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Zinati Kay - Real Estate Lawyers, 100 Cowdray Court, Unit 320, Toronto, ON (2026)

09/03/2026

Back to Basics: Starting the Home Search With Your Realtor
Three Bullet Thursdays — Law You Need to Know

School is back — and so is our Back to Basics series.

Over the next several weeks, we're going to walk through a real estate transaction from beginning to end, focusing on the documents, decisions and important steps buyers and sellers encounter along the way.

And there is no better place to start than with the professional who will usually guide a buyer through much of the process — their Realtor.

If you're working with a Realtor to buy a home, you will likely be asked to sign a Buyer Representation Agreement (BRA).

The BRA puts that professional relationship on paper. It sets out what the brokerage will do for you, how the relationship will work and what everyone can expect from each other as you search for and ultimately purchase a home.

Here are three things worth knowing.
1. It establishes your relationship with your Realtor's brokerage

A Buyer Representation Agreement formally establishes the relationship between you and the brokerage representing you. It covers important matters including the services the brokerage will provide, the properties and geographic area covered, compensation, the term of the agreement and how it can be terminated.

Here's an Ontario rule worth knowing: the BRA must have an expiry date, and that date must be prominently displayed on the first page and initialled by the buyer.

That's not fine print. It's a specific requirement designed to make sure buyers know how long they are committing to the relationship.

Why this matters: A good Realtor does considerably more than simply show properties. The BRA establishes the ground rules so both Realtor and buyer know what to expect as they work together to find the right home.
2. It explains how your Realtor's brokerage gets paid

The BRA also sets out how the brokerage will be compensated.

In most typical residential transactions, the compensation available from the seller is sufficient to cover the amount owing to the buyer's brokerage, so the buyer does not separately pay a commission out of pocket.

There can be exceptions. If the seller is providing less than the amount agreed to in the BRA, the buyer could potentially be responsible for some or all of the difference. That is not the usual situation, but it is a possibility buyers should understand.

Why this matters: Your Realtor can explain the compensation arrangement at the outset. For most buyers, an out-of-pocket commission will never become an issue — but everyone should understand how the brokerage is being compensated before the home search gets underway.
3. Your obligations may not necessarily end the day the BRA expires

This is one buyers may not expect.

A BRA can contain a holdover provision dealing with properties the buyer was introduced to while the agreement was in effect.

For example, suppose your Realtor introduces you to a particular home while your BRA is active. The BRA then expires, but you subsequently purchase that same property. Depending on the wording of the agreement, the original brokerage may still be entitled to compensation.

There is a sensible reason for this. A Realtor may have invested substantial time and expertise finding and introducing a property to a buyer, and the fact that the eventual purchase occurs shortly after the BRA expires doesn't necessarily erase that work.

Why this matters: When reviewing the BRA, don't look only at the expiry date. Ask your Realtor to explain the holdover provision and whether any obligations continue after the agreement ends.
The Bottom Line

A knowledgeable Realtor can be one of a buyer's most important resources in a real estate transaction.

The Buyer Representation Agreement isn't just another form. It is the document that defines that professional relationship and helps make sure everyone begins with clear expectations.

Take a few minutes to review it with your Realtor and ask questions about anything you don't understand.

It's about making sure you and your Realtor start the relationship with a clear, shared understanding.

And that's one of the best ways to get a good professional relationship — and a successful home search — off to a good start.
Dig Deeper

RECO — Signing a Contract with a Real Estate Brokerage
https://www.reco.on.ca/consumers/things-you-need-to-know/signing-a-contract-with-a-real-estate-brokerage/

RECO — Information Guide for Buyers and Sellers
https://www.reco.on.ca/consumers/things-you-need-to-know/reco-information-guide/?utm_source=chatgpt.com

Next Thursday: The Agreement of Purchase and Sale — when an offer stops being an offer and becomes a binding contract.

Three Bullet Thursdays — Law You Need to Know

Warm Regards,
John Zinati, B.A., L.L.B.

ZINATI KAY
Barristers & Solicitors
100 Cowdray Court, Suite 320,
Toronto, Ontario, Canada M1S 5C8
Tel: 416 321 8766 Fax: 416 321 8267
Conveniently at Kennedy Road & the 401
& @ Cityplace near Skydome
www.zinatikay.com

[email protected]

Fixed Closing Costs - $999
Click here for a link to the location map for our Scarborough office.

This is not intended and should not be relied on as legal advice. For specific questions or situations, please feel free to call John Zinati for assistance.

We are a Real Estate Law Firm in Toronto offering fixed closing costs on your property purchase, sale or mortgage. Call 416-321-8766

08/27/2026

SPECIAL BULLETIN: An $874 Lawyer’s Letter, a $3,634 Condo Lien — and $100,000 in Legal Fees
Three Bullet Thursdays — Law You Need to Know

We’re interrupting our Back to Basics series this week because an Ontario court has just handed condo owners a decision worth knowing about.

I’ve had condo owners call me over the years after receiving a lawyer’s letter from their condominium corporation.

The complaint might be about smoking, pets, noise, parking, rentals or some other alleged breach of the condo rules.

Then comes the real surprise: the condo lawyer’s bill gets charged to the owner’s account.

Don’t pay it? The corporation may threaten a lien against your home.

And, frustratingly, my practical advice has often been: pay it.

Not necessarily because I thought the corporation was right. But when the alternative was spending thousands fighting a $500 or $1,000 charge while a lien threatened your property, sometimes paying was simply the least-bad option.

A new Ontario Superior Court decision may significantly change that equation.
1. Your condo’s lawyer’s bill isn’t automatically your bill

The new case is Chiarelli v. Toronto Standard Condominium Corporation No. 2339, 2026 ONSC 4571.

The owners had been accused of violating their condominium’s prohibition against short-term rentals. In fact, they admitted that they had violated the rule.

The corporation hired lawyers to send compliance letters and charged the legal costs back to the owners.

One lawyer’s demand letter cost $874.06.

When it wasn’t paid, the matter ultimately resulted in a $3,634.62 lien registered against the condo.

The owners went to court.

Justice Iacobucci discharged the lien and stated the rule remarkably clearly:

“The legal costs cannot be added to common expenses without a court order.”

That’s important.

A condominium corporation can enforce its rules. It can take an owner to court or the appropriate tribunal. And if it succeeds, it can seek an order requiring the owner to pay appropriate costs.

What it cannot simply do is hire its lawyer, send you the bill, call that bill a common expense and use it to lien your home without first obtaining the required court order.
2. Even the condo declaration can’t simply make it so

This may be the most important part of the decision.

The condominium argued that its own declaration allowed it to charge enforcement costs against an owner’s unit as common expenses.

The Court said that wasn’t enough.

Justice Iacobucci concluded that “whatever the content of its Declaration,” legal costs incurred enforcing compliance cannot be added to an owner’s common expenses without the court order required by the Condominium Act.

In other words:

A condo corporation can’t give itself a power that the legislation doesn’t give it simply by putting that power into its declaration.

That’s significant because the threat of a lien gives condominium corporations enormous leverage.

Ontario condos don’t have a general power to fine owners for breaking the rules.

But if a $500 or $800 lawyer’s letter can simply be added to your common expenses — and non-payment can then threaten your title — the legal bill starts looking an awful lot like a fine.

This decision puts an important limit on that practice.
3. This isn’t permission to ignore your condo — it’s a right to have the bill proven first

Condo owners shouldn’t read this decision and start throwing compliance letters in the garbage.

Condominium corporations do have an obligation to enforce their declarations, by-laws and rules.

And there are circumstances where amounts properly chargeable to an individual unit can become common expenses and support a lien — including certain repair and damage-related expenses.

The important distinction in Chiarelli is legal costs incurred to enforce compliance.

Before those enforcement costs can be transformed into common expenses and secured against an owner’s home, the corporation may first have to go to court and obtain an order.

That gives the owner something incredibly important:

A chance to be heard.

And perhaps the most remarkable part of Chiarelli came at the very end.

Remember that the lien was for less than $4,000?

By the time the parties finished litigating the dispute in Superior Court, they had collectively incurred more than $100,000 in legal costs.

The judge called that “troubling.”

I’d call it a pretty good illustration of why clarity on this issue was badly needed.

One important qualification: Chiarelli is a very recent Ontario Superior Court decision and could still be appealed. An appellate court could ultimately confirm, modify or overturn the decision. For now, however, it is an important Ontario decision that condo owners, condominium corporations and their lawyers need to know about. We’ll keep watching what happens — and if an appeal changes or clarifies the law, we’ll let you know. Keep an eye on Three Bullet Thursdays for any important developments.
The Bottom Line

For years, the practical reality for many condo owners facing questionable legal chargebacks has been:

Pay first. Ask questions later.

The enormous leverage created by the condominium lien made fighting a relatively small legal bill financially irrational — even when the owner believed the corporation was wrong.

Chiarelli helps rebalance that relationship.

It does not mean condo owners can ignore the rules.

It does not mean condominium corporations cannot recover legitimate enforcement costs.

But it does mean that a corporation cannot necessarily act as judge, jury and collection agency — deciding you broke the rules, deciding what its lawyer should charge, adding that amount to your common expenses and then putting your home at risk if you refuse to pay.

Sometimes, the corporation actually has to prove its case first.

And that’s important enough that Back to Basics can wait a week.

Back to Basics returns next Thursday.
DIG DEEPER

Read the Court Decision:
Chiarelli v. Toronto Standard Condominium Corporation No. 2339, 2026 ONSC 4571
https://www.canlii.org/en/on/onsc/doc/2026/2026onsc4571/2026onsc4571.html?resultId=4757840adc81460a9ecc260364cca2e6&searchId=2026-08-27T15:01:11:833/86932c3e404943c2abf575a684276cc7&searchUrlHash=AAAAAQAJSWFjb2J1Y2NpAAAAAAE

Read The Globe and Mail:
Ontario condos limited in using legal fees effectively as fines
https://www.theglobeandmail.com/real-estate/article-ontario-condos-legal-fees-fines-court-ruling/

ZINATI KAY
Real Estate Lawyers

Three Bullet Thursdays — Law You Need to Know

Warm Regards,
John Zinati, B.A., L.L.B.

ZINATI KAY
Barristers & Solicitors
100 Cowdray Court, Suite 320,
Toronto, Ontario, Canada M1S 5C8
Tel: 416 321 8766 Fax: 416 321 8267
Conveniently at Kennedy Road & the 401
& @ Cityplace near Skydome
www.zinatikay.com

[email protected]

Fixed Closing Costs - $999
Click here for a link to the location map for our Scarborough office.

This is not intended and should not be relied on as legal advice. For specific questions or situations, please feel free to call John Zinati for assistance.

We are a Real Estate Law Firm in Toronto offering fixed closing costs on your property purchase, sale or mortgage. Call 416-321-8766

08/26/2026

BACK TO SCHOOL. BACK TO BASICS.
Welcome to Real Estate 101

Three Bullet Thursdays — Law You Need to Know

September means back to school — so we thought we'd go back to basics too.

Over the next several weeks, we're going to take you through a real estate transaction from beginning to end, explaining the legal issues buyers and sellers should understand along the way.

Think of it as Real Estate 101 — without the tuition, homework or final exam.
1. BEFORE YOU SIGN — KNOW WHAT YOU'RE GETTING INTO

We'll start at the very beginning. What does that Buyer Representation Agreement with your Realtor actually mean? Are you committed to that agent? What happens if you don't have one?

Then we'll tackle the Agreement of Purchase and Sale itself: deposits, conditions, inspections, financing, “as is” purchases, fixtures and chattels, and those special clauses that can become very important when something goes wrong.

The first lesson: In real estate, what you sign matters — and what you don't put in writing can matter just as much.
2. YOU HAVE A DEAL — NOW WHAT?

Once an offer is accepted, the legal work is really just beginning.

We'll explain what happens with your deposit, mortgage and financing; why a mortgage pre-approval isn't necessarily a mortgage approval; what makes condos different; what your lawyer searches for on title; what title insurance actually does; and what happens behind the scenes between signing the deal and closing day.

We'll also look at the seller's side — including disclosure, mortgages and liens, repairs, representations and warranties, and what a seller must do between the sale and closing.
3. CLOSING DAY — AND WHEN THINGS DON'T GO ACCORDING TO PLAN

Where does all that money actually go? What's a statement of adjustments? When does the seller get paid? When does the buyer get the keys?

And we'll cover the questions nobody likes to think about: What if the buyer can't close? What if the seller can't close? What happens to the deposit? Who pays the damages?

Because once you have a firm Agreement of Purchase and Sale, changing your mind usually isn't one of the available options.
THE BOTTOM LINE

Buying or selling a home may feel familiar, but underneath it is a binding legal transaction involving hundreds of thousands — and often millions — of dollars.

Over the coming weeks, we're going to strip away the legal jargon and explain what you need to know, when you need to know it — three bullets at a time.

School starts next week — and so does our Back to Basics series.

First up: Your Realtor, the Buyer Representation Agreement — and what you're actually agreeing to when you sign it.

Thank you for reading another edition of Three Bullet Thursdays.

If there's a topic you'd like us to cover in a future newsletter, we'd love to hear from you. As always, if you have questions about buying, selling, or refinancing real estate in Ontario, we're here to help.

Warm Regards,

John Zinati, B.A., L.L.B.

ZINATI KAY
Barristers & Solicitors
100 Cowdray Court, Suite 320,
Toronto, Ontario, Canada M1S 5C8
Tel: 416 321 8766 Fax: 416 321 8267
Conveniently at Kennedy Road & the 401
& @ Cityplace near Skydome
www.zinatikay.com

[email protected]

Fixed Closing Costs - $999
Click here for a link to the location map for our Scarborough office.

This is not intended and should not be relied on as legal advice. For specific questions or situations, please feel free to call John Zinati for assistance.

We are a Real Estate Law Firm in Toronto offering fixed closing costs on your property purchase, sale or mortgage. Call 416-321-8766

08/19/2026

Foreign Buyers: Banned, Taxed… or Both?
Three Bullet Thursdays – Law you need to know

Hi everyone,

Welcome back to Three Bullet Thursdays from Zinati Kay – Real Estate Lawyers.

Canada's foreign-buyer ban is back in the news. Unless Ottawa acts again, it is scheduled to expire on January 1, 2027.

So, with the clock ticking, we thought this was a good time to ask:

Can a foreign buyer actually buy residential real estate in Ontario — and if so, what will it cost them?

The answer may be: no, yes, or yes-but-bring-a-very-large-cheque.

Here are three things to know.
1. The Foreign-Buyer Ban Is Still Here — But It Isn't a Blanket Ban

Canada's Prohibition on the Purchase of Residential Property by Non-Canadians Act came into force in 2023 and, after being extended, is scheduled to expire January 1, 2027.

For now, someone who is not a Canadian citizen or permanent resident generally cannot purchase covered residential property in Canada's urban areas.

But there are important exceptions, including for certain:

Work-permit holders
International students
Protected persons and refugee claimants
Non-Canadians buying with a qualifying Canadian or permanent-resident spouse or common-law partner

There are property exceptions too. Vacant land is no longer caught, qualifying purchases for development may be exempt, and buildings containing four or more dwelling units fall outside the definition of residential property covered by the ban.

And don't assume a Canadian corporation solves the problem — certain Canadian entities controlled by non-Canadians are also caught.

Why this matters:
“Foreign buyer” does not automatically mean “cannot buy.” The buyer's status, property and any applicable exemption should be reviewed before an Agreement becomes firm.
2. Being Allowed to Buy Is Only Half the Battle — The Tax Can Reach 35%

Even where a foreign purchaser can legally buy, Ontario's Non-Resident Speculation Tax (NRST) may apply.

The current rate is:
25% of the purchase price.

It applies province-wide to qualifying purchases by foreign nationals, foreign corporations and taxable trustees, on top of regular Land Transfer Tax.

And in Toronto, the Municipal Non-Resident Speculation Tax adds:
Another 10%.

So, on a qualifying $1,000,000 Toronto home, the foreign-buyer taxes alone could be:

$250,000 Ontario NRST
$100,000 Toronto MNRST
plus regular Ontario and Toronto Land Transfer Taxes

That's $350,000 in foreign-buyer taxes alone.

There are exemptions and potential rebates, including for some purchasers who subsequently become permanent residents.

Another trap: if several people buy together and one purchaser is subject to the Ontario NRST, the tax is generally not limited to that person's percentage interest.

Why this matters:
The federal government asks: “Are you allowed to buy?”

Ontario and Toronto then ask: “How much tax do you owe?”

Two very different questions.
3. Buying Is One Thing. Leaving It Empty Is Another.

Toronto's Vacant Home Tax (VHT) is sometimes confused with a foreign-owner tax.

It isn't.

It applies based on whether the property is vacant — not the owner's nationality. A Toronto property vacant for six months or more during the year may be subject to the tax unless an exemption applies.

The current rate is:
3% of the property's Current Value Assessment.

There has also been an important federal change.

Canada's Underused Housing Tax (UHT) was introduced as an annual 1% federal tax, aimed primarily at foreign-owned vacant or underused housing.

But following legislative changes in 2026, affected owners no longer have to file a UHT return or pay the tax for 2025 and subsequent years. Historical obligations for 2022–2024 may still matter.

So, in shorthand:

Federal foreign-buyer ban → Can you buy?

Ontario NRST → Potential 25% tax.

Toronto MNRST → Potential additional 10% tax.

Toronto Vacant Home Tax → Potential 3% annual tax if vacant.
The Bottom Line

With the federal ban scheduled to expire on January 1, 2027, expect foreign ownership to remain in the news. Ottawa could let the ban expire, extend it again, or change the rules.

But one thing is clear:

There is no single “foreign-buyer rule.”

A foreign purchaser may have to navigate federal eligibility rules, Ontario's 25% NRST, Toronto's additional 10% MNRST, regular land transfer taxes and vacancy rules.

That makes determining the buyer's status before the Agreement becomes firm especially important.

Because discovering an unexpected 25% — or 35% — tax at closing is a very expensive way to learn Canadian real estate law.
Dig Deeper

Government of Canada – Foreign Buyer Prohibition
https://www.cmhc-schl.gc.ca/professionals/housing-markets-data-and-research/housing-research/consultations/prohibition-purchase-residential-property-non-canadians-act

Government of Canada – Foreign Buyer Ban FAQs
https://www.cmhc-schl.gc.ca/professionals/housing-markets-data-and-research/housing-research/consultations/prohibition-purchase-residential-property-non-canadians-act/faq

Ontario – Non-Resident Speculation Tax
https://www.ontario.ca/document/non-resident-speculation-tax

City of Toronto – Municipal Land Transfer Tax & MNRST
https://www.toronto.ca/services-payments/property-taxes-utilities/municipal-land-transfer-tax-mltt/

City of Toronto – Vacant Home Tax
https://www.toronto.ca/services-payments/property-taxes-utilities/vacant-home-tax/

Canada Revenue Agency – Underused Housing Tax
https://www.canada.ca/en/services/taxes/excise-taxes-duties-and-levies/underused-housing-tax.html

Thank you for reading another edition of Three Bullet Thursdays.

If there's a topic you'd like us to cover in a future newsletter, we'd love to hear from you. As always, if you have questions about buying, selling, or refinancing real estate in Ontario, we're here to help.

Warm Regards,
John Zinati, B.A., L.L.B.

ZINATI KAY
Barristers & Solicitors
100 Cowdray Court, Suite 320,
Toronto, Ontario, Canada M1S 5C8
Tel: 416 321 8766 Fax: 416 321 8267
Conveniently at Kennedy Road & the 401
& @ Cityplace near Skydome
www.zinatikay.com

[email protected]

Fixed Closing Costs - $999
Click here for a link to the location map for our Scarborough office.

This is not intended and should not be relied on as legal advice. For specific questions or situations, please feel free to call John Zinati for assistance.

We are a Real Estate Law Firm in Toronto offering fixed closing costs on your property purchase, sale or mortgage. Call 416-321-8766

08/05/2026

Three Bullet Thursdays – Law You Need to Know
The House Has a Past… Does the Seller Have to Tell You? (Part 1)

Hi everyone,

Welcome back to Three Bullet Thursdays from Zinati Kay – Real Estate Lawyers.

As a valued past client or partner, you'll continue to receive our weekly newsletter—your fast track to essential Ontario real estate law updates. Read three points quickly, or click to dig deeper.

With nearly 30 years of experience navigating Ontario real estate law, almost 30,000 transactions closed without a title claim, and having been featured in numerous publications and media interviews, we're committed to bringing you clear, concise, and practical legal information every Thursday.

To know this Thursday:

The House Has a Past… Does the Seller Have to Tell You?

This week we're talking about ghosts, gangsters, murder houses, and one of the most misunderstood areas of Ontario real estate law.

Don't worry—we promise to keep the hauntings to a minimum.

A recent Globe and Mail article reignited a question we hear surprisingly often:

If something terrible happened in a home, does the seller have to tell you?

The answer is: sometimes—but probably not in the way most people think.

Here are three things every buyer and seller should know.
1. A "Stigma" Isn't the Same as a Defect

Ontario law distinguishes between a physical defect and what's commonly called a stigmatized property.

A stigma is a non-physical circumstance that may affect how someone feels about owning the property, even though it doesn't affect the home's structure or function.

Examples include:

• A murder or su***de occurred in the home

• Reports that the property is haunted

• A notorious former owner

• Previous criminal activity at the property

Unlike mould, asbestos, foundation issues or structural defects, these issues generally don't affect the physical condition of the home.
2. Sellers Usually Don't Have to Volunteer This Information

This surprises many buyers.

Outside Quebec, Ontario sellers generally do not have a legal obligation to volunteer that a death occurred in the home or that the property has an unfortunate history.

However, if a buyer asks a direct question, the seller must answer honestly.

No duty to volunteer.

But a duty not to misrepresent.

If a property's history matters to you, don't assume someone will tell you—ask.
3. Some "Stigmas" Can Become Legal Issues

Not every stigma is simply a matter of reputation.

Sometimes what begins as a stigma becomes a legal issue.

For example:

• Former methamphetamine labs or grow operations may create contamination or electrical hazards that require disclosure.

• Some neighbourhood circumstances may materially affect a property's use or enjoyment.

• In rare situations, Ontario courts have recognized that circumstances outside the property itself may amount to a latent defect.

The lesson?

Every case turns on its own facts.
Practical Tips

• Buyers: If something matters to you, ask before making your offer firm.

• Sellers: If you're unsure whether something should be disclosed, obtain legal advice before listing.

• REALTORS®: Early conversations with clients—and documenting those discussions—can avoid complaints and litigation later.
Dig Deeper

RECO Bulletin 7.5 – Stigmas
https://reco.on.ca/agents-and-brokerages/reco-bulletins/reco-bulletin-7-5-stigmas?utm_source=chatgpt.com

The Globe and Mail – House (with a dark past) for sale? Canada's home disclosure rules can be murky
https://www.theglobeandmail.com/real-estate/article-home-dark-past-disclosure-rules-canada-murky/

Next Thursday: We'll look at the Ontario court decisions that have shaped this area of law, including the high-profile Shai Gilgeous-Alexander "Crypto King" mansion case, and what every buyer, seller and REALTOR® should learn from it.

Warm regards,
John Zinati, B.A., L.L.B.

ZINATI KAY
Barristers & Solicitors
100 Cowdray Court, Suite 320,
Toronto, Ontario, Canada M1S 5C8
Tel: 416 321 8766 Fax: 416 321 8267
Conveniently at Kennedy Road & the 401
& @ Cityplace near Skydome
www.zinatikay.com

[email protected]

Fixed Closing Costs - $999
Click here for a link to the location map for our Scarborough office.

This is not intended and should not be relied on as legal advice. For specific questions or situations, please feel free to call John Zinati for assistance.

We are a Real Estate Law Firm in Toronto offering fixed closing costs on your property purchase, sale or mortgage. Call 416-321-8766

07/07/2026

Before You Sign That Condo Confidentiality Agreement (NDA)… Read This First!

Three Bullet Thursdays – Law you need to know

Hi everyone,

Welcome back to Three Bullet Thursdays from Zinati Kay – Real Estate Lawyers.

A recent Globe and Mail article highlighted a growing trend in Ontario's condominium market: some developers are reportedly offering significant discounts or incentives to purchasers—but only if the buyer agrees to sign a confidentiality agreement (NDA).

While confidentiality agreements are perfectly legal, they can create important legal obligations that many buyers may not fully appreciate. Before accepting a discount in exchange for signing one, it is worth understanding exactly what you are agreeing to.

Here are three things every condo buyer should know.

The Purchase Price May Not Tell the Whole Story

A builder's advertised price is not always the buyer's actual cost.

In today's slower condo market, developers may offer incentives such as:

• Cash discounts
• Free parking or lockers
• Upgraded finishes
• Deposit assistance
• Mortgage or financing incentives
• Extended closing adjustments

Sometimes these arrangements are accompanied by confidentiality clauses preventing buyers from disclosing the details.

Why this matters:

The asking price may no longer be the best indicator of a property's true market value. Buyers should negotiate the entire transaction—not just the sticker price.

Confidential Deals Can Make Market Value Harder to Judge

Real estate professionals, lenders, appraisers and buyers typically rely on comparable sales to estimate value.

If significant incentives or discounts remain confidential, determining fair market value becomes more difficult.

This can affect:

• Future resale values
• Mortgage appraisals
• Financing approvals
• Purchase negotiations

Why this matters:

A condo may appear to have sold at one price while the purchaser actually received substantial financial concessions that are not immediately apparent.

The NDA May Be More Important Than the Discount

A confidentiality agreement is not just another document to sign before closing.

An NDA is a legally binding contract that may restrict what you can disclose, to whom, and for how long.

Depending on how it is drafted, important questions may include:

• Can you tell your lender or mortgage broker?
• Can you discuss the deal with your REALTOR®?
• Can you share the details with your accountant?
• What about your spouse, business partner, friends or family members?
• Does the confidentiality obligation continue after closing?
• What happens if someone claims you have breached the agreement?

The answers depend entirely on the wording of the agreement. Some NDAs are quite narrow, while others are drafted broadly and may expose a buyer to significant legal liability if they are breached—even unintentionally.

Why this matters:

An NDA is not simply a real estate document—it is a legal contract. Before signing away your ability to disclose information, make sure you understand exactly what obligations you are accepting and what the potential consequences could be if you inadvertently violate them.

What This Means for You (Practical Takeaways)

• Do not assume the advertised price reflects what other buyers are actually paying.

• Negotiate the entire package, including incentives and closing adjustments—not just the purchase price.

• If you are asked to sign an NDA, understand exactly what it permits, what it prohibits, and the legal consequences before you sign.

Dig Deeper

Globe and Mail – Condo developers are offering big discounts in exchange for signing NDAs

https://www.theglobeandmail.com/investing/personal-finance/article-condo-prices-ndas-discount-sales-developers-real-estate/?utm_medium=email&utm_source=Real%20Estate&utm_content=2026-7-3_11&utm_term=NDAs%20used%20to%20sell%20condos%20at%20a%20discount%2C%20how%20to%20spot%20AI%20in%20listings%2C%20the%20Home%20of%20the%20Week%20and%20more%20top%20real%20estate%20stories&utm_campaign=newsletter&cu_id=4gzwmslfVYZYSuFOMYmX8NJUctSn8x4y

Condominium Authority of Ontario – Buying and Owning a Condo

https://www.condoauthorityontario.ca/

Ontario Government – Buying a Home

https://www.ontario.ca/page/what-know-before-buying-home

As always, we’re here to help ensure closing day is not just legally correct, but practically smooth.

Wishing you a strong finish to the summer closing season.

Warm regards,
John Zinati, B.A., L.L.B.

ZINATI KAY
Barristers & Solicitors
100 Cowdray Court, Suite 320,
Toronto, Ontario, Canada M1S 5C8
Tel: 416 321 8766 Fax: 416 321 8267
Conveniently at Kennedy Road & the 401
& @ Cityplace near Skydome
www.zinatikay.com

[email protected]

Fixed Closing Costs - $999
Click here for a link to the location map for our Scarborough office.

This is not intended and should not be relied on as legal advice. For specific questions or situations, please feel free to call John Zinati for assistance.

We are a Real Estate Law Firm in Toronto offering fixed closing costs on your property purchase, sale or mortgage. Call 416-321-8766

Zinati Kay - Real Estate Lawyers

09/03/2026

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Monday	9am - 5pm
Tuesday	9am - 5pm
Wednesday	9am - 5pm
Thursday	9am - 5pm
Friday	9am - 5pm