Residential Real Estate

For most Canadians, the buying of a home is their largest financial undertaking. As of early 2024, the average house price in Canada was approximately $685,809, with staggering province-to-province variations. The market in such larger cities as Toronto and Vancouver has a tendency to balloon, with residential real estate a shrewd investment opportunity. Many buyers purchase homes to live in, but also to resell at a profit or to rent out for income.

What Does Residential Property Include?

Under Canadian property law, several types of homes fit into residential categories:

• Single-detached dwellings
• Semi-detached houses
• Townhouses
• Condominiums
• Co-ops (Co-operatives)
• Triplexes and duplexes
• Apartments in low-rise buildings

The thread that runs through all of these properties is that they are used primarily for humans to live in, as opposed to commercial use.

What Is Ownership of Residential Real Estate?

When you own residential real estate in Canada, you’re responsible for an assortment of things:

• Property taxes (regulated by municipalities)
• Maintenance and repairs
• Complying with zoning and by-law regulations
• Sustaining service and utility fees

Homeownership also has you accumulating equity. Instead of paying rent to a landlord, you’re investing in an asset that can appreciate over time.

For first-time homebuyers, the real estate process can be tricky. That’s why so many Canadians choose to retain a real estate lawyer as well as a real estate agent.

Why You Require a Real Estate Lawyer

In Ontario and others, it is actually legally required that a lawyer complete the property transfer through the Electronic Land Registration System. Lawyers safeguard your interests by:

• Reading the Agreement of Purchase and Sale
• Ensuring the title to the property is clear
• Arranging title insurance
• Recording the deed and mortgage
• Arranging the financial closing

Title insurance is not mandatory in Canada but is required by most lenders. It protects against fraud, liens, or defects in title and typically costs a one-time fee of $250 to $500.

What Does a Real Estate Lawyer Do for Buyers?

Following is the rundown of the usual tasks a real estate attorney must carry out for buyers:

Reviewing contracts and papers: Your lawyer ensures your Agreement of Purchase and Sale has all the essential items (i.e. yard, parking lot spaces, appliances).

Conducting title searches: They check for liens, unpaid judgments, and boundary issues to verify that the seller owns a clean title to sell.

Purchasing title insurance: Optional, but typically for a mortgage and protection against fraud or hidden ownership issues.

Coordinating closing day: Your lawyer coordinates all money transactions, takes the mortgage payment, pays the seller, and does the legal registering.

What Does a Real Estate Lawyer Do for Sellers?

For sellers, a lawyer plays a crucial role by:

• Examining or drafting the purchase agreement
• Assisting in negotiation of terms
• Resolving legal issues like unpaid taxes, outstanding mortgages, or title issues
• Receiving and disbursing closing-day funds

The lawyer ensures that all debt obligations—realtor fees and any pre-existing debts on the property—are paid before the net proceeds of sale are disbursed to the seller.

Selling a Home in Canada

Even if you’ve sold property before, each sale has new challenges. An experienced real estate lawyer can identify legal pitfalls and avoid penalties or contract breaches. They’ll make sure the contract protects your rights and contains all conditions necessary.

Do You Really Need a Real Estate Lawyer in Canada?

Yes, in most provinces you are forbidden from completing a home sale or purchase without a licensed real estate lawyer. In Nova Scotia and Ontario, for example, only lawyers can use the land registry systems to register ownership or search title records. In Alberta, while other experts or notaries may assist, lawyers are the only ones who can finalize mortgage discharges.

Reminding one that home buying can cost as much as $700,000 and legal costs typically range from $1,500 to $2,500, a lawyer search is a modest price to pay for peace of mind and legal protection.

Whether selling or purchasing residential property in Canada, having a reliable real estate lawyer on hand is not only a prudent action—it’s also often a matter of law. From contract review to registering ownership and compliance with provincial regulations, their advice eases the process and safeguards your interests at every turn.