Lawyer for buying a home in Toronto

The deposit

Most Ontario resale agreements require the deposit “upon acceptance”, usually within 24 hours, and it is held in trust by the listing brokerage until closing, when it is credited to you on the statement of adjustments. It is not a fee: it is part of the price. But it is also the seller’s security. If you don’t close, the seller can generally keep it and claim any further loss, such as a lower price on a resale.

Conditions

A condition lets you end the deal if something isn’t satisfied by a set date. The common ones are financing, a home inspection, a status certificate review for a condo or POTL, a lawyer’s review of the agreement, and the sale of your current home. Each condition has a deadline and says whether it must be waived or fulfilled by notice. Miss the deadline and the agreement may become void, or firm, depending on the wording, so read it with us rather than assume.

Going firm

Once every condition is waived or fulfilled, the agreement is firm and binding. From that point your mortgage approval, your down payment and your closing date all have to hold. Before you waive financing, confirm with your lender or broker that the approval is final, not pre-approval, and that any conditions in it, such as an appraisal or proof of income, have been cleared. If you are selling another home to fund this one, check that the two closing dates work together, or that bridge financing is arranged.

What we can still fix after firm

Title problems can still be raised up to the requisition date, and the seller must deliver what the agreement promises: good title, vacant possession if agreed, and the chattels and fixtures listed. What can’t be undone after firm is the bargain itself, which is why a review before you waive is worth more than one afterwards.

Condominium apartments and townhouses

The status certificate is the key document: it shows the corporation’s budget, reserve fund, any special assessment, lawsuits and the rules you will live under, including on pets, rentals and short-term stays. The corporation has 10 days from the request and payment to deliver it, so order it the day your offer is accepted. Check that the parking space and locker you think you are buying are actually part of the deal: in many Toronto buildings they are separate legal units, or exclusive-use common elements assigned to the unit, and the agreement and certificate should match. On closing you reimburse the seller for any common expenses they prepaid past the closing date. Our guide to reviewing a condo status certificate covers what to look for line by line.

POTLs

A parcel of tied land is a freehold house tied to a common elements condominium that owns something shared, such as a private road or visitor parking. You still need that corporation’s status certificate, and the monthly fee and any reserve shortfall matter just as they would for a condo. POTL townhouses are common in newer parts of Scarborough, Markham and Pickering, and listings don’t always make the ownership type clear; the title search does.

Freehold houses

With a freehold you take on the whole building and lot. Ask whether there is an up-to-date survey, especially if you plan to add a fence, pool or addition; ask about open building permits for past renovations; and ask whether the water heater, furnace or air conditioner is rented. Rental contracts often pass to the buyer on closing and are sometimes registered on title as a notice of security interest, so we check title for them and the agreement should say who takes them over.

The days before

Your balance due on closing, as shown on the statement, should be in our trust account before the closing date. Large transfers can hit daily limits or be held for review, so arrange it a few days ahead. Before you send anything, confirm our trust account details by phone on a number you already have for us, never one in an email: wire fraud targets buyers in exactly this week. Make sure your home insurance starts on the closing date; the lender won’t advance without it.

On the day

Your lender sends the mortgage advance to our trust account, usually in the morning. We run final title and execution searches, then register the transfer and your mortgage electronically. Once registration is confirmed, we send the balance of the price to the seller’s lawyer, who pays out the seller’s mortgage and authorises the release of the keys, usually through the listing agent. Most closings complete in the afternoon; a late mortgage advance is the most common reason they run into the evening. Book movers with that in mind.

After the keys

Set up the utilities in your name from the closing date, and your property tax account if you pay it yourself rather than through your lender. Your reporting letter follows with the registered transfer, the mortgage and your title insurance policy. Keep it: you will want it when you refinance or sell. Buying with a partner or starting a family is also a good time to make or update your wills, so your share of the home goes where you intend.