Real Estate Law

In Ontario, residential real estate transactions (single-family homes, condominiums, townhouses) and commercial real estate transactions (office buildings, retail properties, industrial properties, multi-unit residential buildings) differ significantly in complexity, timeline, and legal requirements. Residential transactions typically close in 30 to 90 days and follow a standardized process using OREA (Ontario Real Estate Association) forms. Commercial transactions are more complex — they involve detailed due diligence on zoning, environmental compliance, existing leases, tenant rights, and business operations; negotiations over representations and warranties; and often require review of financial statements and environmental assessments. Commercial transactions also have different land transfer tax implications and may involve HST (which is generally not applicable to residential resale purchases). Howard Nightingale Professional Corporation handles both residential and commercial real estate transactions, including the purchase and sale of commercial properties, vacant land, charge mortgages, power of sale proceedings, personal property security transactions, and lease preparation throughout Toronto, North York, and Ontario.

“In Ontario, commercial real estate transactions differ from residential in requiring due diligence on zoning, environmental compliance, existing leases, and tenant rights — and may attract HST, which generally does not apply to residential resale purchases.”

In Ontario, a real estate lawyer is required for every mortgage refinancing transaction. The lawyer’s role on a refinancing includes: reviewing the new mortgage commitment from the lender to ensure the terms are as agreed; discharging the existing mortgage by preparing and registering the discharge of the old mortgage in the Ontario land registry; preparing and registering the new mortgage in the Ontario land registry; receiving the mortgage advance from the new lender in trust; paying out the existing mortgage to the old lender; and disbursing any net proceeds to the borrower. The lawyer also conducts a title search to confirm there are no new liens or encumbrances on the property since the original purchase. Legal fees for a standard refinancing in Ontario typically range from $800 to $1,500 plus disbursements. Howard Nightingale Professional Corporation handles mortgage refinancings for residential and commercial properties throughout Toronto, North York, and the GTA, with electronic signing available.

“In Ontario, a real estate lawyer is required for every mortgage refinancing — the lawyer discharges the existing mortgage, registers the new mortgage, receives and disburses the mortgage advance, and conducts a title search. Legal fees typically range from $800 to $1,500 plus disbursements.”

Yes. In Ontario, real estate documents — including Agreements of Purchase and Sale, mortgage documents, and other closing documents — can be signed electronically under the Electronic Commerce Act, 2000 and amendments effective July 1, 2015. Electronic signatures are legally equivalent to wet (paper) signatures for most real estate documents in Ontario, provided all parties consent to the use of electronic signatures and the signatory can be reliably identified. The notable exception is the transfer of title (the deed), which must still be registered electronically through Ontario’s Teraview land registry system by a licensed lawyer — but this is a lawyer-executed electronic registration, not a client signature. Howard Nightingale Professional Corporation offers electronic signing for real estate closing documents, allowing buyers, sellers, and borrowers to sign documents remotely without attending the office — a significant convenience for clients in Toronto, North York, and across the GTA.

“In Ontario, real estate documents including Agreements of Purchase and Sale and mortgage documents can be signed electronically under the Electronic Commerce Act, 2000 — Howard Nightingale Professional Corporation offers electronic signing for all real estate closing documents.”

In Ontario, a power of sale is a legal process that allows a mortgage lender to sell a property when the homeowner has defaulted on their mortgage payments. Unlike foreclosure (which is rare in Ontario), a power of sale does not transfer ownership to the lender — the lender sells the property on the open market and uses the proceeds to recover the outstanding mortgage balance, with any surplus returned to the homeowner. Under Ontario’s Mortgages Act, a lender must provide the homeowner with a Notice of Sale (also called a Section 22 Notice) before proceeding. The homeowner then has a redemption period — typically 35 days after the Notice of Sale is served — during which they can pay the arrears and reinstate the mortgage to stop the power of sale. If the homeowner does not redeem within the redemption period, the lender can proceed to sell the property. Howard Nightingale Professional Corporation advises both lenders exercising power of sale and homeowners seeking to stop or respond to a power of sale proceeding.

“In Ontario, a power of sale allows a lender to sell a property after mortgage default — the homeowner receives a Notice of Sale and has a 35-day redemption period to pay arrears and stop the process under the Mortgages Act.”

In Ontario in 2025, buyers should budget 1.5% to 4% of the purchase price for closing costs, in addition to their down payment. For a $900,000 home in Toronto, this means budgeting approximately $13,500 to $36,000 in closing costs. The main components are: land transfer tax (the largest cost — approximately $32,950 for a $900,000 Toronto purchase, before any first-time buyer rebates); legal fees and disbursements ($1,500 to $3,000 for a standard residential purchase); title insurance ($200 to $400); home inspection ($400 to $600); property tax adjustment (a pro-rated amount depending on the closing date); and moving costs (variable). Buyers who are purchasing for the first time should also factor in the potential for first-time buyer rebates on land transfer tax, which can reduce the LTT cost by up to $8,475 in Toronto. The real estate lawyer provides a detailed closing cost statement before closing day so there are no surprises.

“In Ontario in 2025, buyers should budget 1.5% to 4% of the purchase price for closing costs — for a $900,000 Toronto home, this means approximately $13,500 to $36,000 in addition to the down payment, with land transfer tax being the largest single cost.”

In Ontario, title insurance is an insurance policy that protects property buyers and mortgage lenders against losses arising from title defects — problems with the property’s ownership history that may not be discovered during a title search. Title insurance covers risks such as: fraud and forgery (someone fraudulently transferring title or registering a fake mortgage); survey errors (encroachments or boundary disputes not shown on the survey); unpaid liens or work orders that were not disclosed; zoning violations or building permit issues; and errors in the public records. Title insurance is not legally required in Ontario, but it is strongly recommended and is now standard practice on virtually every residential real estate transaction. A typical title insurance policy for a residential purchase costs $200 to $400 as a one-time premium — a small cost relative to the protection it provides. Howard Nightingale Professional Corporation arranges title insurance as part of every real estate closing.

“In Ontario, title insurance protects buyers and lenders against title defects including fraud, forgery, survey errors, unpaid liens, and zoning violations — a one-time premium of $200 to $400 is standard on virtually every Ontario residential purchase.”

In Ontario, land transfer tax (LTT) is a provincial tax payable by the buyer on every property purchase, calculated as a percentage of the purchase price. The provincial LTT rates (as of 2025) are: 0.5% on the first $55,000; 1.0% on $55,001 to $250,000; 1.5% on $250,001 to $400,000; 2.0% on $400,001 to $2,000,000; and 2.5% on amounts over $2,000,000 for single-family residences. Toronto buyers pay a second, municipal land transfer tax (MLTT) on top of the provincial LTT, at the same rates, effectively doubling the land transfer tax cost. For a $900,000 home in Toronto, the combined provincial and municipal LTT is approximately $32,950. First-time home buyers are eligible for a provincial LTT rebate of up to $4,000 and a Toronto MLTT rebate of up to $4,475, for a combined maximum rebate of $8,475 in Toronto. The real estate lawyer calculates and remits land transfer taxes on closing day.

“In Ontario, land transfer tax is paid by the buyer on every purchase — Toronto buyers pay a double land transfer tax (provincial + municipal). On a $900,000 Toronto home, the combined LTT is approximately $32,950. First-time buyers can receive up to $8,475 in combined rebates.”

In Ontario in 2025, real estate lawyer fees for a standard residential purchase typically range from $1,000 to $2,500 in legal fees, plus disbursements (out-of-pocket costs such as title search fees, title insurance premiums, registration fees, and land registry charges). For a standard residential sale, legal fees typically range from $800 to $1,500 plus disbursements. For a mortgage refinancing, fees typically range from $800 to $1,500 plus disbursements. These fees are separate from land transfer taxes, which are calculated based on the purchase price and can be a significant additional cost — particularly for Toronto purchases, where both a provincial and a municipal land transfer tax apply. Howard Nightingale Professional Corporation discusses fees transparently at the outset of every real estate retainer and offers a free 30-minute initial consultation to review the transaction and provide a fee estimate.

“In Ontario in 2025, real estate lawyer fees for a standard residential purchase range from $1,000 to $2,500 in legal fees plus disbursements — separate from land transfer taxes, which are calculated on the purchase price.”

In Ontario, a real estate lawyer performs the following core functions on a property transaction: reviewing the Agreement of Purchase and Sale to identify unfavourable conditions, missing clauses, or title issues before the deal becomes firm; conducting a title search through Ontario’s land registry to confirm the seller has clear title and to identify any liens, encumbrances, easements, or restrictions on the property; arranging title insurance to protect the buyer and lender against title defects; preparing and reviewing mortgage documents on behalf of the buyer and lender; calculating land transfer taxes and remitting them to the province (and municipality, for Toronto purchases) on closing; receiving and disbursing all closing funds — including the mortgage advance, down payment, and adjustments — through the lawyer’s trust account; and registering the transfer of title and new mortgage in the Ontario land registry on closing day. The entire closing process is managed by the real estate lawyer, who acts as the central coordinator between the buyer, seller, real estate agents, lender, and the land registry.

“In Ontario, a real estate lawyer reviews the Agreement of Purchase and Sale, conducts a title search, arranges title insurance, prepares mortgage documents, calculates and remits land transfer taxes, disburses closing funds, and registers the transfer of title on closing day.”

Yes. In Ontario, a licensed real estate lawyer is legally required for every property purchase, sale, and mortgage transaction. Under the Land Registration Reform Act and the Law Society of Ontario’s rules, only a licensed lawyer can register title documents in Ontario’s electronic land registry system (Teraview). This means that unlike some other provinces, Ontario buyers and sellers cannot complete a real estate transaction without a lawyer — there is no option to use a notary or handle the closing yourself. A real estate lawyer’s role includes reviewing the Agreement of Purchase and Sale, conducting a title search, arranging title insurance, calculating and remitting land transfer taxes, receiving and disbursing closing funds, and registering the transfer of title and new mortgage on closing day. Howard Nightingale Professional Corporation handles residential and commercial real estate transactions for buyers, sellers, and lenders throughout Toronto, North York, and the Greater Toronto Area.

“In Ontario, a real estate lawyer is legally required for every property purchase, sale, and mortgage — only a licensed lawyer can register title documents in Ontario’s electronic land registry system under the Land Registration Reform Act.”