Can a Newly Married Spouse Still Claim Ontario’s First-Time Homebuyer Land Transfer Tax Rebate?

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It’s a common scenario: a newly married couple is purchasing their first home together. The wife has never owned a home, but the husband already owns a rental property. They wonder: Can she still claim the Ontario Land Transfer Tax (LTT) refund for first-time homebuyers if they put 99% of the home in her name?

The answer involves understanding how Ontario’s Land Transfer Tax rules define a ‘first-time homebuyer.’

How the Law Defines “First-Time Homebuyer”

Under the Ontario Land Transfer Tax Act, a person qualifies for the first-time homebuyer refund if:

  • They are at least 18 years old.
  • They have never owned a home or an interest in a home anywhere in the world.
  • Their spouse has not owned a home or an interest in a home anywhere in the world while being their spouse.
  • They intend to occupy the home as their principal residence within 9 months of closing.
  • They apply within 18 months of the transfer date.

Key Point: Once you’re married (or in a common-law relationship), your spouse’s property ownership history counts as yours for this purpose—even if you are not on title for that property.

What If the Husband Already Owns a Rental Property?

If the husband owned a property before the marriage, and he still owns it at the time of the new purchase:

  • The wife cannot claim the first-time homebuyer rebate, even if she is the sole purchaser or owns 99% of the property.
  • The Ministry of Finance considers the couple as one unit for eligibility purposes once they are legally spouses.

If, however: the husband sold his property before the marriage and the wife has never owned a home, she would remain eligible as a first-time homebuyer.

Can You Put 99% in the Wife’s Name?

No.
Allocating 99% (or even 100%) of the title to the first-time buyer does not bypass the rule:

  • The rebate is denied if either spouse has owned a home while they were married/common-law.
  • It is not based on title percentage—it is based on combined spousal ownership status.

Example

Scenario:

  • John owns a rental condo purchased before marrying Sarah.
  • After marriage, they buy a house together and put 99% in Sarah’s name.
  • Because John owned a property while married to Sarah, Sarah does not qualify for the first-time buyer rebate.

Why This Matters for Clients

  • Financial Planning: Couples sometimes count on this rebate to reduce closing costs—only to be surprised at closing when they don’t qualify.
  • Title Structuring: Even creative title allocations (99/1 splits) will not change eligibility if one spouse is ineligible.
  • Legal Advice: As their lawyer, you can ensure clients are properly advised before signing an Agreement of Purchase and Sale.

Takeaways for Buyers and Real Estate Professionals

  • Check both spouses’ ownership history before assuming eligibility.
  • Consider timing: If a spouse sells a property before the relationship becomes legal (marriage/common-law), the other spouse’s eligibility may remain intact.
  • Consult a lawyer early: Rabideau Law can review the specific facts and ensure clients know their true closing costs.

Have questions about Ontario’s Land Transfer Tax and first-time buyer rebates?
Contact Rabideau Law—our team can guide you through eligibility, structure your transaction properly, and ensure there are no costly surprises at closing.

When a loved one dies with Ontario real estate but probate was completed in the U.S.

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When a loved one passes away owning property in Ontario, but their Will is probated in a U.S. state such as Florida, you might assume that the U.S. probate documents will be enough to handle the sale or transfer of the Ontario property. Unfortunately, that’s not the case.

Ontario law requires a separate Ontario court grant before you can deal with Ontario real estate. Without it, the Ontario Land Titles Office and the buyer’s real estate lawyer will not accept your authority to sell the property.

In this post, we explain why U.S. probate isn’t enough, what Ontario requires, how this differs from “resealing,” what probate tax (Estate Administration Tax) you’ll pay, and how to avoid common mistakes—complete with a real-world example.

Resealing vs. Ancillary Probate in Ontario

Ontario recognizes two different paths for foreign probate grants:

1. Resealing

  • Used when the original grant is from another Canadian province/territory, the U.K., or another Commonwealth jurisdiction.
  • Ontario simply “reseals” the foreign grant so it is effective here—no need to repeat the probate process.

2. Ancillary Appointment (With Will)

  • Required for non-Commonwealth grants, such as those from U.S. courts.
  • Ontario issues a Certificate of Ancillary Appointment of Estate Trustee With a Will (Form 74.29).
  • The application relies on court-certified copies of the foreign probate grant and the Will, along with Ontario-specific requirements like probate tax and estate asset disclosure.

If you’re dealing with a U.S. probate, you’ll almost always need an Ancillary Appointment before taking any steps to sell or transfer Ontario property.

What You Must File in Ontario

To obtain an Ontario Certificate of Ancillary Appointment, you must file:

  • Application for Certificate of Ancillary Appointment (With Will) under Rule 74.
  • Court-certified copies of the U.S. grant and the Will.
  • Certified proof of death (e.g., death certificate).
  • Ontario estate value statement and payment of Estate Administration Tax (EAT).

Note on bonds: If the executor is non-resident, the court may require an administration bond unless you apply to have it dispensed with. This is best addressed early to avoid delays.

Ontario’s Estate Administration Tax (“Probate Tax”)

Ontario charges Estate Administration Tax (EAT) based on the value of Ontario assets:

  • $0 on the first $50,000 of estate value.
  • $15 per $1,000 (1.5%) on the value over $50,000.

When filing an ancillary application, EAT is calculated only on Ontario-based assets (you do not pay Ontario tax on non-Ontario assets).

Real-World Example: Florida Probate → Ontario Property

Scenario: Janet probated her mother’s Will in Florida. Her mother owned a cottage in Ontario. Janet asked whether the Florida grant could be used to sell the Ontario property.

Answer: Ontario does not accept U.S. probate orders. Janet must apply for an Ontario Certificate of Ancillary Appointment (With Will). She will need:

  1. Court-certified copies of the Florida grant and Will.
  2. Certified death certificate.
  3. Ontario property details (legal description, PIN, municipal address, and value for EAT).
  4. Bond considerations if she, as executor, is non-resident.

Outcome: With the Ontario ancillary certificate, Janet can confidently list and sell the Ontario property. The Land Titles Office and the purchaser’s real estate lawyer, as well as her real estate lawyer will recognize her authority to sell the property. 

Common Pitfalls (and How to Avoid Them)

  • Sending the original Will out of the U.S. court file: Ontario accepts court-certified copies—never risk losing the original.
  • Using the wrong process: U.S. grants require ancillary probate, not resealing.
  • Ignoring Ontario probate tax: Budget and pay EAT upfront to avoid delays.
  • Bond surprises: If you are a non-resident executor, identify the bond requirement early and, if appropriate, have your lawyer apply to dispense with it.

How Rabideau Law Can Help

At Rabideau Law, we regularly assist U.S. executors with Ontario estates. Our services include:

  • Strategic guidance on the right process (reseal vs. ancillary).
  • Preparation and filing of all Ontario court documents.
  • Bond relief applications to save you the cost and hassle of security.
  • Virtual real estate closings, so you can sell the property without ever travelling to Canada.
  • End-to-end management, from probate to closing, ensuring you meet Ontario’s legal requirements quickly and efficiently.

If you’re a U.S. executor facing Ontario property issues, contact Rabideau Law today—we make cross-border estate administration seamless.

Tarion Warranty coverage after you close

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This is an overview of warranty coverage after closing for Freehold, Contract and Condo Units 

A note for Common Elements coverage

For most condominiums, the common elements have the below warranty coverage.
The condominium corporation is entitled to submit warranty claims for defects in work or materials in the common elements. There is no warranty coverage for the common elements of either a common elements condominium or vacant land condominium. Common elements warranty coverage begins on the date the condominium corporation is registered.

One-Year Warranty

Now that the purchaser has taken possession of their newly constructed freehold home or condominium unit, they are eligible for year one warranty coverage. This coverage begins on the date of possession and lasts one year from that date and includes items such as defects in work and material and unauthorized substitutions. See below for what the year one warranty covers.

Coverage for Freehold, Contract & Condo Units

  • Requires a home is constructed in a workman-like manner and free from defects in material
  • Protects against Ontario Building Code violations
  • Applies for one year, beginning on the date of the home’s possession even if the home is sold.
  • Protects against unauthorized substitutions
  • Requires the home to be fit for habitation

Two-Year Warranty

The new home warranty continues to provide coverage into year two and include items such as water penetration, heating and electrical. This coverage begins on the home’s date of possession even if the home is sold. See below for what the year two warranty covers.

What is covered for Freehold, Contract & Condo Units

  • Protects against water penetration through the basement or foundation walls
  • Protects against defects in work and materials that results in water penetration into the building envelope
  • Covers defects in work or materials that result in the detachment, displacement or deterioration of exterior cladding (such as brickwork, aluminum or vinyl siding)
  • Covers defects in work or materials in the electrical, plumbing and heating delivery and distribution systems
  • Applies for two years, beginning on the home’s date of possession
  • Protects against violations of the Ontario Building Code that affect health and safety

Seven-Year Major Structural Defect Warranty

The seven-year warranty covers major structural defects (MSD) and begins on the date that the purchaser takes possession of the home and ends on the seventh anniversary of that date. 

 A major structural defect is a defect in work or materials that: 

  • results in failure of a structural load-bearing element of the building;
  • materially and adversely affects the ability of a structural load-bearing element of the building to carry, bear and resist applicable structural loads for the usual and ordinary service life of the element of the building; 
  • materially and adversely affects the use of a significant portion of the building for usual and ordinary purposes of a residential dwelling.

What is covered

The seven year MSD warranty includes significant damage due to: 

  • Soil movement* & major cracks in basement walls
  • Chemical failure of materials & environmentally harmful substances or hazards. (i.e., Excessive radon levels)
  • Collapse or serious distortion of joints, or roof structure

What is not covered

The seven-year MSD Warranty specifically excludes the following:

  • Damage to drains or services
  • Dampness not arising from failure of a load-bearing portion of the building.
  • Damages to finishes

Source: https://www.tarion.com/builders-guide-coverage-homes