Checklists, glossary and official resources

Glossary

The terms that come up most often in an Ontario transaction, in plain language.

Adjustment (statement of adjustments)

The even-handed split of costs already paid or still owing on the closing date: property taxes, utilities, condominium fees, rent from a tenant. The statement of adjustments sets out the final figure each side pays or receives.

Amendment

A signed change to an agreement already in place. Verbal agreements and text messages do not amend a contract; an amendment does.

Chattels and fixtures

Chattels are movable and go with the seller unless the agreement says otherwise. Fixtures are attached to the property and stay unless excluded. Disputes almost always come from assuming rather than writing it down.

Closing date

The date ownership transfers, funds are exchanged and keys are released. Moving it requires the agreement of both sides.

Condition

Something that must be satisfied before the agreement becomes firm, most often financing, a home inspection or a status certificate review. Until conditions are waived or met, a buyer can usually withdraw without breaching the contract.

Deposit

Money paid on signing, held in the listing brokerage's trust account and credited towards the purchase price on closing. It is generally at risk if a buyer fails to complete after conditions are satisfied.

Disbursements

Out-of-pocket costs the lawyer pays on your behalf, separate from the legal fee: title searches, registration charges, title insurance, courier and software costs.

Easement

A right for someone else to use part of the property for a defined purpose, such as a utility's access to service its equipment. It stays with the land and passes to you.

Encumbrance

Any claim or restriction registered against a property: a mortgage, a lien, an easement, a restrictive covenant. Clear title means no encumbrances beyond those the buyer agreed to accept.

Land transfer tax

A provincial tax the buyer pays on closing, calculated on a sliding scale that rises with the price. Toronto adds a separate municipal tax; Ottawa does not. First-time buyers may qualify for a partial refund.

Mortgage (charge)

The security a lender registers against the property for the money it advances. "Charge" is the term used in Ontario's registration system; in conversation it is a mortgage.

Parcel register

The official record of a property's ownership and everything registered against it. The title search reads this.

Requisition and requisition date

The buyer's lawyer raises requisitions, formal objections to problems found on title, and the agreement sets a deadline for doing so. Missing that date can mean losing the right to object.

Status certificate

A condominium corporation's disclosure package: finances, reserve fund, rules, litigation and whether the unit is in arrears. Reviewed during the condition period.

Title insurance

A one-time policy covering certain ownership risks a title search cannot rule out: title fraud, errors in the public record, undiscovered liens, boundary problems, unpermitted work by a previous owner.

Undertaking

A binding professional promise between lawyers to do something after closing, such as paying off and discharging a mortgage from the sale proceeds. Undertakings are what allow a closing to complete before every loose end is tied.

Writ of execution

A court-ordered claim registered against a debtor that can attach to their property. One registered against a seller must be dealt with before clear title can pass.

Extra guides

General information about how Ontario transactions usually work, not legal advice about yours. Speak to Gurpreet about your own situation.