Disclaimer: This page provides general information only and is not legal advice. Always consult a qualified real estate lawyer for advice specific to your situation.
Understanding the legal aspects of buying or selling a home in Ontario protects your investment and ensures a smooth transaction. Here are key legal considerations every home buyer and seller in Mississauga should know.
Property Ownership Types in Ontario
How you hold title to your property has important legal and financial implications:
Joint Tenancy
Both owners have equal, undivided interest in the property. When one owner dies, ownership automatically transfers to the surviving owner (right of survivorship). This is the most common ownership structure for married couples.
Tenants in Common
Each owner holds a specific share of the property (not necessarily equal). Shares can be sold or bequeathed independently. There is no right of survivorship — each owner's share goes to their estate upon death.
Sole Ownership
One person holds complete title to the property. Even with sole ownership, a spouse may have rights under the Ontario Family Law Act.
Conjugal Partners and Property Rights in Ontario
Understanding relationship status and property rights is important when purchasing real estate:
Is a Girlfriend or Boyfriend a Conjugal Partner?
In Ontario, a common-law partnership (or conjugal relationship) exists when two people have lived together in a conjugal relationship for at least 3 continuous years, or if they have a child together and are in a relationship of some permanence.
Key points about conjugal partnerships and property:
- A girlfriend or boyfriend is not automatically a conjugal partner unless the 3-year cohabitation requirement is met
- Common-law partners do not have the same automatic property division rights as married spouses under Ontario's Family Law Act
- However, common-law partners may claim a constructive trust interest in property if they made significant contributions
- For immigration purposes (e.g., IRCC), conjugal partner has a different definition requiring at least 1 year of relationship where cohabitation was not possible
- Always consult a family lawyer if you are buying property with a partner to understand your rights
The Agreement of Purchase and Sale
The Agreement of Purchase and Sale (APS) is the most important legal document in a real estate transaction. Key elements include:
- Purchase price — The agreed-upon price for the property
- Deposit — Typically 5% of the purchase price, held in trust
- Conditions — Financing, home inspection, status certificate (condos), sale of buyer's property
- Closing date — When ownership transfers and the buyer takes possession
- Inclusions/exclusions — What stays with the property and what does not
- Representations and warranties — Seller's declarations about the property's condition
Title Insurance in Ontario
Title insurance protects homeowners and lenders against losses related to the property's title. It covers:
- Fraud and forgery on title documents
- Unknown liens or encumbrances
- Errors in surveys or legal descriptions
- Building code violations by previous owners
- Encroachments from neighbouring properties
- Unpaid property taxes or utility bills from previous owners
Title insurance is a one-time premium paid at closing and protects you for as long as you own the property.
Closing Costs in Ontario
Beyond the purchase price, buyers should budget for these legal and administrative closing costs:
| Cost | Typical Amount |
|---|---|
| Legal fees | $1,500 – $2,500 |
| Land transfer tax | Varies by price (use calculator) |
| Title insurance | $250 – $500 |
| Home inspection | $400 – $600 |
| Appraisal fee | $300 – $500 |
| Property tax adjustment | Varies |
| Utility deposits | Varies |
| Moving costs | $500 – $3,000+ |
Seller's Legal Obligations in Ontario
- Property disclosure — Sellers must disclose known material defects (latent defects)
- Clear title — The property must be free of undisclosed liens and encumbrances
- Survey obligations — Provide an up-to-date survey if available
- Condominium documents — Status certificate must be provided for condo sales
- Spousal consent — If the property is a matrimonial home, spousal consent is required for sale
Condominium-Specific Legal Considerations
If buying a condo in Mississauga, additional legal considerations include:
- Status certificate — Review carefully for financial health of the condo corporation, reserve fund, pending litigation, and special assessments
- By-laws and rules — Understand pet policies, rental restrictions, and renovation rules
- Reserve fund study — Ensure the condo corporation has adequate reserves for future repairs
- Insurance — Understand what the condo corporation's insurance covers vs. what you need to insure
Need Legal Guidance?
Lacerda Real Estate works with trusted real estate lawyers who specialize in Ontario property law. Contact us for a referral.