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[BUYING AND SELLING REAL ESTATE IN CANADA - ONTARIO]
complex instruments are certified manually by staff at the land registry office, while other more standardized instruments are certified digitally. The Land Titles system provides a statement of title. Each separately owned piece of land is called a "parcel”, and each parcel has an assigned number or a "PIN". On closing, the transfer of the property is usually registered electronically by the buyer's lawyer, along with any related instruments such as a mortgage. VII. THE PLANNING ACT The purpose of the Planning Act is to regulate how land can be developed and used, and impose a process for how development and land use decisions are made. In June 2025, Bill 17, the Protect Ontario by Building Faster and Smarter Act , 2025 was passed. It amends several statutes including the Planning Act to accelerate home construction and simplify approvals. The changes introduce standardized municipal timelines for development approvals, reduced red tape and removal of barriers to building and construction. At a more detailed level, section 50 of the Planning Act governs property transactions by imposing restrictions on the subdivision of large parcels of land into smaller lots and prohibits an owner from selling, transferring, or mortgaging a property if they retain ownership of adjacent lands, unless certain statutory exemptions apply. Any conveyance of real property must be carefully reviewed for compliance with the Planning Act as a breach can render the transaction void, meaning that no legal interest in land is transferred. It is essential for a buyer's lawyer to search the chain of title and investigate ownership of adjoining lands to confirm whether the seller holds abutting
unmarketability of title;
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certain types of fraud; and
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lack or a right of access to and from the land.
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Separate owner and lender policies are available. Owner policies are generally a one-time purchase and protect a buyer for as long as they, or their heirs, hold title to the property. Similarly, a lender policy is usually a one-time purchase and effective while the mortgage loan is outstanding. An owner is not covered by a lender's policy as only the mortgagee's interest is insured. Title insurance can be beneficial in that it allows buyers and lenders to "insurer over" selected problems and may reduce legal fees as certain searches may be waived by the title insurer. It is imperative that the buyer's lawyer discuss the benefits and limitations of a title insurance policy with their client, including, but not limited to, whether the buyer has a knowledge of a title defect, their intended future use of the property and the usefulness of a current survey of the property. VI. RECORDING REAL ESTATE DOCUMENTS In Ontario, the Land Titles system has replaced the old Registry System, although approximately 30,000 properties have not yet been converted to Land Titles. The Land Title system is a mandatory electronic registry housing all private property ownership information in Ontario and is accessed through Teraview. It contains official records of title, deed, mortgage and other land documents. Under the Land Titles system, search results are certified by the government, with no requirement to look any further into prior registrations of the property, with certain exceptions. More
ILN Real Estate Group – Buying and Selling Real Estate Series
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