Ottawa Real Estate Lawyers

Buying or Selling a Home?

The purchase of a home is an exciting event but also the single largest expenditure many families will ever make. Allan Snelling LLP’s real estate Lawyers in Ottawa will help you manage all of your needs including the purchase and sale of your single-family home, townhome, condominium, farm, or cottage. As required, we provide real estate legal services such as:

• Purchase or Sale of Real Estate
• Mortgages
• Preparation and Review of Agreements of Purchase and Sale
• Transfer of Real Estate Property & Survivorship Applications
• Condominium Agreements
• Obtaining Variances and Severances

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At Allan Snelling LLP we dedicate ourselves to ensuring that this important transaction is completed in a timely fashion while giving you peace of mind and keeping our fees affordable. Issues and problems are identified and resolved promptly. Our real estate Lawyers serve both Ottawa and its surrounding communities—including Kanata, Nepean, Stittsville, and Barrhaven.

Contact us today to obtain a free quote or to speak to our real estate Lawyers for a no-obligation consultation. You can also contact our Kanata real estate law firm directly at vhajtol@compellingcounsel.com or by phone at 613.702.2618 x 226.

What is the process for buying or selling a property?

Once a seller has decided to list their property, the process of selling it in Ottawa can be broken down into four main steps. 

The first step is to hire an experienced real estate agent. Agents are knowledgeable about the local market, and they understand the intricacies of selling a home in Ottawa. They will help sellers determine a reasonable asking price for their property, as well as provide marketing strategies that can maximize exposure and result in more bids from potential buyers. 

The second step involves getting the property ready for sale by making necessary repairs or updates to ensure that it appeals to buyers. This includes decluttering, cleaning, painting, and staging rooms with furniture if desired. This is often done with the assistance of an interior designer who can help create the perfect look for potential buyers. 

The third step is to show the property to interested buyers through open houses and private showings. During this time, agents will handle negotiations between sellers and buyers; they understand the local market, so their guidance on pricing and terms is invaluable during this process. 

Finally, once a buyer has been found and all paperwork is finalized, the closing day arrives. On this day, both parties will meet at a lawyer's office or title company to sign all documents to legally transfer ownership of the property. This is where money exchanges hands (usually through bank wire transfers) and keys are exchanged if applicable. After that point, the home officially belongs to its new owners! 

Selling a property in Ottawa can be a long and complicated process, but hiring an experienced real estate lawyer and being familiar with the rules and regulations of real estate transactions make it much easier. With the help of an expert, sellers can rest assured that their property is in good hands.

What are the legal requirements for a valid real estate contract?

When closing a real estate contract in Ottawa, Canada, certain legal requirements must be met. These include the following: 

Firstly, both parties must have the capacity to enter into a legally binding agreement. This means that all parties must be of legal age and mentally competent. It is also important for each party to fully understand the terms of the agreement before it is signed. 

Secondly, consideration must be provided by both parties, and this includes something of value such as money or services. This is an exchange between the buyer and seller which binds them to their promise when agreeing to a contract. 

Thirdly, all parties must agree on the same set of conditions for the transaction to be considered valid. This means that all parties must agree on the purchase price, property description, dates, and any payment arrangements.

Fourthly, a real estate contract in Ottawa must be in writing. This is to ensure that all parties understand the terms associated with the sale and it is also used as evidence should any disputes arise in the future. 

Finally, a signature from both parties is required for a real estate contract to be valid. It is important to note that signatures must always be witnessed by a third party for legal reasons. 

By understanding and following these legal requirements when signing real estate contracts in Ottawa, Canada, individuals can help to protect their interests and make sure that their rights are enforced according to the law. 

How can I protect myself from fraud in a real estate transaction?

One way to protect yourself from fraud in an Ottawa real estate transaction is to ensure that all paperwork related to the purchase is handled properly. This includes getting your lawyer, having a qualified home inspector conduct a thorough inspection of the property before the closing date, obtaining formal title searches for any properties included in the purchase, and making sure you understand all your rights as a buyer. It’s also important to research and verify the identity of any individuals or entities involved in the transaction — such as sellers, agents, mortgage brokers, etc. 

It’s equally important to be cautious when dealing with money during an Ottawa real estate transaction. Make sure that cheques are written out correctly, funds are transferred securely through a bank account, and all payments are made through a trust account. Avoiding making cash payments or accepting “guarantees” from sellers is also an important step in protecting yourself from fraud.

Finally, understanding the Ottawa real estate market can help you make the best decisions for your specific situation. Knowing what properties are selling for and using that information to negotiate on price can give you an edge over scammers who may be trying to take advantage of unsuspecting buyers. If a deal seems too good to be true, do some research before signing any paperwork — it could save you a lot of hassle down the line. 

By taking these steps, you can be sure to protect yourself when purchasing real estate in Ottawa. Knowing your rights and being wary of potential scams will help you avoid costly mistakes and ensure a successful, stress-free purchase. 

FAQs

Are there any tax incentives for first time home buyers?

As a first-time home buyer you may be eligible to receive a partial refund of the Ontario Land Transfer Tax which is charged on real estate purchases. The First Time Home Buyers’ Tax Credit and the Home Buyers’ Plan are federal programs that provide aid.

‍Land Transfer Tax (LTT)

‍The Land Transfer Tax is paid to Ontario government whenever there is a registered change of ownership of real property. While there are certain exceptions, the land transfer tax is generally payable whenever someone purchases a residential home. The amount of the LTT depends on the purchase price and the current tax rate rises progressively from 0.5% on the first $55,000 of the purchase price to 2% of the amount of purchase price which exceeds $400,000. First time home buyers get a LTT refund up to a maximum of $2,000. To qualify for this refund, you must not have owned a home anywhere in the world in the past and you must use your new home as your primary residence within nine months of the purchase. If you are buying a home together with someone that is not a first-time home buyer, you can still receive half of the refund.

‍First Time Home Buyers’ Tax Credit (HBTC)‍

The First Time Home Buyers’ Tax Credit is available for the taxation year in which a first home is purchased. The value of this tax credit is $5,000. It can lower a person’s income tax by up to $750.

‍Home Buyer’s Plan (HBP)

‍Home buyers can withdraw up to $25,000 from an RRSP if the funds are used towards the purchase of their home. Although there are no immediate tax consequences at the time of withdrawal, the full amount must be repaid to the RRSP within 15 years. To qualify, the Purchaser must not have owned a home in the preceding four years.

Should I waive my right to a home inspection?

‍We placed an offer on a house, which was accepted by the sellers. The agreement is conditional upon a satisfactory home inspection. The house was built only a few years ago and we are considering waiving our right to a home inspection. If we do, what rights do we have if we discover some deficiencies in the house after the closing date? Should I wave my right to a home inspection?

Buyer Beware

The law in Ontario is clear: “let the buyer beware”. Unless there is a fraud, misrepresentation or mistake made by the seller, the buyer takes the existing property as he finds it. Therefore, most of the time the buyer can’t make a claim against the seller for any deficiencies discovered after closing. The general rule is that there is no obligation to disclose any defects that the seller is aware of. The only exceptions to this rule are serious hidden defects. Hidden defects are those that are not discoverable by a reasonable inspection. Further, such defects must be serious enough to either affect the integrity of the house or render the house unfit for human habitation. Hidden defects are also those defects that the seller is trying to conceal.

Representations and Warranties

The sellers of residential real estate in Ontario are not obliged to provide any representations or warranties to the buyer.

The standard Agreement of Purchase and Sale for a resale home used by real estate agents does not contain any warranties regarding the physical condition of real estate property, except for a very limited warranty related to ureaformeldahyde insulation. The buyer might try to negotiate warranties into the agreement of purchase and sale; however, this is very rare.

Home Inspection

A proper home inspection performed by an experienced home inspector is the best way to protect you from any unpleasant surprises. While a home inspector might not be able to identify all defects, especially hidden ones, it is the only way to learn what you are buying and to make an informed decision about one of the most important purchases of your lifetime.

What is a condominium status certificate and why would you need one?

‍Status Certificate

‍Section 76 of the Ontario Condominium Act (the “Act”) provides for what is called a “Status Certificate”. Every condo purchase should be contingent upon review of the Status Certificate and a condominium corporation must provide a status certificate for a condominium unit upon request. The Status Certificate is used to learn all about the condominium corporation and provide the buyer with much of the documentation required for review. The Act sets out what must be contained in all Status Certificates, some of which includes:

Disclosure of all outstanding judgments against the corporation and the status of any legal proceedings to which the condominium corporation is a party.
A statement about any upcoming major repairs.
A statement of the common expenses for the unit and any default on the payment of those expenses.
A copy of the current budget of the corporation; and
A statement about the most recent reserve fund study and the amount in the reserve fund. (The reserve fund is used for performing major repairs of the common elements of the condo corporation.)
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Rules

‍Attached to the Status Certificate are the rules and regulations of the condominium used for governing common elements such as hallways, lobbies, and balconies. A real estate Lawyer can review these rules and explain them so that you understand what your rights and obligations are as condo owners.

‍Fee

‍Remember that according to the Act, the condo corporation may charge a prescribed fee for providing you with the Status Certificate

What is title insurance and do I need it?

Title insurance is the protection from financial loss caused by unknown or uncovered title defects. It is usually purchased in Ottawa real estate transactions and provides coverage to the buyer and lender against certain risks, such as liens, unpaid taxes, encroachments, faulty deed conveyances, forgery of deeds, and other legal documents affecting the ownership. Title insurance can also provide coverage for claims arising out of matters that are not found in a public search during the title search process. 

It helps remove some of the risk associated with real estate transactions by assuring that you will be able to own the property free and clear of any existing problems with its title or other potential issues which may arise after closing. Title searches are conducted to identify any outstanding liens, claims, or other title issues that may affect ownership of the property. If any issues are found, they must be resolved before closing or title insurance can provide coverage for them. 

Title insurance is an important part of a real estate transaction in Ottawa and provides peace of mind to both buyers and lenders. It helps protect everyone involved from potential legal disputes down the line, which could cause significant financial losses. 

Anytime a property changes hands or a lender provides financing for it, it is important to make sure that appropriate title insurance coverage is obtained to safeguard against any unexpected costs arising from existing title defects or other issues that may arise after closing. 

Overall, title insurance can help both buyers and lenders in Ottawa by protecting against potential losses arising from title defects or other issues that would not be picked up during the title search. It is an important part of any real estate transaction as it helps ensure that everyone involved can own and use their property without fear of financial loss due to unforeseen circumstances. 

How can I ensure the property I am buying is free of liens?

One of the most important steps to take when purchasing property in Ottawa is to ensure that the property you are buying is free of liens. Liens can have a devastating effect on property owners, as they usually block any funds from being released until the lien has been cleared or paid off. 

To start, buyers need to be aware of what a lien is. A lien is a legal claim against someone's assets (in this case, real estate) and may arise when an individual or company lends another person money and puts their assets up as collateral. Generally speaking, if the borrower fails to pay back their debt, then the lender will file a lien against them.

In the context of property ownership, buyers should be aware that a lien can be filed against a property if unpaid taxes are owed. Additionally, depending on the type of mortgage loan you secure to purchase your property, lenders can file a lien to secure their investment. 

To ensure that you’re purchasing a property free of liens, Ottawa buyers should obtain title insurance and work with an experienced real estate lawyer. Title insurance is important as it will protect you from any unknown liens or claims against the property that may have been missing during the due diligence process. A real estate lawyer will also help by thoroughly examining all documents related to the purchase and providing legal advice and representation. 

Finally, it’s important to remember that Ottawa buyers should also research the property’s past owners. If any of them have unpaid debts or claims against the property, this can lead to liens being placed on the property. To avoid this issue, be sure to check for any past liens at the local registry office and ensure that all due payments are made before closing on the sale. 

What are my legal obligations as a landlord or tenant?

Ottawa tenants and landlords are both legally obligated to adhere to certain terms and conditions as outlined in the Residential Tenancies Act. For tenants, this includes paying rent on time and in full each month, maintaining the rental unit in a clean and livable state, notifying the landlord of any damages/repairs needed, and not making any unauthorized alterations or additions. 

Landlords must also abide by their legal obligations which include ensuring that the rental unit is safe and habitable, providing all necessary services such as heat and hot water, responding to tenant requests for repairs promptly, respecting the privacy rights of tenants, returning security deposits in a reasonable timeframe after end of lease term, etc. All these obligations need to be fulfilled throughout the tenancy period so that both parties have a successful living arrangement. 

Furthermore, the Residential Tenancies Act also outlines the rights of both parties, such as the right to quiet enjoyment and eviction processes for both tenants and landlords. All Ottawa tenants and landlords need to be familiar with the terms outlined in this Act so that they can protect their rights if needed. By being aware of your legal obligations, you can create an environment where both parties are comfortable and respected while having peace of mind knowing that they are protected by law. 

Understanding the legal obligations of Ottawa tenants and landlords, it helps ensure an effective relationship between them which ultimately results in a better living experience for everyone involved. This means more than just adhering to the laws set out in the Residential Tenancies Act but being respectful and courteous to each other's needs as well. 

By understanding their rights and obligations, both parties can have a much smoother relationship which is beneficial for all. With this knowledge, Ottawa tenants and landlords can confidently approach any potential rental transaction with ease and peace of mind. 

A further step that tenants and landlords should take to ensure protection is to get a written agreement/lease outlining their respective rights which must be signed by both parties** so they know exactly what they are responsible for to avoid future problems down the road. This helps eliminate any disagreement or confusion between tenant/landlord over legal statutes since it outlines relevant details such as rent amount, occupancy rules, late fees

What is the process for evicting a tenant?

Once you have properly served the tenant with the required notice, it is time to make an application for eviction. Depending on the type of tenancy agreement and the reasons for eviction, there may be different processes that need to be followed. 

If the tenant has not paid rent or another mutually agreed upon debt or obligation, then a landlord can apply to an order of possession and arrears of rent at the Landlord Tenant Board (LTB). It is important to note that this cannot be done until after the proper notice period has been observed. The application should include a copy of both documents: 

• Notice to Terminate Tenancy
• An Affidavit in Support of a Claim for Arrears of Rent. 

The landlord must also file proof of service to show that the tenant has been properly served with these documents. The LTB will then schedule an Order to Vacate hearing and will send a copy of the application to the tenant, giving them time to prepare for their defence at the hearing. 

If there are no rent arrears involved, or if the notice period has not expired, then a landlord can apply directly to the court for an eviction order. This process begins by filing an Application in Summary Proceedings with a local courthouse which includes copies of all necessary paperwork like the tenancy agreement, notice to terminate the tenancy, and proof of service. After filing this document, the court clerk will contact both parties and inform them of the date and time of their hearing. Once again, the tenant will be given time to prepare a defence before the hearing takes place. 

Once either an Order to Vacate or an Eviction order is granted by the court or LTB, it must then be served on the tenant before any physical eviction can take place. A sheriff can serve this notice, but landlords need to remember that they are not allowed to self-evict a tenant in Ottawa Canada. The only person who can legally move out a tenant is a sheriff acting under an enforcement writ issued by the Superior Court of Justice. 

Landlords need to understand that navigating through an eviction process may take some time and legal fees may need to be incurred. It is best to have a clear understanding of all the rules and regulations before embarking on this process. 

A successful eviction requires that landlords follow these steps correctly to ensure their rights are protected and that they do not break any laws. If done properly, it will help make sure that the tenant is legally removed from the property and the landlord can regain possession of their rental unit. 

What is the process for refinancing a mortgage?

The next step in refinancing your mortgage in Ottawa is to shop around for the best rate. Your current lender may offer a better rate if you agree to extend your mortgage term, but this isn’t always the case. It pays to compare rates from other lenders so that you can get the best deal possible. Be sure to factor in any closing costs and fees when comparing rates, as these can add up quickly. 

Once you’ve chosen a lender, they will start processing your application. This usually involves submitting verification documents such as proof of income, bank statements, and details about existing debts or assets. The lender will also conduct a credit check before making their decision regarding how much money they are willing to lend you. 

Once the lender has approved your application, they will schedule a closing date and provide you with a Closing Disclosure that outlines all the terms and fees associated with your new loan. On closing day, you’ll need to sign the document in front of a notary public and pay any applicable closing costs. At this point, the final step is for the lender to disburse funds to settle your existing mortgage debt. 

That’s it - you’re done! Refinancing your mortgage in Ottawa doesn’t have to be an intimidating process if you take the time to research different lenders and understand what documents are required. With some preparation and knowledge, you can be sure to secure the best rate on your mortgage refinance.

What is the difference between freehold and leasehold properties?

Leasehold and freehold properties differ in terms of ownership, rights, and obligations. In Ottawa, Canada, a leasehold property is a type of real estate that the owner leases from a third party (usually the local or municipal government). The tenant is only given an exclusive right to use the land for a certain period. At the end of this period, the tenant must either renew their lease or move out of the property. 

The owner has limited control over how they can use their leased land; typically, they have no right to make structural changes to it or sell it as they would with a freehold property. In addition, tenants may be required to pay rent as well as other charges such as insurance and upkeep fees. 

On the other hand, freehold property is owned outright by an individual or group. The owner has the right to use it for any purpose they wish and may also pass it on to another party if they choose. In Ottawa, Canada, this type of property generally comes with more rights and freedoms than leasehold property. 

For example, owners may be able to make changes to the structure of their home as well as rent or sell it to someone else without needing permission from anyone else. They will also not have to pay any additional fees such as rent or maintenance costs unless they breach their agreement with the local government – something that is very unlikely in most cases. 

Overall, while both types of properties come with their advantages and disadvantages, freehold properties tend to offer more control and ownership flexibility than leasehold properties. Furthermore, the right to sell or rent out a property without permission from a third party is an especially attractive advantage of owning a freehold property in Ottawa, Canada.