Ontario real estate glossary.

Binding contract between buyer and seller covering price, deposit, closing date, conditions, inclusions, and exclusions.

Prorated amounts for prepaid property tax, utilities, and condo fees settled on closing. Documented on the Statement of Adjustments.

Corporate combination of two or more companies into a single entity. Title migration to the amalgamated company is registered post amalgamation.

Transfer of the buyer interest in a pre construction APS to a new buyer before final closing. Assignment fees and HST treatment differ per builder.

Short term loan bridging the gap between the sale of an existing home and the purchase of a new one when closing dates do not line up.

Prepayment charge for breaking a mortgage before maturity. Calculated as three months interest or the Interest Rate Differential, whichever is higher.

Legal ownership may be registered in one name while the economic interest is held by another. Disclosure required under Ontario UBO rules for corporate buyers.

Ontario term for the registered interest a lender holds on title to secure a mortgage. Equivalent to a mortgage in other provinces.

The day title transfers, funds are exchanged, and keys are released. Most Ontario residential closings happen between 2 pm and 4 pm.

Term in the APS that must be satisfied before the contract becomes firm. Common conditions include financing, home inspection, and status certificate review.

Lender charge registered for an amount higher than the mortgage principal, creating capacity for future advances. Often cannot be transferred to a new lender.

Historical term for the document that transfers title. Ontario now uses an electronic Transfer registered through Teraview.

Funds paid by the buyer to the seller trust account on APS execution. Held in trust until closing and credited against the purchase price.

Formal registered release of a lender charge on title once the mortgage is paid in full.

Reorganisation where common shares are exchanged for fixed value preferred shares so future growth accrues to the next generation. Often used with a Section 85 rollover.

Funds held by a third party until closing conditions are met. Ontario lawyer trust accounts serve this role in most residential closings.

Right of a third party to use part of the property, commonly for utility lines or shared driveways. Runs with title and must be disclosed in the APS.

Discretionary trust holding property or shares for family beneficiaries. Used for income splitting, creditor protection, and gradual wealth transfer.

Refund of up to 4,000 provincial LTT and 4,475 Toronto municipal LTT for eligible first time buyers. Claimed at registration.

Financial Transactions and Reports Analysis Centre of Canada. Requires lawyer verified client identification on every real estate file.

Status of an APS once all conditions have been waived or satisfied. Once firm, the deal is legally binding and closing must occur.

Holding corporation used to acquire real property for asset protection, tax planning, or estate freeze structures. FTHB rebate does not apply.

Home Equity Line of Credit. Secured by a collateral charge on title. Must be paid or postponed on sale or refinance.

13 percent Harmonised Sales Tax in Ontario. Applies to new construction and commercial purchases but not resale homes. Rebate available on new home purchases.

Separate legal advice given to a guarantor, co signer, or one spouse on a mortgage document to ensure enforceability.

Prepayment penalty calculated as the difference between your current rate and the posted rate for the remaining term. Often larger than three months interest.

Period between physical possession and final closing in a pre construction purchase. Buyer pays an occupancy fee to the builder during this window.

Tax payable to Ontario when title changes hands. Tiered from 0.5 percent on first 55,000 up to 2.5 percent on amounts above 2 million.

Registered claim on title for unpaid debts, work, or taxes. Must be cleared or negotiated before closing.

Ontario offices that maintain registered title records. All registrations now flow through the electronic Teraview system.

Loan secured by a charge registered on title. Ontario uses "charge" as the formal registration term.

Toronto municipal tax that mirrors the provincial LTT brackets and is paid in addition on properties inside Toronto city limits.

25 percent tax on residential Ontario property bought by a buyer who is not a Canadian citizen or permanent resident. Paid in addition to LTT.

Federal and Ontario HST rebate available on new construction purchases. Often assigned to the builder in the APS.

Ontario corporation without a registered name, identified by its incorporation number. Frequently used as a HoldCo.

Home designated as your main residence for tax purposes. Sale generally exempt from capital gains tax.

Authorisation allowing an attorney to sign real estate documents on behalf of the buyer or seller. Must satisfy LSO formal requirements.

Agreement between two lenders on priority of their charges. Common when refinancing while keeping an existing HELOC on title.

Transfer of whatever interest a party has in title without warranty. Used in some estate and spousal transfers where no consideration is paid.

Formal demand from the buyer lawyer to seller lawyer that a title defect be resolved before closing. Deadline set in the APS.

Ontario Regulation 4/22 permitting lawyers to witness real estate signings by secure video. Used on most Ontario residential closings.

Transfer of personally held property into a Canadian corporation in exchange for shares without triggering immediate capital gains. Coordinated with tax counsel.

CRA certificate that non resident sellers must obtain before the buyer can release full sale proceeds. 6 to 12 week typical turnaround.

Final accounting of prepaid property tax, utilities, and condo fees prorated as of closing day. Produced by the seller lawyer.

Drawing of the property boundaries, buildings, and encroachments. Title insurance fills the gap where a current survey is not available.

Electronic land registration system used by Ontario lawyers to register Transfers, charges, discharges, and other dealings on title.

One time premium of approximately 350 protecting against fraud, survey defects, work orders, and certain compliance issues for the life of ownership.

Electronic document registered in Teraview that transfers title from seller to buyer. Includes the LTT statements.

Natural person at the top of the ownership chain of a corporation. Disclosure required under Ontario corporate transparency rules.

Written promise by one lawyer to another to do or not do a specified act. The closing workflow relies on a chain of solicitor undertakings.

Execution order registered against a debtor in Ontario. Shows on title and must be cleared before a property can be sold.