A list of our frequently asked questions
Selling
One of the first questions a client always ask is how much do you charge for your service? Determining the appropriate remuneration for our services involves a thorough assessment of various factors, including the specific needs of my clients, the intricacies of the property, and the prevailing market conditions, there is not a “one-size fits-all” approach to this.
Typically, it is common for the seller to pay 5% total remuneration on their property’s final sale price to the listing brokerage. The listing brokerage then shares remuneration with the co-operating brokerage, It is structured as a commission split, with 2.5% of the sale price allocated to the seller’s listing brokerage and 2.5% to the buyer’s co-operating brokerage, all remuneration are payable plus the appropriate HST when the property closes.
Determining the value of your property involves a comprehensive assessment of various factors, including its location, size, condition, amenities, recent sales of comparable properties in the area, current market trends, and economic indicators. While online valuation tools can provide a rough estimate, they may not take into account all relevant variables specific to your property.
To get an accurate estimate of your property’s worth, it’s best to consult with our professional real estate team who has in-depth knowledge of the local market. We can conduct a comparative market analysis (CMA), which involves evaluating recent sales data of similar properties in your area to determine a competitive listing price.
During the CMA process, our team will assess both the interior and exterior features of your property, including its layout, upgrades, curb appeal, and overall condition. We will also consider any unique selling points that could potentially increase its value.
Keep in mind that property values can fluctuate based on market conditions, demand, and other external factors. Our real estate team will provide you with valuable insights into current market conditions and trends to help you accurately price your property to attract potential buyers while maximizing your return on investment.
When selling your home, there are several important documents you’ll need to prepare in order for our team to facilitate the transaction smoothly. Here are some key documents:
Property Deed: This document proves your ownership of the property and provides legal evidence of the transfer of ownership to the buyer.
Property Survey: A survey outlines the property’s boundaries, structures, and any easements or encroachments, providing valuable information for potential buyers. This document usually comes attached as part of the sale agreement when you purchased the property from previous owner. If for some reason it does not come attached with the sale agreement, you can visit the local land registry office or access their website to obtain a copy of the survey for a fee. They typically keep records of property surveys for registered properties.
Mortgage Documents: If you have an outstanding mortgage on the property, you’ll need to gather documents related to your mortgage, including the mortgage agreement and any loan payoff statements.
Property Tax Information: Buyers may request information about the property’s tax history, including past tax bills and assessments. Property tax bills are typically mailed out to property owners semi-annually(Interim and Final property tax bill), these bills provide detailed information about the property’s applicable tax rates, and the total amount due. .
Home Inspection Reports: While not mandatory, providing recent home inspection reports can instill confidence in potential buyers and streamline the selling process.
Utility Bills and Maintenance Records: Providing records of utility bills, maintenance, and repairs can give buyers insight into the property’s upkeep and help them assess its overall condition.
By preparing these documents in advance, you can streamline the selling process and provide potential buyers with the information they need to make informed decisions. Our team will guide you through the document preparation process and ensure everything is in order for a successful sale.
Certainly! While a property inspection report isn’t mandatory, it’s highly advisable for several reasons. Firstly, having a property inspection report can provide you with a comprehensive understanding of your property’s condition. This knowledge allows you to address any issues proactively before listing your home, potentially saving you from unexpected complications during the selling process. Moreover, by commissioning a property inspection report, you demonstrate transparency to potential buyers, fostering trust and confidence in your property. It’s also worth noting that in some cases, buyers may request their own property inspection, and having one readily available can streamline the negotiation process.
Staging your home before selling is not a mandatory requirement, but it can significantly enhance your chances of attracting potential buyers and maximizing your sale price. Professional staging involves arranging your home’s interior to highlight its best features, improve its overall appeal, and create a welcoming atmosphere for prospective buyers. Staging allows potential buyers to envision themselves living in the space, making it more likely for them to form an emotional connection with the property.
While staging may incur some upfront costs, the potential return on investment can be substantial. Studies have shown that staged homes tend to sell faster and for a higher price compared to unstaged properties. Additionally, staged homes often photograph better, which is crucial in today’s digital age where many buyers begin their home search online.
Determining the best time to sell your home depends on various factors:
Market Conditions: Assess the current real estate market in your area. Are home prices rising or falling? Is there high demand from buyers? Understanding market conditions can help you gauge the level of competition and the likelihood of selling your home quickly and at a favorable price.
Seasonal Trends: In the GTA market, early spring and fall tend to be popular times for selling homes, as the weather is typically more favorable, and families may be looking to move before the start of the school year. However, this also means increased competition from other sellers. Selling in the off-seasons, such as winter, may result in less competition but could also mean fewer buyers.
Personal Circumstances: Consider your own timeline and reasons for selling. Are you relocating for a job, downsizing, or upsizing to accommodate a growing family? Your personal circumstances and timeline may influence the best time to list your home for sale.
Economic Factors: Keep an eye on broader economic indicators, such as interest rates and employment trends, which can impact the housing market. Favorable economic conditions may attract more buyers and support higher home prices.
Local Events and Developments: Pay attention to any local events or developments that could affect housing demand in your area. For example, the opening of a new employer or school, infrastructure projects, or changes in zoning regulations may impact housing demand and prices.
Painting the walls can significantly enhance the appeal of your property and make it more attractive to potential buyers. A fresh coat of paint can help brighten up rooms, cover any scuff marks or imperfections, and create a clean, inviting atmosphere. However, whether or not you should paint the walls before selling depends on the current condition of your property’s interior and the overall aesthetic appeal you want to achieve.
If the walls show signs of wear and tear, such as chipped paint, stains, or outdated colors, painting them can help refresh the space and make it look more modern and well-maintained. Neutral colors like white, beige, or light gray are generally recommended as they appeal to a wider range of buyers and create a blank canvas for them to envision their own décor.
However, if the walls are already in good condition and painted in neutral tones, you may not need to repaint them unless you want to freshen up the space or address specific areas that require attention. Keep in mind that painting can be a cost-effective way to improve the overall appearance of your property and potentially increase its market value.
Curb appeal refers to the attractiveness of a property when viewed from the street, and it plays a crucial role in creating a positive first impression on potential buyers. A well-manicured lawn is the foundation of curb appeal. Regular mowing, edging, and watering can keep the grass lush and green. Address any bare patches by reseeding or laying new sod if necessary. You can create a visually appealing and inviting landscape that will impress potential buyers from the moment they arrive. A well-designed and maintained landscape can make your property stand out in the real estate market and increase its overall perceived value.
MLS® Rule R-325 stipulates that an MLS® Listing must remain active for a minimum duration of sixty (60) days from the commencement date.
An exclusive listing is a type of agreement between a property owner and a brokerage in which the brokerage is granted exclusive rights to market and sell the property for a specified period of time. With an exclusive listing, the seller agrees not to work with any other brokerages during the listing term.
In an exclusive listing arrangement, the brokerage assumes full responsibility for marketing the property, including advertising, conducting open houses, and negotiating with potential buyers. In return, they typically receive a commission upon the successful sale of the property.
There are pros and cons to exclusive listings:
Pros: For sellers, exclusive listing provide dedicated marketing efforts and personalized attention from brokerage, the listing itself does not appear on the MLS system, the brokerage market through their own data base for potential buyer, offering privacy and confidentiality for the seller.
Cons: Because the listing is exclusive, it will not appear on MLS system or any other search tool such as house stigma, home finder etc… therefore the sale of your home will have less visibility to other real estate agent and potential buyers..
While completion of this form is optional, it’s important to note that Section 20 of the RECO Code of Ethics emphasizes disclosure. If a broker or salesperson represents a seller who has filled out a written statement aimed at informing potential buyers about the property, they are required to disclose the existence of this statement to any interested buyers. Additionally, upon request, they must promptly provide the statement to the buyer.
When selling a home, there are several costs to consider beyond the sales price. Here’s an overview of the expenses you may encounter:
- Home Repairs and Improvements: Before listing your home, you may need to invest in repairs or improvements to make it more marketable. This could include minor repairs, cosmetic upgrades, or major renovations depending on the condition of your home.
- Staging Costs: Professional home staging can help showcase your property’s potential and attract buyers. Staging costs may include furniture rental, décor, and staging services.
- Marketing Expenses: To attract potential buyers, you’ll need to invest in marketing and advertising. This could include professional photography, virtual tours, online listings, signage, and print materials.
- Closing Costs: As the seller, you may be responsible for covering certain closing costs, such as attorney fees, title insurance, transfer taxes, and any outstanding liens or judgments on the property.
- Pre-Sale Inspection and Appraisal: While optional, some sellers choose to conduct a pre-sale home inspection and appraisal to identify any issues upfront and ensure an accurate valuation of the property.
- Moving Costs: Don’t forget to budget for moving expenses, including packing supplies, moving truck rental, and professional movers if needed.
It’s essential to factor in these costs when determining your selling price and budgeting for your home sale. Our team will work closely with you to outline all potential expenses and help you navigate the selling process while maximizing your return on investment.
When handling negotiations with potential buyers, our team follows a strategic approach designed to maximize the value of your property while ensuring a smooth and mutually beneficial transaction. Here’s how we handle negotiations:
- Understanding Your Goals: Before negotiations begin, we take the time to understand your priorities, preferences, and objectives. Whether you’re focused on achieving a specific sale price, closing within a certain timeframe, or minimizing contingencies, we tailor our negotiation strategy to align with your goals.
- Market Analysis: We conduct a comprehensive analysis of market trends, recent sales data, and the unique characteristics of your property to determine its fair market value. This analysis serves as a foundation for setting realistic expectations and guiding our negotiation approach.
- Strategic Positioning: Armed with a deep understanding of your property’s value and market dynamics, we strategically position your property to appeal to potential buyers. This may involve highlighting its key features, showcasing its competitive advantages, and addressing any concerns proactively.
- Professional Representation: Our team serves as your trusted advocate throughout the negotiation process, leveraging our expertise, experience, and market knowledge to protect your interests and maximize your financial outcome. We maintain open communication with you at every step, providing regular updates and seeking your input on important decisions.
- Responding to Offers: When offers are presented, we carefully review each proposal, considering factors such as price, terms, contingencies, and the financial strength of the buyer. We provide you with a thorough analysis of the offer, including potential implications and strategic considerations, to empower you to make informed decisions.
- Skilled Negotiation: We negotiate on your behalf with professionalism, integrity, and a commitment to achieving the best possible outcome. Our team is skilled at navigating complex negotiations, managing counteroffers, and finding creative solutions to overcome obstacles and reach mutually acceptable terms.
- Facilitating Agreement: Once negotiations progress and an agreement is reached, we work diligently to finalize the details, ensure all parties are in alignment, and facilitate a smooth closing process. We coordinate with legal representatives, inspectors, appraisers, and other professionals involved in the transaction to expedite the closing timeline and mitigate any potential challenges.
Throughout the negotiation process, our primary focus is on protecting your interests, maximizing your property’s value, and delivering a positive experience that exceeds your expectations. We are committed to achieving a successful outcome while upholding the highest standards of professionalism and integrity.
The time it takes to sell a property can vary depending on several factors, including the current market conditions, the location and condition of your property, and the pricing strategy. Generally, properties priced competitively and in high demand areas tend to sell faster. Our team will conduct a thorough market analysis to provide you with an estimate of how long it may take to sell your property based on these factors. Additionally, we’ll work closely with you to develop a strategic marketing plan to maximize exposure and attract potential buyers, which can help expedite the selling process.
If your property doesn’t sell within the expected timeframe, there are several potential reasons and strategies to consider:
- Reevaluate Pricing: If your property is not attracting offers, it may be overpriced for the current market conditions. Our team can conduct a comparative market analysis (CMA) to reassess the value of your property and adjust the listing price accordingly.
- Enhance Marketing Efforts: We may need to ramp up our marketing efforts to increase visibility and attract more potential buyers. This could include additional advertising, social media campaigns, hosting more open houses, or targeting specific buyer demographics.
- Address Property Issues: If feedback from showings indicates specific concerns or objections from potential buyers, we can address any issues that may be deterring offers. This might involve making repairs, improving curb appeal, or staging the home differently.
- Consider Different Sales Strategies: Depending on the market conditions and your goals, we may explore alternative sales strategies such as offering incentives to buyers, adjusting the terms of the sale, or exploring lease-to-own options.
- Stay Patient and Flexible: Selling a property can take time, especially in a competitive market or during economic fluctuations. It’s essential to remain patient and flexible throughout the process while staying open to adjustments as needed.
Buying
Should I rent or should I buy? That’s the age old question that comes up all the time. Here’s the facts: While Vancouver remains the Canada’s most expensive market today, the aggregate price of a home in GTA will likely surpass Greater Vancouver in the near future. Over the last 20 years, GTA real estate market has seen appreciation on average of 5% compounded year over year, what this means is an average GTA property that was bought 20 years ago for $500,000 would be worth around $1,320,000 in today’s market, it more than doubled itself. There are no taxable liability on the profit from the sale of your principal residence. With that said, there are some key considerations when deciding whether to rent or to buy:
Financial Considerations:
- Affordability: Determine if you can afford the upfront costs associated with buying a home, such as a down payment, closing costs, and ongoing expenses like mortgage payments, property taxes, insurance, and maintenance.
- Rent vs. Mortgage Payments: Compare the cost of renting versus buying in your desired area. In some cases, renting may be more affordable in the short term, while buying can be a better long-term investment.
- Equity Building: Buying a home allows you to build equity over time, potentially leading to long-term financial benefits. However, renting provides flexibility and may be a better option if you prefer not to tie up your finances in homeownership.
Lifestyle Preferences:
- Flexibility: Renting offers greater flexibility since you can easily move at the end of your lease term without the hassle of selling a home. Buying a home requires a more significant commitment and may limit your flexibility to relocate.
- Control and Customization: Homeownership allows you to customize your living space according to your preferences and make structural changes. Renting typically offers less control over the property’s design and renovations.
Long-Term Goals:
- Investment Potential: Buying a home can be a wise investment if property values appreciate over time, allowing you to build wealth through home equity. Renting may be preferable if you prefer to invest your money in other assets with potentially higher returns.
- Stability: Homeownership provides stability and security, knowing that you have a place to call your own. Renting may offer more flexibility but less stability if landlords decide to sell or raise rents.
Before starting the home buying process, it’s crucial to take several preparatory steps to ensure a smooth and successful experience:
Assess Your Financial Situation: Start by reviewing your financial situation, including your credit score, income, debts, and savings. Knowing your financial health will help you determine how much you can afford to spend on a home and what type of mortgage you qualify for.
Set a Realistic Budget: Based on your financial assessment, establish a realistic budget for your home purchase. Consider not only the purchase price of the home but also additional costs such as closing costs, property taxes, homeowners insurance, and maintenance expenses.
Save for a Down Payment: Start saving for a down payment on your home. While the traditional down payment is 20% of the purchase price, there are mortgage options available with lower down payment requirements. However, keep in mind that a larger down payment can lower your monthly mortgage payments and reduce the overall cost of homeownership.
Get Pre-Approved for a Mortgage: Consider getting pre-approved for a mortgage from a lender. Pre-approval involves submitting financial documents to a lender who will evaluate your creditworthiness and provide a conditional commitment for a loan amount. Pre-approval not only helps you understand your home-buying budget but also demonstrates to sellers that you are a serious and qualified buyer. I would highly suggest going to a bank or financial institute and talking to a qualified mortgage broker/specialist for this step.
Identify Your Housing Needs and Preferences: Take the time to identify your housing needs and preferences. Consider factors such as the type of property (e.g., single-family home, condo, townhouse), desired location (e.g., urban, suburban, rural), number of bedrooms and bathrooms, amenities, school districts, and commute to work.
Research the Housing Market: Research the housing market in your desired area to gain insights into current market conditions, trends, and property values. Understanding the local market will help you make informed decisions and negotiate effectively during the home buying process.
Expertise and Guidance: Real estate agents have in-depth knowledge of the local market, including current trends, property values, and neighborhood dynamics. They can provide valuable guidance and insights to help you make informed decisions.
Access to Listings: Real estate agents have access to a wide range of listings through the Multiple Listing Service (MLS) and other professional networks. They can help you find properties that meet your specific criteria and preferences, potentially uncovering options you might not have discovered on your own.
Negotiation Skills: Real estate agents are skilled negotiators who can advocate on your behalf during the negotiation process. They can help you structure offers, navigate counteroffers, and secure the best possible price and terms for the property you want to buy.
Market Insights: Real estate agents can provide valuable market insights and data to help you understand pricing trends, property appreciation rates, and other factors that may impact your buying decision.
Professional Network: Real estate agents have a network of professionals, including mortgage brokers, home inspectors, and real estate lawyers, whom they can refer you to for additional support and services throughout the buying process.
Streamlined Process: Buying a property involves a lot of paperwork, deadlines, and legal requirements. A real estate agent can help streamline the process, ensuring that all necessary documents are completed accurately and on time.
The decision between buying a new construction or a resale home depends on various factors, including your preferences, budget, and individual circumstances. Here are some considerations to help you make an informed choice:
New Construction:
- Customization: New construction homes often offer the opportunity for customization, allowing you to select features, finishes, and floor plans to suit your preferences.
- Modern Features: New homes are built with the latest building materials and technologies, potentially offering energy efficiency, smart home capabilities, and modern amenities.
- Warranty: New construction homes typically come with Tarion warranties on structural components, providing peace of mind against potential defects or issues.
- Maintenance Costs: Since everything is brand new, new construction homes may require less maintenance in the initial years compared to older homes.
Resale Home:
- Established Neighborhoods: Resale homes are often located in established neighborhoods with mature communities, established amenities, and existing infrastructure.
- Character and Charm: Older homes may feature unique architectural details, character, and charm that you may not find in new construction.
- Turn-key ready: With a resale home, you can typically move in as soon as the transaction closes.
- Price: Resale homes may offer better value for your money, as they tend to be priced lower than new construction homes with similar features and square footage.
Whether to sell your current home before buying a new one or vice versa depends on your individual circumstances, financial situation, and housing market conditions. Here are some factors to consider:
- Financial Stability: Selling your current home first provides you with a clearer picture of your budget for purchasing a new home. It eliminates the risk of carrying two mortgages simultaneously, which can strain your finances.
- Timing: Selling your home before buying can help you avoid the pressure of having to sell quickly if you find your dream home. However, it also means you may need to find temporary housing while searching for a new home.
- Negotiating Power: Selling first gives you more negotiating power as a buyer since you are not contingent on selling your current home. Sellers may view your offer more favorably, especially in competitive markets.
- Contingency Options: Buying before selling allows you to move into your new home seamlessly without the stress of finding temporary housing. However, it also means you may need to include a sale contingency in your offer, which could make it less appealing to sellers.
Getting pre-approved for a mortgage provides peace of mind, enhances your credibility as a buyer, and streamlines the home buying process, making it an essential step for prospective homebuyers
Determine Your Budget: Pre-approval helps you understand how much you can afford to borrow based on your financial situation, income, debts, and credit history. Knowing your budget upfront enables you to focus your home search on properties within your price range.
Competitive Advantage: Sellers often prefer working with pre-approved buyers because it demonstrates that you are serious and financially qualified to purchase their property. In competitive real estate markets, having pre-approval can give you an edge over other buyers and strengthen your offer.
Faster Closing Process: Pre-approval streamlines the mortgage application process since much of the paperwork and verification are completed upfront. This can lead to a quicker closing timeline once you find the right property, helping you avoid delays and potential obstacles during the purchase process.
Confidence in Negotiations: With pre-approval in hand, you have a clear understanding of your purchasing power and can negotiate confidently with sellers. You can make strong, competitive offers knowing that you have already secured financing, which may lead to more favorable terms and price negotiations.
Identify Potential Issues Early: During the pre-approval process, lenders assess your financial profile and may identify any issues that could affect your ability to qualify for a mortgage. Addressing these issues early allows you to take steps to improve your credit, increase your down payment, or resolve any other issues before making an offer on a home.
Generally speaking, the buyer agent is compensated through the listing brokerage from the proceeds of the sale. In most real estate transactions, the seller is responsible for paying both the listing agent’s remuneration (representing the seller) and the buyer agent remuneration.
The seller agrees to pay a total remuneration, which is usually split between the listing agent and the buyer agent. The remuneration amount and the split between agents are negotiated as part of the listing agreement between the seller and their listing agent.
From the buyer’s perspective, working with a buyer’s agent typically comes at no direct cost since the remuneration is covered by the seller. However, there is an exception to this, it usually occurs when owner of the property tries to sell on their own and provide no compensation to the buyer’s agent, as a result the buyer is then obligated to pay the remuneration amount stipulated in the Buyer’s Representation Agreement(BRA).
Overall, while buyer is not directly responsible for their agent’s remuneration, it’s important to understand that the buyer agent remuneration is factored into the overall purchase price of the home.
An offer date, or presentation date, is a specific date set by the seller and their real estate agent for accepting offers on a property. In real estate transactions, especially in competitive markets or when there is high demand for properties, sellers often choose to establish an offer date to streamline the process and create a sense of urgency among potential buyers.
Here’s how an offer date typically works:
Listing Period: The property is listed for sale on the market, and interested buyers are given an opportunity to view the property during scheduled open houses or private showings.
Offer Date Announcement: The seller or their agent announces an offer date, specifying the deadline by which interested buyers must submit their offers. This date is communicated to potential buyers through the property listing, real estate agents, or other marketing channels.
Preparation of Offers: Prospective buyers interested in making an offer on the property prepare their offers in advance of the offer date. They work with their real estate agents to determine the offer price, terms, and any conditions they wish to include in the offer.
Submission of Offers: On the specified offer date, interested buyers through buyer agent submit their offers to the listing agent before the deadline. Offers may be presented in person, electronically, or through a designated representative.
Seller’s Response: After the offer deadline has passed, the seller reviews the submitted offers and decides whether to accept, reject, or counter any of them. The seller’s decision is typically communicated to the buyer’s agent within a specified timeframe following the offer date.
Pre-emptive, also commonly known as a bully offer, is an offer made by a potential buyer to purchase a property before the scheduled date set by the seller for accepting offers. In competitive real estate markets, particularly in situations where there is high demand and low inventory, buyers may submit bully offers to try to secure a property quickly and avoid competition from other potential buyers.
Here’s how a bully offer typically works:
Early Submission: Instead of waiting for the scheduled offer date specified by the seller, a buyer submits an offer to purchase the property before that date.
Attractive Terms: The buyer’s offer is often accompanied by attractive terms, such as a higher purchase price, favorable closing terms, or waived conditions (e.g., financing, home inspection).
Short irrevocable: The seller then has to decide whether to accept, reject, or counter the pre-emptive offer. Most of the time the seller are given shorter time to think, thus creating an urgency to not pass up the offer, the seller may accept the offer immediately, especially if the terms are highly favorable.
Pre-emptive offers can benefit both buyers and sellers. Buyers may secure a property without facing competition from other bidders, while sellers may receive an attractive offer sooner than expected.
In GTA’s real estate landscape, prompt payment of the deposit is standard practice. However, the protocol regarding deposit cheques can vary depending on local customs and the level of competitiveness in the market. Typically, in GTA, it’s customary for buyers to provide the deposit cheque along with their offer. This means arranging funds from their financial institution beforehand. The offer, along with the deposit cheque, is presented by the realtor, as indicated in the Agreement of Purchase and Sale. It’s crucial to have readily available cash on hand for the deposit, as last-minute scrambling to access funds from investments like RRSPs or stocks can be challenging. For buyers banking with institutions without physical branches, obtaining a deposit may involve a slower process. While the deposit cheque is typically due within 24 hours of offer acceptance, submitting it with the offer is encouraged, especially in competitive scenarios. However, alternative arrangements for the deposit can be made in special cases, such as international buyers, where a surrogate clause may be added to the Purchase and Sale Agreement to manage fund transfers, often involving wiring the deposit to the Listing Brokerage.
What qualifies as an appropriate deposit in Toronto? There’s no set standard for determining the ideal deposit amount, but it serves as a significant indicator of the buyer’s seriousness. Typically, deposits in GTA are a minimum of 5% of the offer price. In competitive situations like bidding wars, we advise buyers to consider offering a larger deposit. It’s uncommon for sellers to counter the deposit amount along with the offer price. It’s important to note that the deposit cheque is part of your total down payment due upon closing and not an additional cost.
Yes, a real estate deposit can be refundable under certain circumstances. The refundability of the deposit largely depends on the terms outlined in the Agreement of Purchase and Sale. If the buyer includes conditions in the offer, such as a financing condition or a home inspection condition, and these conditions are not met within the specified timeframe, the buyer may be entitled to a full refund of their deposit. Additionally, if the seller fails to fulfill their obligations outlined in the agreement, such as delivering clear title to the property, the buyer may also be entitled to a refund. However, if the buyer decides to back out of the deal without valid reasons, they may risk forfeiting their deposit to the seller. If the buyer is unable to proceed with the purchase because certain condition cannot be met, both the buyer and the seller need to sign a mutual release form before the deposit cheque can be issued back to the buyer. If the seller suspects the buyer has not acted in good faith, the seller may refuse to sign the mutual release form and hold back on the deposit, in this case the deposit remains in the trust account, and this would have to be settle legally before a disbursement of the fund can be issued. It’s essential for both buyers and sellers to understand the terms regarding deposit refundability outlined in the purchase agreement to avoid any misunderstandings or disputes.
If you default on closing, the fate of your deposit may not automatically result in the seller retaining it. Contrary to common belief, the outcome depends on various factors. For instance, if the deposit amount is $25,000 or less, the case may be decided in small claims court, while larger deposits, typical to Toronto’s market, are handled in the Superior Court of Justice. Generally, if the buyer defaults, they risk losing their deposit, and the seller may pursue legal action for damages, legal fees, and carrying costs. Therefore, it’s essential to conduct thorough due diligence before committing to a purchase and ensure you’re financially prepared to fulfill your obligations. Buying a home isn’t as simple as returning an item to a store—it requires careful consideration and financial readiness.
When you provide a real estate deposit as part of an offer to purchase a property, it’s typically made payable to the deposit holder named in the Agreement of Purchase and Sale. It’s crucial to ensure there are no spelling errors in the “payable to” section of your deposit cheque. These funds are usually held by the statutory Real Estate Trust Account of the Seller’s brokerage, as specified in the agreement. The deposit remains in trust until closing and is applied against the purchaser’s down payment. If interest is payable, it must be stated in the agreement. Importantly, a real estate agent does not personally hold onto the deposit.
As a part of the program to protect deposit, the Real Estate Council of Ontario (RECO) stipulates: if the deposit funds are held in the listing brokerage Real Estate Trust Account, they are insured under the RECO Deposit Insurance Program. This insurance covers up to $100,000 per claim, subject to the policy’s terms and conditions. Consumer deposit insurance offers protection in the event of fraud, insolvency, or misappropriation of funds by a real estate agent or their brokerage. This provides additional reassurance for both buyers and sellers involved in real estate transactions.
Pre-Construction
Buying pre-construction offers several advantages for prospective homeowners and investors:
Early Access: Purchasing pre-construction offers buyers the unique opportunity to secure a property in a desirable location before it is completed, providing early access to burgeoning neighborhoods and upcoming developments. This early entry often comes with the advantage of lower prices compared to established properties in the same area, allowing buyers to capitalize on potential appreciation as the neighborhood evolves.
Customization: One of the most appealing aspects of pre-construction purchases is the ability for buyers to customize their unit to their exact specifications. From selecting finishes, fixtures, and layout options to personalizing design elements, buyers have the freedom to tailor their living space to suit their preferences and lifestyle needs, creating a truly bespoke home.
Deposit Structure: In Toronto’s competitive real estate market, the required upfront deposit can be a significant barrier of entry for many buyers and investors. With pre-construction purchases, buyers can benefit from an extended deposit structure, spreading out the deposit payments over 3-5 years. This approach makes homeownership more accessible and serves as a forced savings or investment strategy for first-time buyers and investors alike.
an example of this deposit structures may look something like this:
$10,00 on signing
Balance to 2.5% in 30 days
2.5% in 150 days
2.5% in 500 days
2.5% in 900 days
10% on occupancy
Modern Amenities: Pre-construction developments often boast a wide array of modern amenities designed to enhance the overall living experience. From state-of-the-art fitness centers and swimming pools to communal spaces and smart home technology, buyers can enjoy a contemporary lifestyle with access to cutting-edge facilities and conveniences.
First Choice Selection: Client of HC realty group Inc. can enjoy earliest opportunity to have first choice of available units due to our VVIP status with builder, ensuring they can select the best location, view, and layout to meet their needs. This ensures that buyers can secure their preferred unit before it becomes available to the broader market.
Community Development: Investing in pre-construction properties can contribute to the development and revitalization of communities, bringing new residents, businesses, and amenities to the area. By participating in the growth of a neighborhood, buyers can play a role in shaping the future of their community while enjoying the benefits of an evolving and vibrant urban environment.
Contingency: Purchasing pre-construction properties in Toronto follows a matured and structured process compared to heated bidding wars often seen in the resale market. Buyers benefit from a 10-day cooling-off period, during which they can thoroughly review purchase details with their legal, financial, and real estate advisors. This allows for a measured evaluation of the investment opportunity or future home.
Certainly! Early buyers of pre-construction properties often have access to a range of incentives and promotions offered by developers to encourage sales and reward early commitment. These incentives can vary depending on the developer, project, and market conditions, clients of HC Realty Group Inc. often enjoy extra incentive offered by the developer, some common examples include:
Pre-Construction Pricing: Early buyers may have the opportunity to purchase units at discounted pre-construction prices, which are typically lower than prices offered after the project is completed or closer to completion.
VIP Access: Developers often offer VIP access to early buyers, providing them with priority access to the best units, locations, and views before they are released to the general public.
Upgrade Packages: Some developers offer complimentary or discounted upgrade packages for finishes, fixtures, and appliances, allowing buyers to customize their units at a reduced cost.
Deposit Structure: Developers may offer flexible deposit structures with lower initial deposits or extended payment plans, making it easier for buyers to manage their finances and secure their units with minimal upfront costs.
Upgraded Parking: Developers may include complimentary E-charging parking spaces for early buyers as part of their purchase package, adding value and convenience to the property.
Closing Cost Incentives: Some developers may offer incentives to cover or offset closing costs for early buyers.
Exclusive Events and Perks: Early buyers may be invited to exclusive events, previews, or receptions hosted by the developer, providing opportunities to network with other buyers and industry professionals and access special perks or gifts.
The 10-day cooling-off period is a regulatory measure in Ontario’s real estate market that provides buyers of pre-construction properties with a window of time to review their purchase agreement and seek professional advice before committing to the transaction. During this period, which begins on the date the buyer receives a copy of the signed purchase agreement or disclosure documents, the buyer has the right to reconsider their decision to purchase the property without penalty.
Key aspects of the 10-day cooling-off period include:
Review Period: The 10-day period allows buyers to carefully review the terms and conditions of the purchase agreement, as well as any associated disclosure documents, such as the condominium declaration or disclosure statement.
Professional Advice: Buyers are encouraged to seek advice from legal, financial, and real estate professionals during the cooling-off period to ensure they fully understand their rights, obligations, and the implications of the purchase.
Cancellation Option: If the buyer decides to cancel the purchase within the 10-day period, they must provide written notice of their intention to do so to the developer or seller. Upon cancellation, the buyer is entitled to a full refund of any deposits or payments made.
Protection for Buyers: The cooling-off period is designed to protect buyers from making impulsive or uninformed decisions and provides them with an opportunity to reconsider their purchase in a more measured and deliberate manner.
You do not necessarily need a mortgage upfront since pre-construction properties are not yet built and won’t be ready for several years. However, you will need to obtain a mortgage pre-approval that meets the developer’s requirements. Typically, mortgage pre-approvals for resale properties are valid for only 90 days. In the pre-construction purchase agreement, it will be stipulated that you must provide a mortgage pre-approval within a specified period, as per the developer’s terms. This is necessary for the developer to satisfy their lenders and reduce the risk of defaults at the closing stage. It’s crucial to ensure that you qualify for a mortgage pre-approval before the end of the 10-Day Cooling-Off Period.
Choosing the right lawyer for your pre-construction purchase is crucial to ensure a smooth and legally sound transaction. A pre-construction purchase and sale agreement is a very intimidating document, it can often have hundreds of pages full of information, with legal jargon average folks hardly understands. While developer’s lawyer may navigate these documents with ease, often time they’ve written the documents themselves and the terms and conditions are often in favour of the developers. Here are some considerations when selecting a lawyer:
Experience: Look for a lawyer who specializes in real estate law and has experience handling pre-construction transactions. They should be familiar with the unique legal aspects and potential pitfalls of buying a property that has not yet been built.
Knowledge of Pre-Construction Contracts: Pre-construction contracts can be complex, with various clauses and contingencies. Your lawyer should thoroughly review the purchase agreement and advise you on any potential risks or issues. They should also ensure that the contract protects your interests and rights as a buyer.
Communication: Effective communication is essential throughout the pre-construction process. Choose a lawyer who is responsive to your inquiries and keeps you informed about the progress of the transaction. They should be readily available to address any questions or concerns you may have.
Local Expertise: Opt for a lawyer who is familiar with the local real estate market and regulations. They should have knowledge of zoning laws, building codes, and other legal requirements specific to the area where the pre-construction property is located.
Fee Structure: Inquire about the lawyer’s fee structure upfront to avoid any surprises later on. Some lawyers charge a flat fee, while others may bill by the hour. Make sure you understand what services are included in the fee and whether there are any additional costs.
Delays: Construction projects may face delays due to various factors such as weather, labor shortages, or permitting issues. Delays can affect your move-in timeline and may lead to additional expenses if you need alternative housing arrangements.
Changes in Plans: Developers may make changes to the project’s design, layout, or amenities during the construction process. While minor changes are common, significant alterations could impact your satisfaction with the final product.
Financing Risks: Obtaining financing for pre-construction purchases can be more complex than for resale properties. Mortgage approval may be subject to additional requirements, and interest rates could change before the completion of the project, affecting your borrowing costs.
Market Fluctuations: The real estate market is subject to fluctuations, and property values may change between the time of purchase and completion. Economic factors, changes in demand, or oversupply in the market could affect the property’s future value.
Developer Reputation: Researching the developer’s track record and reputation is crucial before committing to a pre-construction purchase. Inexperienced or financially unstable developers may be more likely to encounter delays or quality issues.
Hidden Costs: In addition to the purchase price, pre-construction buyers may face additional costs such as development charges, utility hook-up fees, or adjustments to property taxes. These expenses can add up and should be factored into your budget.
Generally speaking, you’d have to follow the terms stipulated in the purchase agreement for any restrictions, conditions and fee that may apply.
An assignment involves transferring your rights and obligations as the original purchaser to a new buyer before the property is completed and the final closing takes place. This can be advantageous if you’re unable or unwilling to complete the purchase yourself or if you’re looking to capitalize on potential appreciation in the property’s value before completion.
However, developers often impose certain restrictions or conditions on assignments, such as requiring approval of the new buyer by the developer and payment of an assignment fee. Additionally, the original purchaser may need to obtain consent from their mortgage lender and pay any applicable taxes or fees associated with the assignment.
A Tarion Warranty, also known as the Ontario New Home Warranty Program, is a warranty protection plan for newly constructed homes in Ontario, Canada. It provides coverage for certain defects and deficiencies in workmanship and materials, offering homeowners peace of mind and financial protection.
The Tarion Warranty consists of several components:
Deposit Protection: The warranty protects the deposits made by homebuyers to builders or developers in the event of project delays, bankruptcies, or cancellations.
One-Year Warranty: Covers defects in workmanship and materials for one year from the date of possession. This includes issues with plumbing, heating, electrical systems, and other structural components.
Two-Year Warranty: Covers defects in the electrical, plumbing, and heating systems for two years from the date of possession. It also includes defects in the building envelope, such as water penetration.
Seven-Year Warranty: Covers major structural defects for seven years from the date of possession. This includes issues that affect the load-bearing components of the home, such as the foundation, walls, and roof.
Homeowners can file warranty claims with Tarion if they discover defects or deficiencies covered by the warranty during the specified warranty periods. Tarion will assess the claim and, if approved, arrange for repairs or compensation to rectify the issue.
Tenant
As a tenant, you typically do not need to pay a realtor for their services when seeking a rental property in Ontario. In most cases, the landlord or property owner pays the realtor’s commission.
Realtors can provide valuable assistance to tenants in several ways such as:
Property Search: Realtors have access to a wide range of rental listings and can help you find properties that meet your specific criteria, such as location, budget, and amenities.
Viewing Arrangements: They can schedule property viewings and accompany you to tour the rental units, providing insights and advice along the way.
Negotiation: Realtors can assist with negotiating lease terms, such as rent amount, lease duration, and inclusion of utilities or amenities.
Lease Review: They can review the lease agreement to ensure that your rights as a tenant are protected and explain any terms or clauses that may be unclear.
Support and Advice: Realtors can provide ongoing support and advice throughout the rental process, addressing any concerns or questions you may have.
When applying for a rental property in Ontario, you may be required to prepare various paperwork to support your application. Here’s a list of common documents you may need to provide:
Rental Application Form: Many landlords require applicants to complete a rental application form, providing personal information, rental history, employment details, and references.
Proof of Identity: You’ll typically need to provide a government-issued photo ID, such as a driver’s license or passport, to verify your identity.
Proof of Income: Landlords may request documents to verify your income, such as pay stubs, employment letters, or tax returns. This helps demonstrate your ability to afford the rent.
Credit Report: Some landlords may ask for a credit report to assess your creditworthiness. You can obtain a copy of your credit report from major credit bureaus like Equifax or TransUnion.
References: Landlords may require references from previous landlords, employers, or personal references to vouch for your character, reliability, and ability to maintain the property.
RTA stands for the Residential Tenancies Act. It is a provincial law in Ontario, Canada, that governs the rights and responsibilities of landlords and tenants in residential rental properties. The RTA outlines regulations related to issues such as rent, maintenance, evictions, and dispute resolution. Its primary purpose is to provide a framework for fair and consistent practices in the residential rental market, ensuring that both landlords and tenants are aware of their rights and obligations. The RTA also establishes the Landlord and Tenant Board (LTB), which is responsible for adjudicating disputes between landlords and tenants and enforcing the provisions of the act.
Landlords in Ontario have specific responsibilities regarding property maintenance and repairs outlined in the Residential Tenancies Act (RTA). Here’s an overview:
Maintaining the Property: Landlords are responsible for ensuring that the rental property meets the minimum maintenance standards set out in the RTA. This includes maintaining the property’s structure, plumbing, heating, electrical systems, and essential services such as water and heat.
Repairs: Landlords must promptly address any necessary repairs to keep the rental property in a good state of repair. This includes fixing issues related to the property’s structure, systems, and appliances provided by the landlord.
Health and Safety: Landlords are required to maintain the rental property in a safe and habitable condition. This includes addressing health and safety hazards such as mold, pests, and other environmental concerns.
Common Areas: If the rental property includes common areas such as hallways, staircases, or entryways, landlords are responsible for maintaining these areas in a clean and safe condition.
Appliances and Services: If the landlord provides appliances or services such as laundry facilities, elevators, or parking, they are responsible for ensuring these amenities are in working order.
Emergency Repairs: Landlords must respond promptly to emergency repair requests, such as those related to heating, plumbing, or electrical issues, to ensure the safety and well-being of tenants.
Notice of Entry: Before entering the rental unit for maintenance or repairs, landlords must provide tenants with proper notice as required by the RTA, except in cases of emergency.
Documentation: Landlords should keep records of all maintenance and repair work performed on the rental property, including receipts, invoices, and communication with tenants.
Tenants in Ontario have specific responsibilities outlined in the Residential Tenancies Act (RTA):
Paying Rent: Tenants are responsible for paying rent on time and in full according to the terms of the lease agreement.
Maintaining the Property: Tenants must maintain the rental property in a clean and sanitary condition, including regular cleaning and upkeep of the unit.
Repairing Damage: Tenants are responsible for repairing any damage to the rental property caused by their negligence or misuse, beyond normal wear and tear.
Respecting the Property: Tenants must respect the rental property and use it only for its intended purpose. This includes refraining from causing damage or disturbances to neighbors.
Notifying Landlord: Tenants must promptly notify the landlord of any necessary repairs or maintenance issues that arise during their tenancy.
Abiding by Lease Terms: Tenants must adhere to the terms of the lease agreement, including restrictions on subletting, pets, and alterations to the property.
Allowing Access: Tenants must allow the landlord or their agents reasonable access to the rental unit for purposes such as inspections, repairs, or showings, with proper notice as required by law.
Notifying Landlord of Vacating: Tenants must provide proper notice to the landlord when vacating the rental unit, as outlined in the lease agreement or by law.
Following Building Rules: If the rental property is part of a condominium or multi-unit building, tenants must follow any building rules or regulations set out by the landlord or property management.
Resolving Disputes: Tenants should attempt to resolve any disputes or issues with the landlord through open communication and, if necessary, through mediation or legal channels as provided by the RTA.
In Ontario, rent increases are regulated by the Residential Tenancies Act (RTA). Under the RTA, landlords are allowed to increase rents once every 12 months for most residential rental properties, including apartments, houses, and condos, as long as certain conditions are met.
As of 2021, the annual rent increase guideline is set by the Ontario government and is typically announced each year. Landlords are only permitted to increase rents up to the maximum allowable amount specified in the rent increase guideline, even if the cost of living or property expenses may have increased by a higher amount.
Landlords must provide tenants with written notice of any rent increase at least 90 days before the proposed increase takes effect. The notice must state the amount of the increase and the date it will come into effect. The rent increase cannot take effect earlier than 12 months after the date of the last rent increase or since the start of the tenancy if no previous increase has occurred.
Certain rental units are exempt from the rent increase guidelines, including units in buildings occupied for the first time after November 15, 2018, social housing units, nursing homes, commercial properties, and some other specialized types of housing.
If a tenant believes that a rent increase is above the allowable guideline or if they have concerns about the increase, they can dispute the increase by filing an application with the Landlord and Tenant Board (LTB) within 30 days of receiving the notice of the rent increase. The LTB will then review the application and make a decision based on the evidence provided by both the landlord and the tenant.
As a tenant in Ontario, you have certain rights and responsibilities regarding making changes to the rental property. Generally speaking, for any alterations or renovations that may affect the property’s structure, safety, or functionality, you must obtain written permission from the landlord before proceeding. This includes changes like installing permanent fixtures, modifying plumbing or electrical systems, or making structural modifications.
In some cases, the landlord may require compensation for allowing you to make alterations to the property. This could involve paying for materials, labor costs, or agreeing to a rent increase to cover the expenses associated with the changes.
Note: When renting a condominium unit in Ontario, the approval process for alterations typically involves submitting a written request to both the landlord and the condominium corporation.
Making alterations, changing fixtures, or modifying the unit’s structural integrity, electrical or plumbing systems, or common elements without seeking approval and obtaining written permission can lead to financial liabilities, legal consequences, and safety risks. As a tenant, it’s essential to follow the proper approval process and obtain written permission before making any changes to the rental property.
In Ontario, landlords generally cannot enter a rental unit without providing proper notice to the tenant, except in emergencies or other specific circumstances outlined in the Residential Tenancies Act (RTA). According to the RTA, landlords must give tenants at least 24 hours’ written notice before entering the rental unit, and the entry must be during reasonable hours.
There are specific reasons outlined in the RTA where a landlord can enter a rental unit without notice. These reasons include:
Emergency: Emergency situations that require immediate attention, such as a fire or flood.
Repair and maintenance: To make necessary repairs or perform maintenance, but only if the landlord has given the tenant a written notice of entry at least 24 hours in advance.
Showings: To show the unit to prospective tenants, purchasers, or mortgagees, but only if the landlord has given the tenant reasonable notice in writing in advance and the entry occurs between 8:00 AM and 8:00 PM.
Yes, under the Residential Tenancies Act (RTA) in Ontario, landlords can terminate a tenancy for the purpose of carrying out renovations or for personal use of the rental unit or for the use by a member of the landlord’s family. However, there are specific rules and procedures that landlords must follow:
Notice of Termination: The landlord must provide the tenant with a written notice of termination stating the reason for termination and the date by which the tenant must vacate the premises. For renovations or personal use, the notice period is typically 60 days.
Compensation: If the landlord terminates the tenancy for renovations, they must either compensate the tenant or offer the tenant another acceptable rental unit. The compensation amount is one month’s rent or offer another acceptable rental unit.
Good Faith: The termination must be made in good faith. Landlords cannot use renovation or personal use as a pretext for evicting a tenant for other reasons.
Reoccupation: If the landlord terminates the tenancy for personal use, they or a family member must intend to occupy the rental unit for at least one year.
When considering how to get out of your lease, it’s crucial to understand the legal framework and options available to both landlords and tenants. Initially, when a lease agreement is signed, both parties are bound to uphold the entire term of the lease, typically requiring a minimum of 60 days’ written notice to terminate using the appropriate government-issued forms. From the tenant’s perspective, termination doesn’t necessitate providing a reason but should align with the initially agreed-upon lease term.
For landlords seeking termination, specific criteria must be met and communicated to the tenant using the N12 form, typically involving the landlord or their family member’s intent to move into the property for at least one year, or if an Agreement of Purchase and Sale has been signed with a new owner intending to reside there for at least one year. In both cases, the termination date should not conflict with the initial lease term, and 60 days’ notice is required.
Additionally, landlords can use the N13 form to end a tenancy for extensive renovations requiring the unit to be vacant. However, tenants retain the first right of refusal to return once the renovations are complete. If there are no further written agreements, the lease will auto-renew on a month-to-month basis until either party provides the minimum required notice as outlined by the Landlord and Tenant Board. For more detailed information on ending a lease in Ontario, it’s advisable to consult resources provided by the Landlord and Tenant Board.
In Ontario, landlords can initiate the eviction process for various reasons, including non-payment of rent, substantial interference with reasonable enjoyment, or persistent late payment of rent. The eviction process is regulated by the Residential Tenancies Act (RTA) and typically involves several steps:
Notice of Termination: The landlord must provide the tenant with a written notice of termination, specifying the reason for the termination and the date by which the tenant must vacate the premises. The length of notice varies depending on the reason for termination.
Application to the Landlord and Tenant Board (LTB): If the tenant does not vacate the premises by the specified date, the landlord can file an application to the Landlord and Tenant Board (LTB) for an eviction order. The application must include details of the tenancy, the reasons for eviction, and any evidence supporting the landlord’s claims.
LTB Hearing: The LTB will schedule a hearing to review the landlord’s application and hear from both parties. Both the landlord and the tenant have the opportunity to present evidence, call witnesses, and make their case.
LTB Decision: After considering the evidence and arguments presented, the LTB will issue a decision either granting or denying the eviction order. If granted, the eviction order will specify a date by which the tenant must vacate the premises.
Enforcement: If the tenant fails to vacate the premises by the specified date, the landlord can apply to the Sheriff’s Office to enforce the eviction order. The Sheriff will schedule a time to physically remove the tenant from the property.
Landlord
As a landlord operating in Ontario, it’s crucial to understand your responsibilities under the Residential Tenancies Act (RTA).
Maintaining the Rental Property: You’re responsible for providing and maintaining the rental unit in a good state of repair, ensuring it complies with health, safety, and housing standards set by law.
Tenant Privacy: You must respect your tenants’ privacy rights and provide proper notice before entering the rental unit for inspections, repairs, or other reasons allowed under the RTA.
Rent Increases: Any rent increase must comply with the rules outlined in the RTA. Typically, you can only increase rent once every 12 months, and you must provide proper notice to your tenants.
Security Deposits: While you can collect a rent deposit, it cannot exceed one month’s rent or the rent for one rental period, whichever is less. Additionally, you must return the deposit plus any interest within 15 days of the tenancy ending.
Termination and Eviction: You can only terminate a tenancy for reasons allowed under the RTA, such as non-payment of rent, substantial interference with reasonable enjoyment, or other grounds specified in the Act. The eviction process must follow legal procedures outlined in the RTA.
Maintaining Records: It’s essential to keep accurate records of rent payments, repairs, communications with tenants, and any other relevant documentation related to the tenancy.
Tenant Rights: You must respect your tenants’ rights, including the right to reasonable enjoyment of the rental unit, freedom from harassment or discrimination, and protection from illegal eviction practices.
Compliance with Laws: Ensure compliance with all relevant laws, regulations, and bylaws related to rental housing, including fire safety, building codes, and zoning regulations.
In Ontario, rent increases for residential rental units are regulated by the Residential Tenancies Act (RTA). Here are the key rules and regulations regarding rent increases:
Frequency: Landlords can generally only increase rent once every 12 months for a tenant, regardless of whether there is a change in the tenant or not.
Notice Period: Landlords must provide tenants with proper written notice of any rent increase at least 90 days before the proposed effective date of the increase. This notice must be in the form provided by the Landlord and Tenant Board (LTB).
Guideline Increase: The Ontario government sets an annual rent increase guideline, which outlines the maximum percentage by which a landlord can increase rent for most residential rental units. Landlords are not obligated to increase rent up to the maximum guideline amount but must use this guideline when calculating any rent increase.
For example: Your monthly rent is $1,000 when you sign a lease on June 1, 2023. The guideline for 2024 is 2.5%.
Therefore:
- an increase of 2.5% on $1,000 = $25.00
- $1,000 + $25.00 = $1,025.00
Exemptions: Some rental units are exempt from the rent increase guideline, including units in buildings occupied for the first time after November 15, 2018, social housing units, nursing homes, and other specific types of housing.
Above Guideline Increases (AGIs): Landlords may apply to the LTB for an above-guideline rent increase in certain circumstances, such as when they have incurred significant capital expenditures or operating cost increases. These applications must be approved by the LTB before implementing the increase.
Illegal Rent Increases: Any rent increase that does not comply with the RTA, including those exceeding the guideline without approval or not providing proper notice, is considered illegal. Tenants have the right to dispute illegal rent increases by filing an application with the LTB.
Under the Residential Tenancies Act (RTA) in Ontario, the rent increase guideline does NOT apply to certain rental units. These exceptions include:
New Buildings: Units in new buildings, including additions to existing buildings and most new basement apartments, that are occupied for the first time for residential purposes after November 15, 2018.
Turnover of Tenancy: Rental units where a turnover of tenancy occurs, meaning when the landlord and new tenant agree on the rent amount. In these cases, the rent increase guideline does not apply.
Community Housing Units: Units in community housing, which are typically operated by municipal or non-profit organizations to provide affordable housing options.
Long-Term Care Homes: Units in long-term care homes, which are facilities providing accommodation and care for individuals who require assistance with daily living activities due to age, disability, or medical conditions.
Commercial Properties: Rental units used for commercial purposes, such as office spaces, retail stores, or industrial facilities, are exempt from the rent increase guideline as they are governed by different regulations.
In Ontario, landlords and property managers must follow specific rules outlined in the Residential Tenancies Act (RTA) regarding entry into a rental property. Here are the key rules regarding entry:
24-Hour Notice: Except in cases of emergency, landlords must provide tenants with at least 24 hours written notice before entering the rental unit.
Reasonable Hours: Landlords can only enter the rental unit at reasonable times of the day, typically between 8:00 AM and 8:00 PM. The entry must also be at a time agreed upon by both parties, unless there is an emergency.
Reasonable Purpose: Landlords can only enter the rental unit for specific purposes allowed by the RTA, such as conducting repairs, inspections, or showing the unit to prospective tenants or buyers. The purpose of entry must be reasonable and lawful.
Emergency Entry: In case of an emergency, such as a fire or flood, landlords can enter the rental unit without notice to address the emergency situation.
Privacy: Landlords must respect the tenant’s right to privacy and not abuse the right of entry. They should also minimize disruptions to the tenant’s enjoyment of the rental unit.
Notice Requirements: The notice provided to tenants must include the date and time of entry, the reason for entry, and the name of the person entering the unit.
Consent: Landlords cannot enter the rental unit without the tenant’s consent, except in cases of emergency or as permitted by the RTA.
Tenant’s Right to Refuse Entry: Tenants have the right to refuse entry to the landlord or property manager if the proper notice requirements are not met or if the entry is for an unreasonable purpose.
Ensuring that your rental property meets all health and safety standards required by law is crucial for both the well-being of your tenants and your legal compliance as a landlord. Here are some tips you can take to achieve this:
Stay Informed: Familiarize yourself with all relevant health and safety regulations, including those outlined in the Residential Tenancies Act (RTA) and local municipal bylaws. These regulations cover areas such as building codes, fire safety, electrical systems, plumbing, and sanitation.
Regular Inspections: Conduct regular inspections of your rental property to identify any potential health and safety hazards. This includes checking for issues such as mold, asbestos, lead paint, faulty wiring, leaking pipes, and structural damage.
Maintenance and Repairs: Promptly address any maintenance or repair issues that arise on the property. This includes fixing leaks, repairing broken appliances, replacing worn-out flooring, and ensuring that heating and cooling systems are in good working order.
Provide Essential Services: Ensure that your rental property provides essential services such as clean running water, heating, and proper ventilation. Make sure that all appliances are in safe and working condition, including stoves, refrigerators, and smoke detectors.
Fire Safety: Install smoke detectors on every level of the property and ensure they are in good working condition. Consider installing carbon monoxide detectors as well, especially if you have gas appliances. Provide fire extinguishers in accessible locations and develop a fire escape plan for tenants.
Accessibility: Ensure that your rental property is accessible to tenants with disabilities, in compliance with accessibility standards outlined in the Accessibility for Ontarians with Disabilities Act (AODA). This may include features such as wheelchair ramps, accessible doorways, and grab bars in bathrooms.
In Ontario, landlords can legally terminate a tenancy based on specific grounds outlined in the Residential Tenancies Act (RTA). Some of the legal grounds for terminating a tenancy include:
Non-payment of Rent: If a tenant fails to pay rent on time, the landlord can issue a notice of termination for non-payment of rent.
Persistent Late Payment: Even if the tenant eventually pays rent, persistent late payment may still be grounds for termination.
Substantial Interference: If the tenant substantially interferes with the reasonable enjoyment of the property by other tenants or the landlord, the landlord may issue a notice of termination.
Employment: The tenant was an employee of an employer who provided the tenant with the rental unit during the tenant’s employment and the employment has terminated.
Illegal Acts: Engaging in illegal activities on the rental property can lead to termination of tenancy.
Significant Damage: If the tenant or their guests wilfully or negligently cause significant damage to the property beyond normal wear and tear, the landlord may terminate the tenancy.
Landlord’s Own Use: If the landlord or their immediate family member intends to move into the rental unit, they may terminate the tenancy for their own use, subject to certain conditions.
Renovations or Demolition: Landlords may terminate tenancies for the purpose of renovations or demolition, but they must provide proper notice and follow specific procedures.
In Ontario, landlords have the right to evict tenants for certain reasons, but selling the property alone is not typically grounds for eviction. However, if a landlord sells a property with tenants in it, the new owner becomes the landlord, and the existing tenancy usually continues under the same terms and conditions.
There are specific rules and procedures landlords must follow if they wish to end a tenancy for reasons such as personal use of the property by the landlord or their family members, renovations or repairs that require the unit to be vacant, or demolition of the rental unit. Landlords must provide proper notice and follow the eviction process outlined in the Residential Tenancies Act (RTA) and obtain approval from the Landlord and Tenant Board if necessary.