Buying Commercial Real Estate

Cost-Effective Solutions for Individual & Small Business Success!

Serving the Greater Toronto Area
and the rest of Ontario

Demet Altunbulakli Law Firm Profile

Lawyer for Buying Commercial Real Estate in Toronto

We understand that real estate transactions are often the most significant deals a person will be involved in during their lifetime. From reviewing purchase and sale agreements to conducting title searches and working with financial institutions for a timely and smooth closing, we assist our clients every step of the way. We recognize different types of properties and their unique considerations and guide our clients through the complexities of such transactions.

We are conveniently located in midtown Toronto, minutes from the Eglinton-Yonge station. Call us at 647-300-8391 or click the button above to book a FREE consultation.

Simplified Process

Calculate Your Quote

Fill out our form here and we will contact you to provide a detailed estimate for buying commercial real estate property.

Collect Your Documents

Forward us a copy of your agreement and connect us with your real estate agent & mortgage broker for us to begin the transaction.

Document Execution

We will meet with you in person or remotely for signing and guide you throughout the process to complete the transaction.

Hiring Commercial Real Estate Lawyer

If you are considering entering the Toronto commercial real estate market as a property investor or business owner, it is crucial to have the guidance and support of trustworthy professionals throughout every stage of your transaction. Commercial property purchases involve a wide range of complex variables, and while your real estate agent can assist you in addressing some of them, there are limits to how much you can expect from even the best agents.

Hiring a real estate lawyer ahead of time will ensure that you are fully prepared to address unexpected legal problems that may arise concerning the property you wish to buy in Toronto. The sooner you secure legal counsel to assist you, the more time your lawyer will have to compile the necessary information for you to evaluate before making any significant decisions regarding commercial property.

Toronto Real Estate Lawyer

Benefits of a Commercial Real Estate Lawyer for Buying Property

You can look to your Toronto commercial real estate lawyer for:


Extensive property research: If you’re planning to invest in a commercial property, conducting thorough research is essential to ensure that you’re making a sound investment. Your lawyer can be of great help in this regard. They can assist you in researching the property comprehensively and accurately, which can help you determine the ownership records and uncover any legal issues that might affect your transaction or goals for the property.

Lien identification: Before purchasing a commercial property, it is crucial to ensure no liens are attached to it. With the help of a Toronto commercial property lawyer, you can conduct thorough lien research to avoid any unforeseen legal issues with the property you are interested in.

Zoning issues: If you’re planning to buy commercial real estate in Toronto and intend to use it for a specific type of business, it’s essential to ensure it’s correctly zoned for your intended purposes. An experienced lawyer can help you obtain complete zoning records for the commercial property in question and also assist you in filing new zoning applications if you plan on modifying the property.

Contract drafting and review: Contracts are crucial in the real estate industry. When you’re involved in a transaction, you may need to present a contract to the other party or sign a contract they have drafted. In such cases, it’s essential to have a commercial real estate lawyer to help you create a new, legally binding transaction contract or review the contracts presented by others involved in your pending transactions.

Closing and negotiations: Commercial property transactions can sometimes be negotiated. Suppose you are buying or selling a commercial property in Toronto. In that case, it is advisable to consult with a commercial real estate lawyer to help you make informed decisions on price settlement. Insight Law Professional Corporation can provide you with the necessary assistance in processing the paperwork and ensuring that all procedural requirements are met for a smooth transaction.

An experienced Toronto commercial real estate lawyer can provide comprehensive legal oversight for your commercial property transaction, uncover information your real estate agent can’t provide, and offer the ability to dive deeper into the details of any commercial property. We are here to help you navigate Toronto’s commercial market.

What information will my lawyer require?

Agreement of Purchase & Sale

The Agreement of Purchase and Sale is a binding contract between the buyer and seller. It outlines all terms, conditions, and responsibilities related to the transaction, including the purchase price, closing date, and any contingencies. A copy of the agreement is to be forwarded to the real estate lawyer.

Photo Identification

Two pieces of photo identification will be required for each purchaser, such as a driver’s license and passport. A health card is not accepted as photo identification.

Name of the Mortgage Lender

The name of the mortgage lender will be required. According to the mortgage agreement, the real estate lawyer will ensure the lender will have a valid mortgage on the property.

Address for Service

The address to be registered on the deed is typically that of the property, but it may differ for investment properties.

Ownership on the Title

The ownership on the title. The title would be joint title or tenants-in-common if there is more than one purchaser.

Property Insurance

Property insurance must be active on the closing day to get a mortgage. The buyer’s insurance agent must provide a letter confirming the insurance and the lender’s interest in the property.

Closing Funds

Before the closing date, the buyer must ensure that they have enough funds to complete the purchase, which can be through a certified cheque, bank draft, or money order. The funds must cover the remaining balance owed to the seller, land transfer tax, and other necessary adjustments such as property taxes. The buyer’s real estate lawyer will contact them to provide the amount needed before closing.

Existing Tenancy Agreements & Leases

Your lawyer will review existing leases and tenancy agreements in advance to avoid any unforeseen issues at the time of closing of the purchase transaction

Understanding Closing Costs

The costs of buying real estate can accumulate quickly and these expenses can also vary across Canadian cities and provinces. Preparing for these costs is essential when purchasing property, as they represent an additional financial burden in addition to your moving expenses. Closing costs typically range from 1.5% to 4% of the purchase price of your new real estate, which you will need to pay when your property closes.

Legal Fees

A real estate lawyer is required to complete specific tasks such as title searches, registration of the deed, and preparation of closing documents, and will charge a fee for their services. Our Legal fees are flat rate based on the complexity of the transaction.

Commercial Title Insurance

This insurance policy protects against title defects and other issues impacting property ownership. The cost can differ depending on the purchase price of the property and the level of coverage required.

Land Transfer Tax

Buying real estate in Ontario might incur various closing costs, among which the Land Transfer Tax is a significant expense. The purchaser pays this tax to the provincial government upon the transfer of property ownership, and its amount is calculated based on the property’s purchase price.

It is important to note that Ontario has two types of land transfer taxes, one for properties within Toronto and another for those outside of Toronto. The tax rates differ, and it’s crucial to consider these costs when planning your commercial purchase.

Inspection Fees

An inspection is a crucial step when purchasing real estate in Ontario which may uncover potential problems with the property that may not be visible during regular viewing before the sale closes, which may allow the buyer to negotiate repairs or a lower purchase price. The cost of an inspection can vary depending on the size and condition of the property. It should be factored into your budget when purchasing real estate in Ontario.

Appraisal Fees

While purchasing a property, lenders typically require an appraisal to determine the value of the subject property while getting a mortgage. The appraisal cost might differ depending on certain factors, such as the location and property size.

Property Tax Adjustments

The property tax adjustments will be calculated and prorated for both parties based on the closing date. Suppose the seller has already paid property taxes in full for the year. In that case, the buyer will have to reimburse them for the portion of the year they will have the property in possession.

Utility and Other Service Fees

The purchaser might have to pay the utility and other service fees such as hydro, gas, water, and cable. Working with your real estate agent and lawyer is essential to understand all the costs associated with your commercial purchase and to factor them into your budget.

Why Choose Insight Law Professional Corporation

Professional

We're dedicated to providing friendly and knowledgeable service to ensure a positive experience for all our clients and achieve the best possible results in every case.

Client Focused​

We prioritize client satisfaction and take a personalized approach. By attentively listening to our clients, we develop tailored solutions to meet their unique requirements.

Transparent

Our fixed prices and hourly rates are visible upfront. Most of our add-ons are fixed line items. Because honesty is the best policy, saving time on both sides.

Flexible

We understand that our clients may be busy and may not be available during normal working hours. We are happy to work with you to find a time that suits your needs.

Client Testimonials

Real Estate Lawyer Frequently Asked Questions

Real estate lawyers provide a wide range of services, including drafting and reviewing contracts, negotiating deals, conducting due diligence, advising on zoning and land use regulations, handling title searches, and order title insurance.

Whenever you are involved in a real estate transaction, whether you are buying, selling, leasing, or managing property, you should consider hiring or consulting a lawyer.

A title search is a process of examining public records to determine the legal ownership of a property and to identify any liens, mortgages, or other encumbrances on the property.

Title insurance is an insurance policy that protects the buyer and lender from losses that may occur due to defects in the title, such as undisclosed liens, boundary disputes, or errors in public records.

Disbursements refer to the various expenses incurred during a real estate transaction. These expenses can include things like land transfer taxes, title searches, title insurance, appraisal fees, tax certificates, software and office charges, and any other costs that are associated with the transfer of ownership from one party to another.

The Agreement of Sale and Purchase is a legally binding document that can be enforced in court. Therefore, it is not advisable to sign a second agreement without the seller's consent to release you from the first agreement, or without being willing and able to purchase both properties.

While it is possible to back out of a real estate deal, there are potential consequences. In cases where the seller incurs expenses such as mortgage holding costs or legal fees, or is unable to quickly resell the property, there is a likelihood that you may lose some or all of your deposit. Furthermore, if your offer was considerably higher than the new buyer's, the other party may choose to pursue legal action against you.

Purchasing land entails paying taxes to the Province of Ontario, which are determined by the land's assessed value. If you are a first-time homebuyer, you may qualify for a partial refund of the land transfer tax.

 

Please refer to the Government of Ontario website for calculating the Ontario Land Transfer Tax:

https://www.ontario.ca/document/land-transfer-tax/calculating-land-transfer-tax

 

If the property is located in Toronto then an additional Toronto Municipal Land Transfer Tax will also apply:

https://www.toronto.ca/services-payments/property-taxes-utilities/municipal-land-transfer-tax-mltt/mllt-calculator/

 

Land Transfer Tax Calculator (Ratehub)

 
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The cost of hiring a real estate lawyer varies depending on the nature of the work, the type of the real estate transaction, the complexity of the transaction, and the experience of the lawyer. Some lawyers charge on an hourly basis, while others charge a flat fee.

If you buy a pre-construction condominium from a developer, there will be a period between the time you acquire possession of the unit and when you take full ownership. This period is also referred to as the "occupancy period" or "interim occupancy". Throughout this interval, the developer will ask you to pay occupancy fees, also known as "phantom rent."

Real estate agents can help you find a property that suits your needs and provide valuable assistance in buying or selling a property, but they are not licensed to provide legal advice. It is important to hire a real estate lawyer to ensure that your legal interests are protected.

An agreement of purchase and sale is a legally binding agreement between a buyer and seller that outlines the terms and conditions of a real estate transaction, including the purchase price, financing terms, and contingencies. It defines the rights and obligations of both sides regarding the subject real estate transaction.

Typically, certain agreements of purchase and sale contain contingencies (or conditions) that must be met before a real estate transaction can be completed. Common contingencies include home inspections, financing approval, and appraisal.

An easement is the legal right for one property owner to enter another’s without permission. An Easement runs with the land and binds all subsequent owners.

Yes, a real estate lawyer can help with leasing commercial property by negotiating lease terms, reviewing contracts, and ensuring that the lease complies with applicable laws and regulations. Both landlords and tenants can hire their own real estate lawyers in order to obtain legal advice and other legal services regarding the lease. 

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