Real Estate Transactions

RET Flashcards - Fall 2025

As a V selling to an HST-registered P, what should you get from the P?

1. Written evidence the P is HST-registered

2. Their HST number

3. A Statutory declaration and

4. An indemnity protecting the V from liability if the CRA later claims that HST should have been collected

Land Titles

Government-guaranteed system of land registration, where ownership is guaranteed by the province.

Core Principles: (1) indefeasibility of title ; (2) the mirror principle; (3) the curtain principle

Qualified Legal Description of Land

When land from Registry was transferred to Land Titles, it was entered as LTCQ = property is in LT but government does not guarantee that no old claims exist because Registry records were imperfect

Categories of land division

Ontario —> County —> Township —> Concession —> Lot —> Part of Lot X

Defect

Any problem or legal flaw in property’s ownership that makes the vendor unable to give the purchaser good, marketable and unencumbered title.

Examples: undisclosed lien, boundary disputes, claim of adverse possession, outstanding tax arrears lien, fraudulent transfer, unregistered interests, restrictive covenant

Crown Patent

Like the birth certificate of a piece of land in Ontario. The original grant of land from the Crown to a private owner that creates the first private ownership of that land

Land Titles Assurance Fund

Provincial compensation fund that reimburses people who suffer a loss due to error in the Land Titles register.

Common Issues with Rural or Cottage Property

1. Access: having to travel on a publicly available road to enter

2. Navigable water: questions on ownership, permits required to build on parts of the water

3. Quality of Water

4. Failing septic tanks

A Right of Way

A type of easement that allows passage over another’s land. If by prescription, it requires uninterrupted use for 20 years or more.

Categories of Automation in Land Titles

• LT: full Land Titles, most modern and complete category, gold standard because title is indefeasible and fully guaranteed by the province.

• LTCQ: Land originally in registry, converted into Land Titles but with qualifications

• LT+: between LTCQ and LT, used during conversion to identify parcels that were almost ready for full LT status but still had minor issues

List of Off-Title Searches

1. Writs of Execution

2. Municipal by-laws

3. Zoning Compliance

4. Work Orders

3 Surveys

1. Building Location Survey: shows where buildings and structures sit on a property in relation to the property lines

2. Reference Plan Survey: detailed survey prepared by an ON land surveyor to define parts of property, often for legal purposes; shows exact property lines, dimensions and someimtes easements or rights of way.

3. Registered Plan of Subdivision: a plan filed with the Land Registry Office that divides large parcel of land into smaller lots for sale or development. Once registered, each lot is legally recognized and can be sold individually.

T/F: A Vendor must pay for a Reference Plan Survey if requested by the Purchaser.

F: A vendor only has to disclose surveys in their possession.

Assignments and Preferences Act

Purpose: To prevent defeating or giving an unjust preference over creditors

Key sections:

• s 4: if person is insolvent OR insolvency is imminent —> CANNOT transfer property to defeat a creditor or to give an unjust preference over other creditors. If so —> creditor can request the transfer to be set aside as fraudulent or unjust conveyance

• ***s 4 does not null transfers made in good faith

Fraudulent Conveyances Act

Purpose: To prevent fraudulent conveyances

Key section: s. 2 Every conveyance of real property made with intent to defeat, hinder, delay or defraud creditor(s) is VOID against such persons and their assigns

Beds of Navigable Waters Act

Presumption in law: if the title of a body of water was NOT explicitly granted —> title remains with the Crown . In this case,

• IF the water is navigable, owner owns up to the low water mark.

• IF the water is non navigable —> (1) the boundary is at the center of the body or water OR (2) boundaries of land continue as if the body of water is continuing land

7-part navigability test (Reed)

1. traversable

2. floatable

3. can be navigable in part

4. capability > factual navigation

5. not limited to private purposes

6. navigation can seasonally fluctuate

7. the date of the Crown patent matters

Canadian Navigable Waters Act

Purpose: federal law to protect navigation on Canada’s rivers, lakes, and other bodies.

Key section: s 6 Federal minister must review any proposed work affecting navigable waters (i.e a dock, bridge, boathouse, pier, dam). IF the Minister determines the work will not interfere with navigation —→ no formal approval is required.

Implication for Client: possible requirement of a federal permit for work on bodies of water

Public Lands Act

Purpose: Provincial law that regulates land owned by the government (Crown land) in Ontario.

Key section: s 13(3) It is an offence to erect a building OR make improvements on Crown land without permission.

• Exceptions: the structure is 15m² or less; the structure has existed on Crown Land for more than 60 years, making an adverse possession claim on Crown Land possible under the Limitations Act

The Boundaries Act

Purpose: To clarify and fix boundaries between properties where there is uncertainty or a dispute. Surveys in this Act can supersede others.

Part II: Owner of land may apply to the Director of Titles to have a survey’s boundaries confirmed. The Director may issue a certificate with the confirmed boundaries. This section is mostly used by Ministry of Transportation or municipalities to confirm boundaries of public highways.

Brownsfields Statute Law Amended Act

Purpose: Encourage redevelopment of contaminated or underused industrial and commercial properties in Ontario.

Presumption in law: contamination runs through entire chain of title, BUT compliance with process under the Act (to have property classified as Brownsfields) allows you to confirm to the Ministry that the land meets environmental standards and so the next owner/tenant/occupant who finds contamination is not liable.

Part III: amends Municipalities Act to allow municipalities to provide tax relief to offset environmental rehabilitation

Part IV: amends the Planning Act to allow municipalities to make loans/grants to owners and tenants of Brownsfields for the purpose of carrying out community improvement plans.

• Note: total loans + grants + tax relief provided CANNOT exceed costs of effecting environmental remediation.

Implications for client: client that may want to develop an old gas station and sell units to various people; client asking whether title insurance will cover environmental contamination(no)

Conservation Authorities Act

Purpose: protects floodplains, wetlands, shallow marshy areas.

Key: if under the jurisdiction of local Conservation Authority, your client will require permission from that authority to place or remove fill within floodplain; or to construct, alter or reconstruct a building within a floodplain.

Conveyancing and Law of Property Act

Purpose: to codify common law principles of conveyancing.

Key sections:

• 13: when you convey to 2 people or more, IF the deed is silent —> grantees will be presumed to be tenants in common

• 15: every conveyance will contain certain items (like fixtures, trees, water courses and easements)

• 16&17: you can sever mineral rights from your surface rights

• 23: conveyance carries implied covenants like the right to convey, the right to quiet enjoyment of the property

• 37: if you made a lasting improvement in land that you believed to be yours, you may claim a lien

• 41: you can convey to yourself (for example to sever joint tenancy, to terminate a right of survivorship)

• 61: you can discharge or modify restrictive covenants that run with the land by applying for an order to the ONSC. If so, you must prove that the benefits of the discharge/modification outweigh the detriment

Courts of Justice Act

Purpose: under this act one can apply for a certificate of pending litigation.

Key sections:

• 103(1) Where an interest in land is in question, a certificate of pending litigation must be issued to stop a person from making deals on the property

• 103(2) If the certificate is issued, it may be registered under Registry or LT. In the latter, this is a caution on title, which automatically expires after 60 days of registration.

Electricity Act

Purpose: invokes how lands may be subject to an unregistered hydro easement

Key sections:

• 46: if Hydro has ever gained a right or easement over a parcel of land, that right or easement binds the land and all future owners, and is not apparent on a title search.

• 46(3): Hydro has an obligation to respond to inquiries of the existence of these easements within a specified time. Failure to respond —> expose to liability.

Environmental Protection Act

Purpose: establishes that environmental contamination runs with title so any registered owner carries liability; any tenants, property manager, or occupant can be pursued.

Client implications:

• title searches do not reveal the presence of any environmental hazards.

• only under Registry would you see previous industrial owners, like gas stations.

• most effective means is an environmental audit asking for Phase I (environmental assessment) and Phase II (environmental audit) of the land

Escheats Act

Purpose: legal framework allowing the Crown to take ownership of real property when no lawful private owner exists.

2 possible applications:

(1) when person is intestate —> property vests in the Crown

(2) when a corporation that owns property dissolves —> property vests in the Crown

Client implications: perform a corporate status search to make sure Corporate vendor has legal capacity to convey title.

Fire Protection Act

Purpose: basis for the Ontario Fire Code

Key section:

• 21: allows Fire Chief to issue orders to owner or occupant of lands to require them to remediate conditions that are fire hazard. Neglect of the order can lead to provincial offence (up to$50K/day; up to $100K for subsequent offence)

Client implications: fines; possible liability for wrongful death.

Line Fences Act

Purpose: Some rural hick shit, where fence viewers are appointed by a municipality to arbitrate what portion of fence the owner and neighbour can construct, reconstruct, repair or maintain.

Client implications: fence viewers’ judgement is registered on title and if the adjoining owner fails to comply, this can amount to a default registered on title. Any amount owed may be collected as municipal taxes.

The Municipal Act

Purpose: gives municipalities authority to govern local matters. For our purposes, more about the concepts than the individual sections.

Key Concepts:

1. Municipal Tax Arrears: if municipal taxes are unpaid on your property, municipality can take it from you

• IF in arrears for > 3 years —→ municipality can sell to satisfy debt; Municipal Treasurer registers arrears against title and owner has 1 year to pay it.

• IF the property does not sell —→ the municipality owns it.

• IF you pay the taxes in time —→ cancellation of the arrears are registered on title like a mortgage discharge.

2. Unopened or Closed Road Allowances need to be properly closed for it to be conveyed with the rest of the land. To convey, the municipality must pass a by-law to close it. And for this to be effective, it must be registered with the deed.

• Unopened or closed road allowance do not automatically pass with adjacent land.

• Municipality can permanently close a road, or any part of a road (s 297), but they cannot pass a by-law to close a HWY if the effect is to deprive a person of entrance or exit onto their land.

• A public highway in the Act is defined as public roads, street, lane, alley, sidewalk.

• Municipalities hold unopened or closed road allowance in trust for the public.

• No person can adversely possess a road allowance against a municipality (s 299(1))

Implication for client: if your client owns on one of these HWYs:

1. Does their title include the unopened or closed road allowance?

2. If yes —→ pull the by-law registered on title that authorized the sale and confirm that the municipality gave proper notice + the sale was authorized.

3. Was the road allowance actually conveyed to the owner from the municipality?

**If any steps are missing, your client does not truly own the road allowance

Occupiers’ Liability Act

Purpose: imposes duty of care on occupiers of land —→ must take such care as is reasonable in the circumstances to ensure persons entering onto the premises are reasonably safe.

Ontario New Home Warranties Plan Act

Application: all new homes sold in ON

Purpose: warranties from builders/vendors of new homes and condos to purchasers

Warranties (via Tarion):

1. work-man manner; free from defects; habitable; in accordance with the ON Building Code [1 year from date of possession]

2. no water penetration through basement or the foundation [2 year; 300K max.]

3. electrical + plumbing + heating is free from defects

4. exterior cladding is free from defects

5. free from major structural defects [7 years; 300K limit]

***For condos, warranties may begin from the date of occupation, not from the date the certificate of possession is issued

Substituting Materials

• A vendor cannot substitute materials for which the purchaser has the right to selection

• Where substitution is necessary and the purchaser fails to select, the vendor/builder can choose the material as long as it’s of equal or better quality to the purchaser’s original selection.

• Any complaints on substituting materials must be made to Tarion within 1 year of Certificate of Completion / Possession being issued

Deposits

• Purchaser is entitled up to $40K if the builder goes bankrupt or fundamentally breaches agreement ; $20K + interest for condos

• Any deposit above the 40/20 cap is not protected

Construction Delays

• when the transaction cannot be closed on time, parties can extend the closing date for 120 days without invalidating the APS

• IF vendor breaches the APS —→ purchaser can terminate APS with notice delivered within 10 days after 120-day period OR purchaser can extend for another 120 day

• IF 240 days have passed and the home is still not complete —→ Purchaser can terminate the APS

Key Sections

• 6: builder/vendor must register with Tarion and receive an enrollment # associated with the new home

  • A prospective buyer should ask for this # to ensure warranties apply to their new home

• 12: Tarion must be notified and paid (goes to the guarantee fund) before construction can begin

Partition Act

Purpose: when 2 or more joint tenants OR tenants in common OR partners have a dispute over their land they can apply to the ONSC for (1) partition of the land OR (2) order for sale of the land and division of proceeds

**This is often a long and $$$ process so most parties have a shotgun clause in the ownership agreement

Real Property Limitations Act

Purpose: to establish limitation periods for actions involving interests in land

Key sections:

• 4: you have 10 years from the date your adverse possession right arose to bring an action to recover land, assuming the adverse possession test is satisfied and land is in Registry

• 13: 10 year period starts to run from date of written acknowledgement, if any

• 16: no person can adversely possess a road allowance

• 31: a prescriptive easement, a right of way that has been enjoyed for 20 years or more without interruption is indefeasible

Road Access Act

Purpose: to protect landowners from being landlocked by preventing others from obstructing or closing an existing road access to their property and mechanism to address blockage.

s. 2: no entity can block an access road unless there is a court order, consent, or it is temporary for repairs

Vendors and Purchasers Act

Purpose: to provide a simple, efficient mechanism to resolve disputes and questions arising between buyers and sellers under APS

Key sections:

• 1: if a recital in a deed is there for 20 years or more, it can be relied on

  • so if a recital of this age shows up on a title search, no requirement for further evidence like a death certificate

• 3: P or V can apply to ONSC for judicial determination of a title issue and the order is registered on title as resolving the issue

• 4: there are implied terms in the APS, no matter the form, unless parties expressly agree otherwise (i.e right to examine title, to deliver objections)

Veterans Land Act

Good root of title, same effect as a Crown grant.

Harmonized Sales Tax Act

Purpose: to implement, administer, and enforce Ontario’s harmonized sales tax (HST) system

Applicable to:

1. Newly constructed homes AND condos

2. Commercial property

3. active farmland

Not applicable to:

1. resale of house or condo

2. personal use or recreational properties

Payable: on a transaction by the P to the V, and normally the V remits the amount to the CRA.

Not payable: when the P is an HST registrant. If so —> V must ask for proof, including a statutory declaration and their HST number.

Income Tax Act

116(1) if non-resident intending to sell —> must give notice to Minister of Natural Resources

EX: person who is a NY resident is selling their ON home - they have to pay 25% of gain from the sale of the home

implications for client: unpaid tax can be a registered lien on purchaser’s title.

• P must obtain evidence that the V is NOT a non-resident; standard practice is to get a statutory declaration upon closing OR get a lawyer’s undertaking that clearance certificate will be provided

HST Rebates

1. Excise Tax Act (removes GST %)

2. New ON Housing Rebate (8% of HST)

Land Transfer Act

A one time fee you pay the province for transferring ownership, calculated based on value of property.

Rates: 0.5% on first 55K; 1% on 55K-250K; 1.5% on $250-400K; 2% above $400K

4 Exemptions:

1. between spouses

2. a family corporation

3. first time homebuyer rebate

4. amalgamations

5. for nominal consideration (natural love and affection)

T/F: Only written agreements of purchase and sale will be enforced.

F: part performance can allow for some oral contracts to be enforced

Construction Act

Purpose: to address no privity of contract in the construction pyramid; to protect workers

Key functions: (1) Trust Remedy —→ members of the pyramid have trust obligation to those below them as $$ flowing through a project & (2) The Holdback —→ owner must hold back 10% of total amount owed in case of unpaid worker; behaves like an insurance fund

Basics of a Lien

1. The purpose is to give members of the construction pyramid rights similar to that of a secured creditor

2. Right to claim arises from the first supply of services or materials

3. It does not attach to an interest of the Crown or Municipality

Preservation of a Lien

Is possible by registration of the lien against the owner’s property within 60 days of the triggering date

Implications for client: first question should be “when was the last day you worked or supplied something”. Once the limitation period passes to preserve a lien, there is no recourse for the client.

Perfection of a Lien

After preservation, you (1) commence an action to enforce and (2) register the Certification of Action on the owner’s title within 150 days from the triggering date.

*If the lien does not attach (i.e Crown land), by serving the Government.

Bonding off a Lien

Instead of disputing the lien, the owner can ‘bond-off’ the lien by paying the amount owed + costs into the court (s 44 of the Construction Act) —→ if so, court can make an order vacation where the lien attaches.

**A vacation of a lien does not mean the lien is discharged. The Court order would be registered against title to show the lien has been vacated. A discharge is only truly possible when the lien right is abrogated.

4 Basic Triggers for Lien Preservation

1. Publication of Certificate of Substantial Performance

2. Last day of supply, material or service

3. Completion of the contract (lesser 1% of contract price or $5000 left)

4. Completion of a sub-contract (lesser 1% of contract price or $5000 left)Ke

What to advise a client purchasing a condo

1. different from freehold

2. property governed by the Condominium Act, which comes before the Declaration and then comes your tenancy rights

3. you will not own the windows, balcony, backyard (anything that is outside the defined boundaries of your unit)

4. you will be allocated a % of ownership of the common elements (undivided interest in common elements like tenants-in-common)

5. you have an obligation to a % of the common expenses

6. you must have insurance for what is within the defined boundaries of your unit

7. you must insure any future improvements you made to your unit

8. the common expense figure in the APS will not be as accurate as the one in the Status Certificate

9. a breach of Condo rules/regulations (such as not paying common expenses) can lead to the Condo Corporation registering a lien against your title

10. whether a parking space or locker is assigned for use OR to be separately conveyed in the APS

11. important information in the Status Certificate:*

• property manager

• amount and due dates for common expenses

• reserve fund status (but best to not give legal opinion on it)

• upcoming increases of common expenses

• any legal proceedings of the Condo Corp.

• any agreements between the Condo Corp. and owners relating to changes to the common elements

• without a s 98 agreement (Condo Corp.’s blessing) to these changes/improvements, the owner is liable for any damage or loss

• number of owned vs leased units

• substantial changes to common elements, assets, services

• Memo of Insurance policies

New or Not-Yet Constructed Condos

1. review the disclosure statement with the proposed declaration, rules/regulations, common elements

2. interim occupancy is possible — but remember that a mortgage or encumbrance must be discharged by the builder before conveyance to a purchasing client

Reserve Fund

Pool of money from condo common expenses to fund major projects or repairs. A study of the fund must be updated every 3 years.

LSO Requirement in relation to Title Insurance

• You need to be able to explain to your clients all reasonable options available

• whether or not to title insure

• advantages of undertaking the transaction with or without title insurance

Joint-Tenants

Owners hold one unified interest in the property, common for married or common law couples.

Key feature: right of survivorship —→ if one tenant dies, their share automatically transfers to the surviving joint tenant.

Tenants in Common

Owners hold unequal interests (30%-70%), as a separate and divisible share of ownership. Common for investment properties, friends, siblings.

Key feature: no right of survivorship —→ if one tenant in commons dies, their share goes to their estate and passes according to their will or intestacy rules.

Conveyance

Any legal document or act that transfers an interest in land from one person to another.

Escheat

Legal principle under which ownership of land automatically returns to the government when private owner dies without a will or lawful heirs OR when a corporation holding land dissolves with no successor.

Recital

A section in a deed like a preamble, explaining the background, context, and purpose of the transaction.

Input Tax Credit

A credit that allows a business registered for HST to recover the HST it paid on goods and services purchased for use in its commercial activities. In RE, if the purchaser is an HST-registrant acquiring property for use in commercial activities, they do not pay HST to the seller, instead they self-assess and remit the HST amount to the CRA, and claim an input tax credit.

Tip for avoiding an inadvertent merger

Keep the power of disposition separate by putting a fractional share of ownership on a family member or trusted person.

T/F: It is possible to register a notice of a trust on title in Land Titles

FALSE: A title held in trust will not show up in Land Titles because you cannot register a trust (s 52 LTA)

Planning Act (1/2)

Purpose: concerned with subdividing land, wants to prevent illegal transfers, deeds, charges when two parcels merge according to the doctrine of merger.

KEY SECTIONS:

• 50(3) GENERAL PROHIBITION: a person cannot deal with land in certain ways if they also own abutting land, UNLESS an exception applies:

  • the land is within a registered plan of subdivision —→ lots do not merge because subdivision is already municipality approved

  • you own 1 parcel and nothing next to it, including no fee simple or equity of redemption (i.e power of disposition)

  • the municipality, province, or Crown is acquiring or disposing the land

  • you have consent from the municipality to Convey or charge a merged parcel

• 50(21) PENALTY: if you breach the Act, any agreement, conveyance, mortgage, power of attorney is VOID

• 50(8) EXCEPTION = VTBM: a vendor-take-back mortgage is part of the purchase part so the seller is seen as still holding onto a legal interest in the land.

• 50(22) CURATIVE PROVISION: if a deed or transfer would normally violate the Act, it can still be valid if certain statements are included in the document:

  • (a) vendor statement verifying that to the best of their knowledge, the D/T does not contravene

  • (b) vendor’s lawyer’s statement verifying they explained effect of the Act, made inquiries, is in good standing and to the best of their knowledge the D/T does not contravene

  • © statement from purchaser’s lawyer verifying they investigated title and abutting land, they are satisfied with results of title in relation to contravention, is in good standing and to the best of their knowledge the D/T does not contravene

  • (d) is registered under the LTA or Registry Act

Doctrine of Merger

When one person acquires the power of disposition over two abutting parcels of land, those parcels automatically merge into a single parcel for Planning Act purposes, unless an exception applies.

To avoid: place fractional share of ownership on a family member or trusted person.

Planning Act (2/2)

LOT CONTROL PROVISIONS

• 50(5) If you own within a RPS, you cannot convey any part of the land other than a whole lot.

• you cannot sell part lots unless what abuts it is a whole lot. issue is if you buy two part lots, they will merge

  • EX: you own 2 whole lots that abut —> all good

  • EX: you own 2 part lots —> deemed as 1 lot

• 50(7) City can pass by-law exempting lands from 50(5) application

• 50(12) Severance Consent —> once a parcel is legally severed with proper consent, you can deal with is as its own parcel in the future unless consent says otherwise (i.e includes conditions)

The Essential Terms of an APS

1. identity of the parties

2. accurate description of the property

3. purchase price

Vendors and Purchasers’ Act

Fills in the blank where terms of an APS are missing

Section 4 principles

(A) V only has to provide abstract copies of title / surveys in their possession

(B) objections must be made in writing within 30 days from the making of the APS

(C) If V is unable / unwilling to address objections they can revoke the APS and return the deposit

(D) taxes, fees, rents, common expenses are to be adjusted as of the date of closing on a per diem basis, excluding metered services

(E) conveyance to be prepared by the V and P is responsible for the mortgage and price of registering the deed

Requisition Date

Deadline by which the P must raise all title issues to the V - includes objections to the V with the purpose of giving the P a period to review title. You have up to 5 date before closing to send requisitions.

Common Complications Arising from APS (parties)

1. spousal consent when selling or refinancing a matrimonial home (always assume it’s a matrimonial home until evidence to the contrary)

2. capacity to consent (cannot be < 18 or mentally incapacitated)

3. assignments (if you agree to anonymous offer, use a good protective assignment clause)

4. corporations / partnerships (indoor management rule applies unless the P has knowledge, and for partnerships always ask if the APS is in the course of business)

5. V is an estate (authority is key)

6. APS signed by a person dies before closing (death amounts to a breach)

7. “more or less” legal description

8. price (leave negotiation to parties; finds on closing must be certified in some form ;LSO says you cannot accept more than $75K for any transaction)

Relief from forfeiture

when it would be unjust for a V to receive the whole amount of a deposit and the P in breach asks the court of an order to a portion of it

Rules on Deposit in Breach

• IF P refuses to close or breaches —> forfeited to V

• IF BOTH parties in breach —> P entitled to deposit

Mortgage terms you must confirm

1. principal

2. annual interest rate and type of rate

3. term

4. date of advance

5. payment terms

6. amortization period

Steps to discharging a mortgage

1. Identify all outstanding mortgages

2. Requisition all mortgages to be paid out

3. Request payout statement from lender to get exact amount due

4. Payout statement + statement of adjustments are used to calculate a balance due upon closing

5. Prepare undertaking to payout and discharge on closing

6. Pay the lender directly by cheque, and hold remaining funds in trust

7. Register the discharge on title

8. Confirm mortgage is removed

9. Notify P’s lawyer title is clear and you have fulfilled your undertaking.

Irrevocable Date

Day by which the V has to either accept the P’s offer OR counter-offer

T/F: Chattels are not included in a standard APS

T: Chattels are presumed to be excluded, unless included

The Rescission Clause

“Provided that title is good”

• marketable: title a court would enforce on an unwilling buyer

What happens if the vendor is a non-resident under the ITA

(1) an undertaking from V’s lawyer to hold back % of sale proceeds and (2) pay the CRA amount and (3) obtain clearance certificate that the V fulfilled the tax obligations

Tender

Formal act of showing a court your client was ready, willing and able to close exactly as required by the APS

Pre-payment penalty

If borrower pays out, normally a fixed rate mortgage, before the end of Term, the lender charges them the greater of 1. 3 months’ interest OR 2. interest-rate differential (IRD)

Interest Rate Differential

contract rate - lender’s current date posted, for a term equal to your remaining time

Right to Redeem

s 18 of Mortgages Act: borrower can pay out principal in full and 3 months interest after 5 years, with no more interest chargeable.

Steps to Sell Deceased’s Property

1. register a transmission application containing (a) birth certificate ; (b) debts of deceased paid in full; © deceased’s assets vested in trust to estate trustee

2. court issues you a file #

3. by virtue of registration of application, the property vests in the trustee so they can sign the transfer / deed to purchaser

*Note: You do not need a certificate of appointment of estate trustee where it is first-dealings transmission application OR property is under $50K