With housing affordability still a challenge in Toronto, creative ownership structures are becoming more common—especially when a landlord wants to purchase a condo but needs help qualifying for the mortgage.

A scenario we’re seeing more of lately:
A landlord puts up the full down payment, but brings a tenant on title to help qualify for financing.

So how do you divide ownership in a fair and legal way?
Let’s walk through a real-world example and explore a few smart ways to structure the deal.

🔢 Real-Life Example

• Purchase price: $500,000

• Down payment: $60,000 (paid entirely by the landlord)

• Mortgage required: $440,000

• Tenant is contributing no cash, but will be added to the mortgage to boost approval odds.

• Tenant will also live in the condo.

This kind of setup can benefit both parties—but it needs to be structured clearly to avoid future conflicts.

🔄 3 Ways to Structure the Deal

✅ Option 1: Joint Ownership with a Side Agreement (e.g., 50/50 on Title)

Even though the landlord pays the entire down payment, both parties are listed as 50/50 owners.
To protect the landlord’s contribution, a separate legal agreement is drafted stating:

• The landlord is repaid their $60,000 down payment first when the condo is sold.

• Remaining profits (if any) are then split 50/50 (or another agreed ratio).

• The agreement can also outline who pays what monthly and what happens if either party wants out early.

📘 This approach allows shared ownership while protecting the larger investor.

✅ Option 2: Ownership Matches Contribution (e.g., 90/10 Split)

In this setup, the landlord owns 90% and the tenant owns 10%, reflecting the financial input.

• The tenant helps qualify for the mortgage and lives in the unit.

• The landlord keeps majority control.

• Over time, if the tenant contributes to the mortgage or expenses, their share can grow (if agreed in writing).

🧾 This approach works well when both parties want ownership, but not equal say or risk.

✅ Option 3: Sole Ownership with Mortgage Support (Bare Trust or Nominee Agreement)

If the landlord doesn’t want to share ownership, the tenant can still be added to the mortgage only.

• The landlord is the sole legal owner on title.

• The tenant signs a nominee or bare trust agreement stating they have no ownership interest.

• The lender still benefits from the tenant’s income to approve the mortgage.

🛡️ This keeps the property 100% in the landlord’s name while still getting mortgage support.

📍Why This Matters in Toronto

Toronto’s condo prices—and mortgage stress tests—can make financing tough, even for strong income earners. Adding a tenant or family member to the deal (with proper legal guidance) is a practical strategy we're seeing more frequently in 2025.

📑 Final Thoughts

No matter which path you take, make sure to:

• Consult a real estate lawyer

• Have a clear, written agreement

• Understand each person’s role, risk, and exit options

These setups can be a win-win when done right—but without clarity, they can lead to real complications.

📞 Thinking of structuring a joint condo purchase in Toronto?
We’ve helped investors, landlords, and families navigate these kinds of deals successfully. Contact Team Sachdeva 416-519-3311 to discuss how to structure your next purchase with confidence.

🔑 What is an Escape Clause?

• It’s also known as a “72-hour clause” (though the time frame can vary).

• It allows a seller to accept a conditional offer (e.g., the buyer still needs to sell their own home or secure financing), but continue to show the property.

• If the seller receives another acceptable offer, the buyer with the conditional offer has a limited time (usually 48–72 hours) to:

  1. Waive their conditions, making the offer firm, or

  2. Walk away and let the seller proceed with the new offer.

📍 Relevance in the Toronto Real Estate Market – 2025

1. Market Conditions Have Shifted:

   • With higher interest rates and tighter lending, more buyers are making conditional offers, especially on financing and sale of their current home.

   • Sellers are using escape clauses to avoid being locked into a weak offer and keep their options open.

2. More Balanced Market:

   • Unlike the hot seller’s market of 2021–2022, 2025 shows more negotiation and conditional offers, making escape clauses more common.

3. Helps Sellers Maintain Leverage:

   • If you’re selling and receive an offer with conditions (e.g. subject to sale of buyer’s property), an escape clause protects your timeline and pricing.

4. Common in Pre-construction & Assignment Sales:

   • Builders or assigning sellers may insert escape clauses, especially in uncertain times, to protect against delays in firming up.

📘 Example Scenario:

A condo listed at $700,000 gets an offer conditional on the buyer selling their home. The seller agrees but includes a 72-hour escape clause. Two days later, another buyer offers $695,000 with no conditions. The seller notifies the first buyer, who then has 72 hours to either:

• Firm up their original offer (remove condition), or

• Step aside so the seller can accept the second offer.

🏡 Advice for Buyers and Sellers

Sellers:

• Always consider including an escape clause with conditional offers.

• It gives flexibility in a slower market.

Buyers:

• Be cautious: You may lose the property if you can’t firm up quickly.

• Have your financing and home sale timeline tight if you're buying with conditions.

•  

Buying a home is one of the biggest decisions you'll ever make — and it comes with a lot to consider. From picking the right REALTOR® to deciding whether to buy or sell first and narrowing down neighbourhood options, the process can feel overwhelming.

But in the excitement of house hunting, one crucial area often gets overlooked: property regulations.

Whether you’re eyeing a detached home, townhouse, or condo, local rules such as heritage designations, building permit requirements, zoning bylaws, and environmental protections can significantly affect how you use and modify your property.

Here are four important regulations every homebuyer should understand before submitting an offer:

🏛️ 1. Heritage Designations

A property with a heritage designation can come with strict limitations — especially when it comes to alterations. These regulations often apply to the exterior, and in some cases, even the interior features are protected.

And it’s not just old, character homes. Some newer developments have architectural controls to preserve the community’s look and feel. That means you may need permission for changes as simple as replacing windows or modifying your front porch.

Bottom line: If you’re planning renovations or want flexibility with design, always ask whether the property has a heritage designation or architectural control.

🧱 2. Building Permits

Thinking of adding a basement apartment, updating a kitchen, or building an extension? You’ll likely need one or more building permits — and they’re far more than just paperwork.

Permits ensure your work is done to code and inspected for safety. Depending on the scope, costs can range from hundreds to thousands of dollars.

This is especially relevant for buyers considering homes with “mortgage helper” units like basement apartments. If the unit isn’t legal and permitted, it may not count as income for mortgage qualification — potentially reducing your buying power.

Pro tip: Before making an offer, ask the seller for proof of permits and verify the legality of any secondary suites.

🧭 3. Zoning Bylaws

Zoning bylaws dictate how a property can be used and what structures can be built. These rules vary from one municipality to another and affect everything from home additions to laneway suites and garden homes.

Even if your project generally fits the zoning, you may still need to apply for a minor variance, which can involve public hearings, delays, and extra costs — and approval is never guaranteed.

Condo buyers should pay attention, too. Zoning also determines what gets built around you. A quiet view today could be a construction site tomorrow if the neighbouring lot is zoned for high-rise development.

🌿 4. TRCA & Environmental Regulations

If the property is near a ravine, creek, or conservation land, it may fall under the Toronto and Region Conservation Authority (TRCA). This adds another layer of rules to protect natural systems from flooding, erosion, and overdevelopment.

You may be required to:

• Obtain special permits for renovations, additions, or tree removal

• Submit an Environmental Impact Study

• Avoid certain types of construction altogether

Municipal by-laws may also restrict land use near wetlands, natural corridors, and protected green spaces.

Tip: Before you assume anything is allowed near a green space, check with the TRCA or your local planning office. Doing a bit of homework now can save you from costly surprises later.

✅ Do Your Homework — With the Right Team

Understanding these regulations can save you from delays, unexpected costs, and buyer’s remorse. That’s why it’s essential to work with a REALTOR® who knows the local landscape and can guide you through due diligence.

At Team Sachdeva 416-519-3311, we bring more than two decades of experience helping clients navigate these complexities with confidence.

Whether you’re buying, selling, or just exploring your options, we’re here to provide expert advice and local insight every step of the way.

Summer is the perfect season to expand your backyard’s potential—and a well-built shed could be the ultimate upgrade. In Toronto’s competitive real estate market, homeowners are turning their sheds into functional extensions of their living space.

More Than Just Storage
Whether you’re working remotely or need space for a passion project, a shed offers a quiet, dedicated area—just steps from your door. Transform your shed into a cozy reading room, yoga studio, or an extra guest room for weekend visitors.

Property Value and Curb Appeal
A thoughtfully designed shed can boost your home’s functionality and resale value—especially in Toronto where space is at a premium. A charming shed can also make your backyard stand out during showings, setting your property apart in buyers’ minds.

Pre-Fab vs Custom Wood Sheds
Pre-fabricated sheds are quick to install, often more affordable, and come in ready-to-go styles—perfect for homeowners who want an efficient, no-fuss build. Custom wood sheds, on the other hand, offer full control over size, layout, materials, and design but require more time and effort, including permits and detailed planning.

Construction Tips and Materials
Concrete flooring offers strength, moisture resistance, and durability, making it ideal for long-term use. Oriented Strand Board (OSB) is a cost-effective choice for roofing or interior walls in dry, insulated spaces. Pressure-treated plywood is excellent for outdoor-facing walls and floors, protecting against moisture, insects, and decay.

Smart Planning Tips
Check with the City of Toronto to confirm if a permit is required.  If you’re planning to add lighting, heating, or Wi-Fi, include electrical and insulation early in the build. Orient windows and doors to take advantage of natural light and airflow. Ensure the shed site has proper grading and drainage to prevent water damage. And even if it’s just a storage shed for now, consider future-proofing it with framing and rough-ins for electrical.

Final Thoughts
Whether you opt for a pre-fab or a custom shed, it can enhance both your daily lifestyle and your home’s market appeal. Thinking about making a smart addition to your property? Team Sachdeva is here to help you build value.

One of the more common—and often frustrating—surprises for new homeowners is discovering that key appliances, like the water heater or HVAC system, are under rental contracts that weren’t clearly disclosed before closing. As your trusted real estate advisor, I want to help you avoid unexpected costs and make informed decisions when purchasing a home in Ontario.

What Are Rental Agreements for Home Appliances?

In many Canadian homes, appliances such as water heaters, furnaces, air conditioners, and water softeners are not owned outright, but rented through third-party providers. These rental agreements typically include:

• A fixed monthly rental fee
• Ongoing service, maintenance, and repairs
• Long-term contract terms (often 5–15 years)
• Buyout options to purchase the equipment outright

Builders of new homes often include these rentals in the agreement through partnerships with service providers.

Common Rental Providers in Ontario

Some of the most recognized companies offering appliance rentals include:

• Enercare
• Reliance Home Comfort
• Cricket Energy
• AWHR Canada
• Local utilities or independent HVAC companies

Each has unique terms, cancellation policies, and buyout fees—so reviewing contracts carefully is essential.

If You Inherit Rental Equipment, Are You Stuck With It?

Usually, yes. When you purchase a home, rental contracts disclosed in the Agreement of Purchase and Sale (APS) typically transfer to you, the buyer. However:

• If the seller properly disclosed the rental, you're obligated to assume the contract.
• If the rental was not disclosed, you may have grounds to dispute the agreement or negotiate a buyout at the seller’s expense.

📌 Tip: Unsure if it was disclosed? Speak to your real estate lawyer immediately.

Don’t Want to Keep the Rental?

You have options:

✅ Continue Renting:

• Offers peace of mind with included maintenance and repair
• Avoids upfront equipment costs (e.g., a new furnace can cost $5,000–$8,000)

✅ Buy Out the Contract:

• Costs vary based on equipment age:
  • Newer units: High buyout (can exceed $1,000–$5,000)
  • Older units: Lower cost or free transfer possible
• Check for auto-transfer clauses in older contracts

📌 Best Practice: Always get the exact buyout cost from the provider before deciding.

Can You Just Remove the Equipment?

No—removing or replacing rental equipment without the provider’s approval can lead to serious consequences:

• Full buyout charges
• Contract remains active
• Potential legal or collection actions

📌 Important: Contact the rental provider before removing, replacing, or disposing of any rented unit.

How to Cancel a Rental Contract

• Submit a formal cancellation request
• Some providers charge removal or pickup fees
• Others may require you to return the unit to a designated location

If you're facing high termination penalties, negotiate:

• Ask for a reduced buyout
• Request a contract review
• Consider filing a complaint with the Competition Bureau of Canada if you suspect misleading practices

How to Avoid Surprises When Buying a Home

As your realtor, I always recommend the following steps:
✔ Ask specifically about any rented appliances during showings
✔ Review the APS to confirm rental disclosures
✔ Request copies of any rental agreements
✔ Negotiate the buyout price as part of your offer if you prefer to own the equipment

The Ontario real estate market has seen notable shifts over the past year, with falling home prices and tightening lending standards creating significant challenges for homebuyers. One of the most pressing legal issues arising from these changes is the breach of real estate contracts, particularly where purchasers are unable or unwilling to close due to lower-than-expected appraised values.

 Appraisals Falling Short: A Key Trigger for Breaches 

With economic uncertainty and buyer demand cooling, property appraisals are increasingly coming in below the agreed-upon purchase price, particularly for new build transactions. For buyers relying on financing, this can be catastrophic. Lenders base mortgage amounts on the appraised value — not the sale price — and if there’s a shortfall, the buyer must cover the difference in cash. 

When that gap becomes too wide, some buyers simply cannot close the deal, leading to breaches of contract. Others may choose to walk away from their deposits, weighing the loss as a better alternative to overpaying for a now-devalued asset.

 Legal Consequences of Breach 

In Ontario, the Agreement of Purchase and Sale (APS) is a legally binding contract. Failing to close, without a valid legal reason, is a material breach that can lead to serious consequences, including: 

• Loss of deposit 
• Being sued for damages, including any drop in value if the seller resells for less
• Specific performance orders, particularly for unique or irreplaceable properties 

These risks underscore the importance of understanding one’s obligations before signing or walking away from a deal. 

Can Market Conditions Be a Legal Excuse? 

A change in market value, even a drastic one, is not a valid legal excuse for failing to close. Courts in Ontario have consistently ruled that parties are bound by the contracts they sign — regardless of whether market conditions later make the deal financially undesirable. 

Only under exceptional circumstances, such as fraud, misrepresentation, or impossibility of performance, can a breach potentially be excused. Otherwise, buyers who default could face significant exposure. 

What Can Buyers and Sellers Do? 

Buyers should:

• Obtain a pre-approval and ensure it reflects current market appraisals
• Include conditions for financing and appraisals (and understand the implications if these are waived)
• Consult a lawyer immediately if they suspect they may be unable to close

Sellers should:

• Retain the right to pursue legal remedies, including retaining deposits or suing for damages
• Be proactive in communicating with buyers as the closing date approaches
• Seek legal advice if there is any indication of potential breach

 Looking Ahead

 As Ontario’s housing market continues to adjust, more real estate transactions are likely to encounter obstacles. Whether acting as a buyer or seller, early legal advice and cautious contract management are essential to protecting your rights and minimizing risk. 

If you are facing or anticipating a potential breach of contract, our team at Accord Law is here to help.

 ---

Angat Saini, J.D., LL.B.

Owner, Barrister & Solicitor 

Accord Law Professional Corporation

1457 McCowan Road, Suite 209, Toronto, ON M1S 5K7

Tel: 416-288-8000

asaini@accordlaw.ca
www.accordlaw.ca

Splitting Up? Here’s How Spousal Buyouts Work

Going through a divorce or separation is never easy, and things can get even more complicated when you share a home. A spousal buyout is one way to help make the process smoother. It lets one person keep the home, instead of selling it, by buying out the other person’s share. This can make things more stable during a difficult time and helps divide your assets fairly.

What Is a Spousal Buyout?

A spousal buyout is when one partner buys the other partner’s share of a jointly owned home. This way, one person becomes the full owner of the property, while the other receives money for their part of the home.

Here’s how it usually works:

1. Find Out the Home’s Value and Equity
   The first step is to figure out how much the home is worth and how much equity (the part of the home you actually own) each person has.

2. Calculate the Buyout Amount
   You can use tools like an online Canadian spousal buyout calculator to help you figure out how much one person needs to pay the other to buy their share.

3. Get a Spousal Buyout Mortgage
   The person keeping the home may need to refinance with a spousal buyout mortgage. These mortgages let you borrow up to 95% of the home’s appraised value—if you qualify.

4. Create a Legal Separation Agreement
   Most lenders will want to see a signed separation agreement. This document shows the terms of your separation and is legally binding.

5. Transfer the Mortgage and Pay the Buyout
   Once the mortgage is approved, it gets transferred into the name of the person keeping the home. The other person gets paid their share of the equity.

Financial Things to Keep in Mind

Doing a spousal buyout comes with costs and financial decisions. First, you’ll need a professional appraisal to find out what the home is worth. Then you’ll know how much equity each of you has in the property.

You’ll also need to consider things like:

• The amount of mortgage you’ll need to take on

• Legal fees for the separation agreement

• Other possible costs, like admin fees and interest rates on the new mortgage

A spousal buyout mortgage helps many people cover the costs without using all their savings. It’s a way to stay in the home and still pay off your ex’s share.

CMHC Spousal Buyout Program

The Canada Mortgage and Housing Corporation (CMHC) offers a special Spousal Buyout Program across Ontario and the rest of Canada. This program helps people going through separation refinance up to 95% of their home’s value—so they don’t have to sell the property.

To qualify, you must have a legal separation agreement. This program helps make the process fair and financially possible.

Need Help with a Spousal Buyout?

Dealing with a separation or divorce is tough, especially when you’re deciding what to do with your home. If you’re thinking about a spousal buyout and need some advice, RE/MAX can help. We’ll walk you through your options and connect you with professionals who understand both the financial and emotional parts of this process.

As Toronto’s once red-hot real estate market cools due to rising interest rates, we may see the return of a once-taboo strategy: the low-ball offer. While bidding wars dominated the past few years, shifting market conditions have created more balanced opportunities for buyers.

What is a Low-Ball Offer?

A low-ball offer occurs when a buyer submits an offer below the asking price, often significantly lower. While sometimes viewed as undervaluing a property, in a shifting market, it can be a smart negotiation tool.

Buyers may employ this strategy for several reasons:

• They believe the listing price is inflated.

• They want to test the seller’s motivation.

• They see market conditions favoring buyers.

Can You Make a Low-Ball Offer in Toronto?

The answer depends on market conditions and property specifics. In a seller’s market, a low-ball offer will likely be ignored. However, in a buyer’s market or when a home has been on the market for an extended period, sellers may be more open to negotiating.

7 Ways to Strengthen Your Low-Ball Offer Strategy

1. Check Recent Comparable Sales (Comps)

   • Review recently sold properties (within 30-90 days) in the same neighborhood. If similar homes sold below asking price, you have strong justification for a lower offer.

2. Analyze Market Trends

   • Is inventory increasing? Are homes staying on the market longer? Have multiple price reductions occurred? If so, a low-ball offer is more likely to be entertained.

3. Review the Home’s Listing History

   • Has the price been reduced multiple times?

   • Has the home been sitting on the market for months?

   • Did a previous sale fall through?
     These could indicate a motivated seller.

4. Get Pre-Approved for a Mortgage

   • A seller is more likely to consider a lower offer from a pre-approved buyer over one with uncertain financing.

5. Make an Attractive Offer Beyond Just Price

   • Consider a flexible closing date.

   • Reduce conditions (e.g., minor repairs, home inspection timelines).

   • Offer a larger deposit to show commitment.

6. Work with an Experienced Toronto Realtor

   • A skilled agent understands market nuances and seller motivations, helping craft a competitive yet strategic low-ball offer. Check Out  Tom @ Team Sachdeva

7. Be Ready to Walk Away

   • The strongest negotiation tool is willingness to move on if the deal doesn’t meet your expectations.

Pros & Cons of Making a Low-Ball Offer in Toronto

Pros:

✅ Potential Savings – Secure a property below market value. ✅ Negotiation Leverage – Even if the seller counters, you may still land a better deal. ✅ Testing Seller Motivation – Some sellers are eager to close quickly.

Cons:

❌ Risk of Rejection – The seller may refuse to engage with your offer. ❌ Lost Opportunities – A stronger offer could come in and outbid you. ❌ Financing Challenges – If the offer is too low, the lender may question the property’s appraised value.

When Should You Make a Low-Ball Offer?

• Buyer’s Market: When listings outnumber buyers.

• Fixer-Uppers: Homes needing renovations may warrant lower offers.

• Motivated Sellers: If the seller has an urgent need to sell (e.g., job relocation, financial distress, divorce), they may be more receptive.

How Low is Too Low?

While there’s no fixed percentage, offering 5-20% below asking price may be reasonable depending on market conditions. However, avoid offers so low they insult the seller, which could shut down negotiations entirely.

Final Takeaway

A well-crafted low-ball offer isn’t about getting a home for cheap—it’s about making a strategic move in a shifting market. By using data, timing, and negotiation tactics, buyers can secure a great deal in Toronto’s evolving real estate landscape.

Thinking of making a low-ball offer in Toronto? Contact Team Sachdeva 647-299-4529 today for expert guidance!

Before starting your search for a pet-friendly condo in Toronto, use this checklist to ensure that the building and unit you choose will meet both your needs and your pets needs.

Review Condo Pet Policies

• Weight Limit: Does the condo have a weight limit for pets? (Typically ranging from 15 to 35 pounds)
• Breed Restrictions: Are there any breed restrictions (e.g., aggressive breeds or certain “bully” breeds)?
• Number of Pets: Is there a limit on how many pets you can have in the unit?
• Exotic Pets: Check if there are any restrictions on non-dog pets (e.g., snakes, reptiles, etc.).
• No Breeding or Selling: Verify if the condo has policies against breeding or selling pets.

Pet Approval Process

• Condo Board Approval: Understand if you need to submit your pet for approval and what documentation is required (e.g., vaccination certificates).
• Health Records: Make sure your dog or cat has the necessary health and vaccination records for approval.

Common Area Access

• Designated Pet Areas: Does the building have designated pet areas, such as dog parks or walking paths?
• Leash Laws: Confirm if your dog must be leashed in all common areas & leash length (e.g., elevators, hallways, lobbies).
• Elevator Access: Some buildings may have specific service elevators for pets, or side entrances for pets only,  check if this is the case

Pet Waste Disposal

• Pet Waste Stations: Are there sufficient pet waste disposal stations available on the property?
• Cleaning Requirements: Ensure there are clear rules about cleaning up after your pet in common areas, otherwise could result in heavy fines.

Noise and Behavior Rules

• Noise Restrictions: Review the condo’s noise policies regarding pets (e.g., barking, whining).
• Behavioral Rules: Make sure your dog is well-behaved and meets the condo's standards for noise and general conduct.

Building Amenities

• Pet-Friendly Amenities: Does the building offer any pet-friendly amenities such as a dog spa, dog-washing station, or pet-sitting services?
• Nearby Parks: Check if there are pet-friendly parks or walking trails nearby for exercise and recreation.

Condo Unit Specifics

• Balcony Access: If the unit has a balcony, confirm if dogs are allowed outside or if there are restrictions.
• Size of Unit: Ensure the unit is spacious enough for both you and your dog to live comfortably.

This checklist will help you find a condo that meets the needs of all your pets, ensuring a smooth and hassle-free living experience.

Further Resources:

https://www.condoauthorityontario.ca/issues-and-solutions/pets-and-animals/

https://strata.ca/blog/are-pet-restrictions-enforceable-in-toronto-condos

https://iccpropertymanagement.com/condo-pets-restriction

https://www.jayteichman.com/pets-allowed-rental-units/