COMMON LAW OWNERSHIP
I am the legal owner a home and my partner is moving in. Will they have any ownership rights to my home?
No. This is a common misconception inspired by Television. Unlike a married spouse, a common law partner in Ontario has no right to seek an equalization of net family property (a division of assets). Each person keeps what is in his or her name. Joint property is shared equally and sold if necessary to divide the proceeds. If one person is not satisfied with this result, they can make a claim for what is known as unjust enrichment or a claim for a constructive trust. These types of claims tend to be complex, difficult, and uncertain. Best Practice – Don’t pay for things unless your name is on title. For instance, don’t make half of the home payments unless your name is on title to the home.
UNCONDITIONAL OFFERS
The Seller just accepted my unconditional offer. Is there any way to review it or get out of the deal?
Not really. An unconditional offer to buy or sell is just that; there is no conditional period in which you can get a lawyer to review or change any terms of the agreement. You have for all intent, agreed to buy the house “as-is”. Unconditional offers are risky for both the Buyer and the Seller: if the Buyer requires Mortgage Approval and doesn’t get it, then both the Buyer and the Seller are facing possible litigation when the deal doesn’t close. The general rule is “If you think you might need a condition, then you do.” As for Sellers, an unconditional offer seems attractive but does not necessarily mean that the Buyer is capable of buying your house; when the closing happens and they don’t have the money to close, the Seller may have to consider litigation or worse, the Seller may not have the funds to close on their purchase of a new home, and then, well, we just covered what a Seller’s recourse against a Buyer is.
MORTGAGE APPROVALS
Should I get approved for a Mortgage before I put any offers in?
Absolutlely! The most important thing to know before buying a home is how much of a mortgage you can afford.