A Guide to Real Estate Law in Ontario

When Legal Support Becomes Essential

In Ontario, real estate transactions are more than just signatures on paper. They involve binding contracts, government filings, and careful coordination between lawyers, banks, municipalities, title insurers, and real estate agents.
But legal problems can—and often do—arise when:

• A title issue is discovered just before closing
• A buyer or seller wants to back out
• A zoning restriction limits how a property can be used
• A lease includes hidden liabilities or complex renewal terms
• There’s confusion over who is responsible for land severance, mortgage payouts, or registration details

Whether you’re involved in residential or commercial real estate, a lawyer ensures every part of the process meets Ontario’s legal requirements and protects your financial interests. The sooner you involve a lawyer, the better your chances of avoiding delays, disputes, or costly mistakes.

Understanding the Role of Real Estate Law in Ontario

Ontario’s real estate system is governed by a combination of provincial legislation, municipal bylaws, and case law. Every transaction—no matter how straightforward it may seem—involves several legal steps to transfer ownership, register documents, protect buyers and lenders, and comply with zoning or development rules.

When Do You Need a Real Estate Lawyer?

Most people in Ontario rely on real estate lawyers when:

• Buying or selling a home
• Registering a mortgage or discharging one
• Signing a commercial lease
• Adding or removing someone from a property title
• Applying for land severance or zoning changes
• Transferring property between family members or through an estate

Even if a realtor or mortgage broker is involved, only a lawyer can:

• Draft and register legal documents
• Hold closing funds in trust
• Resolve title defects or encroachments
• Provide legal advice based on your situation

Core Legal Services in Real Estate Law

At Boardwalk Law, our real estate lawyers assist clients across Ontario with a wide range of services. Let’s break these down.

1. Buying and Selling Property

Whether it’s residential or commercial, buying or selling real estate involves more than a handshake. We help with:

• Reviewing the Agreement of Purchase and Sale
• Conducting title searches to confirm ownership
• Handling land title registration
• Ensuring compliance with conditions (e.g., financing, inspection)
• Coordinating with banks for mortgage funds
• Calculating closing costs and adjustments
• Registering the deed and mortgage with the province

Our goal is to ensure everything closes on time, with no surprises.

2. Mortgage Registrations and Renewals

Mortgage documents are legally binding and full of obligations for borrowers. We help clients:

• Register new mortgages on title
• Review terms and penalties before renewal
• Remove paid-off mortgages (called a “discharge”)
• Coordinate with private lenders or alternative lenders
• Review collateral charges or second mortgages

A lawyer’s role ensures that your mortgage documents match what you agreed to—and that your title is clean and accurate.

3. Residential and Commercial Leasing

Leases are often long and complex, especially for commercial properties. Our team:

• Reviews and explains lease clauses
• Assesses risk and liability for tenants and landlords
• Drafts leases that comply with Ontario laws
• Helps resolve disputes over repairs, rent increases, or termination

For commercial leases, we also examine use clauses, exclusivity rights, and personal guarantees—critical items that can affect business success.

4. Title Searches and Title Insurance

Before any transaction closes, we perform a title search to uncover any issues that could impact ownership. These include:

• Easements
• Restrictive covenants
• Liens or unpaid property taxes
• Ownership disputes
• Construction liens

If concerns arise, we recommend solutions—such as negotiating with third parties or securing title insurance.

Title insurance protects against many title-related issues, including fraud, zoning non-compliance, and survey errors. It’s often required by lenders, but it also benefits buyers and property owners.

5. Property Transfers and Conveyancing

Property can be transferred for many reasons—not just a sale. We assist with:

• Transfers between spouses (e.g., after marriage or separation)
• Estate-related property transfers
• Gifts of property between family members
• Partitioning shared property between co-owners
• Updating ownership after a name change

Our lawyers prepare and register the correct forms to ensure the transfer is legal and binding.

6. Land Severance and Zoning Applications

If you’re developing land or changing how a property is used, you’ll likely need to apply for:

• A land severance (to split a parcel into multiple lots)
• A zoning change or minor variance
• Site plan approval or development agreements

These applications require public notice, municipal approval, and sometimes appeals. Our team assists with preparing documents, liaising with city staff, and attending hearings when necessary.

Deeper Look: Land Development and Title Law

What is Land Title Registration?

Ontario uses the Land Titles System, which is a government-guaranteed land ownership registry. Every property’s legal details—owners, mortgages, easements, and more—are tracked through this system.

Real estate lawyers access this registry to:

• Confirm who legally owns a property
• Register new owners or lenders after a sale
• Ensure no hidden charges or restrictions exist

We use platforms like Teraview and OnLand to manage these registrations, ensuring your documents are accurate and legally binding.

Why Zoning and Severance Matter

If you want to build, renovate, or change how a property is used, zoning laws apply. Every municipality in Ontario sets its own zoning rules, which determine:

• What kind of buildings can exist (residential, commercial, industrial)
• Setbacks, lot sizes, and height restrictions
• Permitted uses (e.g., short-term rentals, home businesses)

Changing zoning or splitting a lot (severance) requires legal advice, applications, and sometimes approval from local committees or the Ontario Land Tribunal.

Real Estate Law 101

Here are a few key things you need to understand before you proceed with any real estate transaction.

Agreements of Purchase and Sale

This is the central document in any sale. It includes the sale price, conditions (e.g., inspection or financing), timelines, and deposit terms.
We review this agreement before you sign or make amendments, ensuring:

• The language protects your interests
  Deadlines are realistic and achievable
  The deal aligns with your goals

Closing Day Essentials

On the closing day, your lawyer:

• Transfers the purchase funds
• Registers the transfer and mortgage
• Confirms utilities and property tax adjustments
• Issues a final report with legal documents

Missing or mishandling any step can delay your move-in date, which is why legal representation is crucial.

Dealing with Title Issues

Sometimes a title search uncovers issues like:

• Past owners still on title
• Outstanding construction liens
• Conflicting property boundaries

When this happens, we work to resolve the issue before closing. If it can’t be resolved quickly, title insurance may be used to protect the buyer while further legal action is taken.

Real Estate Law: Frequently Asked Questions

1. Do I need a real estate lawyer to buy or sell a home?
   Yes. In Ontario, only a lawyer can legally register property, prepare certain documents, and ensure the transfer is recognized by the Land Registry Office.
2. What is the difference between freehold and condominium ownership?
   Freehold means you own the land and building. Condominium ownership gives you a unit within a building and shared interest in common areas.
3. What is title insurance and do I need it?
   Title insurance protects against title-related issues like fraud or zoning non-compliance. It’s often required by lenders and recommended for buyers.
4. What does “conveyancing” mean in real estate law?
   Conveyancing refers to the legal process of transferring property ownership from one person to another.
5. Can I transfer property to a family member without selling it?
   Yes. A lawyer can help you complete a transfer for estate planning, separation, or gifting purposes. Land transfer tax may still apply.