Real Estate Law FAQ in Ontario
Answers to the most common questions about buying, selling, refinancing, and real estate law in Ontario. If you do not find what you are looking for, Diane is available for a free 15-minute consultation.
Buying a Home in Ontario
When do I need to hire a real estate lawyer in Ontario?
As soon as your offer is accepted. This gives your legal team enough time to review your Agreement of Purchase and Sale, conduct title searches, and prepare all closing documents before your closing date. At Dwell Law we also encourage buyers to speak with Diane before making an offer, particularly on condos and new builds.
What does a real estate lawyer do when buying a home?
Your lawyer reviews your Agreement of Purchase and Sale, conducts a title search, reviews your mortgage instructions from your lender, prepares closing documents, registers title in your name, and coordinates the transfer of funds on closing day.
How much does a real estate lawyer cost for a purchase in Ontario?
At Dwell Law our flat legal fee for a standard residential purchase is $1,875 + HST with no hidden office charges. In addition every purchase requires government-mandated costs including land transfer tax, title insurance, and registration fees. After your consultation you will receive a clear written quote by email.
What is land transfer tax in Ontario?
Land transfer tax is a provincial tax calculated as a percentage of the purchase price. It is paid by the buyer on closing. First-time home buyers are eligible for a rebate of up to $4,000. Use our land transfer tax calculator to estimate your amount.
Do I pay additional land transfer tax if I am buying in Toronto?
Yes. Toronto is the only municipality in Ontario that charges a municipal land transfer tax in addition to the provincial tax. If you are purchasing within the City of Toronto boundaries you will pay both, which effectively doubles your land transfer tax bill. On an $800,000 purchase in Toronto a buyer pays approximately $11,725 in provincial LTT plus $11,725 in Toronto MLTT for a combined total of approximately $23,450 before any rebates. First-time buyers in Toronto are eligible for a provincial rebate of up to $4,000 and a Toronto MLTT rebate of up to $4,475. Use our land transfer tax calculator to estimate your exact amount.
What is a first-time home buyer land transfer tax rebate?
First-time home buyers in Ontario are eligible for a rebate of up to $4,000 on provincial land transfer tax. To qualify you must be a Canadian citizen or permanent resident, be at least 18 years old, and have never owned a home anywhere in the world. Your lawyer ensures the rebate is applied correctly on closing.
Are there any tax credits available for first-time home buyers in Ontario?
Yes. In addition to the land transfer tax rebate, first-time home buyers can claim up to $10,000 on their federal income tax return under the First-Time Home Buyer Tax Credit, which provides a maximum tax reduction of $1,500. This is claimed on Line 31270 of your federal return in the year of purchase. Speak with your accountant or tax advisor to confirm your eligibility and make sure you are taking advantage of all available credits.
What is title insurance and do I need it?
Title insurance protects you and your lender against issues with the property's title that may not have been discovered during the title search, including fraud, encroachments, and errors in public records. Most lenders require it and it is strongly recommended for all buyers. At Dwell Law title insurance is arranged on your behalf as part of your closing.
Should I have a lawyer review my offer before I sign?
Yes, and we encourage it. A short conversation with Diane before you submit an offer can identify issues in the Agreement of Purchase and Sale before you are locked in. This is particularly important for condo and new build purchases. Book a free consultation before you sign anything.
What is a status certificate and why does it matter for condo buyers?
A status certificate is a document provided by the condo corporation that contains key information about the building's financial health, rules, and any outstanding issues. Your lawyer reviews it carefully before your purchase is finalised. A problematic status certificate can be grounds to walk away from the deal.
Can you help with a private sale between family members or the purchase of a cottage property?
Yes. Dwell Law regularly acts on private sales between family members, including transfers of recreational and cottage properties across Ontario. Private sales — where no real estate agent is involved — still require legal representation to protect your interests, review or prepare the Agreement of Purchase and Sale, conduct title searches, arrange title insurance, and handle closing. If the transaction involves a vendor take back mortgage, where the seller provides financing to the buyer, additional legal work is required and fees will vary depending on the deal structure. Book a free consultation to discuss your specific situation and get a clear quote.
Selling a Home in Ontario
Do I need a lawyer to sell my home in Ontario?
Yes. In Ontario a lawyer is required to complete the legal transfer of property ownership. Your lawyer prepares the transfer documents, discharges your existing mortgage, and ensures funds are distributed correctly on closing day.
How much does a real estate lawyer cost for a sale in Ontario?
At Dwell Law our flat legal fee for a standard residential sale is $1,775 + HST with no hidden office charges. After your consultation you will receive a clear written quote by email.
What does a real estate lawyer do on closing day for a sale?
On closing day your lawyer receives the purchase funds from the buyer's lawyer, pays out your existing mortgage, deducts legal fees and adjustments, and transfers the remaining balance to you. You do not need to be present.
What is a statement of adjustments?
A statement of adjustments is prepared by your lawyer and calculates financial adjustments between you and the buyer at closing. This includes prepaid property taxes, utility adjustments, and condo fee adjustments, ensuring both parties pay their fair share up to and including the closing date.
Mortgage Refinancing
Do I need a lawyer to refinance my mortgage in Ontario?
Yes. In Ontario a lawyer is required to discharge your existing mortgage and register the new one on title. Your lender sends mortgage instructions directly to your lawyer, who handles all the legal documentation on your behalf.
How much does a real estate lawyer cost for a refinance in Ontario?
At Dwell Law our flat legal fee for a standard residential refinance is $1,375 + HST with no hidden office charges. After your consultation you will receive a clear written quote by email.
What is the difference between a mortgage broker and a real estate lawyer in a refinance?
Your mortgage broker finds and arranges your new mortgage product. Your lawyer handles the legal side, discharging the old mortgage, reviewing the new mortgage instructions, and registering everything correctly on title. Both are required and work together to complete your refinance.
New Build Purchases
Why is buying a new build legally different from buying a resale home?
Builder agreements are not standard OREA forms. They are written by the builder's lawyers and heavily favour the builder. New builds also involve two separate closings, the Occupancy Closing and the Final Closing, each with their own legal requirements and fees.
What are closing adjustments on a new build?
Closing adjustments are additional costs calculated by the builder at Final Closing. They can include development charges, utility connections, and property tax adjustments and can add thousands of dollars to your closing costs. Dwell Law reviews every adjustment carefully to make sure the calculations are accurate.
What is the difference between the Occupancy Closing and the Final Closing on a new build?
The Occupancy Closing is when you take possession of the property and move in, but the title remains in the builder's name. The Final Closing is when your name and mortgage are registered on title and you become the legal owner. Both closings require legal work and are charged separately. Learn more about our new build purchase legal services.
Title Transfers
What is a title transfer in Ontario?
A title transfer is the legal process of changing who is listed as the owner of a property on title. Common reasons include adding or removing a spouse, transferring to a family member, estate planning, or fulfilling a separation agreement.
Is land transfer tax payable on a title transfer?
Spousal transfers are generally exempt from land transfer tax. All other transfers, including transfers to children or other family members, are subject to land transfer tax calculated on the percentage of ownership being transferred. Book a consultation and we will confirm exactly what applies to your situation.
How much does a title transfer cost in Ontario?
At Dwell Law our flat legal fee for a standard title transfer is $600 + HST with no hidden office charges. After your consultation you will receive a clear written quote by email. Learn more about our title transfer legal services.
Private Lending
Do I need a lawyer for a private mortgage in Ontario?
Yes. In Ontario a lawyer is required to prepare and register a mortgage on title regardless of whether the lender is a bank or a private individual. Your lawyer protects the lender's interest by conducting title searches, preparing mortgage documents, and registering security on title.
What is independent legal advice in a private lending transaction?
Independent legal advice means the borrower has their own lawyer review the mortgage terms independently before signing. It protects both the borrower and the lender by confirming the borrower understood what they were agreeing to.
What is a residential construction loan?
A residential construction loan is advanced in stages rather than as a lump sum. Each draw is tied to a milestone in the construction process. Your lawyer coordinates each advance, confirms the conditions for the draw have been met, and ensures your security remains properly registered throughout the project.
Wills and Powers of Attorney
What happens if I die without a Will in Ontario?
If you die without a valid Will, your estate is distributed according to the Succession Law Reform Act, which may not reflect your wishes. Having a valid Will ensures your assets go to the people you choose.
What is the difference between a Power of Attorney for Property and a Power of Attorney for Personal Care?
A Power of Attorney for Property covers financial and legal decisions. A Power of Attorney for Personal Care covers health care and personal well-being decisions. Both are important and work together to ensure your wishes are respected if you are ever unable to make decisions for yourself.
How much does it cost to get a Will and powers of attorney in Ontario?
At Dwell Law our flat fee is $1,000 + HST for an individual package and $1,800 + HST for a couple package. Both include a Last Will and Testament, Power of Attorney for Property, and Power of Attorney for Personal Care. Additional fees may apply depending on the complexity of your situation. Learn more about our Wills and Powers of Attorney services.
Working With Dwell Law
Do I have to come into the office?
For real estate transactions all consultations and signings can be handled virtually. For Wills and Powers of Attorney, consultations are virtual, but final signing must be completed in person. Dwell Law provides the witness at your in-person signing appointment.
How does flat-fee pricing work at Dwell Law?
Our flat legal fee covers all legal work for your transaction with no hidden office charges. We do not bill extra for conveyancing fees, courier fees, printing, or administrative tasks. After your free consultation you will receive a clear written quote by email so you know exactly what your transaction will cost before you commit.
Do you work with realtors and mortgage brokers?
Yes. Dwell Law works closely with real estate professionals across Ontario. We keep everyone informed throughout the transaction and coordinate directly with your realtor and broker to make sure your deal closes smoothly.
How do I get started with Dwell Law?
Book a free 15-minute consultation. After your consultation you will receive a clear written quote by email. There is no obligation and no pressure.
Still have questions? Book a free 15-minute consultation with Diane and get clear answers before you commit.