Property Law Columns
City sending mixed signals on tackling housing shortage
If the city of Toronto was serious about tackling the housing
shortage, why would it charge Toronto homeowners $300,000 to
legalize three bachelor apartments in their house?
Boundary dispute dissolves a purchase deal
When homebuyers discover before closing that the sellers are involved in boundary litigation with their neighbours, are they obliged to close the deal?
Blaze reveals why bargain hunting for property insurance is playing with fire
There’s nothing like having your property burn to the ground to focus your attention on the need for good property insurance.
Pre-construction contracts don’t leave wiggle room for market drops
In today’s real estate market, it’s not unusual for new home buyers to
find themselves in a dilemma.
Does First Canadian Title Live Up to it’s Marketing Promises?
Property owner stuck with $25,000 in court costs over cottage’s pre-existing issues
Shared maple tree pits neighbour against neighbour in court battle
“What could be more Canadian than Toronto neighbours arguing about building an addition on a house?” asked Justice Ed Morgan in one of his decisions released earlier this year. “Homeowners arguing about a maple tree, of course,” he continued.
Court gives a jolt to joint property owners
An Ontario Superior Court decision may change the law of joint land ownership and the right of survivorship when one owner dies.
Condo fined $10K for delay in door openers to assist disabled resident
The duty of a condominium corporation to accommodate disabled residents is highlighted by a decision from the Ontario Human Rights Tribunal released earlier this year.
Wayne and Shuster Lane tugs at this homeowner’s heartstrings
A celebration walk is set for tomorrow — June 23 — to dedicate eight newly-named laneways in the Palmerston/Little Italy area.
My personal favourite is the new Wayne and Shuster Lane, celebrating the famous comedians whose names were household words in Canada from the 1940s through to the ’90s. The laneway is located just west of Markham St., in the Bathurst and Harbord neighbourhood.
When you’ve got the keys to your new home but the sellers haven’t left
What happens when a real estate transaction closes, the keys and money have been exchanged, and the buyer arrives at his or her new property only to find the seller still there?
Murder irrelevant to sale, court finds
Is a homeowner obliged to disclose to a potential purchaser that the house was the site of a gang murder? This was the key issue last month in a decision of the British Columbia Court of Appeal, which reversed a 2018 trial court decision.
Homeowners should seek legal advice when estate planning
Buried in last month’s provincial budget is a measure designed to reduce the cost of obtaining probate — “to provide tax relief for families when they need it most, as the death of a loved one is a difficult time.”
If you’re eyeing a cottage property, don’t just look for water, look for road access
Next month marks the start of cottage season — a good time for a reminder that buying rural property is much different than buying in the city.
Appeal court agrees: Condo developers need to disclose all features to buyers
The Ontario Court of Appeal has affirmed the obligations of condominium developers to provide buyers with complete and transparent disclosure of a proposed project’s features.
This includes a budget statement which fairly and accurately reveals the costs that purchasers will have to pay in the first year of their ownership.
Dangers of using a Seller Property Information Statement. It can cost you big.
A court case decided in Bracebridge last month emphasizes the risks of using a Seller Property Information Statement.
It also illuminates the risks of having the same agent act for both the buyer and seller.
A co-housing agreement can make living arrangements easier for homeowners
With Toronto’s high housing prices, more attention is being focused on the concept of co-housing with buyers sharing occupancy and ownership costs of buying a home.
Expert witness’s knowledge of typography proves trust papers forged
When Canadians file for bankruptcy, most of their assets — including houses and cottages — become the property of the trustee in bankruptcy and are sold to pay creditors.
One of the few exceptions to this rule occurs when the bankrupt person holds property in trust for a third party.
This property owners’ fight for land severance plan was needlessly hard
One way of making better use of the scarce residential land we have in the GTA is to intensify housing.
The City of Toronto’s official policy is pro-intensification. But its planning department seems to be actively opposed to squeezing more housing onto existing land.
‘Idiotic’ Toronto policy stymies mayor’s affordable housing plan
Urban planner Sean Galbraith demonstrated — in recent Twitter posts — how Toronto’s own zoning regulations are standing in the way of Mayor John Tory’s goal to create 40,000 affordable housing units.
In a property deal, phrases like ‘to be verified’ can be costly — over $100K in this case
The Ontario Court of Appeal has reversed a lower court’s decision allowing the seller of a Toronto property to keep the $100,000 deposit of a buyer who refused to close the deal.
Convert your thinking on property measurements
It never fails to amaze me how the real estate community stubbornly sticks to the old imperial measurements in a country which supposedly converted to the metric system back in the 1970s.
Property deposits are forfeited, even if sale doesn’t go through
What happens to the buyers’ deposit when they renege on the purchase agreement for a house and the owners resell for a higher price?
Homebuyers should be very careful when reading property purchase agreements
What happens when there is a significant discrepancy between the way a home is described on an MLS listing, and the details in the Agreement of Purchase and Sale?
So you’re having an open house. Remember to tell your realtor sex is not OK
Real estate lawyers get asked all kinds of oddball questions.
Last week, one of my colleagues asked me how to respond to his client’s query about returning after an Open House at her home to find one of the neatly-made upstairs beds in complete disarray.
Condo owner on the hook for inaccurate ‘clean’ status certificate
What happens when an owner receives an incorrect status certificate issued by a condominium corporation?
That was the issue in a case before the Ontario Court of Appeal earlier this year.
Derailing energy audits will benefit home sale process
Ford’s call to derail energy audits will benefit the home sale process
Clearing the smoke on condo no-smoking rules before cannabis legalization
There is no right enshrined Canadian law that allows smoking either cannabis or tobacco in a rental property
Make an offer, but beware — in an uncertain market, property law can hurt you
An Ontario Superior Court ruling this year urged property buyers against overextending their finances in the wake of a failed deal.
Cottage purchasers need to know land boundaries of lakefront property
Fluctuating lake levels put the principle of accretion to the test in a recent court case
Do the homeowners or photographers own the rights to photos of the property?
While staging is a very beneficial part of real estate sales process, buyers and sellers should always clarify what use will be made of the photos.
Banning incentives for real estate lawyers in property deals doesn’t serve public
A Law Society of Ontario working group is investigating practices involving the payment of fees and the offer of benefits by title insurers to real estate lawyers.
This retired judge defended homeowners from abusive insurance companies
Justice John I. Laskin wrote that Pilot Insurance’s abusive conduct justified a punitive award to Whiten.
Insurance covers sale of badly built property, court says
A judge decided that John Breen’s title was unmarketable due to building deficiences and that he was covered under his title insurance policy
How a fight between condo board and homeowner over a flower box ballooned to a $109,000 court bill
This is the sad story of a $109,000 flower box. It all began in a large project of 213 condominium garden homes known as Bethamy Woods, in Ottawa.
How a fight between condo board and homeowner over a flower box ballooned to a $109,000 court bill
This is the sad story of a $109,000 flower box. It all began in a large project of 213 condominium garden homes known as Bethamy Woods, in Ottawa.
Court holds buyer to contract after property found to be former grow-op
The standard clause “to the best of the seller’s knowledge and belief,” contained in an Agreement of Purchase and Sale, has had its meaning settled by the Ontario Court of Appeal.
This Ontario Court of Appeal decision is expected to impact property sales
A looming Ontario Court of Appeal decision on when discovery and disclosure of the fact that a home was used to make illegal substances occurs during a sale agreement could impact home sales in the province.
Homeowners’ $100K dispute over inaccurate lot measurements proves importance of land surveys
A recent court case emphasizes the importance of using a survey and getting accurate property measurements before signing an agreement in a home purchase.
How 22 Toronto homeowners ended up in condos they don’t own
In a Toronto townhouse development, 22 unit owners are living in condos registered to someone else — their real estate lawyers were not showing due diligence
Homeowners spend $50,000 fighting over small strip of land between houses
The area in question measure less than six inches wide and the ownership possibly dates back to 1923
Homeowners should never sign a Seller Property Information Statement
A recent B.C. court decision, which ruled in favour of a buyer who reneged on a home purchase after discovering it had been the site of a murder, serves as a warning against signing any non-required agreements.
What do you do when your condo development has been destroyed by fire?
Decision to rebuild, or not, is up to the construction lender, not the builder.
Court rejects elderly father’s bid to remove son from property title
Adding family as joint owners is easy to do, difficult and expensive to undo
Homeowner tears strip (of land) off neighbour.
A dispute between next-door neighbours over a two-foot-wide strip of land illustrates the property-law principle of adverse possession.
Homeowners should always get neighbours’ permission before taking down boundary trees
Pay heed to the judge’s ruling in this relevant case before removing a tree that grows on multiple properties
Who pays when you slip and fall on someone else’s property?
A court ruled there is no statutory or common-law duty on property owners to clear snow and ice from public sidewalks.
Property buyers should be aware of real estate lawyers’ legal standards
Know what to expect from your lawyer and you can avoid troublesome legal claims
Adding relative’s name on a property title can backfire
Judge ruled there was no oppressive conduct on parents’ part that would justify the daughter’s position that she did not want to sell the house.
Can property deed be registered after death to avoid probate fee?
‘Zombie’ deeds have sparked a tricky legal debate.
City should scrap right-of-entry permits
With houses built so close together, permits to access neighbours’ space are too onerous.
Government has no excuse for delaying consumer protection sections of new Condominium Act
There is no timetable for many key consumer protection amendments to the former condo act.
Delayed action on consumer protection for homeowners a sad reflection on provincial government
Ontario consumers will have to wait until 2020 for more regulations governing home and condo deposits.
Condo corporations need to prepare plans to deal with marijuana use before it becomes a problem
Questions are being raised about whether landlords will be able to restrict cannabis in residential units.
Agents must review home inspections with purchasers
This case is a lesson for real estate agents.
When a property survey is more important than the deed
A 2015 study showed that of 1.2 million freehold residential properties in the Greater Toronto Area, almost half of them have significant boundary issues, most of which would not be covered by title insurance.
Buyer paid for property he did not get
Land actually belonged to City of Toronto despite tax bill and assessment that listed it as the homeowners
Plumbing bill quarrel becomes pricey court action
Expensive proceedings are not always the answer in solving disputes.
Alberta condo sale complicated by Fort McMurray wildfire
Condo owners paid $21,000 special assessment fees and sale closed; then entire condominium complex burned down.
Ontario court rules homeowners are not obligated to pay park maintenance fees
This ruling means many associations will lack the power to enforce payments
‘Escalation’ clause ignites privacy, ethics code concerns: Property Law
Purchase provision allows automatic increase in offer to beat another buyer’s top bid.
‘Detached’ home for sale is actually linked to property next door
After signing an agreement, couple found out their house was connected underground to their neighbour.
Real estate tax demands lawyers verify the unverifiable
The Ontario government requires information be culled about prospective buyers that is nearly impossible to authenticate.
Home Inspection Act finally passed: Property Law
Until the new legislation was passed last month, anyone with a flashlight and a business card could call himself or herself a home inspector.
Homeowners fight fee imposed under 1891 deed
Financial obligations, such as a requirement to pay monthly dues for parks, beaches or roadways, are only enforceable against parties to the contract. They don’t usually bind later purchasers.
Contract Delay Springs Tax Trap
Final cost of taxes and inevitable litigation will be borne by the ultimate buyers of the residential units to be built.
Legal fight over Toronto’s Trump Tower is far from over.
Supreme Court rejects appeal of ruling that developer misled investors with rental-income estimates. But the company is in receivership and the condo/hotel is for sale.
Insurance company comprehensively beaten: Property Law
Judge rules exclusions for ground, surface water did not apply to flood caused by dam breach.
Sellers beware if information is not correct
Making misrepresentations in listings, sale agreements or SPIS forms is risky, as recent court ruling of fraud shows.
$2 million in water damage not covered by insurance
Courts uphold insurance ruling that water seepage through foundation walls is not covered under homeowners’ policy.
Devious tenants must be stopped from gaming system
How one landlord followed all the rules but went 18 months without being paid rent.
Kitec plumbing in condos should be revealed
Real-estate agents are obligated to discover and disclose material facts, which include what pipes and fittings were used when a condominium was built.
Ontario court upholds condo rule banning short-term rentals
Ottawa owners breached condo declaration by renting unit out through Airbnb website, reinforcing earlier court case involving Toronto condo.
Home inspections are your best friend: Property Law
When a home inspection is waived prior to purchasing a house, it is very difficult to win a lawsuit down the line.
Tax burden of housing sector must be shared by all: Bob Aaron
Toronto property taxes are so low the city has been left with a gaping budget hole that must be filled.
Supreme Court upholds title-insurance victory
Landmark case protects homebuyers with title insurance from hidden physical defects that make the home unmarketable.
What if my prospective condo corporation is involved in litigation?
Although the buyer could face extra costs, don’t write off the opportunity just yet.
Lawyers selling homes could upset the realty apple cart: Bob Aaron
New real-estate company in Picton is owned by local law firm, allowing it to shake up the traditional commission-fee structure.
Make sure home seller’s promises are met before closing
Court decision emphasizes it’s the house buyer, not the seller, who is most at risk.
Be wary of buying illegally built homes
Tarion’s enforcement arm is set to target real-estate agents who are involved in selling unregistered homes.
Tarion needs to increase homebuyers deposit protection
Tarion’s limit for deposit protection — $20,000 on condos and $40,000 on homes — hasn’t changed in years.
Extravagant fees crush legal basement apartments
Over-charging homeowners to help intensify urban housing defeats the purpose.
Tenants shouldn’t be able to ‘game the system’
Too many renters are getting away with not paying rent, then appealing eviction orders.
Dangerous real-estate document a path to court
Since 1997, 94 court cases in Ontario have been pinned to the Seller Property Information Statement.
EasyFund could have difficulty getting off the ground
Web-based money transfer system’s goal is to streamline real-estate closings. But is it needed?
Builder bankruptcy reveals warranty shortcomings
Tarion warranties need to be improved, and a forthcoming report on improving consumer protections should address delayed occupancy compensation
Tips to reduce, postpone or avoid probate taxes
Some simple solutions to help keep the taxman’s fingers out of your pockets.
Get a survey even if your agent says no
Only a survey prepared by an Ontario land surveyor can confirm that the cottage is situated inside the appropriate land boundaries.
No need for third-party hand in closing funds
Proposed scheme full of unanswered questions on money safeguards, timing of transfers and discharging prior mortgages.
Regulating Ontario’s home inspectors is taking too long
Bob Aaron bob@aaron.ca In this province, anyone with a business card and a flashlight can be a home inspector. But after more than three years of study, the Liberals are still not ready to proceed...
Be wary of rebate rules before buying a home
Until now, when a cousin, aunt, uncle, nephew, niece, friend or business associate is registered on title for mortgage purposes, none of the buyers can get the rebate.
Fee for land transfer registration amounts to tax on a tax
‘Administration fee’ that will now be charged on municipal land transfer tax is $75 — plus HST
Finders keepers’ law not always a golden ticket
What would you do if you found a gold bar while renovating someone’s house?
Protecting condo buyers when materials, expenses change in final sale agreements
Recent court decisions have ruled in favour of condo buyers seeking a refund of their deposits following a discrepancy between the initial documents they signed and the final sale agreement.
Beware of overcharges during interim occupancy period
The way some builders calculate estimated taxes is not the way the city does it and the result is a significant overcharge to buyers.
Late mortgage payment charges contrary to Interest Act, court rules
Interest Act is intended to protect property owners against abusive lending practices.
Let’s name a lane or two after Wayne and Shuster
Toronto’s Laneway Project offers the perfect chance to honour these famous local comedians, suggests Bob Aaron.
Title insurance must cover post-closing work orders
Insurance must cover missing wall, court rules
New home owners need these protections
One of the greatest shortfalls in Tarion’s consumer protection is in the area of marketing pre-construction houses and condominiums, Bob Aaron says.
New home owners need these protections
One of the greatest shortfalls in Tarion’s consumer protection is in the area of marketing pre-construction houses and condominiums
Buyers can cancel property sale over misleading information
Sellers aren’t required to answer questions about their property, but they have to be truthful in what they say.Agreeing to fill out a Seller Property Information Statement makes the seller liable for the answers they give.