Real Estate


In September 2002, Toronto and surrounding areas implemented the electronic registration, “e-reg” system. Gone are the days when the registration of documents requires countless hours lining up at the Land Registry Office. Through the e-reg system, real estate transactions may be completed right at a law office without the additional costs of hiring conveyancers. Although the closing costs have changed slightly, they are still based on the following:

  • Legal Fees & HST
  • Land Transfer Tax (if applicable)
  • Disbursements

Provincial Land Transfer Tax:
Upon registration of the Transfer/Deed, purchasers have the obligations to pay Land Transfer Tax to the Province of Ontario. The amount of tax is based on the purchase price of the property with the following calculations:

Up to $250,000.00      – Purchase price x 1% – $275.00
Over $250,000.00       – Purchase price x 1.5% – $1,525.00
Over $400,000.00        – Purchase price x 2% – $3,525.00

Municipal Land Transfer Tax:
If the property is located in the City of Toronto, there is an additional Land Transfer Tax.  The amount of tax is also based on the purchase price of the property and is calculated as follows:

Up to $55,000.00        – Purchase price x 0.5%
Over $55,000.00         – Purchase price x 1%
Over $400,000.00       – Purchase price x 2%

For example, if the purchase price of the property is $257,900.00, the Provincial Land Transfer Tax would be $2,343.50.  If this same property is in the City of Toronto then the Municipal Land Transfer Tax would be $2,304.00 so to total Land Transfer Tax payable would be $4,647.5

However, if a purchaser is a first time homebuyer, he or she may qualify to receive a credit to a maximum of $2,000.00 towards the Provincial Land Transfer Tax and a maximum of $3,725.00 towards the Municipal Land Transfer Tax.  There are some exceptions hence check with your solicitor accordingly.