxes, utilities, condo fees)

The statement of adjustments reallocates prepaid property taxes, and sometimes utilities or condo common expenses, between seller and buyer as of the closing date. If the seller prepaid taxes past closing, you reimburse a share. If taxes are unpaid, the adjustment can run the other way.

Those figures are deal-specific. They are not “extra government taxes.” They show up in the trust statement your lawyer sends before you wire. The mechanics of closing day sit in the real estate closing process guide. How each line is worked out is in our guide to the statement of adjustments in Ontario.

Condo extras: status certificate and building costs

Buying a condo adds a status-certificate fee (the corporation’s capped charge for the package) and, usually, a lawyer’s review of that package. Who pays the corporation’s fee is a line in the offer. Timing matters because the corporation has a statutory delivery window.

Read the condo status certificate guide before you treat the certificate as optional. Exclusive-use items (parking, locker, balcony rules) can also affect what you think you bought — see condo exclusive-use areas. Special assessments that hit between firm offer and closing are a different risk again; do not assume the monthly fee is the whole story.

Home inspection — not a closing disbursement, but buyers mix it up

A home inspection is usually paid when the inspector invoices you, often during the conditional period — not as a Teraview disbursement on closing day. First-time buyers still should budget for it because it is cash leaving the account before you firm up.

Inspection, financing, and status conditions are different tools. The condition encyclopedia is here: Ontario real estate conditions. Waiving inspection to win a bidding war is a strategy choice, not a closing-cost saving.

HST on new construction or assignments — a different lane

Most Toronto-area resale freehold and condo purchases between individuals are not priced with HST on the purchase price. New construction, substantially renovated housing, and some assignment deals can involve HST and rebate paperwork. Those rules are CRA territory and builder-contract territory.

Do not apply a resale closing-cost worksheet to a builder deal without reading the agreement’s adjustment schedule and tax clauses. Point yourself to CRA guidance on GST/HST and residential real property, and get file-specific advice. This post does not invent rebate percentages or occupancy-versus-closing HST timing.

Registration, Teraview searches, and other disbursements

Ontario electronic registration of an instrument has a published government fee. As of the November 3, 2025 land-services update on ontario.ca, electronic registration totals $85.00 per instrument (statutory fee, ELRSA fee, and HST on the ELRSA portion). A typical financed purchase registers the Transfer and the Charge — two instruments — unless your facts differ.

Parcel registers, writ searches, tax certificates, and software costs also appear as disbursements. Some firms wrap office disbursements into an all-inclusive legal fee; others list them separately. Either way, government registration fees and third-party certificates are not the lawyer’s profit line. Fees on ontario.ca can change with the annual CPI adjustment — check the current bulletin.

Interest adjustment and prepaid interest

Mortgage payments are usually calculated from an interest-adjustment date that may not match the closing date. If you close mid-cycle, you can owe prepaid interest or an interest-adjustment amount so regular payments start cleanly. The commitment and the lawyer’s trust statement show the figure for your file.

That amount is interest, not a surprise government tax. Still budget cash for it when the advance does not cover every soft cost on day one.

Deposit, down payment, and the cash that is not “closing costs”

Your deposit sits in trust and is credited toward the purchase price on closing. It is not an extra fee. The remaining down payment still has to arrive so the mortgage can fund. Mix-ups between deposit and down payment are common — see real estate deposits in Ontario.

If that remaining down payment is still equity in a home you are selling on a later date, ask your lender about bridge financing in Ontario — a short-term advance repaid when the sale closes.

Moving, basic furniture, and a repair reserve are not legal disbursements. They are still cash you need after keys. First-time buyers who empty the account on the trust wire have no buffer when the water heater rental or a minor repair shows up in week one.

How to get a file-specific number

Ask your mortgage broker or lender for a clear list of insurance premiums, taxes on premiums, appraisal or application fees, and interest adjustment. Ask your lawyer for a preliminary trust statement once the deal is firm and searches are underway. Compare both against the land transfer tax estimate and the quoted legal fee.

Until those numbers exist, use FCAC’s planning band as a ceiling check — not as your wire amount. The stack beyond LTT and legal fees is real. It is also specific to your property, your lender, and whether you are buying resale or something with HST.

Frequently Asked Questions (FAQ)

The charge on title is not the same as the interest rate

Most Ontario buyers shop the rate, the term, and the payment. Fewer ask how the mortgage will be registered against the property. That registration type — standard charge versus collateral charge — decides what shows on the parcel register, how hard it is to switch lenders at renewal, and whether the same registration can secure more debt later.

The Financial Consumer Agency of Canada puts the split in plain language. A standard charge secures the mortgage for the amount of that loan. A collateral charge can secure more than one loan with the same lender, and the registered amount may be higher than what you first borrow.

A real estate lawyer in Toronto reads that charge on every purchase, sale, and refinance. The interest rate lives in the loan agreement. The charge is what Teraview records on title.

Two meanings of “conventional” — do not mix them up

In this article, “conventional mortgage” means a standard (traditional) charge: the registration type. Banks and consumer guides also call it a non-collateral charge.

Elsewhere, “conventional mortgage” often means a loan at or under 80 percent of value — not high-ratio insured. That is a down-payment and insurance question. It is not the same as the charge type. You can have a high-ratio loan registered as a collateral charge, or a low-ratio loan registered as a standard charge. Ask which meaning your lender or broker is using.

What a standard (conventional) charge registers

On a standard charge, the lender registers security for the exact principal of that mortgage. CIBC’s mortgage-security explainer — useful even if your lender is not CIBC — says the registered title document carries the loan details: principal, interest rate, term, payment amount, and related terms. The charge secures that one mortgage, not a line of credit or other products sitting beside it.

If you later want to borrow more against the same property with that lender, the usual path is a new registration: pay out or replace the old charge, sign a new loan agreement, and register a new charge for the higher amount. That is legal work and government registration, not a paperwork tweak.

At renewal, many new lenders will accept a transfer or assignment of a standard charge when the principal is not increasing. That is why standard charges are often easier (and cheaper) to move than collateral charges. The new lender still has to agree. Prepayment charges can still apply if you leave before maturity.

What a collateral charge registers

A collateral charge (collateral mortgage) uses the home as security for one or more loans with that lender. The registered principal can be higher than the amount advanced on day one. FCAC’s description is the same idea: the higher registration can leave room to borrow more later without registering a brand-new charge, if you still qualify and the total stays within the registered limit.

The specific rate, term, and payment usually live in a separate credit or mortgage agreement. The charge on title is the security envelope. That is why a title search can show a registered amount that looks larger than the current balance. You still only owe what the loan agreements say you owe. The registered figure is a ceiling for security, not an automatic debt.

Many bank “all-in-one,” STEP-style, or mortgage-plus-HELOC products use collateral charges. Access to extra funds is not automatic. The lender re-qualifies you. The rate and terms on new advances can differ from the original mortgage.

Renewal, switching lenders, and discharge

This is where borrowers feel the difference. With a standard charge, a straight switch at renewal is often an assignment of the existing registration. With a collateral charge, many new lenders will not take over that registration. You typically discharge the old charge and register a new one with the new lender.

If the collateral charge also secures a line of credit or other debts with the same lender, those facilities usually have to be paid out or closed before the charge can come off. FCAC’s mortgage security rights page summarizes what CBA member banks committed to disclose: transferring or assigning the security, borrowing more, and discharging it.

Federal policy work in 2014 pushed banks to explain those costs more clearly relative to conventional (standard-charge) mortgages. See the Government of Canada backgrounder on voluntary bank commitments. Disclosure helps. It does not erase discharge fees, legal fees, or registration costs when a full re-registration is required.

On a sale, the seller’s lawyer still needs a clean path to discharge whatever is on title so the buyer can register clear ownership and a new charge. Collateral or standard, the payout and discharge still sit on the closing process.

Borrowing more, second mortgages, and what other lenders see

Collateral charges are sold on flexibility: room to re-advance or add a HELOC without a fresh registration, when the registered amount and your qualification allow it. Standard charges usually need a new registration to increase the secured principal.

The trade-off shows up when a second lender looks at title. A collateral charge registered near the full value of the home can leave little visible room for a second mortgage, even if your outstanding balance is lower. That matters for private mortgage lenders and other second-position credit. The first charge’s registered amount and priority — not only the current balance — shape what another lender will fund.

None of that replaces underwriting. Equity, income, credit, and the lender’s rules still decide whether money advances.

The same underwriting lens applies when you need a short-term bridge against the home you are selling so a purchase can close first. Overview: bridge financing in Ontario.

Why the charge type shows up on an Ontario purchase or refinance

On a financed purchase, the buyer’s lawyer registers the Transfer and the Charge. Lender instructions dictate which form of charge goes on. Title insurance is usually required for the lender; the title insurance in Ontario premium is separate from the charge type.

On a refinance, the lawyer searches title, obtains a payout, registers the new charge, and follows up on the old discharge. Switching away from a collateral charge is often a full discharge-and-replace file, not a simple assignment. Staying with the same lender to increase borrowing under an existing collateral registration can look different again — still subject to that lender’s instructions and a new advance.

Parents who guarantee or co-borrow should know which product and charge type the bank is using before the commitment is firm. The bank of mom and dad choice (gift, guarantor, or co-owner) sits beside the security type; they are not the same decision.

How to find out which type you have

Check the mortgage commitment, the standard charge terms filed under the Land Registration Reform Act set number on your charge, the lawyer’s reporting letter from the last closing, and the parcel register. A title search shows the registered principal and the set of standard charge terms. Ask the current lender in writing whether the mortgage is a standard charge or a collateral charge, and whether other products are secured by the same registration.

Ask before you renew, refinance, or shop rates. The switching cost is part of the rate comparison.

Legal fees on related files

All-inclusive legal fees on a standard residential purchase start at $2,299 + HST, and on a sale at $1,999 + HST. Those published figures do not include HST. A refinance, a discharge-and-replace when leaving a collateral charge, or a second/private mortgage is a different file. See real estate legal fees for how a legal bill is built, then get a quote for the work you actually need. This post does not invent a flat refinance price.

Frequently Asked Questions (FAQ)

Moving an existing Ontario home into the family is not a purchase gift

Families often want to add a spouse, child or parent to title, gift equity, or put a relative on as trustee for financing. Those goals sound related. They are different legal transactions with different land-transfer-tax, lender and family-law consequences.

This guide is about transferring an existing home already owned in Ontario. It is not the same problem as a parent helping a buyer complete a purchase. For purchase-side gift, guarantor and co-owner structures, see bank of mom and dad in Ontario.

A Toronto real estate lawyer registers the Transfer, reads the mortgage terms and prepares the land-transfer-tax statements. Tax, estates and family lawyers may still be needed when beneficial ownership, capital gains or separation risk is material.

Start with legal title versus beneficial ownership

Legal title is the name registered in Ontario’s land registry. Beneficial ownership is the economic interest: who contributed, who controls the property, who receives sale proceeds and who bears gains or losses.

A relative can be on legal title as a true co-owner, or only as a trustee or nominee. Calling someone a “bare trustee” after the fact does not settle the issue. The transfer, trust evidence, mortgage, tax reporting and later sale proceeds should tell one consistent story.

The registered instrument is the Transfer—the deed. For what that document looks like, see what a property deed looks like in Ontario. The tenancy words on that Transfer also matter: joint tenancy usually carries survivorship; tenants in common hold separate shares. Choose that structure intentionally; see joint tenants versus tenants in common.

Path 1: a true gift of equity

Nil consideration is possible—but family relationship is not an exemption

Ontario’s Ministry of Finance is clear: the Land Transfer Tax Act does not exempt gifts of land. Tax is calculated on the value of the consideration. If no consideration passes in any form, directly or indirectly, consideration can be stated as nil and the computed tax is also nil.

Consideration is broad. It includes money, other benefits and the assumption of liabilities. An outstanding mortgage or other encumbrance generally counts. The Ministry says tax is payable on the amount outstanding at registration regardless of the relationship between the parties, subject to limited spousal rules discussed below.

On a true gift with no money, no other benefit and no assumed encumbrance, the land-transfer-tax affidavit should show nil consideration, the family relationship and the reason for the transfer, and whether the land is subject to any encumbrance. Do not invent a “family gift exemption.”

Income tax is a separate analysis

CRA generally treats a gift of capital property as a disposition at fair market value for the donor. That can create a capital gain even when provincial land transfer tax is nil. Principal-residence designation, change of use and cross-border facts can change the result. CRA’s principal residence folio recognizes beneficial and joint ownership, but exemption depends on the taxpayer’s facts.

The Supreme Court of Canada’s decision in Pecore v. Pecore also shows why contemporaneous evidence of intention matters when a gratuitous transfer to an adult child is later disputed as a gift versus a trust.

Path 2: bare trust or nominee title

Sometimes a parent, spouse or other relative is on title only because a lender required another name, or because the family wants legal title held for a beneficial owner. Ontario’s Ministry of Finance may accept a later conveyance from trustee to beneficial owner as nil consideration where satisfactory trust evidence shows the parent acquired no beneficial interest.

That is the Ministry’s FAQ example of a parent on title for mortgage purposes. It is not automatic. The trust story must match the documents and conduct from the start.

Where beneficial ownership has not changed, Ministry guidance on conveyances involving trusts treats the value of the consideration as nil for trustee-to-beneficial-owner, beneficial-owner-to-trustee, or trustee-to-trustee for the same beneficial owner. The Ministry can still request trust evidence under its nil-consideration trust guide.

CRA’s bare-trust reporting FAQ is a separate federal filing topic. Reporting rules have been changing. An accountant should confirm the current position for the family’s facts. Do not treat “we called it a bare trust” as both an LTT plan and a tax plan without advice.

Path 3: adding a spouse, child or parent as a true co-owner

If the relative is taking a real ownership interest, treat it as a conveyance of that interest. Record the percentage, whether title will be joint tenancy or tenancy in common, who pays expenses, who can force a sale and what happens on death or separation.

Adding someone for estate planning is not free of trade-offs. Joint tenancy can avoid probate on that asset through survivorship, but it also gives the new owner present rights and can complicate a later refinance, sale or family dispute. A survivorship application is a different filing after death; it does not replace a careful decision about whether to add the person while everyone is alive.

If the relative is being added mainly so a child can buy or refinance, compare that with gift or guarantee structures first. Purchase-side options are covered in the bank of mom and dad guide. A title change on an already-owned home still needs lender consent and a fresh LTT analysis.

Land transfer tax when a mortgage stays on title

Assumed mortgage debt is usually consideration

This is the issue that surprises families. A “gift” of a half interest is not nil consideration if the child takes on half the mortgage. Ontario’s land transfer tax FAQ says that where a parent transfers a half interest and there is a mortgage, the value of the consideration includes one half of the principal balance and accrued interest still owing, plus any other consideration given for that half interest.

The same FAQ says that if a transferee acquires a 33% interest subject to a mortgage, consideration includes 33% of the principal and accrued interest to the conveyance date, plus any other benefit given as part of the arrangement. The percentage follows the interest transferred. Do not assume a flat family rate or a fixed exemption.

Provincial land transfer tax uses Ontario’s progressive brackets on the taxable consideration. Toronto also has municipal land transfer tax on properties in the city. For brackets, rebates and purchase-side examples, see the Ontario land transfer tax guide and the first-time LTT rebate rules. A mid-ownership family transfer is usually not a first-time-buyer purchase, so do not stretch rebate language onto facts that do not fit.

Spousal transfers are narrower than most people think

Transfers between spouses or former spouses are not automatically free of land transfer tax. Regulation 696 under the Land Transfer Tax Act exempts only certain situations. The Ministry’s transfers of land between spouses page and the regulation text describe three qualifying paths:

First, the only consideration is assumption of a registered encumbrance such as a mortgage. Second, the transfer complies with a written separation agreement under which the parties agree to live separate and apart. Third, the transfer complies with a court order or judgment. Paying additional money for the other spouse’s interest can take the file out of the first path.

“Spouse” for this purpose follows section 29 of the Family Law Act: married spouses, or unmarried partners who have cohabited continuously for at least three years, or who are parents of a child in a relationship of some permanence. A casual “we live together” label is not enough on the affidavit.

A true inter-spousal gift with no consideration and no encumbrance can still be nil tax as a nominal conveyance. If there is any benefit or assumed debt, that amount is consideration. The Ministry warns that natural love and affection language does not erase mortgage assumption.

Lender consent, documentation and the closing file

Most residential mortgages restrict transfers of interest without the lender’s written consent. Adding or removing a name can trigger due-on-sale language, a required refinance, a new covenant or a full discharge and remortgage. Get the lender’s position in writing before the Transfer is drafted.

The lawyer’s file typically includes identification, marital-status statements, the existing parcel register, mortgage payout or assumption figures, land-transfer-tax statements, and any trust declaration the family intends to rely on. Independent legal advice may be required where interests conflict.

If family money is also being secured against the home, that is a separate private mortgage problem with priority and registration questions. If the transfer is part of a sale or refinance timeline, coordinate it with the ordinary closing process so funds, discharges and registrations line up.

Separation, estate and reporting risks after the transfer

Putting a child on title can expose the home to the child’s creditors, spouse or family-law claim. The Family Law Act treatment of a matrimonial home and of gifted or inherited property depends on title, tracing, use of funds and any domestic contract. A transfer “to keep it simple” can create the dispute it was meant to avoid.

Estate plans should be updated in the same conversation. Joint tenancy, tenancy in common, wills and powers of attorney can point in different directions. Unregistered changes in beneficial ownership after July 18, 1989 can also create separate Ministry filing obligations under section 3 of the Land Transfer Tax Act—another reason not to rely on informal side letters alone.

Residential purchase legal fees at this firm start at $2,299 + HST and sale fees at $1,999 + HST. A title transfer without a purchase or sale is a different file and a different bill. Ask for the quote that matches the actual transfer, mortgage work and tax statements required.

What to settle before anyone signs

Write down whether the relative is receiving a gift of equity, holding legal title only as trustee, or becoming a true co-owner. Those three answers drive LTT, income tax, lender consent and family-law exposure.

Obtain current mortgage balances and lender consent requirements. Decide joint tenancy or tenancy in common. Prepare trust evidence if the plan depends on nil consideration for a trustee conveyance. Give the lawyer, lender and accountant the same facts.

Then register only the structure the family actually intends. A Transfer that says one thing while a private email says another is how later Ministry reviews, CRA audits and family disputes begin.

Frequently Asked Questions (FAQ)

Family money changes more than the down payment

A parent can help an Ontario buyer in three very different ways: give cash, guarantee the mortgage, or take an ownership interest. They may all get the purchase funded. They do not create the same rights or risks.

The choice should be settled before the offer becomes firm. A gift letter that says “no repayment” cannot safely sit beside a private promise to pay the money back. A parent placed on title only for financing should not discover at closing that the documents treat them as a true owner.

A Toronto real estate lawyer can coordinate the title, mortgage instructions, source-of-funds record and closing process. Tax and family-law advice may still be needed because the real estate lawyer should not guess at beneficial ownership or the family’s tax plan.

First ask what problem the parent is solving

A cash shortfall points toward a gift or a disclosed family loan. An income or credit qualification problem may point toward a guarantor or non-residing co-borrower if the lender accepts that structure. A parent who actually wants equity, voting power and a share of sale proceeds is considering co-ownership.

Whatever path the bank uses, ask whether the mortgage will be registered as a standard charge or a collateral charge — it affects switching lenders later. Overview: collateral charge vs conventional mortgage in Ontario.

Do not start with the label. Start with the intended economics: Is the money repayable? Who gets the increase in value? Who bears a loss? Who can force or block a sale? What happens on death, separation, disability or refinance? Then ask the lender which structure it will approve.

Path 1: a genuine gift

The lender wants a clean source-of-funds record

CMHC Purchase lists a non-repayable financial gift from a relative as a traditional down-payment source. That does not make every lender’s document list identical.

For one current insurer example, Sagen’s underwriting guidance calls for a gift letter stating the date, family or legal relationship, dollar amount and that the gift is non-repayable. It also requires the source to be verified in the donor’s or borrower’s account. The lender may ask for account statements, transfer records or its own form.

Move the money early enough to leave a trace. Tell the mortgage broker and lawyer where it came from. A large unexplained deposit can delay both underwriting and the lawyer’s source-of-funds review.

Gift, loan and inheritance advance are not interchangeable

If repayment is expected, call it a loan and disclose it to the lender. A family loan may affect debt-service calculations. If it is secured against the home, it becomes a private mortgage issue with priority, registration and separate-lawyer questions.

If the parent means an advance against a future inheritance, record that too. The document should address whether the amount is brought into account in the parent’s estate and what happens if the buyer separates, sells or dies first. That is estate and family-law work, not a sentence to improvise in a lender gift letter.

The Supreme Court of Canada’s decision in Pecore v. Pecore shows why intention and evidence matter when a gratuitous transfer from a parent to an adult child is later disputed. A contemporaneous record is stronger than competing memories years later.

No general gift tax does not mean no tax or family consequences

CRA’s list of amounts that are not reported or taxed includes most gifts and inheritances. A cash gift to an adult child is therefore not generally subject to a separate Canadian gift tax or treated as the child’s income.

Other events around the gift can still matter. A parent may realize income or a gain when selling investments or other capital property to raise the cash. CRA says a gift of capital property is generally a disposition at fair market value. Income later earned on gifted funds and cross-border donors can add different issues. Ask an accountant for the actual facts.

If the buyer has a spouse or partner, the treatment of the gift on separation depends on the Family Law Act, how the funds were used, title, tracing and any domestic contract. A gift “to my child” should not be treated as a complete family-law plan.

Path 2: the parent guarantees the mortgage

A guarantee supports the debt, not the down payment

A guarantor promises the lender that the mortgage obligations will be met if the guarantee is engaged. The parent does not receive equity merely by giving that promise. The exact trigger, scope and duration come from the guarantee, charge terms and lender instructions.

Do not reduce the exposure to “one missed payment.” Depending on the document, liability can include unpaid principal, interest, enforcement costs and obligations that continue through renewals or amendments. Sagen, for example, requires guarantees in its insured files to be fully enforceable and to survive amendments or renewal. Another lender’s form may be different.

Title and mortgage placement are lender-specific

Some lenders accept a guarantor who is not on title. Others require the supporting parent to sign the charge, become a co-borrower, or go on title. Those roles are not synonyms. The commitment and final documents decide what the parent is actually signing.

Sagen’s current policy accepts certain direct-family guarantors and non-residing co-borrowers for qualification, subject to its product requirements. Its separate title rule requires everyone on title to be liable for the insured mortgage. That is an insurer example, not a universal description of every mortgage in Ontario.

Independent advice and an exit plan matter

A lender or the lawyers may require the guarantor to receive independent legal advice. Even where a certificate is not imposed as a universal rule, separate advice can identify conflicts between protecting the child and protecting the parent.

The parent cannot simply resign after closing. Release normally requires the lender’s written approval and may require the child to requalify, refinance or pay down the mortgage. Decide before closing how the family will approach renewal, sale, default and the parent’s need to borrow for another property.

Path 3: the parent becomes a co-owner

Legal title and beneficial ownership are different

Legal title is the name registered in Ontario’s land registry. Beneficial ownership is the real economic interest: who contributed, controls the property, receives sale proceeds and bears gains or losses. A parent can be on legal title as trustee or nominee without the same beneficial interest as a true co-owner, but that arrangement must match the documents and conduct.

Calling someone a “one per cent owner” or “bare trustee” after the fact does not settle the issue. The mortgage, trust declaration, purchase funds, tax reporting and sale proceeds should tell one consistent story. CRA notes that bare-trust reporting can apply where one person holds legal title and acts only on the beneficial owner’s instructions. Reporting rules are changing, so an accountant should confirm the current filing position.

If the parent really buys equity, record the percentage and the deal between the owners. A title transfer later may require lender consent and can have land-transfer-tax and income-tax effects.

After closing, moving an already-owned home among family is a different file. Gift of equity, bare trust, and LTT on an assumed mortgage are covered in transferring title to family in Ontario.

Joint tenants or tenants in common

Ontario co-owners also choose how title is held. Joint tenancy usually carries a right of survivorship. Tenants in common hold separate shares that pass through their estates. The joint tenants versus tenants in common choice should follow the estate plan, contributions and intended exit—not a default box selected at closing.

A co-ownership agreement can address expenses, repairs, occupancy, refinancing, sale, valuation and deadlock. It cannot force the mortgage lender to release an owner or ignore the registered charge.

Land transfer tax and first-time-buyer refunds depend on the facts

A parent on title does not automatically erase the child’s Ontario first-time-homebuyer refund. The Ontario Ministry of Finance refund guidance separates true beneficial co-ownership from a parent who holds title as trustee for financing.

If a parent and child acquire equal beneficial interests and only the child qualifies, the Ministry’s example makes the refund proportionate to the child’s interest. If the parent acquired no beneficial interest and is on title as trustee at the bank’s insistence, the Ministry says it can accept that arrangement when satisfactory trust evidence is submitted. Its page says the tax may need to be paid on registration and the refund claimed afterward. Review the full first-time land transfer tax rebate rules; Toronto’s municipal rebate is a separate program.

Removing the parent later is another transaction. Ontario’s land transfer tax FAQ says a transfer from a documented trustee to the beneficial owner can have nil consideration where the Ministry accepts the trust. A true transfer of the parent’s beneficial share can include mortgage debt and other consideration. Do not assume a family transfer is tax-free. See the broader Ontario land transfer tax guide.

Capital gains, principal residence, estate and family issues

A true co-owner has an asset. A later sale or transfer can produce a tax disposition. CRA’s principal residence folio recognizes that ownership can be beneficial and can be joint, but the exemption depends on designation rules and the taxpayer’s facts. A parent should not assume the child’s occupancy makes the parent’s share automatically exempt.

Co-ownership also changes the parent’s estate and the buyer’s family-law picture. Joint tenancy, tenancy in common, wills, domestic contracts and contribution records can point to different outcomes. Coordinate the real estate documents with an estates lawyer, family lawyer and tax adviser where those risks are material.

Gift, guarantor or co-owner: a practical comparison

Gift

Best fit when the parent intends no repayment, no equity and no control. The core documents are the lender’s gift and source-of-funds record, plus any estate or family-law record needed to preserve the intended treatment.

Guarantor

Best fit only when the lender accepts credit support without the parent taking the intended equity. The parent takes debt risk. The scope, title position, independent-advice requirement and release route come from the lender’s structure and documents.

Co-owner

Best fit when the parent truly intends to own an interest and share the economics. It brings title, mortgage, tax, rebate, estate and exit questions. If title is only nominal, document the trust rather than pretending legal title has no consequences.

What to settle before the offer is firm

Confirm with the mortgage professional whether the lender accepts a gift, guarantor, non-residing co-borrower or parent on title. Ask for the required wording and document list.

Write down whether family money is a gift, loan or inheritance advance. If it is a loan, disclose it and decide whether it is unsecured or registered. Never sign a non-repayable gift letter while keeping a hidden repayment agreement.

Settle legal and beneficial ownership, percentage shares, joint tenancy or tenancy in common, sale proceeds and the exit plan. Then test the structure against Ontario and Toronto rebates, land transfer tax, principal-residence rules, estate plans and family-law exposure.

Give the lender, accountant and lawyers the same facts. A structure that depends on each professional hearing a different story is not a structure ready for closing.

Frequently Asked Questions (FAQ)

Your balcony may not be part of your unit

In an Ontario condominium, "yours" and "owned" are not always the same thing. The Condominium Act, 1998 defines common elements as all the property except the units. A balcony, parking space, or locker can be exclusive-use common element: you alone get to use it, but the corporation still owns it.

That split drives repair responsibility, alteration rules, and what you can sell. It also shows up in doorbell, camera, and smart-device disputes when the device sits on a door, wall, or hallway that is common element.

A Toronto real estate lawyer reads the declaration schedules and the status certificate so the parking and locker on the offer match what the corporation actually allocated. Purchase legal fees start at $2,299 plus HST.

Exclusive-use common elements vs unit boundaries

Unit boundaries are set in the registered declaration and description. Everything outside those boundaries is common element unless the documents say otherwise.

Exclusive-use common elements are common elements reserved for one unit, or a small group of units. The Condominium Authority of Ontario puts it plainly: balconies and other exclusive-use areas are owned by the corporation, but owners use them exclusively.

The declaration must specify which parts of the common elements are for designated units and not for all owners. That specification is why Schedule language matters more than the listing photo or the lockbox tour.

Balcony, parking, and locker: three common patterns

Balconies and terraces are often exclusive-use common elements. You may keep them clean and free of banned items under the rules. Major repair of the slab, railing, or waterproofing usually sits with the corporation, subject to the declaration and any standard-unit description.

Parking and lockers cut two ways. Some buildings register them as separate units with their own PINs. Others grant exclusive use of a common-element space tied to a residential unit. Owned parking can often be sold or leased on its own, if the declaration allows. Exclusive-use parking usually travels with the residential unit and does not create a separate transferable title.

Do not assume the spot number on the MLS printout is a titled unit. Confirm it against the declaration schedules and the status-certificate unit status pages.

Declaration, by-laws, and rules: the hierarchy that actually binds you

Ontario condo living runs on stacked documents. The Act sits at the top. Then the registered declaration and description. Then by-laws. Then rules.

By-laws under the Act deal with governance, among other things. Rules under the Act are for the safety, security, or welfare of owners and property, and for the common elements and units. A rule that conflicts with the Act, the declaration, or a by-law does not fix the conflict by being newer or more popular on the notice board.

When a board says "no barbecues on balconies" or "no cameras in the hallway," the first question is which document creates that limit. The second is whether the limit was made the way the Act requires.

What a buyer should check in the status certificate and declaration

The status certificate package is where exclusive-use allocations, arrears, and governing documents land in one file. On a resale condo, put a status-certificate condition in the agreement of purchase and sale with enough days for delivery plus lawyer review.

Match the residential unit, parking, and locker descriptions to the offer. Wrong locker numbers and "TBD" parking show up in the certificate long after the showing.

Read the exclusive-use schedules. Confirm whether parking and locker are units or exclusive-use common elements. Note any leases of common elements, any section 98-style alteration agreements on title, and any rules about pets, short-term rentals, renovations, or exterior devices.

Common expenses and proposed increases sit in the same package. Exclusive-use rights do not excuse unpaid maintenance fees. Arrears can follow the unit.

A special assessment is a separate levy on top of those monthly fees. Buyer and seller notes: condo special assessments in Ontario.

Pre-construction is a different disclosure path. Occupancy and final closing do not run on a resale status certificate. See the pre-construction condo closing and interim occupancy guides for that track.

Alterations, doorbells, and smart devices need board approval

Section 98 of the Condominium Act, 1998 is the owner-change gate for common elements. An addition, alteration, or improvement to the common elements by an owner generally needs board approval and a written agreement with the corporation. The CAO guidance tells owners to contact the board and submit a section 98 request before changing exclusive-use areas.

Video doorbells, peephole cameras, and hallway-facing smart devices often sit on a unit entrance door or adjacent wall that is partly or wholly common element. Installing one without approval can breach section 98 even if the camera only "watches" your door. Boards commonly ask for an indemnity agreement, wiring standards, and privacy limits.

Balcony screens, flooring, awnings, heat pumps, and satellite dishes land in the same bucket when they touch exclusive-use or other common elements. Inside-the-unit work can still hit common-element pipes, concrete, or fire separations. Ask before you cut.

This page does not invent fine amounts or board fee schedules. Remedies and costs turn on the Act, the corporation's documents, and the facts of the file.

Exclusive-use parking vs owned parking

Owned parking is a separate condominium unit. It has (or shares) a legal description you can search. Transfer and mortgage language has to include it if it is part of the deal.

Exclusive-use parking is a use right over common elements. The corporation's records and the declaration schedule identify the space. You cannot treat it like a freehold parking pad you can sell to a stranger in another building unless the documents create that right.

Listings blur the labels. "Exclusive parking" on a brochure is marketing language. The declaration and status certificate decide the legal label.

Typical disputes around exclusive use

Wrong parking or locker on closing. The APS promised P2-114 and L-088. The corporation's records show a different pair. Fix it before waiver, not on moving day.

Unauthorized alterations. A doorbell, tile, or enclosure goes up without a section 98 agreement. The board demands removal or an indemnity. Neighbours complain about cameras pointing into the corridor.

Repair cost fights. Water enters through a balcony membrane. The owner says exclusive use means the owner pays. The declaration and repair/maintenance provisions decide, not hallway folklore.

Rule enforcement that outruns the hierarchy. A posted "guideline" is not a registered declaration amendment. Compliance still matters once a valid rule exists, but the document trail matters when the fight reaches mediation or court.

What the lawyer actually does on the file

On a purchase, the lawyer lines up the APS descriptions with the declaration schedules and the status-certificate allocations. Exclusive-use vs owned parking is a title and search problem, not a showing note.

On a sale, the same mismatch stalls closing when the buyer's side requisitions the correct locker or asks for proof of a section 98 agreement the seller never registered.

Living in the unit after closing, alteration requests and device approvals are corporation processes under the Act. Get the board paper before the contractor books the elevator.

Frequently Asked Questions (FAQ)

Listing the house does not end the tenancy

Selling an Ontario rental is not the same as ending the lease. Under section 37 of the Residential Tenancies Act, 2006, a tenancy ends only in the ways the Act allows. Under section 39, a landlord cannot simply take the unit back because an offer came in.

On closing, the buyer steps into the landlord's shoes unless the tenancy has already ended under the RTA. That is why vacant possession on a tenanted sale needs a plan before the agreement of purchase and sale is firm.

A Toronto real estate lawyer reads the lease, the unit count, and the vacant-possession wording early. Sale legal fees start at $1,999 plus HST. The tenancy process is a separate track from the land transfer.

Two sale strategies: tenant in place or vacant possession

Most tenanted sales fall into one of two lanes.

Sell with the tenant in place. An investor buyer may want the rent, the last-month deposit, and the existing lease. The APS should say the buyer takes the tenancy, and the statement of adjustments should deal with prepaid rent and the deposit.

Seek vacant possession for an end-user buyer. That path usually means an N12 for purchaser own-use under section 49, a voluntary N11 (often called cash-for-keys), or a longer closing while the RTA process runs. Do not treat "the listing says vacant" as a legal ground to evict.

Purchaser own-use N12 under section 49

Section 49 is the sale-specific own-use route. The landlord serves Form N12 on the purchaser's behalf. LTB Interpretation Guideline 12 and the LTB forms page are the practical references.

The statute is narrow. There must be an agreement of purchase and sale in place. The residential complex must contain no more than three residential units, or the unit must be a condominium unit under section 49(2). Above three units in a non-condo complex, this route is not available.

The purchaser must, in good faith, need the unit for residential occupation by the purchaser, the purchaser's spouse, a child or parent of either of them, or a qualifying caregiver under section 49. The intended occupant must genuinely need the unit for residential occupation for at least one year. An affidavit or declaration of good faith goes with the L2 application.

Notice timing matters. The termination date must be at least 60 days after the N12 is given, and it must fall on the last day of a rental period or, for a fixed term, not before the end of that term.

Compensation under section 49.1 is one month's rent, or another rental unit the tenant accepts. That obligation sits with the landlord who served the notice, not with the purchaser. Pay it by the termination date on the N12. The LTB will not order eviction without it.

An N12 is a notice, not an eviction order. If the tenant stays, the landlord files an L2. Hearings can take months. Do not promise vacant possession by the N12 date in the APS.

Landlord own-use N12 under section 48 is a different path

Section 48 is for the landlord, the landlord's spouse, a child or parent, or a qualifying caregiver moving in. It is not a "sale" ground. Corporate landlords cannot use section 48 for personal use.

Compensation under section 48.1 is also one month's rent or an acceptable alternate unit, unless a later Bill 60 exception applies on the facts and the current statute. Check the live RTA before you serve.

Bill 60 note: check e-Laws before you serve

As of 8 September 2026, Schedule 12 of the Fighting Delays, Building Faster Act, 2025 adds a longer-notice exception to compensation under section 48.1 for certain landlord own-use notices. Order in Council 618/2026 names 21 September 2026 as the in-force day for that amendment.

When it is in force, the exception applies only if the notice is given on or after that day, the termination date is at least 120 days after the notice, and the termination date falls on the end of a rental period or fixed term. The Bill text amends section 48.1. It does not create the same 120-day waiver for purchaser notices under section 49.1.

Secondary summaries are not the statute. Read the current RTA on e-Laws before serving any N12.

Cash-for-keys is voluntary

Cash-for-keys is a negotiated deal. The tenant can refuse. There is no statutory "standard" dollar amount, and this page does not invent one.

If the parties agree to end the tenancy, document it with Form N11 (Agreement to End the Tenancy). If money changes hands, put the payment terms in a separate written agreement. Do not rely on a handshake or a text thread alone.

An N11 that is signed as a condition of getting the unit in the first place can be void under the Act. Timing and pressure matter. Get advice before you paper the deal.

Do not promise vacant possession before the RTA process is done

Promising vacant possession in the APS while the N12 or N11 path is unfinished is how sellers land in breach territory. Build timing into Schedule A before the offer is firm: a long closing, an extension right, a right to assign the tenancy to the buyer, or a clear "tenant remains" deal.

The closing process still needs keys, adjustments, and possession language that matches the tenancy plan. Seller closing costs and commission do not buy an eviction order.

Showings need written 24-hour notice

Under section 27(2), the landlord or an authorized registrant may enter to show the unit to a potential purchaser with written notice at least 24 hours before entry. The notice must state the reason, the day, and a time between 8 a.m. and 8 p.m.

That is showing access. It is not vacant possession.

Bad faith after an N12

If an N12 is given in bad faith and the intended occupant does not move in within a reasonable time after the tenant leaves, a former tenant may apply under section 57 on a T5. Remedies can include rent-differential compensation, moving costs, an abatement, general compensation, an administrative fine within the Board's monetary limits, or other orders the Board considers appropriate.

This page does not invent maximum fine figures. Read section 57 and Guideline 12 for the current remedial list.

Private sellers face the same RTA rules. A private sale does not skip the N12, N11, or vacant-possession timing problem.

Frequently Asked Questions (FAQ)

The holdback that is not a deposit

When a non-resident sells a house in Ontario, section 116 of the Income Tax Act sits on the file. It is not Ontario's Non-Resident Speculation Tax. It is not the federal foreign buyers ban. Those rules hit buyers on the way in. Section 116 hits the seller on the way out. If the certificate is missing, the buyer may become liable to CRA for a specified amount of tax, and is entitled to hold that amount back from the price.

CRA's procedures circular is blunt. A non-resident who disposes of taxable Canadian property has to notify CRA before the sale, or within ten days after. A house in Ontario is real property situated in Canada. That is taxable Canadian property. Once CRA has tax or acceptable security, it issues a certificate of compliance to the vendor and a copy to the purchaser. If the purchaser does not receive that certificate, the purchaser must remit a specified amount to the Receiver General and may deduct it from the price.

A Toronto real estate lawyer asks about residency before the offer is firm. A late T2062 is how 25 or 50 percent of the purchase price sits in trust after closing, depending on the type of property.

What the certificate actually is

The certificate of compliance is CRA's confirmation that the non-resident has paid or secured the tax on that disposition. It is not a residency ruling. It is not proof the seller is a Canadian. It is a certificate for that sale.

The vendor files Form T2062 for a proposed or actual disposition of taxable Canadian property that is capital property. For depreciable property, inventory real property, and a few other buckets, the form is T2062A. Some files need both: T2062 for the capital gain on land and building, T2062A for recapture.

If the notice is for a proposed sale, CRA issues Form T2064. If it is for an actual sale, CRA issues Form T2068. A copy goes to the purchaser. That copy is what takes the purchaser off the hook for that notice.

To get the certificate on ordinary capital property, the vendor pays 25 percent of the amount by which proceeds exceed the adjusted cost base, or posts security CRA will accept. CRA's circular is explicit: selling costs such as commission are not deducted in that calculation. Those come off later on the income tax return for the year.

The vendor needs a Canadian tax number. If there is no SIN, TTN, or ITN, apply for an ITN on Form T1261 separately and ahead of the T2062. CRA will not issue the certificate without an identification number.

The purchaser's 25 percent and 50 percent

Without a certificate, the purchaser is entitled to withhold the amount they may have to remit to CRA. That amount is not a percentage of the gain. It is 25 percent or 50 percent of what the purchaser paid, depending on the type of property.

Subsection 116(5) makes the purchaser liable to remit 25 percent of the cost of the property, unless a certificate has been issued, the property is excluded, or after reasonable inquiry the purchaser had no reason to believe the vendor was a non-resident. The same subsection entitles the purchaser to withhold that amount from the price. That 25 percent applies to taxable Canadian property that is not property described in subsection 116(5.2). A typical personal-use house is in that bucket.

Subsection 116(5.3) raises it to 50 percent for property described in subsection 116(5.2). That list includes real property that is not capital property (inventory of land) and depreciable taxable Canadian property, such as a rental building on which capital cost allowance can be claimed. On a rental file, the building is usually the 50 percent piece and the land is often still capital property at 25 percent. Do not assume 25 percent of the whole price. If it is unclear which subsection applies, do not default to the lower rate. CRA's disposing-or-acquiring page puts it the same way: the purchaser may withhold 25 percent, or 50 percent on certain types of property.

On a $1 million personal-use house with no certificate, the purchaser's number is $250,000, not 25 percent of the gain. That is why the certificate matters. With a T2064 or T2068 in hand, the purchaser's remaining liability is only the amount by which the price exceeds the certificate limit.

Any amount the purchaser has to remit is due to the Receiver General within 30 days after the end of the month in which the property was acquired. Late remittance carries a penalty under subsection 227(9): 3 percent if one to three days late, 5 percent at four or five days, 7 percent at six or seven, and 10 percent after that.

Apply before closing. The ten-day rule is a backstop.

The vendor may notify CRA of a proposed disposition at any time before closing. CRA's circular tells vendors to send that notice at least 30 days before the property is disposed of, so there is time to review the file and the payment. Disposition of real property is usually the closing date, when the deed is delivered.

If the vendor did not file a proposed notice, or the actual deal does not match the proposed one, subsection 116(3) requires notice of the actual disposition no later than 10 days after. Late notification is a penalty under subsection 162(7): $25 a day, minimum $100, maximum $2,500.

Do not wait for the ten-day clock. Certificates often arrive after closing even when the T2062 went in early. Ontario files with a 30- or 60-day closing do not leave much room.

For an Ontario property, CRA currently directs the notification to the Section 116 Centre of Expertise in Ottawa. The current mailing address and the online Submit Documents path are on CRA's disposing-or-acquiring page. Use that page, not a memorized address.

What actually gets held on an Ontario closing

Subsections 116(5) and 116(5.3) entitle the purchaser to withhold the 25 or 50 percent from the price. That is a statutory right, not a courtesy. On a residential file, that is how the money is protected. The buyer's lawyer does not pay that slice to the seller on closing if the certificate is not in hand.

The usual Ontario practice is to hold the statutory amount in a lawyer's trust account until CRA issues the certificate. That is not the same as remitting it. Remittance is a payment to the Receiver General. A trust holdback is the purchaser using the right to withhold so the funds are still there if CRA later demands the tax.

If the certificate has not arrived and the 30-days-after-month-end remittance date is close, the purchaser's side has to take that clock seriously. Interest and the late-remittance penalty run from that date, not from when CRA eventually mails the T2068.

The holdback is not a deposit. The deposit already sits in the listing brokerage's trust account under the agreement of purchase and sale. Section 116 money is a tax holdback on closing funds. Mixing those two piles is how a statement of adjustments gets rewritten on closing morning.

Title insurance does not replace the holdback. A title insurance policy may ask about residency. It does not pay the purchaser's section 116 liability.

Reasonable inquiry is not a shrug

The purchaser is off the hook if, after reasonable inquiry, there was no reason to believe the vendor was a non-resident. CRA will not make that inquiry for you. It reviews each assessment on its own facts. If CRA thinks the purchaser could have known, or did not take prudent steps, the purchaser stays liable. There is no limitation period on a purchaser-liability assessment.

Ask. Get a written residency representation. The standard Ontario agreement already has the seller warranting they are not, and on completion will not be, a non-resident under the Income Tax Act. Treat a Florida address, a long absence, an estate with an executor abroad, or a "my accountant handles Canada" answer as a reason to keep asking. Do not diagnose sojourning days from a listing.

Residency for section 116 is the vendor's status at the disposition. CRA's circular says the section applies if the vendor is a non-resident, or is deemed a non-resident. It also applies if the vendor is a resident when they list, but will be a non-resident when the property is actually sold. The purchaser's own country of residence is irrelevant.

A principal residence does not skip the form

A non-resident can still designate a Canadian house as a principal residence. The exemption is limited by the number of years the taxpayer was resident in Canada after they acquired it. Years of non-residence generally do not count in the numerator. CRA still wants a T2062, or an equivalent notice. The tax or security can be reduced to match the remaining taxable gain. Attach Form T2091 or a signed calculation.

Do not tell the buyer's lawyer it was a principal residence as a reason to skip the holdback. The form still has to go in.

CRA may also refuse the certificate on a residential property if the vendor has outstanding Underused Housing Tax filings or amounts. That is a separate federal statute. It is a reason a T2062 stalls. It is not a reason to treat this page as a UHT guide.

This is not NRST and not the foreign buyers ban

Ontario's Non-Resident Speculation Tax is a tax on certain buyers of designated land. The federal prohibition on the purchase of residential property by non-Canadians is a ban on certain purchases. Both are inbound. They are covered on the foreign buyers ban page. Land transfer tax is also a buyer's tax, remitted on registration.

Section 116 is outbound. It is federal income tax collection on a non-resident's sale of taxable Canadian property. A Canadian citizen who has left Canada can still be a non-resident seller. A foreign buyer who later sells is also in this section. Do not mash the three statutes into one closing checklist line.

What the lawyer actually checks

On a sale, the lawyer reads the residency warranty in the agreement, asks the client where they live and when they left, and flags a T2062 early if the answer is not a clean Canadian resident. Sale legal fees start at $1,999 plus HST. The section 116 holdback is not a legal fee. It is a CRA amount sitting in trust or remitted to Ottawa.

On a purchase, the lawyer does not take the warranty at face value if the file smells non-resident. The closing still needs a plan for the holdback, the remittance date, and who applies for the certificate. Get that into the agreement before it is firm. Fixing it after waiver is a favour.

Frequently Asked Questions (FAQ)

What a condition does on an Ontario offer

On a standard Ontario agreement of purchase and sale, a condition is a pause button with a deadline. Until it is fulfilled or waived in writing, the deal is not firm. Miss the deadline on a condition precedent and the agreement usually dies. The deposit is then returned under a mutual release, not because someone changed their mind.

Most resale offers use four buyer conditions: financing, home inspection, condo status certificate review, and sale of the buyer's current property. The wording lives in Schedule A. The dates live on the face of the form. Both matter.

A Toronto real estate lawyer reads those clauses before the irrevocable expires, because fixing a bad condition after acceptance is a favour, not a right.

Financing condition

The financing condition lets the buyer walk if a mortgage on satisfactory terms does not come through by the condition date. "Satisfactory" is usually the buyer's honest judgment of the lender's terms, not a blank cheque to shop forever.

Typical windows run about five to ten business days, depending on the lender and how busy the market is. That is negotiated, not fixed by statute. The buyer still needs a real application in motion. Waiting until day four to call a broker is how conditions blow up.

When the lender approves the loan the buyer wanted, the clean paper is usually a notice of fulfillment. A waiver says the buyer is dropping the protection even if the condition is not fully met. Agents mix those up. The difference is explained in removing conditions on an APS.

Financing is not the same as the deposit. The deposit already sits in trust. Financing is about whether the rest of the purchase funds will fund on closing.

Home inspection / property inspection condition

An inspection condition gives the buyer time to hire a home inspector and decide whether the property is acceptable. It is how buyers deal with patent defects that seller disclosure does not have to volunteer.

The window is often three to seven business days. Book the inspector the day the offer is accepted. A weekend irrevocable with a three-day condition and no inspector booked is a paper condition.

If the report is clean and the buyer wants to proceed, fulfillment is the usual route. If the report shows problems and the buyer still wants the house without renegotiating, a waiver drops the condition. If the buyer wants a price credit or a repair, that is an amendment, not a silent waiver.

The condition only helps if Schedule A says what "satisfactory" means and who decides. Vague wording invites a fight about whether the buyer acted in good faith.

Condo status certificate condition

On a condominium purchase, the status certificate condition lets the buyer's lawyer review the corporation's package before the deal firms up. The certificate is the building's financial and legal snapshot, not a home inspection of the unit.

During that review, confirm whether parking and lockers are owned units or exclusive-use common elements, and whether balcony or doorbell alterations need a section 98 agreement. More on condo exclusive-use rules in Ontario.

Under section 76 of the Condominium Act, 1998, the corporation must deliver the certificate within ten days of a proper request and fee. The fee is capped at $100 including HST. That ten-day delivery clock can eat a short condition period. Order the package the day the offer is accepted.

A useful condition period is long enough for delivery plus lawyer review. Many files use roughly ten business days for the corporation plus several more for review, but the number is whatever Schedule A says. The status certificate guide walks through what the package actually contains.

Special assessments, reserve-fund holes, rule fights, and insurance gaps show up here. They do not show up on a walkthrough.

How those levies work for buyers and sellers — and what to negotiate before waiver — is here: condo special assessments in Ontario.

Sale of buyer's property condition

This condition makes the purchase depend on the buyer selling their current home by a set date. It protects a buyer who cannot carry two properties or who needs the sale proceeds to close.

Once both deals are firm on the same completion date, the protective pause is gone and closing-day fund sequencing becomes the risk — see same-day purchase and sale / chain closings in Ontario.

Once both deals are firm and the purchase still closes first, many buyers fund the gap with a bank bridge — which usually also needs that firm sale. Guide: bridge financing in Ontario.

Sellers dislike it in a hot market because the buyer's timing controls the file. The usual trade-off is an escape clause: if the seller receives another acceptable offer, the first buyer gets a short window (often 24 to 72 hours) to waive or fulfill and go firm, or step aside.

Windows are highly negotiable. Thirty to ninety days is common talk. The real number is whatever both sides sign. Write the escape-clause mechanics clearly. Ambiguous escape language creates two angry files instead of one clean exit.

Condition dates, waiver, fulfillment, and a firm deal

A conditional deal is still a contract. It is just not unconditional yet. A firm deal means every condition is gone. After that, walking away is breach, not due diligence.

Once the deal is firm, casualty risk sits under the APS insurance clause — not under a financing or inspection condition. Fire or substantial damage before closing: equitable conversion and the Ontario insurance election.

Most Ontario residential conditions are drafted as conditions precedent. Silence past the deadline usually kills the deal. A condition subsequent works the other way: the deal stays alive unless someone objects in time. The label matters. See condition precedent vs condition subsequent.

Written notice has to land by the deadline. OREA Form 124 is the notice of fulfillment. OREA Form 123 is the waiver. Email habits do not replace the form the agreement calls for. Time is of the essence on these files.

What the lawyer actually does during the condition period is review the APS language, order and read the status package on a condo, watch the financing and inspection clocks, and make sure the right notice goes out before 11:59 p.m. on the right day.

Schedule A is where the wording lives

The standard OREA face page has the dates. Schedule A has the sentences that decide whether a condition actually protects anyone. Copy-paste from the last deal is how buyers get a status condition with no time for the corporation's ten days, or a financing clause the lender's commitment cannot satisfy.

• Name who benefits from the condition and how notice is delivered.
• Set a real clock, including weekends and holidays if that is what you mean.
• Say whether fulfillment, waiver, or both can firm the deal.
• On sale-of-property, spell out the escape clause and the buyer's response window.
• On status certificates, tie the clock to receipt of the package, not only to acceptance day, when that is the deal.

Conditions are not scare tactics. They are the ordinary way Ontario buyers buy time to check money, the house, the condo corporation, and their own sale. Get the four clauses right before anyone signs.

Frequently Asked Questions (FAQ)

What actually stays with the house

On an Ontario sale, fixtures stay. Chattels leave, unless the agreement of purchase and sale says otherwise. That is the default. The fight on closing is almost never the legal test. It is a blank line on the form.

A built-in oven is usually a fixture. A fridge on wheels is usually a chattel. A rental hot-water tank looks like a fixture and is often owned by someone else. Write all three on the agreement. Do not leave the tank to common law.

A Toronto real estate lawyer reads the three lists on the agreement and the title search for a rental notice, because a silent tank is a closing-day fight.

The test, in one paragraph

Ontario still uses Stack v. T. Eaton Co. (1902), 4 O.L.R. 335. Things resting by their own weight are chattels, unless they were meant to stay. Things attached even slightly are fixtures, unless they were meant to remain chattels. Intention is read from the article, how it is attached, and why it was attached, not from what the seller says at the door on closing day.

Light fixtures, built-in dishwashers, attached mirrors, and HVAC that is hard-plumbed or hard-wired usually stay. Curtains on a rod, a free-standing island on casters, a wall-mounted TV, and the garage remote in the kitchen drawer usually do not, unless they are on the chattels list.

Write it on the agreement

The standard OREA form has three boxes that matter:

• Chattels included. If you want the fridge, stove, washer, dryer, or window coverings, name them. Brand and location beat "all appliances."
• Fixtures excluded. If the dining-room chandelier is going, say so. Silence means it stays.
• Rental items. Hot-water tank, furnace, alarm, water softener, HVAC. The company name and that it is a rental, not a guess.

If the agreement is silent, fixtures pass with the land and chattels do not. A listing photo of a gas range is not a chattels clause. Schedule A is where the extra sentences belong, including whether included chattels must be in working order.

Rental hot-water tanks

This is the inclusion that blows up Ontario closings. The tank is plumbed in, so it looks like a fixture. The rental company still has a contract. The seller cannot give you title to a tank they do not own.

Put the tank on the rental-items line. The buyer then knows they are assuming a monthly contract, or the seller has to buy it out before closing. Leave it off, and you get a last-week letter from Enercare or Reliance and a fight about who pays the buyout.

The lawyer's title search can still show a notice of security interest or a rental registration against the PIN. Existing notices do not always match what the seller told the agent. Ask for the rental agreement. Do not assume the tank is owned because the listing said "owned." Listings are not the APS.

Do the appliances have to work?

The standard form warrants that the seller can give title to the chattels listed. It does not, by itself, warrant that the dishwasher will run on Monday. If you want working order, write it. Same for the rental tank: assuming the contract is not the same as a new tank in good repair.

That is also why title insurance is a poor substitute for the three lists. Title insurance does not replace a fridge that left on a truck.

What the lawyer actually checks

The lawyer reads the signed lists against the listing, the photos, and the search. If a tank or furnace is rented, the file needs the contract, the monthly amount, and whether the buyer is assuming it. If a chandelier is excluded, it should be off the wall before closing, not a punch-list item at 6 p.m.

Get the lists right before the offer is firm. Fixing them after waiver is a favour, not a right.

Frequently Asked Questions (FAQ)

The tax that can follow the house

Toronto charges a Vacant Home Tax on residential property that sat empty for six months or more in a calendar year. Beginning with the 2024 taxation year, the rate is 3 percent of the Current Value Assessment. On a million-dollar assessment that is $30,000, not a parking ticket.

The City of Toronto requires every residential owner to declare occupancy every year, even if you live there. Miss the deadline and the City treats the property as vacant. The tax is collected like property tax. Unpaid amounts are added to the tax roll and form a lien on the house.

On a purchase, that lien can land on the buyer. A Toronto real estate lawyer checks the City lookup and the seller's confirmation number, because an undeclared year can show up after closing.

What the City treats as vacant

Vacant means empty for six months or more in the taxation year. Principal residence for at least six months is not vacant. Snowbirds and work travel are fine if the house is still your principal residence. You only get one of those.

Occupied by someone else also works: a tenant with a written agreement of at least 30 days, totalling at least six months, or family or friends using it as their principal residence for six months.

Each condo unit is its own declaration. Multiple properties means one filing each. You do not declare vacant land, a parking space, a locker, or a property assessed fully as multi-residential, commercial, or industrial.

This year's calendar

The 2025 occupancy year ran 1 January to 31 December 2025. Declarations were due 30 April 2026. The portal is closed. Owners who owe will see a Vacant Home Tax Notice in June 2026. Payments for 2025 are due in three instalments: 15 September, 15 October, and 16 November 2026.

If you were billed and the house was occupied or exempt, you dispute with a Notice of Complaint. The deadline to dispute a 2025 bill is 31 December 2026. The 2022, 2023, and 2024 complaint windows are already closed.

Who files after a sale

The City splits sales into two buckets. The difference is whether the closing fell inside the year being declared.

Sold during the year being declared

Either the seller or the buyer can file. The property usually qualifies for the transfer-of-legal-ownership exemption, so the tax should not apply for that year if the exemption is claimed. Someone still has to file. A silent file is treated as vacant.

Sold after the year being declared

Only the seller knows how the house was used the year before. The seller must file. The buyer cannot honestly declare last year's occupancy. If the seller never filed, the City still deems the house vacant. The buyer should have their lawyer press for the confirmation.

The City's own instruction is that vendors should give the purchaser a copy of the completed declaration. Buyers should confirm tax liabilities before they take title. If nobody files, the purchaser is on the hook for the bill.

The transfer exemption is narrower than a closing

The exemption applies when the closing date falls in the year being declared, and the sale was a 100 percent transfer of the property. Name changes do not count. Adding a second owner does not count. Removing a second owner does not count. Those are title changes, not this exemption.

You still declare. You attach a copy of the registered transfer. The exemption is not automatic because the Teraview file closed.

Power of sale is not an out

A power-of-sale buyer takes the property as is, including this tax. Power of sale is not an exemption. Like ordinary property tax, Vacant Home Tax attaches to the land, not to the last name on title. If the prior owner never declared, the new owner deals with it.

What actually gets checked on closing

This is not land transfer tax. It is not the federal underused-housing tax, and it is not the foreign buyers prohibition. Those are different programs with different tests.

On a Toronto residential deal the lawyer should confirm the occupancy status on the City's property-tax lookup, ask for the seller's confirmation or receipt, and watch the tax certificate for arrears. Title insurance may want evidence that declarations were filed. An undeclared year is a post-closing bill, not a mystery line on the statement of adjustments.

The agreement of purchase and sale can allocate who files and who pays if a bill arrives. That is deal language, not a City form. Get it in before the offer is firm if the house has been empty, tenanted, or in an estate.

Eligible exemptions still have to be declared, with documents: death of an owner, principal resident in care, permitted renovations that actually prevent occupancy, court order, certain employment and medical secondary residences, and new-build inventory in the developer's name. False declarations can add a fine of up to $10,000 on top of the tax.

Frequently Asked Questions (FAQ)

What the two rebates actually pay

Ontario charges land transfer tax on a purchase. First-time buyers can get some of it back. The provincial refund is up to $4,000. In the City of Toronto there is a second, municipal rebate of up to $4,475. Together that is up to $8,475 off the tax, not a cheque in the mail.

On the provincial side, $4,000 covers the tax on the first $368,000 of value. Above that you still pay land transfer tax. You just pay $4,000 less. The Toronto rebate works the same way against municipal tax. It wipes the city's tax on the first $400,000 of value. A typical Toronto price still leaves municipal tax to pay.

The Ontario Ministry of Finance and the City of Toronto publish the rules. The numbers above are the current caps. They are not a promise that every first-time buyer gets the maximum.

Rebate math is only one slice of what a first-time buyer must wire before keys. Title insurance, high-ratio mortgage insurance, adjustments, and lender items still sit beside LTT — see first-time buyer closing costs in Ontario.

Who qualifies

You have to meet all of these:

• You are at least 18.
• You are a Canadian citizen or a permanent resident. If you are not yet, you have 18 months after registration to become one and still apply.
• You have never owned a home, or an interest in a home, anywhere in the world. Gift, inheritance, and purchase all count. You do not get a second chance.
• You occupy the home as your principal residence within nine months of the transfer.
• If you have a spouse, that spouse did not own a home, or an interest in a home, anywhere in the world while they were your spouse.

This is not the same test as the federal Home Buyers' Plan. Prior ownership anywhere, including outside Canada, kills the Ontario refund.

The spouse rule

Ontario uses spouse as the Family Law Act defines it: married, or living together continuously for at least three years, or parents of a child in a relationship of some permanence. If that person owned a home while you were spouses, neither of you gets a refund. Title split does not save it.

If they owned a home before you became spouses, and not while you were spouses, the qualifying purchaser can still claim, including on the spouse's interest, up to the maximum. Timing is the whole question. Tell the real estate lawyer the dates before anyone is budgeting the rebate into the closing funds.

If you are buying with someone who is not your spouse, the refund follows the first-time person's share only. A 50/50 purchase with a friend who has owned before is a half refund, not a full one.

Parent on title

This is the other way first-time buyers lose the money. A parent on title is either a real owner or a trustee for the bank. Those two facts pay different tax.

If the parent is helping only with financing or a gifted down payment rather than true equity, compare that path with gift, guarantor, or co-owner structures in Ontario before you decide who goes on title.

Parent as a real co-owner

If the parent is taking a beneficial interest, the refund is cut to the child's share. A 50/50 purchase with a parent who has owned before means the child can claim 50 percent of the refund, so a maximum of $2,000 on the provincial side, not $4,000. The same proportion hits the Toronto rebate. How you take title, joint tenants or tenants in common, does not change that math. The recorded interests do.

Parent as trustee for the bank

If the lender insists a parent go on title only for mortgage purposes, and the parent is not taking a beneficial interest, the Ministry of Finance can still treat the parent as a trustee. The child can still claim the full first-time refund if every other rule is met.

Later removing that parent, or gifting equity on a home the family already owns, is analyzed in transferring title to family in Ontario.

You cannot claim that at electronic registration the usual way. You pay the tax on closing, then apply to the Ministry of Finance for the refund, with evidence: a bank letter that the parent is on title for mortgage purposes, or a trust agreement. Same idea at the city for the Toronto rebate. Do not assume the Teraview statements will paper over a parent on title.

How it is claimed

On a clean file, the lawyer claims it at registration. In Teraview that is a statement in the land transfer tax affidavit. The refund offsets the tax so you bring less money on closing. You do not apply on a government website first.

A Toronto real estate lawyer will ask whether you or your spouse have ever owned. Answer the worldwide question, not the Ontario one. A condo you inherited and sold still counts.

If you missed it

You have 18 months from registration to apply. Ontario takes online applications now. Toronto wants its own package: the rebate form, the registered transfer, the agreement, the statement of adjustments, proof of citizenship or permanent residence, and proof you moved in. Utility bills and property-tax bills are not occupancy proof. The city charges a processing fee on a post-registration rebate. Ontario pays no interest on a late claim.

These rebates are not the new-housing HST rebate, and they are not the foreign-buyer taxes. Citizenship timing for the refund is not the same as the foreign buyers prohibition. Do not mix the programs.

Frequently Asked Questions (FAQ)

What a deposit is for

An Ontario resale has no cooling-off period. The deposit is not a pause button. It is the buyer's security so the seller takes the house off the market.

It sits in trust until closing, then it is credited to the purchase price. It is not extra money on top of the price. It is also not the down payment.

On a same-day purchase and sale, that deposit credit still leaves the rest of the equity moving through the sale wire the same afternoon. Chain logistics: same-day purchase and sale in Ontario.

The amount is whatever the agreement of purchase and sale says. There is no legal minimum. In a competitive Toronto offer it is often a percentage of the price. That number is a negotiating signal, not a statute.

Deposit vs down payment

People use the two words as if they were the same. They are not.

The deposit is the money that accompanies the offer, or that the offer says you will deliver by a deadline. It shows the seller you will complete. It is held in trust. At closing it is applied to the price.

The down payment is the cash you still have to bring on closing so the mortgage can fund. If the lender needs 20 percent down and your deposit was already 5 percent of the price, you bring the rest. The deposit is part of that pile. It is not a second cheque the seller keeps as a fee.

Who holds it

On a realtor deal, the listing brokerage is usually the deposit holder. The money goes into a real estate trust account under TRESA. Do not pay the seller personally. If that person spends it, you are chasing a person, not a trust account.

On a private sale, a real estate lawyer in Toronto often holds it. Either way, the APS names the holder. Wire only to that named person, using details you confirmed on a phone number you already know. A surprising email with new wiring instructions is a scam pattern, not a closing step.

Missing the deposit does not let you walk

Buyers sometimes treat the delivery window as buyer's remorse. It is not. The consideration in a resale deal is the promise to buy and the promise to sell. The standard OREA form is also signed under seal. The deposit is not what makes the contract exist.

Many offers say the deposit is due upon acceptance, which the form treats as within 24 hours. That is a contract deadline. It is the first obligation, not a cooling-off period. There is no cooling-off on an Ontario resale.

If you do not pay it, you are in breach. The seller can keep the deal alive and demand you close, terminate and look for damages, or accept the money late. You do not get to cancel by staying silent.

When the deposit comes back

If the deal is still conditional and a condition is not fulfilled or waived the way the agreement requires, you are usually entitled to the deposit back. Financing falls through inside a proper financing condition. The inspection condition is used. The status certificate review fails. That is what the condition is for.

In practice the brokerage often wants a mutual release before the money leaves the trust account. If one side will not sign, the deposit can sit there while the parties argue. Getting the condition right in the offer is easier than fighting the release later.

When a condition precedent dies on the deadline, the deposit usually comes back under that mutual release. The clocks and notice forms for financing, inspection, status, and sale-of-property are in Ontario offer conditions.

If the seller cannot close (cannot deliver title, will not perform), the buyer should get the deposit back. The seller does not get to keep security for a deal they broke.

When the seller keeps it

Once the deal is firm and the buyer fails to close, the deposit is generally forfeited. The Ontario Court of Appeal said so in Azzarello v. Shawqi (2019). The seller does not have to prove a dollar of loss to keep it. The deposit was security for performance. The buyer did not perform.

Valid termination under the APS insurance clause after substantial fire or damage is a different path from a buyer who simply fails to close a firm deal. Casualty election and deposit return: fire or damage before closing in Ontario.

A court can grant relief from forfeiture. That is exceptional. A buyer who simply could not raise the rest of the money, or who had a change of heart after waiving conditions, does not usually get it back because the story is sympathetic.

Damages on top of the deposit

Forfeiture and damages are not the same claim. The seller can keep the deposit without proving a loss. If the seller also sues for more (the shortfall on a resale, extra mortgage interest, extra taxes while the house sat), those extra dollars have to be proven. The deposit is credited against that proven loss. It is not a bonus stacked on the same shortfall.

If you are the seller and the buyer has blown a firm closing, do not sign a mutual release just to be polite. A release can give away the claim. If you are the buyer and you cannot close, call a real estate lawyer before the date, not after it. The rest of the file is the ordinary closing process until it isn't.

Pre-construction is a different file

A resale deposit and a builder deposit are not the same product. A new condo has a 10-day cooling-off after you receive the signed agreement, the disclosure, and the Residential Condominium Buyers' Guide. Resale does not. Builder deposits also have Tarion protection and their own interest rules. That is the pre-construction closing file, not this one.

What to put in the offer

Name the deposit holder. Name the deadline. Keep a condition if you actually need one, written the way it has to work. Do not treat the 24-hour window as an exit. Do not pay anyone who is not the named holder.

The deposit is how the deal gets serious. It is also how a blown firm closing gets expensive. Write it like it matters, because it does.

Frequently Asked Questions (FAQ)

What a seller has to disclose in Ontario

Ontario still runs on caveat emptor. Buyer beware. A seller does not have to walk you through every crack in the driveway, every noisy neighbour, or every quirk that might bother you after you move in.

The exception is a known latent defect that makes the property dangerous, potentially dangerous, or unfit to live in. The seller also cannot hide a problem, and cannot lie if you ask a direct question.

A Toronto real estate lawyer will still search title. That search does not catch a hidden leak. It flags what is on the register.

That is the whole map. Patent versus latent tells you what has to be volunteered. Stigma tells you what usually does not. The agreement of purchase and sale is where you put the facts that actually matter to you, instead of hoping someone offers them.

Patent vs latent defects

Canadian common law splits property problems into two piles. The label controls whether the seller has to say anything.

Patent defects

A patent defect is one a buyer or a home inspector can find by reasonable observation and ordinary inquiry. Visible roof damage. A cracked foundation wall you can see from the yard. A broken window. A slope in the floor that shows up on a walk-through.

The seller generally does not have to point those out. You are expected to look, and to keep an inspection condition in the offer if you need time to look properly. Concealing a patent defect is different. Paint over a stain, or cover a crack so nobody can see it, and buyer beware may stop applying.

Latent defects

A latent defect is hidden. A person exercising reasonable care on a viewing, even with an inspector, would not ordinarily find it. Think contamination behind drywall, a failed foundation that only shows up after finishes come off, or wiring that is a fire hazard and is not visible on a standard inspection.

Not every hidden flaw is a latent defect the seller must disclose. The defect generally has to make the home dangerous, potentially dangerous, or unfit for habitation. Unfit does not always mean you cannot sleep there. A court can look at more than whether someone is currently living in the house.

Which latent defects must a seller disclose

The Ontario Court of Appeal set the modern starting point in McGrath v. MacLean (1979). A seller can be liable after closing if they knew of a latent defect that made the premises unfit for habitation, or if they concealed it, or if they were reckless about the truth of what they said.

Knowledge is the usual fight. The buyer has to prove the seller knew, or was willfully blind. A repair the seller reasonably believed was finished is not the same as a known, ongoing defect. A seller who builds a wall over a cracked foundation, or dries a leak before the walk-through so nobody sees it, is in a different category.

RECO tells agents the same split in Bulletin 7.4. Patent defects sit with the buyer. Latent defects that make the property unfit, dangerous, or potentially dangerous must be disclosed. The seller's agent's job, if they know that fact, is to disclose it to every interested buyer and try to get a written acknowledgement.

Examples that often land in the disclosable pile, when the seller knows about them and they still affect safety or habitability:

• Active or unremediated grow-op contamination, including mould and unsafe wiring left behind
• A structural or foundation failure that has been covered rather than repaired
• Hidden water infiltration that is still a problem, not a finished repair the seller reasonably believed was done
• A known fire, electrical, or contamination hazard that a viewing will not show

A grow-op is not automatically "stigma." If it left the house dangerous, it is usually treated as a defect. If it was fully remediated to the local health or building authority's requirements, RECO lists that history as a stigma example, not as a current latent defect. Either way, a seller who is asked cannot lie, and a buyer who cares should put a warranty in Schedule A.

Stigma is not a defect

Stigma is not a crack in the foundation. RECO Bulletin 7.5 describes it as a non-physical attribute that might bother a particular buyer: a death in the home, a haunting rumour, a notorious former owner, a remediated grow-op. What one buyer cannot live with, another buyer does not care about.

Ontario courts have not treated those facts as making a house unfit or dangerous. In 1784773 Ontario Inc. v. K-W Labour Association Inc. (2013), an allegation that a property was haunted was not a latent defect. A murder, a suicide, or a death from natural causes is generally the same analysis. The seller does not have a free-standing duty to volunteer it.

Silence is not a licence to mislead. If a buyer asks, the seller cannot lie. If the seller puts a warranty in the agreement (no unnatural death, no grow-op during their ownership) and that warranty is false, that is a misrepresentation problem, not a stigma debate.

Condo buyers sometimes mix this up with the status certificate. The certificate is the corporation's disclosure about the building: reserve fund, lawsuits, rules. It is not a biography of the unit. Seller disclosure about the suite still follows the same patent, latent, and stigma rules.

The Seller Property Information Statement

The Seller Property Information Statement (SPIS, OREA Form 220) is optional. Ontario law does not require a residential seller to complete one. Listing it can make a buyer more comfortable. It can also turn every checkbox into a representation.

If the form is wrong, or incomplete in a way that misleads, the seller can face a misrepresentation claim they would not have had if they had said nothing and simply disclosed the latent defects the common law already requires. Many sellers, on advice, decline the form and answer specific written questions instead, or put the facts in Schedule A where everyone can see them.

An agent's TRESA duties are not the same as the seller's common-law duty. Completing an SPIS does not replace either one. It is not a shield.

What happens if a seller stays silent

If the seller knew of a dangerous or uninhabitable latent defect and did not disclose it, or hid it, the buyer may claim damages after closing. In a serious case, the buyer may try to undo the deal. Proving what the seller knew is usually the hard part.

An "as-is" remark on MLS is not a legal shield. Residential property in Ontario is already sold as-is unless the purchase agreement says otherwise. The listing is not the contract. A seller who conceals a known dangerous latent defect does not get a pass because the MLS remarks said as-is.

The limitation clock is in the Limitations Act, 2002. You generally have two years from the day you discovered the defect, or the day you ought to have discovered it with reasonable diligence. There is also a 15-year ultimate period from the act or omission the claim is based on. Closing day is not automatically the start date.

What buyers should actually do

Do not treat disclosure as the inspection. A seller only has to volunteer a narrow class of known, hidden, dangerous problems. Everything else is on you.

• Keep a home inspection condition unless you have a reason to go firm without one.
• Ask specific questions in writing if something matters to you: grow-op, death, flooding, an illegal basement, an oil tank.
• Put the answers in Schedule A as representations and warranties. If it matters, it belongs in the agreement.
• Do not expect a title search or title insurance to catch physical defects. Title work finds what is on title. It does not open walls.

A real estate lawyer reviews the agreement before it is firm, including the disclosure and warranty clauses. That review sits in the ordinary closing process. The goal is not to turn every deal into a risk audit. The goal is to write down the facts you actually care about.

A fire that hits after a firm APS is a different problem again: casualty under the insurance clause, not a classic latent-defect disclosure fight. Map of that risk: fire or damage before closing in Ontario.

Frequently Asked Questions (FAQ)