Residential Real Estate

Tarion is a not-for-profit consumer protection organization established by the Ontario government to administer the new home warranty program. New home warranty works the same way as any other warranty: it protects against major structural defects, defects in work, and defects in materials.

To qualify, you generally must be at least 18 years of age, must not have owned a home anywhere in the world before, and, if married, your spouse must not have owned a home anywhere in the world while married to you.

A Pre-Delivery Inspection is a chance to view your new home with the builder present. It gives you the opportunity to learn how your new home operates and to point out any flaws or missing items on the builder's PDI form. Consider using a checklist so you don't miss anything.

Eligible first-time buyers can get a refund of up to $4,000 of Ontario land transfer tax, which covers the full tax on a home up to about $368,000. In Toronto, a separate municipal rebate of up to $4,475 also applies. Buyers of new homes may also qualify for federal and Ontario HST rebates.

When you agree to purchase a new condominium unit, you generally have a 10-day cooling-off period after receiving the required disclosure documents, during which you can cancel the agreement.

Land Transfer Tax is a tax you have to pay when you transfer a property in Ontario. It is usually paid by the buyer.

Land Transfer Tax is calculated using marginal rates applied bracket by bracket, based on your property's purchase price. For a home with one or two single-family residences, Ontario charges 0.5% up to $55,000, 1.0% from $55,000 to $250,000, 1.5% from $250,000 to $400,000, 2.0% from $400,000 to $2,000,000, and 2.5% above $2,000,000. Toronto charges a separate municipal land transfer tax on top.

Title insurance protects your ownership interest (title) in your property from losses incurred as a result of unknown title defects or other covered matters that existed at the time of your purchase but were unknown to you at that time.

What it typically covers:

• Title risks: someone else claiming an interest in your title; fraud, forgery, and false impersonation affecting title validity; existing liens, including realty tax arrears and municipal utility charges.
• Off-title risks: violations of municipal zoning by-laws; many forms of encroachment onto the property or adjoining land; existing work orders; lack of legal access to the property; unmarketability of land due to adverse matters an up-to-date survey or Real Property Report would reveal.

Title insurance is not mandatory or required by law in Ontario, although we highly recommend that you obtain it.

Fire insurance is not mandated by law, but it is required by most lenders in Ontario.

Closing can be delayed by issues like financing falling through, title defects, or last-minute disputes over the property. Most problems are avoidable when they're caught early through proper searches and review.

Joint tenancy is the most common way for married spouses to hold ownership of their home. It includes a right of survivorship: if one joint tenant dies, the property is transferred to the other person.

This is another way to hold ownership of a property; it can be held by two or more people, including corporations. If one tenant dies, their share does not pass to the remaining owners, but is dealt with according to their estate.

Anything permanently attached to the property, such as light fixtures, built-in appliances, and window covering hardware. Fixtures stay with the home unless the agreement excludes them.

Moveable personal property, such as free-standing appliances, curtains, and furniture. Chattels stay with the seller unless the agreement includes them.