Ontario Real Estate Law Flashcards

In Ontario, what is the 'Land Transfer Tax' and when is it payable?

Answer: A tax payable by the buyer upon registration of the transfer of property

The Ontario Land Transfer Tax is a provincial tax payable by the buyer at the time of registration of the property transfer. The amount is calculated based on the purchase price using a graduated rate structure.

Under Ontario law, what is the effect of a 'right of first refusal' on a property?

Answer: It gives the holder the right to match any third-party offer before the property is sold to someone else

A right of first refusal gives the holder the opportunity to match a bona fide third-party offer before the property owner can sell to that third party. It does not set the price — it simply gives the holder a matching right.

What is the 'Growth Plan for the Greater Golden Horseshoe' and how does it affect real estate?

Answer: It is a provincial plan that directs growth, density, and land use patterns in the Greater Golden Horseshoe region

The Growth Plan is a provincial policy framework that guides land use planning and development in the Greater Golden Horseshoe region, directing growth to built-up areas, setting density targets, and protecting agricultural and natural areas.

Under Ontario's Mortgages Act, what is the difference between 'foreclosure' and 'power of sale'?

Answer: Foreclosure requires a court process and the lender takes title; power of sale is a contractual remedy allowing sale without full court proceedings

Foreclosure is a court-supervised process where the lender obtains ownership of the property. Power of sale is a contractual right in the mortgage that allows the lender to sell the property without going through full court proceedings, which is more common in Ontario.

In Ontario, what is the significance of the 'Escheats Act' in real estate?

Answer: It provides that property of a person who dies without heirs reverts to the Crown

The Escheats Act provides that when a person dies without a will and without any heirs, their property reverts (escheats) to the Crown (provincial government). This ensures property is never truly ownerless.

What is the role of the 'Ontario Heritage Act' in real estate transactions?

Answer: It protects culturally significant properties and may impose restrictions on alterations or demolition of designated heritage properties

The Ontario Heritage Act allows municipalities to designate properties of cultural heritage value. Designated properties face restrictions on alterations and demolition, which can significantly affect development plans and property use.