Ontario Real Estate FAQs

Buying, selling, or investing in Ontario real estate comes with a lot of questions.

This page provides clear, plain language answers to the topics people ask about most, including conditions, deposits, inspections, closing costs, timelines, and common legal and financial considerations.

General FAQs

  • Conditions are written clauses that allow time to complete due diligence, such as financing approval, a home inspection, reviewing condominium documents, or selling an existing home. Each condition includes a deadline. If the condition is satisfied, it is waived in writing and the agreement becomes firm. If not satisfied, the agreement may be terminated according to the wording.

  • Sold conditional means an offer has been accepted but one or more conditions remain outstanding. The transaction does not become binding until all conditions are waived and the agreement is firm.

  • A firm offer has no remaining conditions. Once an offer is firm, both the buyer and seller are legally obligated to complete the transaction on the agreed closing date. This is when the “Sold” sign goes up, all parties are committed, and deposits are typically non-refundable.

  • A home inspection is a professional review of a property’s visible systems and general condition, including structure, roof, plumbing, electrical, and heating. Inspections typically occur during the conditional period.

  • Depending on the findings and the wording of the agreement, the buyer may proceed as is, renegotiate terms, request repairs, or terminate the agreement if inspection was a condition.

  • The Statement of Adjustments is a closing document prepared by the lawyers that reconciles prepaid or outstanding expenses, such as property taxes or utilities, so each party pays only for the period they owned the property.

  • A deposit is paid shortly after offer acceptance and forms part of the purchase price. Closing costs are additional expenses paid on closing day, such as land transfer tax, legal fees, and adjustments. The deposit reduces the amount owed at closing, while closing costs are paid on top of the purchase price.

  • Vacant possession means the property will be empty and available to the buyer on closing. This is especially important when purchasing rental or tenanted properties. The standard Agreement of Purchase and Sale in Ontario assumes vacant possession unless otherwise stated, so any changes must be clearly written into the agreement.

  • Fixtures are permanently attached items and are typically included in the sale. Chattels are movable items and must be specifically listed to be included.

  • If a firm agreement does not close, legal and financial consequences may follow. Outcomes depend on the circumstances and the agreement terms, and legal advice is required.

  • A condition of home sale allows a buyer to purchase a property only if their existing home sells within a defined period. If the home sells in time, the purchase becomes firm. If not, the agreement may terminate. Sellers may include an escape clause that allows them to continue marketing the property.

Buyer FAQs

If you’re planning to buy and want an overview of how we approach the process, you can visit our Buyers page.

  • The total amount needed includes the down payment, closing costs, and adjustments. Closing costs typically range from 1-4% of the purchase price. Buyers should plan for all three components rather than focusing only on the down payment.

  • Most purchases require a minimum down payment. In some cases, buyers may use a gifted down payment from an immediate family member, subject to lender requirements. Programs advertising zero down often involve alternative lending structures and additional risk and should be reviewed carefully.

  • In most transactions, buyers do not directly pay Realtor commission. Commission is typically paid by the seller from the proceeds of sale, as outlined in the listing agreement. If the seller is not willing to pay commissions, the Buyer may responsible, however all commissions are negotiable.

  • Deposits are generally refundable while conditions remain in place. Once the agreement becomes firm, the deposit is usually non refundable unless both parties agree otherwise or a legal issue arises.

  • Buyers should generally budget 1-4% of the purchase price. Closing costs may include land transfer tax, legal fees, title insurance, lender fees, appraisal costs, home inspections, and adjustments for property taxes, utilities, or condo fees.

  • Land transfer tax is calculated based on the purchase price and increases in tiers. Buyers in Toronto also pay a municipal land transfer tax. As a general estimate, land transfer tax often falls between 1-2% of the purchase price, depending on value and location.

  • Eligible first time buyers may qualify for a provincial land transfer tax rebate of up to $4,000. Buyers purchasing in Toronto may also qualify for a municipal rebate. Eligibility depends on program rules and purchase details.

  • If an appraisal comes in below the purchase price, the lender may reduce the mortgage amount. Buyers may need to increase their down payment, renegotiate the price, or terminate the agreement if financing was a condition.

  • Buyers may terminate an agreement during the conditional period if conditions are not satisfied. Backing out after an agreement is firm can have serious legal and financial consequences and typically requires legal advice.

  • A lawyer becomes necessary after an offer is accepted to review the agreement, conduct title searches, and handle the legal closing. It is recommended to involve a lawyer earlier for complex deals or added peace of mind, but it is not required.

  • A status certificate outlines a condominium corporation’s financial health, reserve fund, rules, and legal matters. Buyers typically review it with their lawyer during the conditional period.

  • Condo fees are monthly payments that support building operations and maintenance. They often include insurance, common area maintenance, reserve fund contributions, and shared utilities, depending on the corporation.

  • A freehold townhome typically has no condo fees and the owner is responsible for maintenance. A condo townhome is part of a condominium corporation, includes fees, and shares responsibility for common elements.

  • From accepted offer to closing, timelines commonly range from 30-90 days. The full process may take longer depending on preparation and market conditions.

  • Utility transfers should be arranged before closing, effective on the closing date, to ensure uninterrupted service.

  • On closing day, funds are transferred through the lawyers, ownership is registered, and keys are released later in the day once registration is complete.

Seller FAQs

If you’re planning to sell and want an overview of how we approach pricing, preparation, and negotiation, see our Sellers page.

  • Timelines vary based on market conditions, pricing, and preparation. Once an agreement is firm, closing typically occurs within 30-90 days.

  • Yes. Some sellers choose to sell first to reduce risk, while others buy first using conditions or bridge financing. The right approach depends on timing, finances, and market conditions.

  • The property becomes conditionally sold while the buyer completes due diligence. If conditions are waived, the deal becomes firm. If not, the agreement may terminate. You may continue marketing and showing the home to other buyers.

  • A backup offer is an offer accepted while another agreement is already in place. It may become effective if the first deal fails to firm up.

  • Seller costs commonly include real estate commissions, legal fees, and adjustments for property taxes or utilities, along with any agreed credits or repairs.

  • Sellers should arrange utility cancellations or transfers effective on the closing date. Final meter readings may be required.

Investor FAQs

  • Investment properties often require more cash due to larger down payments, lender requirements, and rental related adjustments.

  • If rent has been collected for a period beyond the closing date, the buyer receives a credit for the portion that applies after closing.

  • Purchasing a rental property does not automatically allow eviction. Ontario tenancy laws apply, and buyers should understand their obligations before closing.

  • Investment property closings commonly range from 45-90 days, depending on financing complexity and due diligence.