Real Estate Law Flashcards

In Ontario, what is a 'vendor take-back mortgage' (VTB)?

Answer: A mortgage provided by the vendor to the purchaser as part of the purchase price, secured against the property sold

A VTB is financing provided by the vendor to the purchaser, where the vendor takes back a mortgage on the sold property rather than receiving the full purchase price in cash.

What does 'time is of the essence' mean in an Ontario Agreement of Purchase and Sale?

Answer: All deadlines in the agreement are strictly enforceable and failure to comply on time may render the agreement void

A 'time is of the essence' clause means strict compliance with all dates and deadlines is required; a party who fails to meet a deadline is in breach and the other may treat the contract as terminated.

Under Ontario law, what is a 'restrictive covenant' on title?

Answer: A private agreement registered on title restricting how the land may be used, binding on subsequent owners

A restrictive covenant is a private land-use restriction (e.g., no commercial use, minimum house size) that runs with the land and binds future owners of the burdened property.

In Ontario, what is the 'non-resident speculation tax' (NRST) applicable to?

Answer: A 25% tax on the purchase of residential property in Ontario by foreign nationals or foreign corporations

The NRST (formerly Foreign Buyer's Tax) is a 25% tax on residential property purchased by non-Canadian citizens, non-permanent residents, or foreign corporations in Ontario.

Under the Construction Act (Ontario), within what period must a lien be preserved after the last day the lien arose?

Answer: 45 days

Under the Construction Act, a lien must be preserved (registered or served) within 45 days after the last day the lien arose, failing which it expires.

In Ontario, what is a 'survey' and why is it important in a real estate transaction?

Answer: A document showing the boundaries, dimensions, and location of structures on a property, used to confirm the property being purchased matches the title description

An up-to-date survey by an Ontario Land Surveyor confirms the legal boundaries of the property and reveals any encroachments, easements, or structures that may affect title or use.