Buying, selling, or financing property in Ontario throws a lot of jargon at you fast. Keep this beside your paperwork and look things up as they come.
Who this is for & what you'll get. Anyone navigating an Ontario real estate transaction — buyers, sellers, and the merely curious. Around 50 of the most common terms, grouped by stage, with a plain one- or two-sentence explanation each. Skim the group you need or read it through once before you start.
⚖️ This is a general guide, not legal advice. It can't account for your specific situation. Use it to get oriented, then confirm the details with a licensed Ontario lawyer.
💡 How to use this: terms are grouped under five headings — Offers & Buying, Money & Taxes, Title & Registration, Condos, and Closing. Bolded terms in a definition usually have their own entry somewhere in the list.
Offers & Buying
Agreement of Purchase and Sale (APS) — The binding written contract between buyer and seller setting out the price, what's included, conditions, and the closing date. Once signed and any conditions are met, it's legally enforceable.
Offer — A buyer's proposal to purchase on stated terms, made on the APS. It becomes binding once the other side accepts (and any counter-offers are agreed).
Condition — A requirement that must be satisfied for the deal to become firm (e.g., conditional on financing or on a home inspection). If a condition isn't met or waived by its deadline, the deal can end and the deposit is usually returned.
Warranty — A promise about something that survives or guarantees a state of affairs (e.g., that the appliances work on closing). Unlike a condition, breaching a warranty doesn't end the deal — it gives the wronged party a claim for damages.
Firm (vs. conditional) — A deal is firm when all conditions are met or waived and it's fully binding. A conditional deal still has unmet conditions that could end it.
Irrevocable date/time — The deadline by which an offer must be accepted before it expires.
Waiver — A signed document removing a condition, moving the deal closer to firm.
Inspection (home inspection) — A professional assessment of the property's condition, usually done under a condition, so the buyer can learn about defects before committing.
Chattels — Movable, unattached items (e.g., a fridge, washer, microwave). They're only included if the APS specifically lists them. Compare fixtures.
Fixtures — Items attached to and considered part of the property (e.g., built-in shelving, light fixtures, a furnace). They generally stay with the home unless the APS excludes them. The chattel/fixture line causes frequent disputes — spell it out.
Money & Taxes
Deposit — Money the buyer pays soon after the offer is accepted, usually held in trust, to show good faith. It's credited toward the price on closing — but is not the same as the down payment.
Down payment — The portion of the purchase price you pay from your own funds (the rest is typically financed by a mortgage). The deposit forms part of it.
Land Transfer Tax (LTT) — A provincial tax the buyer pays on closing, calculated on the purchase price using a graduated scale. As of writing, first-time buyers may qualify for a refund of part of it — verify the current rates and rebate amount with the Ontario Ministry of Finance.
Toronto Municipal Land Transfer Tax (MLTT) — A second land transfer tax charged by the City of Toronto on properties within Toronto, on top of the provincial LTT. Budget for both if you're buying in the city. Confirm current Toronto rates with the City.
Non-Resident Speculation Tax (NRST) — An additional Ontario tax that can apply when certain non-residents/foreign buyers purchase residential property. The rules and exemptions are specific and have changed over time — verify current rate, scope, and any rebates before relying on them.
HST (and the new-home rebate) — Resale homes are generally exempt from HST, but newly built or substantially renovated homes are usually subject to it. Rebate programs may return part of the HST on a qualifying new home or rental — confirm current eligibility and amounts with the CRA, as builder pricing often assumes you qualify.
Statement of Adjustments — A closing statement prepared by the lawyers that reconciles the price with credits and debits (deposit, prepaid property taxes, utilities, etc.) to arrive at the exact amount due on closing. See also Closing.
Vendor take-back (VTB) mortgage — A mortgage where the seller finances part of the purchase price for the buyer, instead of (or alongside) a bank. Sometimes used when traditional financing is hard to arrange.
Mortgage — A loan secured against the property; the lender registers a charge on title and can enforce (often by power of sale) if the borrower defaults.
Title & Registration
Title — Legal ownership of the property. "Good title" means ownership that's clear of unexpected claims or defects.
Title insurance — A policy protecting an owner (and/or lender) against certain title defects, some prior registrations, survey issues, and certain frauds. It covers legal/ownership risks, not the home's physical condition.
Teraview — The software/system used to access Ontario's electronic land registration system, where lawyers search title and register documents (transfers, charges, discharges).
Requisition — A formal written demand from the buyer's lawyer asking the seller to fix a title problem or answer a title question before closing.
Requisition date — The deadline in the APS by which the buyer must raise requisitions about title. Miss it and you may lose the right to object to certain matters.
Easement — A right for someone else to use part of the land for a specific purpose (e.g., a utility company's lines, or a shared driveway). It stays with the land and binds future owners.
Encroachment — When a structure (a fence, deck, or part of a building) crosses a boundary onto a neighbour's land — or theirs onto yours. Often revealed by a survey.
Lien — A registered claim against the property securing a debt (e.g., a construction lien for unpaid work under the Construction Act). It generally must be dealt with before clear title can pass.
Encumbrance — A general term for any claim, charge, or restriction registered against title — mortgages, liens, easements, restrictions. Buyers want to know all of them.
Charge — The Ontario term for a registered mortgage on title. The lender is the "chargee."
Survey — A drawing showing the property's boundaries, structures, and any easements or encroachments. Many buyers rely on title insurance in place of an up-to-date survey.
Zoning — Municipal rules dictating how land may be used (residential, commercial, etc.) and limits like setbacks and height. Confirm the use you want is permitted before you buy.
Joint tenancy — A way two or more people hold title together with a right of survivorship: when one owner dies, their interest passes automatically to the survivor(s), not under their will.
Tenancy in common — A way co-owners each hold a defined (possibly unequal) share of the property, with no right of survivorship; a deceased owner's share passes under their will.
Power of sale — A lender's right under most Ontario mortgages and the Mortgages Act to sell a property after the borrower defaults, to recover the debt, after required notice and a redemption period.
Undertaking — A formal, binding promise by a lawyer to do something after closing (commonly, to use the sale proceeds to pay off and discharge the seller's old mortgage). Undertakings keep closings moving and are taken very seriously.
Condos
Status certificate — A package the condo corporation provides about a specific unit and the corporation's finances, rules, reserve fund, insurance, and any special assessments or lawsuits. Buyers' lawyers review it closely before the deal goes firm.
Reserve fund — The condo corporation's savings earmarked for major repairs and replacements (roof, elevators, etc.). A healthy reserve suggests fewer surprise costs ahead.
Special assessment — An extra charge levied on unit owners when the reserve fund can't cover a major expense. A looming special assessment can mean a big unexpected bill — the status certificate should reveal it.
Common expenses (condo fees) — The monthly fees each owner pays toward shared costs and the reserve fund.
Interim occupancy — In a new condo, the period when a buyer may move in and pay occupancy fees before the building is registered and they legally own (and can get a mortgage registered). Common in pre-construction purchases.
Common elements — The shared parts of a condo (hallways, lobby, amenities, grounds) owned in common by all unit owners.
Closing
Closing (completion) — The day the transaction is finalized: funds and documents change hands, the transfer is registered, and ownership passes to the buyer. "Completion" is often used to mean the same thing.
Completion — Another word for the finalization of the deal on the closing date.
Possession — When the buyer gets the right to take physical occupancy of the property — usually on closing, but the APS can specify a different date.
Closing costs — The various costs payable around closing beyond the price — Land Transfer Tax, legal fees, title insurance, adjustments, registration costs, and disbursements. Budget for these separately from your down payment.
Adjustments — The pro-rated credits and debits (prepaid property taxes, utilities, condo fees) calculated on the Statement of Adjustments so each side pays only for its share.
Transfer (deed) — The registered document that conveys ownership from seller to buyer, registered electronically through Teraview.
Discharge — The registered removal of a paid-off mortgage (charge) or other encumbrance from title, so it no longer clouds ownership.
Tarion / HCRA — Ontario's new-home warranty and builder-regulation system. Tarion administers the statutory warranty for newly built homes; the HCRA (Home Construction Regulatory Authority) licenses and oversees builders/vendors. Relevant when you buy a new build.
Vacant possession — Delivery of the property empty of occupants and the seller's belongings on closing (subject to anything the APS says stays).
Terms you'll hear together: a deposit is part of your down payment; chattels and fixtures decide what stays; Land Transfer Tax, the Toronto MLTT, and the NRST are separate taxes that can stack; title insurance often stands in for a survey; and on a condo, the status certificate, reserve fund, and special assessment travel as a set.
How Treadstone Law can help
Every term in this glossary shows up in a real Ontario closing — and getting any of them wrong can be costly. We guide buyers, sellers, and owners through the whole transaction in plain language, at transparent flat fees, so you always know what each document means and what you're paying.
- Flat-fee real estate services province-wide — see treadstonelaw.ca/real-estate and treadstonelaw.ca/pricing.
- Start your file online at treadstonelaw.ca/start-file, or call 1-844-900-1070.
- Fully virtual service across Ontario from our Mississauga office.
This is not legal advice
This guide is general information, not legal advice. Reading it does not create a lawyer-client relationship. Ontario laws, tax rates, and government programs change, and how the law applies depends on your specific facts. For advice about your situation, speak with a licensed Ontario lawyer. Treadstone Law is licensed by the Law Society of Ontario — reach us at 1-844-900-1070 or start a file online.