Do You Need a House Deed in Ontario to Sell a House?

By Emily Southey | 10 minute read

House deeds are an integral part of any home sale transaction in Ontario. Keep reading to learn more about the types of house deeds in Ontario, how to transfer the title of a property, and the importance of property deeds in home sales.

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What Is a House Deed?

A house deed is a physical document that outlines and proves one’s ownership rights to a property. Meanwhile, a title (a term often used interchangeably with deed) is a general concept that refers to the legal ownership of a property. While related, they are not one and the same. Instead, they go hand in hand. To become a title owner, you must have a valid deed, and in Ontario, a house deed is required to sell a home. At the closing of the transaction, a title transfer is completed to legally transfer ownership from the seller to the buyer. This process is completed by a real estate attorney. Although selling a home is the most common situation in which title to a property is transferred, there are a few other scenarios in which it may also be transferred, such as if the homeowner wants to refinance their property, if the homeowner wants to add another person (for example, a spouse or other family member) to the title or remove their name from it, or if there has been a separation between the two parties who own the property (for example, in the event of a divorce). In any case, being a title owner to the property and having the corresponding house deed comes with many rights and legal privileges. These rights are not the same for every homeowner, as some real estate contracts contain restrictions, but generally speaking, the rights of a titleholder are as follows: 

• The right of possession: You are the legal owner of the property.
• The right of control: You can lawfully use the property as you choose.
• The right of exclusion: You can prohibit others from using or entering the property. 
• The right of enjoyment: You have the right to enjoy the property in any way, within reason. 
• The right of disposition: You have the right to sell the property at will, but also to rent, lease, or permanently or temporarily transfer ownership of the property if there are no loans, liens, or other encumbrances.

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The Importance of a Property Deed in the Sale of a House

Property deeds are crucial to selling a home in Ontario. Selling a home in any province is a complex process, especially when you consider everything from hiring a REALTOR®, listing and marketing phases, the negotiation phase, closing costs, and more. On top of all that is the legal transfer of ownership, which is where the home deed comes in. Hiring a real estate attorney is important to ensure your home sale is legal. A lawyer can help you navigate the selling process carefully to make sure nothing goes unnoticed. Plus, in Ontario, only a lawyer can transfer the title to a property.

The Types of House Deeds in Ontario

There are two main types of ownership structures in Ontario, and therefore two types of house deeds: tenants-in-common and joint tenancy. While similar, there are a few important distinctions, one of which involves survivorship rights. When two or more people own a property as tenants-in-common, each person retains their interest in the property after death (if one person dies, their share of the asset forms part of their estate and is distributed according to their will). However, in joint tenancy, if one person dies, the other person automatically becomes the owner of the property, and the asset does not form part of the estate of the deceased. In Ontario, most spouses own their properties as joint tenants. Therefore, when one spouse dies, the other automatically becomes the sole property owner.

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Types of Title Ownership

Just as there are multiple types of house deeds in Ontario, there are also multiple types of title ownership. Three types of title ownership are freehold, leasehold, and life estate ownership. 

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Freehold ownership is where a person owns the property (both the land and structure on the land) and has the right to live there as long as payments are made to the lender. An example of freehold ownership is when a homeowner purchases a single-family home with a mortgage. This type of ownership appreciates over time, with the titleholder being given complete control over the property at the time of the sale. 

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Meanwhile, leasehold ownership gives the titleholder the right to use and occupy the land but not to own the land. Instead, you purchase the physical structure but lease the land from another party. Leasehold ownership titles are most commonly applied to condos and townhomes, where the landlord is typically the government or a First Nations group. 

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Finally, life estate ownership is when the titleholder has legal ownership and use of the property for the rest of their life. Life estate ownership ends when the titleholder dies. At that time, the title to the property goes back to the original owner or another person if stipulated. Life estate ownerships are the least common ownership type of the three.

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Transferring Title in Ontario

Transferring title to a property in Ontario is a process that usually takes place when you sell your home; however, it may also occur when a person is added or removed from the title by the owner. All transfer titles in Ontario are completed by lawyers. 

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Why change the title to a property?

There are several reasons that a homeowner may choose to change property ownership, either fully or partially, beyond the sale of the home. For example, if two spouses own their home as joint tenants and decide to divorce, one party may decide to remove themselves from the title. Other circumstances in which a titleholder may want to change the title to a property include fulfilling mortgage or refinancing requirements or gaining sole ownership of a property upon the death of a partner or spouse. 

The title transfer process

In Ontario, the title transfer process is completed by lawyers and takes roughly five to 10 business days. If the titleholder has an existing mortgage, the mortgage may need to be paid off or the new owner will need to pass the lender’s eligibility checks. When you hire a real estate attorney, they will conduct a title search to validate title ownership, prepare all the necessary paperwork (for example, the transfer of land document), file the land title documentation, and initiate the registration process. Once the title transfer is complete, the new titleholder will appear through a title search. The final step of the title transfer process is the lawyer providing you with a Registered Transfer (a certified copy of the new title record).  

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Ontario Land Registration System

As mentioned above, when the title of a property transfers to another person, this will be reflected in a title search. In Ontario, title searches are conducted via the Ontario Land Registration System. The Ontario Land Registration System allows users to search land records or register documents and survey plans for a property. All private property ownership records in Ontario, such as house deeds, are registered with the provincial government. More specifically, the Ontario Land Registration System contains official records of land and property in the province, including title documents and deeds. Anyone can search for land records using this system. However, only certain parties can register documents, such as lawyers. 

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Important Documents Needed to Sell Your Home

As mentioned, house deeds are required when selling a home in Ontario. Therefore, we recommend having your deed ready as soon as you put your home on the market. To ensure the home sale goes as smoothly as possible, we also recommend gathering and organizing the following documents related to your home: 

• House deeds
• Land surveys
• Property tax receipts
• Renovation contracts
• Transferable warranties
• Utility bills