FAQ Real Estate Law

Purchasing a home is an exciting milestone, but the process involves legal intricacies. Here’s a breakdown:

• Pre-approval: Secure a mortgage pre-approval to establish your budget and demonstrate financial readiness.
• Offers and agreements: Understand purchase and sale agreements, conditions, and timelines for inspection and financing.
• Legal counsel: Engage a real estate lawyer to review documents, handle title searches, and negotiate on your behalf.
• Closing costs: Be prepared for closing costs like lawyer fees, land transfer taxes, and property insurance.
• Title insurance: Consider title insurance to protect against ownership disputes or hidden encumbrances.

Remember, every transaction is unique. Seek professional guidance to ensure a smooth and secure purchase.

While not legally mandatory, involving a real estate lawyer in selling your home offers significant benefits:

• Drafting and reviewing contracts: Your lawyer ensures contracts accurately reflect your terms and protect your interests.
• Disclosures and representations: They guide you through required disclosures about the property’s condition and history.
• Negotiations and closing process: They handle negotiations with potential buyers and navigate the closing formalities.
• Title matters: They conduct title searches and handle potential title issues like liens or encroachments.
• Peace of mind: Knowing a legal professional safeguards your transaction, reduces stress and ensures a smooth process.

While selling on your own may seem cost-effective, the potential pitfalls make legal counsel a worthwhile investment.

Tenants have several fundamental rights enshrined in provincial laws:

• Right to peaceful enjoyment: Landlords must ensure tenants can live in the property without disruptions or harassment.
• Security of tenure: Tenants have the right to remain in the property for the agreed-upon term, subject to proper notice before termination.
• Rent increases: Rent increases must follow specific provincial regulations and procedures.
• Maintenance and repairs: Landlords are responsible for proper repairs and maintenance of essential elements like plumbing, heating, and electrical systems.
• Eviction processes: Landlords must follow prescribed legal procedures for eviction, with grounds limited to specific situations.

Understanding your rights empowers you to advocate for yourself and address any landlord-tenant issues effectively.

Inheriting property can be bittersweet, involving emotional and legal considerations. Here’s what to know:

• Estate administration: The deceased’s will, if present, dictates how the property is distributed. If no will exists, provincial intestacy laws apply.
• Joint ownership: If multiple beneficiaries inherit the property, they become co-owners, requiring agreement on management decisions and potential sale.
• Tax implications: Inheriting property carries capital gains tax consequences, necessitating professional advice from an accountant and lawyer.
• Partition and sale: Beneficiaries can choose to partition the property for individual ownership or sell it, requiring agreement and legal procedures.

Open communication and professional guidance are crucial when navigating shared inheritance of real estate.

Fence construction regulations vary across provinces and municipalities. Here’s a general guide:

• Municipal bylaws: Check local bylaws for specific regulations on fence height, materials, and location on your property line.
• Permits and permissions: Certain municipalities require permits for fence construction, especially exceeding specific height or proximity to property lines.
• Neighbours’ agreements: Consider notifying adjoining neighbours about your intention to build and ensuring the fence complies with shared property lines and easements.
• Professional assistance: Consulting a land surveyor or lawyer can help ensure your fence adheres to regulations and avoids future disputes.

Investing time in understanding local regulations and securing necessary approvals protects you from potential issues with neighbours and authorities.

Discovering asbestos can be concerning, but knowing the next steps is key. Here’s what to do:

• Stop disturbing the area: Avoid disturbing the asbestos-containing material to prevent airborne fibre release.
• Contact a qualified professional: Hire a certified asbestos inspector to assess the material, its condition, and potential health risks.
• Develop a management plan: Based on the assessment, determine whether the asbestos needs removal, encapsulation, or monitoring.
• Safe removal procedures: Ensure qualified and licensed professionals handle any asbestos removal

Owning a rental property involves significant legal responsibilities:

• Tenant screening: Implement thorough tenant screening procedures to evaluate potential renters’ suitability and financial stability.
• Rental agreements: Ensure legally binding agreements clearly outline landlord and tenant rights, responsibilities, and rent payment terms.
• Maintenance and repairs: Promptly address tenant-reported maintenance issues and adhere to legal obligations for habitability standards.
• Security deposits: Understand and follow provincial regulations regarding holding and return of security deposits.
• Eviction process: Follow prescribed legal procedures for eviction, documented reasons, and proper notice periods.

Being informed about your legal obligations as a landlord minimizes potential liabilities and ensures a smooth landlord-tenant relationship.

If you suspect unethical conduct by your real estate agent, you have recourse options:

• Professional regulatory bodies: Each province has a real estate regulatory body to address complaints against licensed agents.
• Mediation or arbitration: Consider attempting alternative dispute resolution options before pursuing legal action.
• Lawsuit: In more serious cases, you may have grounds to file a lawsuit against the agent for negligence, breach of fiduciary duty, or misrepresentation.

Documenting your interactions and seeking legal advice can help you defend your rights and navigate potential legal proceedings.

Real estate transactions involve various tax considerations:

• Land transfer tax: Each province levies this tax upon property purchase, with rates varying depending on the property value and location.
• Capital gains tax: When selling a property, you may be subject to capital gains tax on the profit earned, with exemptions for primary residences.
• GST/HST: Depending on the property type and purchase price, Goods and Services Tax (GST) or Harmonized Sales Tax (HST) may apply.
• Mortgage interest deduction: For primary residences, mortgage interest payments may be tax-deductible, offering tax savings.

Consulting a tax professional ensures you understand and optimize your tax liabilities associated with real estate transactions.

Non-residents are generally permitted to purchase property in Canada, but some restrictions and additional requirements apply:

• Higher land transfer tax: Many provinces impose higher land transfer tax rates on non-resident buyers.
• Foreign investment review: Purchases exceeding certain thresholds may require review by the Investment Canada Agency.
• Financing limitations: Accessing mortgage financing as a non-resident may be more challenging, with stricter lending requirements and potentially higher interest rates.
• Residency requirements: Certain property types, like agricultural land, may have residency ownership restrictions.

Seeking legal and financial advice is crucial for non-residents navigating the nuances of purchasing property in Canada.

Remember, these are just general overviews. Always seek professional legal advice for specific situations and guidance in navigating the complexities of Canadian real estate law.