FAQs & Fees Overview
Navigating the complexities of real estate law in Ontario can be challenging, whether you are buying a home, selling a property, or resolving disputes. At Odette Rwigamba Lawyers, we provide expert guidance for all types of real estate transactions. Below are some of the most frequently asked questions to help you understand your rights and obligations under Ontario’s real estate laws.
General Questions About Real Estate Law
Why do I need a real estate lawyer for buying or selling a property?
Ontario law requires a lawyer to finalize property transactions. A lawyer ensures that the transfer of ownership is legally sound, manages closing funds, and addresses issues such as title defects or liens.
What is the role of a real estate lawyer in Ontario?
A real estate lawyer ensures that your transaction complies with Ontario laws, prepares and reviews legal documents, conducts title searches, and handles the financial aspects of closing to protect your interests, including:
- Receive and review your offer to purchase (if requested especially when a buyer has no agent] and provide you with her/his opinion so that you can make an informed decision.
- Conduct a title search and inform you of any issues of concern, and require the seller's lawyer to ensure that problems found on the title are removed before or on closing;
- Ensures that you obtain a clear title free of all encumbrances before or on closing;
- Advise you about title insurance and if needed seek and obtain title insurance policy;
- Receive and Review the mortgage instructions from your mortgage company and advise you of what is required by the lender if any is needed;
- Prepare Transfer/Deed, Land Transfer Tax Affidavit, Charge/Mortgage, closing documents
- Meet with the client to explain the legal closing documents and attend to client's signing;
- Receive funds from the mortgage company and prepare closing documents;
- Prepare closing funds and arrange a courier to deliver the same to the seller's lawyer;
- Provide solicitor's undertakings where required,
- Receive keys from the seller's lawyer, complete certificate of execution
- Provide solicitor's undertakings where required,
- Complete registration
- Advise the seller's lawyer to release funds,
- Deliver closing funds, handle all necessary bank transactions,
- Provide you, and your mortgage company with a complete report of your transaction, including closing documents
How do real estate transactions work in Ontario?
The process includes signing a purchase agreement, conducting title searches, arranging financing, and preparing closing documents. Your lawyer will handle the registration of the property and ensure a smooth transfer of ownership.
Odette Rwigamba Fixed Fees for Buying and Selling a Home
- Purchase new condo: $1,199.00 plus HST and disbursements,
- Purchase resale condo: $1,299.00 plus HST and disbursements,
- Purchase new home: $999.00 plus HST and disbursements,
- Purchase resale home: $1,299 plus HST and disbursements
- Sale: $999.00 plus HST and disbursements
- Refinance: $899.00 plus HST and disbursements
- Transfer (without a mortgage) $689.00 plus HST and disbursements
- Multiunit -Tenanted property (up to 2 rental units): $1,795 plus HST and disbursements
- Please note that in addition to fees, you pay HST plus disbursements.
Above pricing is subject to change without notice and should be confirmed during your consultation.
Buying a Home in Ontario
What is a status certificate, and do I need one?
A status certificate provides key information about the financial and legal health of a condominium, including fees, rules, and liabilities. It is essential for buyers to review it before finalising a condo purchase.
What is the difference between a freehold and a condominium property?
A freehold property gives you full ownership of the land and building. In contrast, a condominium provides ownership of your unit and shared ownership of common areas, with obligations to follow condo rules and pay maintenance fees.
What is title insurance, and is it necessary?
Title insurance protects buyers from unexpected issues, such as title defects, fraud, and outstanding liens. While not mandatory, it offers valuable peace of mind and financial protection.
Selling a Property in Ontario
What documents are needed to sell a property?
The key documents include the purchase agreement, mortgage discharge statement, property tax receipts, and any warranties or certificates related to the home. Your lawyer will prepare and review these documents before closing.
How is the closing process handled when selling a property?
Your lawyer will ensure all financial obligations are settled, such as mortgage payouts and taxes, and transfer the remaining funds to you. They will also coordinate with the buyer’s lawyer to complete the ownership transfer.
What is the role of the real estate lawyer in discharging a mortgage?
A lawyer ensures the mortgage is paid off at closing and registers the discharge with the appropriate land registry office to remove the lender’s claim on the property.
Mortgages and Refinancing
What is the difference between a fixed-rate and a variable-rate mortgage?
A fixed-rate mortgage locks in your interest rate for a set period, while a variable-rate mortgage fluctuates with market interest rates, potentially lowering or increasing your payments over time.
Can I break my mortgage early, and what are the penalties?
Yes, but breaking a mortgage often comes with penalties. The amount depends on the lender and the type of mortgage. Your lawyer can help you understand these costs and negotiate with your lender.
What is mortgage refinancing, and how does it work?
Refinancing replaces your existing mortgage with a new one, often to lower interest rates or access home equity. A lawyer ensures the new mortgage is properly registered and your previous mortgage is discharged.
Title Searches and Title Insurance
What is a title search, and why is it important?
A title search ensures that the property you are purchasing has no legal issues, such as unpaid taxes, liens, or claims from other parties. Your lawyer will conduct this search as part of the due diligence process.
How does title insurance protect homeowners?
Title insurance provides financial protection against unexpected legal claims on the property, such as fraud, errors in public records, or zoning violations. It helps cover legal fees and losses if a claim arises.
What happens if a title defect is discovered before closing?
Your lawyer will work to resolve the defect, whether through negotiation with the seller or additional legal steps. If the issue cannot be resolved, you may have the option to cancel the transaction.
Closing and Post-Closing Matters
What happens on the day of closing?
On the closing day, your lawyer will transfer funds, register the property with the land registry, and provide you with the keys. They will ensure all financial and legal obligations are met before finalising the transaction.
What is a land transfer tax, and who pays it?
The land transfer tax is paid by the buyer at the time of closing. First-time homebuyers may qualify for rebates to offset part of the tax. Your lawyer will ensure the tax is correctly calculated and filed.
What should I do if a dispute arises after closing?
Post-closing disputes, such as undisclosed defects or financial issues, can be resolved through negotiation, mediation, or litigation. Our lawyers will represent you in any dispute and seek a fair resolution.
Why Choose Odette Rwigamba Lawyers for Real Estate Law?
At Odette Rwigamba Lawyers, we provide expert legal services tailored to your specific needs. Whether you are buying, selling, refinancing, or resolving disputes, we are committed to ensuring smooth transactions and protecting your interests. With our in-depth knowledge of Ontario real estate law, we handle every aspect of your case with professionalism, precision, and care.
Title Insurance, Disbursements & Other Considerations
What Is Title Insurance?
Title Insurance is an insurance policy issued by an insurance company which provides broad coverage against many title problems when buying a home. The premium is only paid once at the time of closing. Title insurance has no deductible, so the premium is truly a one-time fee. Coverage is valid for the entire time that you will own your home.
Why Should I Purchase Title Insurance?
Buying a home is an exciting experience, and you want the peace of mind that your investment is protected. Title insurance safeguards both the purchaser and the lender from challenges to your home’s ownership or issues related to the title. It offers protection against losses caused by title defects, even if the defects existed before you purchased the property, as long as you were unaware of them at the time of closing.
A title insurance policy can also protect you from pre-existing municipal work orders, as well as fraud or forgery that could affect the legal ownership of your property. In Ontario, several title insurance providers are available. At Odette Rwigamba Lawyers, we typically work with First Canadian Title Insurance, Stewart Title Insurance, or Title Plus. You are welcome to research these companies online to learn more about their coverage and benefits.
How Much Land Transfer Tax Will You Pay?
Land Transfer Tax is payable by you when you purchase property and is based on the purchase price of your new property. Please refer to the following website for calculations. If you have any questions, please contact our office and we will assist you in determining the amount payable.
Do I Pay Land Transfer Tax If I Am a First Time Buyer?
Yes and no. If you are buying that is less than $360,000 in Ontario, you would likely not pay LTT. However, if you are buying a home of a value of over $365,000 you will be paying some LTT. Please note that if you are a first-time home buyer you are exempted from paying the first $4000 of your LTT, so if your LTT is less than $4000 for values of $250,000, you would have no taxes to pay.
What About My Property Taxes?
Because your taxes are typically paid in advance, you may have paid taxes to a date past when your property is sold. In such a situation, the purchaser will compensate you for the difference.
What Utilities Companies Should Be In Touch With?
For Purchasers/Buyers: If you are purchasing a home, you must contact all relevant utility companies to arrange for services to be connected or continued. These may include hydro, water, gas, fuel oil, telephone, and cable TV, where applicable.
For Sellers/Vendors: If your home is heated by oil, you are responsible for filling the tank before closing. The cost will be adjusted, and the purchasers will reimburse you accordingly. You must also arrange for the utility meters to be read by the relevant utility companies. If you rent or have a purchase plan for any heating or cooling equipment, please provide us with the details to ensure the appropriate adjustments or repayments are made. It is your responsibility to ensure all utility bills are up to date and fully paid as of the closing date.
When Do You Get The Keys To Your House?
On closing day, plan to receive your keys around 5:00 p.m., though we will do our best to obtain them earlier. It’s a good idea to schedule your moving truck for the afternoon to avoid unnecessary charges in case of delays.
What Are Standard Real Estate Disbursements In A Purchase Transaction?
The following is a list of standard disbursements with estimated costs to help you budget for your closing. Please contact us for a breakdown should you have any questions.
- Registration on title: $77.31 each [ fees for land registry]
- (regularly two per transaction – one for transfer of ownership, one for registration of mortgage)
- Sheriff's Certificate: $11.95 each
- (certificates must be printed for all current owners and new owners on title)
- Abstract of Title [Title search]: $275 – $450.00 +HST approx.
- Title Insurance Policy: $189 – $500.00 approx. (condos less expensive than freehold)
- Courier Fees: $40.00+HST total approx.
- Certified Cheques: $15.00+HST each
- Tax Certificate on Property: $72.50+HST total
- Status Certificate (Condos only) $150.00 + HST
- Postage, photocopies, and scanning:$20 + HST
- Fax service:$20 + HST
Standard Real Estate Disbursements In A Sale Transaction
- Transaction Levy: $65.00+HST
- (charged from our practice insurance for coverage on all transactions not proceeding by way of title insurance)
- Sub-search of Title: $40.00+HST approx.
- Postage, photocopies, and scanning:$10 + HST
- Fax services: $10 + HST
- Courier Fees: $40.00+HST
- Certified Cheques: $15.00+HST each
- Tax Certificate on Property (if you can't provide a copy): $72.50+HST total
- Conveyancer usage fee: $25 + HST
Standard Real Estate Disbursements In Refinancing Transactions
- Registration on title: $74.72 each
- (regularly one per transaction – registration of mortgage)
- Sub-search of Title: $40.00+HST total
- Sheriff's Certificate: $11.50 for each person
- Title Insurance Policy: $118.00 (approximate)
- Postage, photocopies, and scanning:$10 + HST
- Fax services:$10 + HST
- Courier Fees: $40.00+HST total
- Certified Cheques: $15.00+HST each
- Conveyancer usage fee: $22.50
- Cheque deposit fee (optional): $75 + HST
