A Beginner’s Guide to Real Estate Law in Ontario: What You Need to Know

This is general information and should not be interpreted as legal advice. Contact a lawyer to understand your rights and obligations

Buying or selling property is one of the biggest financial decisions most people make in their lifetime. Understanding the basics of real estate law in Ontario can help you avoid common pitfalls and make informed decisions.

What is Real Estate Law?

Real estate law covers the legal aspects of buying, selling, and owning property. In Ontario, it governs transactions involving land and buildings, including residential homes, condos, and commercial properties. This area of law ensures that ownership is properly transferred, rights are protected, and disputes are minimized.

Key Components of Real Estate Law in Ontario

Property Ownership and Title

• In Ontario, all land ownership is registered through the Land Titles System or the Registry System.

• A clear title ensures that you legally own the property and can transfer it without disputes.

Buying a Home

• When purchasing property, a real estate lawyer conducts a title search, reviews contracts, and ensures there are no liens or legal issues.

• The Agreement of Purchase and Sale is a legally binding contract that outlines the terms of the sale, including price, conditions, and closing date.

Selling a Property

• Sellers must disclose known defects or issues with the property under Ontario’s Real Estate and Business Brokers Act.

• A lawyer helps prepare closing documents and ensures that the transaction complies with provincial laws.

Mortgages and Financing

• Mortgages are legal agreements between a borrower and a lender.

• Your lawyer ensures that all mortgage documents are correctly registered and that your interests are protected.

Land Use and Zoning

• Municipal zoning bylaws regulate how land can be used (residential, commercial, industrial, etc.)

• Checking zoning regulations before buying a property can prevent future legal headaches.

Condominiums

• Buying a condo involves reviewing the Declaration, By-laws, and Rules of the condominium corporation.

• Ontario’s Condominium Act, 1998 governs how condo corporations operate and protects owners’ rights.

Common Issues in Ontario Real Estate Law

• Title Disputes: Conflicts over ownership can arise if proper searches aren’t conducted.

• Boundary Disputes: Disagreements with neighbors about property lines can lead to legal challenges.

• Non-Disclosure: Sellers must disclose issues such as water damage, mold, or structural problems.

• Tenant Issues: Landlords and tenants have rights and obligations under the Residential Tenancies Act.

Tips for Beginners

Always work with a licensed real estate lawyer to review contracts and conduct title searches. Read all documents carefully and ask questions before signing anything. Be aware of closing costs, including legal fees, land transfer taxes, and adjustments.

Seeking Legal Support

Real estate transactions in Ontario can be complex, but knowing the basics can save time, money, and stress. At Majoka Law, we help clients navigate real estate matters, from buying and selling homes to resolving disputes, ensuring every transaction is legally sound. Whether you’re a first-time homebuyer or an experienced investor, having the right legal guidance is key to a smooth process.