At Khan Law, we regularly assist clients across Ontario in navigating real estate transactions, ensuring their deals are secure, compliant, and stress-free. In this article, we’ll discuss some of the most common legal issues in Ontario real estate, and why working with an experienced Oakville real estate lawyer is essential for avoiding costly mistakes.
1. Incomplete or Unclear Purchase Agreements
The purchase agreement is the foundation of any real estate transaction. It outlines the terms, timelines, conditions, and responsibilities of both parties. One of the most common issues in Ontario is that people sign contracts without fully understanding them.
Sometimes, a contract may lack important clauses like financing conditions, home inspection requirements, or closing terms. Other times, clauses may be ambiguous or overly complex. If a dispute arises and the agreement is unclear, resolving it can be time-consuming and expensive.
How Khan Law helps: We carefully review purchase agreements before our clients sign them, making sure the language protects their interests and complies with Ontario real estate law.
2. Title Issues and Undisclosed Liens
When you buy a property, you’re not just buying a physical structure—you’re acquiring a legal interest in land. A property may come with existing liens, easements, or ownership disputes that aren't obvious during a simple viewing.
For example, unpaid property taxes, legal judgments, or even a contractor’s lien from previous renovations can cause problems if not caught before closing. In some cases, the seller might not even be aware of these issues.
Why it matters: If you close on a home with an undisclosed lien, it becomes your responsibility to resolve it—even though it’s not your fault.
How Khan Law helps: We conduct detailed title searches and due diligence, uncovering potential risks so clients don’t inherit someone else’s legal problems.
3. Zoning and Land Use Conflicts
Not all buyers think to ask whether a property complies with local zoning laws—but they should. Zoning bylaws govern what a property can legally be used for, whether it’s residential, commercial, mixed-use, or otherwise.
For example, someone might buy a home planning to open a daycare or convert it into a rental unit, only to discover it violates local bylaws. Similarly, building a backyard suite or making structural changes without checking zoning rules can lead to fines or forced removal.
How Khan Law helps: We assist buyers and investors by checking zoning regulations and municipal restrictions before they commit to a property.
4. Failure to Disclose Property Defects
Ontario law requires sellers to disclose latent defects issues that are not easily noticeable but can affect the safety or usability of the property. However, not all sellers are upfront. Issues like mold, foundation cracks, or pest infestations are sometimes hidden until after closing.
If you purchase a home only to discover a serious defect, you may face expensive repairs or legal action to seek compensation. However, proving the seller knowingly hid information can be difficult without proper documentation.
How Khan Law helps: We guide buyers through home inspections, legal documentation, and offer strategic advice if disputes arise post-sale.
5. Boundary and Survey Disputes
Another frequent issue in Ontario real estate is unclear or disputed property boundaries. This can happen when a fence is built over a neighbor’s lot line or a shared driveway is used without legal permission.
Disputes often arise after closing, when one party realizes the property they bought doesn’t match the legal description or survey. These conflicts can escalate quickly, especially if the title is challenged.
How Khan Law helps: We review surveys, title descriptions, and easements to identify red flags before they become legal battles.
6. Problems on Closing Day
Closing day should be exciting—but for many, it becomes stressful when unexpected issues arise. Common problems include:
- Late transfer of funds
- Missing documentation
- Mortgage delays
- Disputes over property condition
- Buyer or seller failing to meet obligations
Even small issues can delay closing and trigger financial penalties or breach of contract claims.
How Khan Law helps: We ensure a smooth closing process by coordinating with all involved parties, verifying documents, and handling fund transfers with care.
7. Misunderstanding Condo Rules and Status Certificates
When buying a condominium in Ontario, it’s crucial to review the status certificate, a document that outlines the financial and legal health of the condo corporation.
Buyers often overlook this, assuming the condo is in good shape. But what if the building has major upcoming repairs or the unit you're buying violates a bylaw? You could be on the hook for unexpected costs or limitations.
How Khan Law helps: We thoroughly examine status certificates and help our clients understand the true condition of a condo property before finalizing the purchase.
8. Foreign Buyer Restrictions and Taxes
With the introduction of various provincial and federal rules, foreign buyers in Ontario must follow special regulations. These include the Non-Resident Speculation Tax (NRST) and restrictions on certain property types.
Failing to understand these laws can lead to penalties or disqualification from buying property in certain regions.
How Khan Law helps: We provide tailored legal guidance to foreign investors and help them comply with all local and national real estate laws.
Conclusion
Real estate transactions are more than just buying and selling property—they involve complex legal considerations that, if ignored, can lead to major headaches. From title issues and contract confusion to zoning problems and boundary disputes, each step of the process requires careful attention.
At Khan Law, we’re committed to protecting your investment and providing peace of mind during every phase of your real estate journey. Whether you're a first-time buyer or a seasoned investor, having a knowledgeable real estate lawyer Oakville on your side can make all the difference.