Purchase Transactions in Ontario

For land transfer tax rebate purposes, “first-time home buyer” does not simply mean your first home in Ontario. Eligibility can be affected if you have ever owned a home or an interest in a home anywhere in the world. If you have a spouse, their ownership history may also affect the rebate, depending on when they owned the property and whether they owned it while being your spouse. This should be checked before you rely on the rebate in your closing budget, because an incorrect assumption can change the cash needed on closing.

If more than one person is taking title, the rebate may depend on who qualifies, whether the buyers are spouses, and what ownership share each person is receiving. One qualifying buyer does not always mean the full rebate applies to the entire purchase. In some situations, the rebate may be reduced or unavailable. The title structure and rebate eligibility should be reviewed before closing funds are finalized, so the amount required on closing is not based on an incorrect assumption.

Mortgage financing is handled by you and your mortgage broker or lender. A real estate lawyer does not approve the mortgage, but the mortgage issue can create legal consequences for the purchase. If the approved amount is lower than expected, the next steps may depend on the financing condition, condition deadline, deposit, closing date, and wording of the Agreement of Purchase and Sale. Depending on timing, you may need to seek additional financing, request an extension from the seller, review whether a condition still allows you to exit, or decide whether the purchase can still close. If closing does not happen, you may risk losing your deposit and may face further claims. Contact your mortgage professional and lawyer immediately because options can narrow quickly as deadlines pass.

Funds from family members, overseas accounts, or third parties can create timing and documentation issues. Your lender may ask for gift letters, bank records, source of funds explanations, or confirmation that the funds are not a loan. International transfers can also take longer than expected, and late funds can delay closing. Raise this early with your mortgage professional and MBLAW, so the file can be coordinated around lender requirements, payment instructions, and the closing deadline.

HST can be relevant for new builds, substantially renovated properties, assignments, and some non-standard purchases. The written agreement determines whether HST is included in the purchase price, payable in addition to the price, or connected to a rebate that the builder, seller, or buyer expects to claim. Verbal explanations about HST or rebates can be incomplete, and an incorrect HST assumption can affect the amount you need on closing. If HST may apply, the agreement, rebate clauses, assignment terms, and closing documents should be reviewed before the agreement becomes firm or before you rely on a rebate assumption.

A new build purchase can involve costs and conditions that are not always obvious when you first sign. Builder agreements may include adjustment charges, development levies, occupancy arrangements, delayed closing provisions, assignment restrictions, and HST rebate terms. The final amount due on closing can be affected by these clauses. Legal review before the agreement becomes firm can help you understand what you are agreeing to, which charges may appear later, and what parts of the agreement need special attention.

A resale condo with a good price or attractive location can still carry financial or practical risks. You may need to consider monthly common expenses, possible fee increases, reserve fund health, special assessments, insurance, rules, arrears, litigation, and restrictions on use or rentals. These issues can affect the real cost of ownership and whether the unit fits your plans. A status certificate review helps you understand the unit and the condominium corporation before you commit to the purchase.

A status certificate contains important information about the condominium unit and condominium corporation, including financial records, reserve fund information, common expenses, arrears, special assessments, insurance, rules, and litigation. These details can affect the real cost and risk of the purchase. Reviewing the status certificate before the agreement is firm can help you decide whether you want to move forward with the condo purchase, ask for clarification, or rely on any available condition in the agreement.

This depends on what the seller promised in writing and how the Agreement of Purchase and Sale deals with the issue. A repair, replacement, cleaning, vacant possession, chattel, fixture, or inspection-related concern may have different consequences depending on the wording of the agreement. Text messages or verbal promises may not be enough if the contract says something different. MBLAW can review the written agreement and explain whether the issue is covered, what can be requested before closing, and what risks may remain.

A title problem may involve an old mortgage, lien, execution, easement, restriction, boundary concern, or another registered interest affecting the property. Some issues can be resolved by the seller before closing. Some may require undertakings, title insurance, additional documents, or further review. The earlier the issue is found, the more time there is to decide whether it can be resolved before closing or whether it changes the risk of the purchase.

Missing a closing date can lead to serious financial and legal consequences. The seller may agree to an extension, but they are not always required to do so. Depending on the agreement and circumstances, you may risk your deposit, additional costs, interest, or further claims if closing does not happen. If you think funds, mortgage approval, documents, or signing may not be ready on time, contact MBLAW immediately. Waiting until the closing day can make it much harder to protect your position.