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Mississauga Real Estate Lawyers

Real estate is usually the most significant investment a person makes in his or her lifetime. Below we provide some general information to consider when buying or selling real estate in Mississauga. Our Mississauga Real Estate law practice encompasses the following areas:

- Purchases, sales, and mortgages of residential property, commercial property, business property, vacant land, and farm land;

- Intra-family transfers;

- Estate transfers;

- Title insurance;

- Severances;

- Rights of way and easements;

- Resolving title issues;

Chattels

These are moveable items of personal property that are not permanently attached to the dwelling. They are not included in the Agreement of Purchase and Sale unless specifically included in the agreement. Where the question arises as to whether an item is a fixture or a chattel, you should include it in the agreement to be sure it is included and is part of the transaction.

CMHC Mortgage Insurance

This is an insurance premium that is added to the amount of your residential property or business property mortgage to insure against default. It is paid on closing out of the mortgage proceeds. PST is payable on closing in addition to the amount of the insurance. For more information about the payment of the PST, go to the website of the Canadian Mortgage and Housing Corporation. CMHC also has some Homebuying Tools & Calculators.

Conditions

An agreement of Purchase & Sale is often conditional on certain events such as the buyer obtaining satisfactory insurance, home inspection and financing. When drafting conditions, be explicit about the purpose of the condition, the time frame for fulfilling it, whose benefit the condition is for, and whether the condition can be waived if not fulfilled. Once all conditions are waived or fulfilled, the Agreement of Purchase & Sale is firm and binding. There can be consequences for breach of contract. All Purchase & Sale agreements must be set out in writing.

Deposit

This is the amount of money paid when the offer is made. It can be paid upon acceptance or on the occurrence of certain events or conditions such as when all conditions or waived, in a specified time frame or on a certain date. If the agreement of Purchase & Sale does not become firm and binding, the deposit is generally returned to the Buyer without interest or deduction. The Buyer receives credit for the deposit on closing.

Land Transfer Tax

Land Transfer Tax (LTT) is payable to the Ontario government at the time you close your real estate purchase transaction. For properties located in Toronto there is an additional Municipal Land Transfer Tax (MLTT) payable to the City of Toronto. The Ontario LTT rate are:

- 5% of the value of the consideration up to and including $55,000, and

- 1% of the value of the consideration which exceeds $55,000 up to and including $250,000, and

- 5% of the value of the consideration which exceeds $250,000, and

- 2% of the amount by which the value of the consideration exceeds $400,000 for land that contains at least one and not more than two single family residences.

The Toronto MLTT rates are:

- 5% of the value of the consideration up to and including $55,000, and

- 1% of the value of the consideration which exceeds $55,000 up to and including $400,000, and

- 2% of the amount by which the value of the consideration exceeds $400,000 for land that contains at least one and not more than two single family residences.

First Time Home Buyers

May be eligible for a Land Transfer Tax Rebate up to a maximum of $2,000. To see if you are eligible, go to the website of the Ontario Ministry of Finance. Both Ontario and the City of Toronto offer land transfer tax rebates for first-time home buyers to offset the tax. The Ontario land transfer tax rebate is equal to the full value of the land transfer tax up to a maximum of $2,000. First-time home buyers in Toronto of new and resale homes are eligible to receive a refund up to a maximum of $3,725. To claim the Ontario or City of Toronto rebate, you must be:

- Must be at least 18 years of age;

- Must occupy the home as your principal residence within 9 months of the date of transfer;

- Cannot have ever owned a home, or an interest in a home, anywhere in the world; and

- Your spouse cannot have owned a home, or an interest in a home, anywhere in the world while being your spouse.