Draft a Canadian Deed of Sale to formally transfer ownership of real property. This template covers transferor and transferee details, property legal description with PIN/PID, sale price in CAD, payment method, deposit held in trust, title insurance, property disclosures, land transfer tax acknowledgment, and governing province. Designed for all provinces including Ontario, British Columbia, Alberta, and Quebec.
What Is a Deed of Sale (Canada)?
A Canadian Deed of Sale is the legal instrument that formally transfers ownership of real property from a transferor (seller) to a transferee (buyer). In Canada, real property transfers are governed by provincial legislation and must be registered at the applicable Land Titles Office or Land Registry Office to be effective against third parties. Unlike the United States, where deeds are recorded at county clerk offices, Canadian provinces operate their own electronic land registration systems.
In Ontario, property transfers are registered through the Teraview electronic registration system under the Land Registration Reform Act (R.S.O. 1990, c. L.4). The standard form used is the Transfer/Deed of Land, which records the transfer in the Province of Ontario Land Registry system. In British Columbia, the Land Title Act (R.S.B.C. 1996, c. 250) governs registration through the BC Land Title and Survey Authority (LTSA). Alberta uses the SPIN2 electronic system under the Land Titles Act (R.S.A. 2000, c. L-4), which operates a Torrens title system providing guaranteed title.
In Quebec, property sales are governed by the Civil Code of Quebec (Code civil du Québec), particularly Articles 1708 through 1784, which set out the rules for the sale of immovables. Quebec transactions require the involvement of a notaire (civil-law notary) who prepares the deed of sale (acte de vente) and registers it with the Quebec Land Registry Office (Bureau de la publicité des droits). The deed creates binding obligations: the seller warrants good and marketable title, while the buyer commits to paying the agreed sale price and assuming all obligations associated with ownership.
When Do You Need a Deed of Sale (Canada)?
A Deed of Sale is required whenever real property ownership is being formally transferred from one party to another in Canada. The most common scenario is the closing of a residential property purchase, where the Agreement of Purchase and Sale has been fully executed, all conditions have been waived or fulfilled, and the parties are ready to complete the transfer of title.
This document is essential for private sales between individuals (not involving a real estate agent), estate transfers where an executor must convey property to beneficiaries or purchasers, family transfers where property is being conveyed between relatives for consideration, and court-ordered sales arising from divorce proceedings or creditor enforcement. In each case, the deed must be prepared and registered through the provincial land registration system to update the public record of ownership.
The deed is also necessary for commercial property transactions, vacant land sales, and farm property transfers. Without a properly executed and registered deed, the buyer does not obtain legal title to the property, and the transfer is not enforceable against third parties. Canadian courts, including the Supreme Court of Canada in Semelhago v. Paramadevan [1996] 2 S.C.R. 415, have affirmed that specific performance is an available remedy when a party fails to complete a property transfer. Land transfer tax must be paid at the time of registration, with rates varying significantly by province.
What to Include in Your Deed of Sale (Canada)
Every enforceable Canadian Deed of Sale must identify the parties with full legal names and addresses, along with a complete legal description of the property that matches the registered title at the provincial Land Titles Office. The document must include the Property Identification Number (PIN) in Ontario or the Parcel Identifier (PID) in British Columbia, as these unique identifiers are required for electronic registration.
The sale price must be stated in Canadian dollars, along with the payment method and closing date. If a deposit was paid, the deed should reference the amount and the identity of the deposit holder (typically a lawyer’s trust account or real estate brokerage). The Interest Act (R.S.C. 1985, c. I-15) and provincial trust account rules govern how deposits are managed.
The transferor’s warranties are a critical component, including representations that the transferor holds clear title, has authority to sell, and that no outstanding work orders or compliance issues exist. Property disclosures, including UFFI (urea formaldehyde foam insulation) history, environmental contamination, and grow operation history, may be required depending on the province.
The deed must address land transfer tax obligations. Ontario imposes a tiered rate from 0.5% to 2.5% under the Land Transfer Tax Act (R.S.O. 1990, c. L.6), with an additional municipal LTT for properties in Toronto. British Columbia charges a Property Transfer Tax under the Property Transfer Tax Act (R.S.B.C. 1996, c. 378). Alberta charges only a flat registration fee rather than a percentage-based tax. The governing law clause must reference the province where the property is located, and both parties must sign the deed before it can be submitted for registration.
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