How do I confirm the property is free of debt?
Want to sell in Georgetown? Here’s the quick way to prove your home has no debt — fast, clean, and lender-proof.
Why every Georgetown home seller must prove the property is debt-free
If you want a smooth sale in Georgetown, ON, you need to prove the property has a clear title. Buyers, mortgage lenders, and lawyers all expect a property free of registered mortgages, liens, or tax arrears. If you don’t check first, closing delays, payouts at the last minute, or cancelled deals can cost you time and thousands of dollars.
This guide gives you simple, direct steps to confirm your property is free of debt in Georgetown. No fluff. Just what you need to do, who to call, and how long it takes.
The short version: 7 steps to confirm a property is free of debt
- Order a title search through a licensed lawyer or title company.
- Request a mortgage payoff statement from your lender(s).
- Get a municipal tax certificate (Halton Hills / Halton Region) to confirm taxes are paid.
- Run a lien search for construction liens and judgment liens.
- If it’s a condo, order the status certificate.
- Consider a recent survey or Real Property Report to verify no encumbrances or easements.
- Close with a lawyer who will register discharges and deliver a clean deed.
Each step is short to complete and prevents surprises at closing.
Step 1 — Order a title search (start here)
What it is: A title search exposes registered interests against the property: mortgages, charges, liens, easements, and Writs of Seizure and Sale.
How to get it: Your real estate lawyer or a title company (First Canadian Title, Stewart Title, etc.) runs this through Ontario’s land registration system (Teranet/Land Registry).
Why it matters: It shows exactly what’s registered on title today. If there’s a mortgage or lien, the search will identify the lender, the registration date, and the amount registered.
Typical cost and timing: $75–$250. Same-day to 48 hours.
Step 2 — Ask your mortgage lender for a payoff statement
What it is: A payoff statement (discharge figure) tells you how much your lender needs to fully discharge the mortgage on a specific future date.
How to get it: Call your bank or mortgage lender and request a payout quote for your closing date. If you have multiple mortgages (second mortgage, HELOC), get payoff statements for each.
Why it matters: The payoff amount includes principal, interest, and discharge fees. Knowing this ensures your sale proceeds cover debts without surprises.
Timing and tip: Lenders typically provide a payoff figure valid for a short period (7–30 days). Line up your closing date and request the statement close to that date.
Step 3 — Confirm property taxes are current (Halton Hills / Halton Region)
What to check: Municipal property tax arrears and utility charges can become liens. In Halton Hills, overdue property taxes are registered against title and can block closing.
How to get it: Request a municipal tax certificate or call the Town of Halton Hills / Halton Region tax office. Your lawyer can obtain an official tax certificate or statement.
Why it matters: A tax arrears registration must be paid off or arranged before closing. A municipal clearance prevents last-minute holds.
Step 4 — Search for construction liens and judgment liens
Construction liens: If you’ve had contractors, renovations, or landscaping done and invoices weren’t paid on time, a builder or subcontractor has up to 45 days (roughly) to register a lien under Ontario’s Construction Act. Older liens can still exist if never cleared.
Judgment liens and writs: Creditors can register judgments against you that become a charge on the property.
How to check: Your lawyer will run a lien search and check court judgment registrations in the land registry system. If you’ve had recent renovations, pull invoices and confirmations of payment.
Why it matters: Liens must be removed or paid at closing. A surprise lien can kill a deal or reduce your net proceeds.
Step 5 — If this is a condo, get the status certificate
What it is: A condo status certificate lists current condo fees, any arrears, and registered notices or liens against the unit.
How to get it: Order the status certificate through the condominium corporation. Your lawyer or agent can request it on your behalf.
Why it matters: Buyers rely on status certificates to assess ongoing costs and legal issues. A condo sale can’t close without this document cleared.
Step 6 — Consider a Real Property Report or updated survey
What it is: A Real Property Report (RPR) or survey shows the legal boundaries, structures, and encroachments.
Why to get it: If the RPR shows encroachments, easements, or unpermitted structures, those issues can trigger disputes or title insurance exceptions.
When it’s required: Lenders or buyers often request a recent RPR. If yours is old or missing updates after renovations or fences, order one from a licensed surveyor.
Step 7 — Close with a lawyer who will register discharges and clear title
Your lawyer’s role: Prepare closing statements, use the buyer’s payment to satisfy payoffs, register the discharge of mortgages and liens, and transfer the deed.
Title insurance: Most buyers and lawyers use title insurance to protect against unknown title defects. Sellers don’t usually buy this, but cooperating with buyer’s title insurer speeds closing.
Why a lawyer matters: Only a licensed lawyer can register discharges and ensure the deed transfers free of registered debts.
Pre-listing checklist for Georgetown sellers (do these before you list)
- Order a pre-listing title search from a lawyer.
- Get mortgage payoff statements for all registered loans.
- Confirm property taxes are up-to-date with Halton Region / Town of Halton Hills.
- Check for construction or judgment liens; resolve any disputes.
- If condo, order the status certificate.
- Gather the deed, recent survey/RPR, renovation invoices, and permits.
- Ask your lawyer for a payout estimate and likely closing timeline.
Do these now. You’ll prevent delays, keep buyer confidence high, and protect your sale price.
Common problems and how to fix them fast
-
Surprise second mortgage or line of credit: Request payoff statements and include the payoff in your closing statement. If the amount is unexpected, negotiate with the buyer timeline or reduce your asking price accordingly.
-
Builder’s lien found: Confirm whether the contractor was paid. If unpaid, either pay the lien from sale proceeds or negotiate a holdback. Your lawyer can arrange a holdback to resolve liens post-closing.
-
Tax arrears: Municipal payments take priority. Arrange payment or obtain a municipal clearance certificate before closing. Contact Town of Halton Hills Revenue Services early.
-
Missing documents (survey/RPR): Order a survey; if not possible before closing, discuss with your lawyer and buyer. Title insurance sometimes covers survey issues.
Costs and timeline — what to expect in Georgetown
- Title search: $75–$250. Same-day to 48 hours.
- Payoff statements: Usually free; lenders may charge admin for discharge.
- Municipal tax certificate: Small fee; timing varies (ask Halton Hills tax office).
- Survey/RPR: Several hundred to a few thousand dollars depending on complexity.
- Lawyer fees for closing and registrations: $700–$1,500 typically.
Start checks 2–3 weeks before listing so you can fix anything before offers arrive. If a problem appears later, you risk conditional offers or delayed closings.
Why do this now? Because buyers won’t wait.
In today’s market, buyers and their lenders move fast. A clean, verified title gives buyers confidence and gets you full-price, faster closings, and fewer hiccups. Don’t be reactive. Be ready.
Local advantage — selling in Georgetown, ON
Georgetown is in Halton Hills and governed by Ontario land registration rules. Local buyers expect transparency: clear title, paid taxes, and no legal surprises. Working with a local expert who knows Halton Region processes, municipal contacts, and local title issues saves days and dollars.
Tony Sousa is a Georgetown real estate expert. He helps sellers get a pre-listing clean title package, works with experienced local lawyers, and coordinates municipal clearances. His approach reduces risk and closes deals faster.
Contact Tony: tony@sousasells.ca | 416-477-2620 | https://www.sousasells.ca
FAQ — Quick answers sellers in Georgetown need
How do I know if my home has a mortgage or lien?
Order a title search through a lawyer or title company. It will list all mortgages and registered liens. Also request payoff statements from your lenders.
Can construction liens appear after I list the house?
Yes. Under Ontario’s Construction Act, contractors can register liens after work is done if unpaid. Resolve contractor bills and keep proof of payment. Your lawyer can arrange a holdback at closing if needed.
Who pays off registered debts at closing?
Seller proceeds typically pay off registered mortgages and liens through the closing lawyer. Remaining funds are disbursed to the seller after registrations are cleared.
What if municipal taxes are unpaid?
Unpaid municipal taxes are registered charges. You must clear them before closing or the municipality can place a lien and block the transaction. Get a municipal tax certificate early.
Do I need title insurance as a seller?
Sellers don’t usually buy title insurance. Buyers will often obtain title insurance. However, supplying clean title documents and cooperating with the buyer’s title insurer speeds the sale.
How long does it take to clear a mortgage from title?
Once paid, lenders prepare a discharge document. Registration time at the Land Registry varies, but your lawyer handles this at closing. Expect 3–10 business days for final registrations, although the critical step happens at closing.
Who in Georgetown can run a title search?
Licensed real estate lawyers and title companies operating in Ontario. Working with someone experienced in Halton Hills is best.
What should I prepare before meeting a lawyer?
Bring your deed, mortgage statements, recent property tax bills, invoices for renovations, and any surveys or RPRs. The lawyer will run searches and prepare payoff details.
How much will this process cost?
Expect a few hundred to a few thousand dollars depending on surveys, lien complexity, and legal fees. Compare quotes from local lawyers.
Final word — act now, sell clean, finish fast
Don’t wait for a buyer to find a problem. Run the checks now, get payoff figures, clear liens, and present a confident, clean title. That’s how you get the best price and a fast, smooth closing in Georgetown.
Need help? Tony Sousa can coordinate pre-listing title checks, municipal clearances, and the lawyer network in Georgetown to get you closed on time. Contact: tony@sousasells.ca | 416-477-2620 | https://www.sousasells.ca
