Legal Insights

According to the Rules of Professional Conduct, one lawyer cannot act on behalf of both the buyer of real property (otherwise known as the transferee) and the seller of real property (also known as the transferor) except under limited circumstances. In the following series of circumstances, and so long as there is no violation of rule 2.04 of the Rules of Professional Conduct, a lawyer may act for the transferor and the transferee when transferring title with respect to real property: (a) The Land Registration Reform Act allows the lawyer to sign the transfer on behalf of both parties. (b) The parties are "related persons," which according to section 251 of the Income Tax Act (Canada) include but are not limited to the following: People connected by blood relationship, connected by marriage, common-law partnership, or adoption.  A corporation and a person who controls the corporation (assuming that the corporation is controlled by one person). A corporation and a person who is a member of a related group who controls the corporation. (c) The lawyer's practice is in a remote location where there are no other lawyers that either the transferor or the transferee could retain for the transfer, without causing them undue inconvenience....

A mortgage is a loan that is secured against real estate. If you want to purchase a home, it is always a good idea to get pre-approved on a mortgage. The pre-approval will outline how much, based on your qualifications and personal credit ratings, the bank feels you can afford to borrow. By being pre-approved, you will then know in advance what funds you will have available in order to negotiate your purchase price.  Additionally, if the property is very desirable you can put in an offer without it being conditional on financing and then the vendors (or the party selling the property) may be more inclined to negotiate an offer of purchase with you. There are many different kinds of mortgages a person can obtain. A conventional mortgage is a mortgage that does not exceed 80% of the purchase price of the property. Accordingly, this type of mortgage does not need to be insured against default. A high ratio mortgage is a loan that needs to be insured against loss by either Canada Mortgage and Housing Corporation (CMHC), a Federal Government Corporation, or GE Capital, a private insurer. If you don't have 20% of the lesser of (a) the...

Whether you are buying a property, or selling your house, you will need a lawyer to represent you and your interests. In Ontario, the recording system for land ownership is computerized in such a way that lawyers are allowed to enter this system to change ownership over land as well as to register and delete mortgages relating to the land in question. Lawyers hold this role and are supposed to guard against fraud in order to make the system safer. The seller of the land also has to assure the purchaser that he or she is in a position whereby “good title” is transfered with respect to the land in question. In order to do so, the seller needs to understand both real estate law and procedure. The lawyer who is representing the purchaser will be aware of the appropriate concerns about the land that is in question. Lawyers will also ensure that the proper papers are prepared and signed prior to the transfer of the land. Having a lawyer helps guide you through the process of buying or selling a home, ensuring that your legal rights and financial interests are protected. The Rules of Professional Conduct have certain requirements...

It is important, when purchasing a property in Ontario, that you obtain one with clear ownership, which is also known as “good title.” Title insurance is a form of insurance policy to insure the homebuyer and mortgage lender (when involved), against the loss or damage sustained as a result of surveyed title risks and defects. Title insurance helps to ensure that the quality of the legal title that you are purchasing when purchasing the property is unproblematic. In other words, it transfers the risks connected with the property title from the homebuyer and mortgage lender to the title company. Title insurance is a form of insurance that has recently become more commonly accepted by different mortgage lenders. Title insurance can provide coverage in the event that the following circumstances arise: Work orders which arise from the failure of previous owners to obtain proper permits; Cover a purchaser for issues that an up-to-date survey might reveal; Access-related problems; Any mortgage or lien affecting the property; The unmarketable title to the property; Another entity having ownership over the property or any other interests, whether or not it appears on the registered title; Liens that result from court orders, property tax arrears, or...

Mortgages are loans that are secured against homes. There are many different kinds of mortgages a person can obtain. There are three types of mortgages: a closed mortgage, a convertible mortgage, and an open mortgage. A closed mortgage cannot be changed. In this regard, the buyer is not allowed to prepay or renegotiate the terms of a closed mortgage until the term outlined has been completed. The only way that a borrower may be able to convince the lender to alter the mortgage is by paying an interest penalty. A convertible closed mortgage is a closed mortgage whereby the borrower is able to change the mortgage from a short-term mortgage, to a long-term mortgage, depending on the financial needs of the borrower. An open mortgage is one that can be prepaid, paid off, or renegotiated at any time and in every amount without interest or penalty. Usually, even if the term in both the closed and open mortgages are the same, the interest rate on an open mortgage is higher than it is on a closed mortgage. A pre-approved mortgage is obtained before you go looking for the home you wish to purchase. It outlines how much, based on your qualifications and...

Each party (the vendor and the purchaser) to a real estate transaction needs a separate, independent real estate lawyer in order to close a real estate transaction in Ontario. In addition, you will have questions with regard to what your legal rights are and what the best way is for you to proceed with the buying and/or selling of the property. Not only will hiring a real estate lawyer relieve stress that comes along with the legal transaction, but they will also ensure that you are fully aware of the implications of your actions and aware of what you are entitled to. A real estate lawyer serves a number of roles in the legal process of obtaining and selling a property: Help you prepare the purchase contact; Ensure that you understand the purchase contact; Prepare and register all other legal documents; Negotiating terms and conditions on your behalf; and, Review contracts prior to the closing. A real estate lawyer should be involved in the process as soon as possible, so that he or she can begin to start working to protect your interests. It is suggested, however not mandatory, that you obtain a lawyer before you sign any agreements with real estate...