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Many people put off writing a will, thinking that they have plenty of time to do it later. However, life is unpredictable and you never know when you might pass away. A will is a crucial document which leaves binding instructions for what would happen to your estate should you die, and dying without a will can introduce a few challenges.

If you own a property in Ontario, you may have heard of title insurance. But what is it and why do you need it? In this blog post, we will explain what title insurance is, how it works and what benefits it can offer to existing property owners.

“Fixture” and “chattel” are words that take on special importance in a real estate transaction, but what do these words mean, and why do they matter to a buyer or a seller of a home?

A fixture is an object which has become attached (or “affixed”) to the property. Common examples of fixtures are items which are fastened to a building, which itself is attached to the property—counters, built-in appliances, doors, sinks, and windows are all examples of fixtures. If an item is screwed, bolted, glued, or otherwise attached to a building, it will in almost all cases be a fixture.

Chattel describes objects which are not attached to the property. These are usually items which fill a home: chairs, tables, books, clothing in closets, art hanging on walls, and other personal effects not attached to the property or building are examples of chattels. If you can pick an item up and walk it out the door, the item is almost always a chattel.

Why is the difference important?…

Land Transfer Tax is paid by the purchaser of a property in Ontario. There are two applicable taxes, depending on where the property is located.

Outside of the City of Toronto, a provincial Land Transfer Tax is paid to the province on closing. Inside the City of Toronto, the provincial Land Transfer Tax is still payable, but there is an additional Municipal Land Transfer Tax of an equal amount that is paid to the City of Toronto.

First time home buyers in Ontario and Toronto can qualify for a rebate for a portion of the Land Transfer Tax payable. In most cases, these rebates are applied at the time of closing, so only the Land Transfer Tax amount net of the rebate needs to be paid on your closing date.

A status certificate is a report prepared by a condominium corporation which gives an important look at the current affairs of a condominium. In Ontario, status certificates have a standard form. The certificate itself is typically only 3-5 pages long, but the supporting documents such as financial statements, reserve fund audits, by-laws and other disclosures typically approach or exceed 100 pages of material.

Key disclosures in a status certificate include: