Obtain tax clearance and utility certificate from the Municipality
Agency: Municipality
The parties must show reasonable evidence to the title insurance company that the property is clear of tax obligations. A written tax clearance certificate should be obtained from the Municipality. It can be obtained online, and the applicant will receive the certificate by email after two business days. The certificate will need to show the latest tax receipts including the amount of current year taxes and whether all taxes are paid to date. Verbal confirmation that real property taxes have been paid will also suffice. To confirm verbally that the real property taxes have been paid, a Tax Certificate must be requested and paid for, and in most cases, it commonly takes more than 1 business day to process. Real property taxes are required to be paid up to the date of the transfer of the property.
At the same time, a utility clearance certificate is obtained online to confirm balance owing on a utility account.
Time and cost: 2 days, CAD 121.46 (CAD 68.65 Tax clearance certificate, CAD 52.81 Utility clearance certificate)
Obtain a copy of parcel register and search for writs
Agency: Land registry
A copy of Parcel Register and search for Writs filed against the seller are obtained online through service providers.
Time and cost: Less than one day (online), CAD 41.13 (CAD 30.05 (Parcel Register) CAD 11.80 (Search for Writs))
Obtain a status certificate for the selling corporation
Agency: Provincial government
The buyer’s solicitor obtains a Status Certificate from the provincial government or the federal government.
Time and cost: 1 day, CAD 40 (CAD 26 (the fee of status certificate in case of the province of Ontario), CAD 14 (the service provider fee, the fee differs by providers))
Conduct title search
Agency: Teraview
Depending on whether the property is located in a jurisdiction governed by the Land Titles Act or the Registry Act or by electronic registration, in the absence of title insurance, a simple title search will cost CAD 2,000, and more difficult searches can cost CAD 10,000 or more.
In terms of additional investigations:
- An environmental report would cost between CAD 1,500 to CAD 3,000;
- A building inspection would take 10 to 21 days and would cost CAD 2,500 to CAD 10,000; and
- A zoning review by a planning consultant would take between 1 day and 14 days and would cost between CAD 2,000 and CAD 10,000.
Title insurance can be obtained for CAD 0.75/CAD 1000 of the purchase price if the purchase price is CAD 2,000,000 or more and for CAD 0.80/CAD 1000 of the purchase price if the purchase price is less than CAD 2,000,000.
Time and cost: 2 days, CAD 2,000
Registration of the transfer of title
Agency: Purchaser’s solicitor or Land registry
After the agreement has been prepared and the transaction closed, the parties’ solicitors will complete the registration for transfer of title. Electronic registration governs more than 90% of properties in Toronto. In the electronic registration regime, the transfer is registered electronically by an authorized licensee at the offices of the purchaser’s solicitor. Only authorized licensees have access to the electronic registration system for security reasons.
The payment of registration fee and the Land Transfer Tax is done electronically if it is in the electronic regime. Solicitor’s fees for their representation in the whole process are estimated at CAD 6,000 (CAD 3,500 for the buyer’s solicitor and CAD 2,500 for the seller’s solicitor). Notification of change of ownership to assessment department and utility companies can be done the same day immediately after closing but should be arranged before closing to ensure continuity of services.
Time and cost: Less than one day (online), CAD 111,178.83 (CAD 76.55 (electronic registration fee) + Provincial Land Transfer Tax + Municipal Land Transfer Tax + CAD 79.5 (Municipal administrative fee)
- Provincial Land Transfer Tax is calculated through a progressive scale:
- For a property valued under CAD 55,000: 0.5%
- From CAD 55,000, up to and including CAD 250,000: 1.0%
- From CAD 250,000, up to and including CAD 400,000: 1.5%
- Over CAD 400,000: 2.0%
- Municipal Land Transfer Tax for the City of Toronto is calculated through the following scheme plus an administration fee of CAD 79.05
- For a property valued under CAD 55,000: 0.5%
- From CAD 55,000, up to and including CAD 250,000: 1.0%
- From CAD 250,000, up to and including CAD 400,000: 1.5%
- Over CAD 400,000: 2.0%)
