Key takeaways
- “Townhouse” describes a building style, not ownership: a townhouse may be freehold or condominium.
- With a resale condo, have your lawyer review the status certificate.
- Your lawyer searches title, prepares documents and registers ownership.
- The Agreement of Purchase and Sale is binding, so understand it before signing.
In this chapter
Understanding Property OwnershipThe Role of a Real Estate LawyerReviewing the Agreement of Purchase and Sale
Understanding Property Ownership
What you own depends on the type of property. A house may be freehold, a condo unit comes with a share of the common elements, and a townhouse may be either.
Freehold generally gives you the land and the building, with more freedom to make changes. With a condo, you pay monthly fees and follow the corporation’s rules. With a leasehold property, you own or occupy the home but lease the land, which can affect financing, resale and what you can do with the property.
You may also hear about co-ownership and shared-equity arrangements. You buy with another person or a housing provider and share ownership under a written agreement. They can make buying more accessible, but the terms for selling and repairs vary widely, so have a lawyer review the agreement before you commit.
Zoning and municipal rules also affect what you can do with a home, so check before you plan any changes.
Status certificate
What it isA condo corporation’s report on its finances, rules and legal matters.
Why it mattersIt can reveal low reserves or planned special assessments.
What to doHave your lawyer review it before you go firm.
Leasehold and freehold
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The Role of a Real Estate Lawyer
A real estate lawyer protects you on the legal side of your purchase. Choose one early, so you’re not searching when deadlines are close.
Your lawyer searches the title to confirm that the seller can sell and to look for liens or other problems. They also review the agreement, explain the closing documents, including the mortgage documents and statement of adjustments, and register your ownership.
Lawyers also commonly arrange title insurance and apply eligible land transfer tax rebates. Your lender or mortgage broker, not your lawyer, arranges the mortgage itself.
What your lawyer does
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ReviewAgreement and deadlines
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SearchTitle, liens and taxes
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PrepareMortgage and transfer documents
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RegisterYour ownership electronically
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ReportFinal package to you
When your lawyer steps in
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ReviewGoes over the agreement.
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SearchChecks title and taxes.
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RegisterRecords your ownership.
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CloseHandles funds and keys.
Title insurance
What it isA one-time policy covering certain title problems.
Why it mattersIt can protect against fraud and some hidden title defects.
What to doAsk your lawyer what the policy covers.
Reviewing the Agreement of Purchase and Sale
The Agreement of Purchase and Sale (APS) is the contract for your home. Once it’s signed and firm, it’s binding, so read it before you sign, not after. Ask a lawyer to review it if you can.
Check the price and deposit. Then check each condition and its deadline, and make sure you know what you must do by when.
Check the inclusions and exclusions. If you expect the fridge or light fixtures to stay, they should be listed.
Finally, check the closing date. Make sure it works with your lease, your move and your lender.
Chattels and fixtures
What it isChattels are movable items. Fixtures are attached to the home.
Why it mattersDisputes often start with what stays.
What to doList everything clearly in your agreement.