Property Law Basics Ontario

Contact a Real Estate Lawyer

In Ontario, Canadian property laws govern transactions related to the ownership or rental of real and personal property. They lay out the rules for creating, protecting, and transferring rights to real estate property–e.g., land, buildings, homes.

This legal framework protects individuals and communities by clearly defining property rights, rules of transferring property, and settling disputes arising from property ownership, development, preservation, and taxation. A Real estate closing lawyer can help you navigate the complexities of local property laws, regulations, and precedents when you want to purchase, sell, or finance a property.

Role of Property Laws

Property laws in Ontario ensure that real estate transactions are handled uniformly and fairly. They are designed to balance the needs of the community with the demands of the real estate market and the need to conserve open space.

Overall, real estate laws identify the rights and responsibilities of property owners who want to sell, rent, use, or transfer their property to third parties or heirs. They also define the legal process and procedures for transferring, leasing, or mortgaging property–as well as protect owners, lessors, and other stakeholders in the event of a conflict or dispute.

Property laws control property use and development in a manner that considers property owners and the public. They also need to support society with affordable housing, land conservation, and fair access.

Contact a Real Estate Lawyer

Core Concepts of Property Law

Owners generally have the right to occupy, control, use, and enjoy their properties. Determining ownership and the rights and responsibilities connected with different types of ownership can vary considerably.

For example, an owner may live in a house situated on their property. He may rent another house on the same property to one or more tenants. Part of the land may be leased to a farmer who grows and sells crops. 

A right of way on the property may allow a utility company access to power lines that intersect the land. The land may also have development restrictions placed on it from a previous owner.

All of these scenarios can impact how the law views ownership rights of the different parties that use or enjoy the land. 

One of the most common forms of ownership in Ontario is fee simple. Fee simple is a traditional form of ownership that essentially gives the owner full and complete control of the property as long as they comply with relevant government regulations and legal restrictions.

For example, an owner may choose to sell the property he lives on, but wishes to stay on the property. The Owner may choose to sell the property to a third-party but retain a Life Estate interest on the lands. In this scenario, the third party owns the property and the transferor has a lease to use it, only while they themselves are alive.

Leases and rental agreements transfer the rights to use a property  to a tenant for a designated period and for specific purposes in exchange for a form of payment. The tenant is allowed to use the property under the terms of the agreement without interference from the owner.

Common Property Encumbrances

Recorded easements and rights-of-way are attached to a property and give another party access to a portion or all of the land. These recorded documents let everyone know what can or can not be done onsite. Easements and rights of way are included in a deed that transfers ownership. 

Covenants or Restrictive Covenants can also be attached to properties to control how the property is used by designated parties.

Contact a Real Estate Lawyer

Summary

While property law in Ontario is designed to protect the rights and responsibilities of all parties involved in using property, it is complicated. A qualified real estate lawyer knows how to perform a property title search in Ontario, finalize a real estate deal to protect their client's rights, and ensure the transaction complies with all relevant laws.

Contact Us

If you have questions about property law basics or any other real estate legal matter, we're here to help. As real estate law specialists, our mission is to provide the clarity and direction you need to protect your property rights.

Contact us today to schedule a free consultation.

Free Consultation