Being a first time home buyer n Ontario can feel overwhelming. At Boardwalk Law, we’re here to make the legal process as smooth and stress-free as possible.
Whether you’re a buyer stepping into homeownership or a seller preparing to move on, understanding the key documents and legal requirements will help you feel more confident at every step.
For a First-Time Home Buyer in Ontario
Buying a home is one of the biggest financial decisions you’ll ever make. Aside from your agreement of purchase and sale (APS), here are some key documents and information you need to be aware of during this process:
- Mortgage Approval and Financing Documents:
If you’re financing the purchase, ensure you have a mortgage commitment letter from your lender. Your lawyer will review your mortgage instructions received from your lender and will register the mortgage on title on closing. - Title Search and Property Information:
Your lawyer will conduct a title search to ensure the seller legally owns the property and that there are no liens or easements that could affect your ownership. - Property Insurance:
Lenders require home insurance to be in place as of the closing date. You’ll need to provide proof to your lawyer. - Land Transfer Tax (LTT):
In Ontario, buyers must pay LTT, though first-time homebuyers may be eligible for a rebate of up to $4,000. Your lawyer will calculate and remit this on your behalf. - ID and Personal Information:
You’ll need two pieces of valid ID, and one must be a photo ID, such as a driver’s licence or passport. In Ontario, health cards are not applicable pieces of ID.
Additional Considerations:
- Home Inspection Reports – You should consider including a home inspection condition in your APS, to ensure there are no underlining issues that you are missing regarding the property’s state.
- Condominium Status Certificate (for condo purchases) – You should consider including a status certificate review condition, to ensure that there are no legal or financial issues with the condominium.
- Final Statement of Adjustments – prepared before closing, this outlines all the costs (e.g., taxes, utilities) being adjusted between buyer and seller.
For First-Time Home Sellers in Ontario
Selling your first home is an exciting milestone, but it’s important to have your legal documents in order. Aside from your agreement of purchase and sale (APS), here are some key documents and information you need to be aware of during this process:
Key Documents and Information You’ll Need:
- Property Title and Deed:
Your lawyer will verify that you’re the registered owner and prepare the necessary documents to transfer title to the buyer on closing. - Mortgage Discharge Statement:
If you have an existing mortgage, your lender will provide a statement showing the balance due. Your lawyer will ensure the mortgage is paid off and discharged on closing. - Real Property Report or Survey (if available):
While not always required, a recent survey can help avoid boundary disputes or title issues. - Tax and Utility Bills:
These are used to prepare the final Statement of Adjustments, which reconciles prepaid or outstanding amounts between you and the buyer. - Rental Contract Information:
If you rent your hot water tank or other items on your property, you will need to provide this information to your lawyer, and this will need to be noted in the APS. It will need paid off completely if the new owners will not be assuming these contracts. - Identification:
Two pieces of valid ID are required for closing.
Other Important Points:
- Capital Gains Tax may apply if the property isn’t your principal residence.
- Closing Costs for sellers are typically lower than for buyers but may include legal fees, real estate commission, and mortgage discharge fees.
Why You Need a Real Estate Lawyer
Buying or selling a home involves more than just signing paperwork. A real estate lawyer will:
- Review and explain all contracts and documents
- Protect your legal rights and interests
- Ensure proper registration of title and mortgage
- Coordinate with lenders, realtors, and the other party’s lawyer
- Handle all closing day procedures
Please contact Samantha Machado, Associate Lawyer at [email protected] / 905.798.5770 to book a consultation today.
