1000 plain-language Q&As about real estate. Browse below, or search the whole library.
If your home sells for less than the outstanding mortgage balance — sometimes called being "underwater" or having negative equity — the sale proceeds…
Read the full answer →A blended rate on a mortgage is a weighted average of two different interest rates. It arises most often in a blend-and-extend scenario: you have a…
Read the full answer →In Ontario, real estate agents are regulated under the Trust in Real Estate Services Act (TRESA), which replaced REBBA 2002. When you sign a buyer…
Read the full answer →When you buy a home, the large sums of money involved — your down payment, the mortgage advance, the purchase price — flow through your lawyer's trust…
Read the full answer →A collateral mortgage is registered against your property for more than the amount you actually borrow — sometimes for up to one hundred and…
Read the full answer →A condition in a real estate offer is a term that must be satisfied (or waived) within a set timeframe for the deal to become firm and binding. Until…
Read the full answer →A condominium corporation is the legal entity created automatically when a condominium development is registered under Ontario's Condominium Act, 1998.…
Read the full answer →A construction mortgage, sometimes called a draw mortgage, is a specialized financing product used when you are building a new home on land you own.…
Read the full answer →In Ontario, the deposit is a sum of money paid by the buyer shortly after the offer is accepted — typically within 24 hours or by the date specified in…
Read the full answer →Mortgage priority determines who gets paid first from the proceeds of a property sale or enforcement. A first mortgage (first charge on title) has the…
Read the full answer →With a fixed-rate mortgage, your interest rate stays the same for the entire term (commonly 1 to 5 years in Canada), so your payments are predictable…
Read the full answer →A gap closing lets a deal proceed in substance on the scheduled date even though formal registration of the transfer will happen a short time later.…
Read the full answer →A co-borrower and a guarantor are both ways a third party can support a mortgage application, but they differ in how their obligation is structured and…
Read the full answer →A home equity line of credit (HELOC) is a revolving credit facility secured by your home. Your lender registers a charge on title, and you can borrow…
Read the full answer →A home inspection is a visual assessment of the property's physical condition conducted by a qualified inspector before you finalize your purchase. A…
Read the full answer →Under Ontario's Construction Act, a contractor, subcontractor, or supplier who has done work or supplied materials to a property and has not been paid…
Read the full answer →A lien is a legal claim registered against a property that gives the claimant a security interest in the land. In the residential context, the most…
Read the full answer →A latent defect is a hidden problem with a property that is not discoverable by a reasonable inspection — something concealed or not visible during an…
Read the full answer →An acceleration clause is a provision in a mortgage contract that allows the lender to demand immediate repayment of the entire outstanding balance…
Read the full answer →Different lenders charge different upfront fees, and the practice varies considerably. Institutional lenders — major banks and credit unions —…
Read the full answer →A mortgage commitment letter is a written offer from a lender confirming that it will provide a specific loan amount at a stated interest rate and…
Read the full answer →A mortgage commitment letter (sometimes called a mortgage approval letter) is a written confirmation from your lender that it is prepared to advance a…
Read the full answer →Mortgage default insurance protects the lender — not you — if you stop making payments. In Canada it is mandatory when your down payment is less than…
Read the full answer →A mortgage holdback is a portion of your approved mortgage that the lender does not advance at closing. Instead, the lender retains the funds until…
Read the full answer →A mortgage pre-qualification is an informal assessment of how much a lender might be willing to lend based on general financial information you provide…
Read the full answer →Prepayment privileges are the rights your mortgage contract grants you to pay down your principal beyond your regular scheduled payments without…
Read the full answer →A rate hold and a rate lock-in are related but not identical concepts. A rate hold is typically associated with a pre-approval — the lender reserves a…
Read the full answer →A subordination agreement is a legal document in which a creditor with a higher-priority registration agrees to rank behind a new or different…
Read the full answer →Yes. New homes built by a licensed builder in Ontario are covered by a statutory warranty administered by Tarion Warranty Corporation under the Ontario…
Read the full answer →A private mortgage is a loan secured against real estate that is funded by an individual investor or a mortgage investment corporation (MIC) rather…
Read the full answer →Yes — a purchase plus improvements mortgage lets you include the cost of planned renovations in your purchase mortgage rather than financing them…
Read the full answer →A rate hold is a commitment from a lender to offer you a specific interest rate for a defined period while you shop for a property or finalize your…
Read the full answer →Schedule A of an Ontario Agreement of Purchase and Sale is the primary schedule where the parties list the conditions of the offer, any additional…
Read the full answer →A second mortgage is an additional loan secured against a property that already has a mortgage on it. Because the first mortgage lender has priority on…
Read the full answer →A status certificate is a package of documents provided by a condominium corporation that discloses the financial and legal health of the condo…
Read the full answer →A survey (formally an Ontario Land Survey conducted by a licensed Ontario Land Surveyor) shows the exact boundaries of the property, the location of…
Read the full answer →The term and amortization of a mortgage are two different but related time periods that buyers sometimes confuse. Understanding both is essential to…
Read the full answer →A title defect is any flaw in the public record that undermines your clear, unencumbered ownership of a property. Defects range in seriousness: a minor…
Read the full answer →A title search is a review of the public land registry records for a property going back through the chain of ownership. In Ontario, your real estate…
Read the full answer →A title search is a review of the provincial land-registry records to confirm the chain of ownership and identify any claims or interests registered…
Read the full answer →A vendor take-back mortgage (VTB) is an arrangement where the seller of a property loans a portion of the purchase price to the buyer instead of…
Read the full answer →A writ of execution is a court order that registers a creditor's claim against a debtor's assets, including any land the debtor owns. If the seller of…
Read the full answer →The Agreement of Purchase and Sale (APS) is the legally binding contract that governs an Ontario real estate transaction. Once signed by both parties…
Read the full answer →An Agreement of Purchase and Sale (APS) is the legally binding contract between a buyer and seller that governs a real estate transaction in Ontario.…
Read the full answer →The Agreement of Purchase and Sale (APS) is the binding contract between buyer and seller in an Ontario real estate transaction. Once both parties have…
Read the full answer →An all-inclusive mortgage (AIM), sometimes called a wraparound mortgage, is a financing structure in which a new lender — often the seller — provides a…
Read the full answer →An easement is a registered right that allows someone other than the owner to use part of the property for a specific purpose. Common examples include…
Read the full answer →An escalation clause is a provision in an offer that automatically increases your purchase price by a set amount above any competing offer, up to a…
Read the full answer →Property taxes in Ontario are adjusted as of the closing date on the statement of adjustments. If the seller has paid property taxes for a period that…
Read the full answer →Bridge financing is a short-term loan that lets you close on a new home before the sale of your existing home completes. If your purchase closing date…
Read the full answer →Bridge financing is a short-term loan that covers the gap when you are buying a new property before you have received the proceeds from selling your…
Read the full answer →Bridge financing is a short-term loan that allows you to close on your new home purchase before the sale of your existing home completes, bridging the…
Read the full answer →A buyer representation agreement (BRA) is a contract between a buyer and a real estate brokerage that establishes the agent's duty to represent the…
Read the full answer →CMHC mortgage default insurance (commonly called mortgage insurance or mortgage loan insurance) is a mandatory policy that protects the lender — not…
Read the full answer →The co-operating brokerage commission (sometimes called the co-op fee) is the portion of the total commission that the listing brokerage offers to the…
Read the full answer →The "due diligence period" is the window of time after an offer is accepted during which the buyer satisfies their conditions — typically financing,…
Read the full answer →A holdover clause (also called a tail or override clause) in an Ontario listing agreement means that if your home sells to a buyer who was introduced…
Read the full answer →Terminating a listing agreement early does not automatically end your commission obligations. Most Ontario listing agreements with brokerages…
Read the full answer →The holdover period in an Ontario listing agreement is negotiable and can vary, but most standard brokerage listing agreements include a holdover…
Read the full answer →Every Ontario residential offer includes an irrevocability period — a deadline by which the seller (or buyer, if it's a counter-offer) must accept,…
Read the full answer →A listing agreement is a written contract between you (the seller) and a real estate brokerage that authorizes the brokerage to market your property…
Read the full answer →A mere posting is a type of MLS listing where a registered brokerage places your property on the Multiple Listing Service but provides only that…
Read the full answer →In theory, some mortgages contain an assumption clause allowing a new buyer to take over your existing mortgage terms — including the interest rate —…
Read the full answer →Mortgage portability allows you to transfer your existing mortgage — including its rate, remaining term, and balance — from your current property to a…
Read the full answer →Multiple representation in Ontario occurs when a brokerage represents both the seller and the buyer in the same transaction — either through the same…
Read the full answer →Power of sale is a remedy available to Ontario mortgage lenders when a borrower is in default. Unlike foreclosure (which is rare in Ontario), a power…
Read the full answer →REBBA is the name people still use for the statute governing Ontario's real estate brokerage industry, but the Act was renamed: the Real Estate and…
Read the full answer →RECO stands for the Real Estate Council of Ontario. It is the regulatory body established under Ontario's real estate legislation to license and…
Read the full answer →A reverse mortgage allows homeowners aged 55 and older to borrow against their home's equity without making monthly payments. The interest accumulates…
Read the full answer →The "48-hour clause" — more precisely called a seller's right of first refusal or escape clause — is a provision sometimes added when a seller accepts…
Read the full answer →In Ontario, the terms "listing agreement" and "seller representation agreement" (or "seller customer service agreement") are sometimes used…
Read the full answer →A special assessment is an additional charge levied on condo unit owners by the condominium corporation when the reserve fund has insufficient funds to…
Read the full answer →A statement of adjustments is a financial document prepared by the seller's lawyer in an Ontario real estate closing. It is a formal accounting that…
Read the full answer →A status certificate is a package of documents that Ontario condominium corporations are required to provide under the Condominium Act. It includes the…
Read the full answer →Yes. Under Ontario's Condominium Act, purchasers of new condominium units from a builder have a 10-day cooling-off period (called a rescission period)…
Read the full answer →Ontario provides a land transfer tax rebate for eligible first-time home buyers of up to $4,000 on the provincial land transfer tax. If you are buying…
Read the full answer →Ontario offers several programs specifically for first-time home buyers. The most widely used is the Ontario Land Transfer Tax Rebate of up to $4,000,…
Read the full answer →In Ontario, "title" refers to your legal ownership of a property — the bundle of rights that lets you use, sell, mortgage, or transfer the land. When…
Read the full answer →Title insurance is a one-time premium policy that protects you — and your lender — against losses arising from problems with the ownership history of…
Read the full answer →Commission rates in Ontario are not fixed by law or by any regulatory body — they are freely negotiable between a seller and their chosen brokerage.…
Read the full answer →Most lenders in Ontario require a standard set of documents to process a mortgage application. The exact list varies by lender and your employment…
Read the full answer →A full-service listing agent's offering in Ontario typically includes a comparative market analysis (CMA) to help set the listing price, professional…
Read the full answer →Several taxes can apply when buying a home in Ontario, depending on the type of property and where it is located. Land transfer tax (LTT) is paid by…
Read the full answer →Before your closing appointment, your lawyer will tell you exactly what to bring, but there are standard items to expect. You will need…
Read the full answer →The dividing line generally comes down to scale and nature of the change being sought. A minor variance is meant for a narrow deviation from a specific…
Read the full answer →These two processes address different things, so it's genuinely common for a single project to need both. A minor variance is needed when the project…
Read the full answer →Ontario's Environmental Protection Act framework requires a Record of Site Condition to be filed in specific change-of-use situations, generally where…
Read the full answer →The obligation to vacate is set by the Agreement of Purchase and Sale. Most Ontario residential APS forms require the seller to deliver vacant…
Read the full answer →Under Ontario's Trust in Real Estate Services Act, 2002 and the Code of Ethics under it, a listing agent (and their brokerage) represents the seller.…
Read the full answer →Ontario condominiums are governed primarily under the Condominium Act, 1998, and its regulations, which are administered provincially. The Condominium…
Read the full answer →When you buy a freehold property in Ontario, you own both the building and the land beneath it outright. The title vests in you with no time limit. A…
Read the full answer →There's no fixed rule requiring either side to pay; who arranges and pays for a Phase 1 Environmental Site Assessment is a matter of negotiation…
Read the full answer →In Ontario, land transfer tax (LTT) is paid by the buyer — not the seller — on every purchase of land or an interest in land. It is due on the date the…
Read the full answer →In Ontario, the buyer pays land transfer tax (LTT) when a property is conveyed. The tax is calculated on a sliding scale based on the purchase price.…
Read the full answer →Traditionally in Ontario, the seller pays real estate commissions for both the listing agent and the buyer's agent out of the sale proceeds, and the…
Read the full answer →In Ontario, the seller's lawyer typically prepares the statement of adjustments. This document is part of the closing package that the seller's lawyer…
Read the full answer →A traditional mortgage is secured against real property, and in a land-lease community, the resident doesn't own real property — only the home itself,…
Read the full answer →The moment a wrong-account wire is discovered, speed matters more than almost anything else, because funds sent to the wrong account, whether by simple…
Read the full answer →Generally, no - Ontario's Non-Resident Speculation Tax includes a specific exemption for purchases made jointly with a spouse who is a Canadian citizen…
Read the full answer →A zoning compliance letter is a written confirmation obtained from a municipality's planning or zoning department stating how a specific property is…
Read the full answer →Links go to the official consolidated text. Legislation changes — confirm you are reading the current version.
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