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Ease of Doing Business in

Canada

Canada Download Profile (1716KB, pdf)
Region OECD high income
Income Category High income
Population 35,851,774
GNI Per Capita (US$) 47,500
City covered Toronto

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

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Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 22 20 down
2
78.57 78.79 down
0.22
Starting a Business 2 2
-
98.23 98.23
-
Dealing with Construction Permits 57 53 down
4
73.66 73.70 down
0.04
Getting Electricity 108 105 down
3
63.76 63.76
-
Registering Property 43 43
-
75.40 75.40
-
Getting Credit 7 7
-
85.00 85.00
-
Protecting Minority Investors 7 6 down
1
76.67 76.67
-
Paying Taxes 17 15 down
2
88.86 88.86
-
Trading across Borders 46 46
-
88.36 88.36
-
Enforcing Contracts 112 95 down
17
54.35 56.54 down
2.19
Resolving Insolvency 15 15
-
81.43 81.36 up
0.07

DB 2017 Rank:

43

DB 2016 Rank:

43

Change in Rank:

0

DB 2017 DTF (% points):

75.40

DB 2016 DTF (% points):

75.40

Change in DTF (% points):

0.00

STANDARD PROPERTY TRANSFER
Property value CAD 2,745,031
City Toronto
Indicator Canada OECD high income
Procedures (number) info_outline 6 4.7
Time (days) info_outline 16.5 22.4
Cost (% of property value) info_outline 3.1 4.2
Quality of the land administration index (0-30) info_outline 21.5 22.7
  • Measure of efficiency
    No. Procedure Time to Complete Associated Costs
    1

    The purchaser should obtain the opinion of a qualified appraiser to estimate the value of the property

    Agency: Appraiser

    The seller or the buyer would like to have the market value of the property, to see whether it is under-priced or over-priced, depending whether you are the buyer or the seller. A property appraisal is a formal and impartial written estimate of the property.

    14-21 days (simultaneous with Procedures 2, 3, 4, and 5) CAD 5500
    * 2

    Obtain tax clearance certificate from the Municipality

    Agency: Municipality

    The parties have to show reasonable evidence to the title insurance company that the property is clear of tax obligations. A written tax clearance certificate should be obtained from the Municipality in 2 days for CAD 65. Since February 2016, this procedure can be completed online, and the petitioner will receive the certificate by email after two business days. The certificate will need to show the latest tax receipts including the amount of current year taxes and whether all taxes are paid to date. Verbal confirmation that realty taxes have been paid will also suffice. In order to confirm verbally that the realty taxes have been paid, a Tax Certificate must be requested and paid for, and in most cases, it commonly takes more than 1 business day to process. Realty Taxes are required to be paid up to the date of the transfer of the property.

    2 days (simultaneous with Procedures 1, 3, 4, and 5) CAD 65
    * 3

    Obtain a copy of Title Register and relevant registered documents and a Certificate regarding Writs of Execution

    Agency: Land registry

    A copy of Title Register and relevant registered documents are obtained on-line, as are the Certificate regarding Writs of Execution filed against the vendor.

    Less than a day (online procedure), simultaneous with procedures 1, 2, 4, and 5 CAD 32.07 (Title Register) + CAD 15.06 (Writs of Execution)
    * 4

    Obtain Status Certificate with respect to selling corporation

    Agency: Provincial government

    Seller obtains a Status Certificate from the government of province (and the federal government, if applicable).

    1 day (simultaneous with Procedures 1, 2, 3, and 5) CAD 86
    * 5

    Conduct title search (in the absence of title insurance)

    Agency: Teraview

    Depending on whether the property is located in a jurisdiction governed by the Land Titles Act or the Registry Act or by electronic registration, in the absence of title insurance a simple title search will cost CAD 2,000 and more difficult searches can cost CAD 10,000 or more. In terms of additional investigations: (a) an environmental report would costs between CAD 1,500 to CAD 3,000; (b) a building inspection would take 10 to 21 days and would cost CAD 2,500 to CAD 10,000; and (c) a zoning review by a planning consultant would take between 1 day and 14 days and would cost between CAD 2,000 and CAD 10,000. Title insurance can be obtained for CAD 0.75/CAD 1000 of purchase price if the purchase price is CAD 2,000,000 or more and for CAD 0.80/CAD 1000 of purchase price if the purchase price is less than CAD 2,000,000.

    1-3 days (simultaneous with Procedures 1, 2, 3, and 4) CAD 2,000
    6

    Registration of the transfer of title

    Agency: Purchaser's solicitor or Land registry

    After the agreement has been prepared and the transaction closed, the parties’ solicitors will complete the registration for transfer of title. More than 90% of properties in Toronto are governed by electronic registration. In the electronic registration regime, the transfer is registered electronically by an authorized licensee at the offices of the purchaser’s solicitor. The registration takes approximately 30 minutes and the cost of electronic registration is CAD 74.72, for each document, including tax and service fees. Only authorized licensees have access to the electronic registration system for security reasons. The purchaser is responsible for the cost of registering the transfer. The payment of registration fee and the Land Transfer Tax is done electronically too if it is in the electronic regime. Solicitor’s fees for their representation in the whole process are estimated in about CAD 6,000 (CAD 3,500 for the buyer’s solicitor and CAD 2,500 for the seller’s solicitor). Notification of change of ownership to assessment department and utility companies can be done the same day immediately after closing, but should be arranged prior to closing to ensure continuity of services.

    Less than a day (online procedure) CAD 74.72 (electronic registration fee) + Provincial Land Transfer Tax + Municipal Land Transfer Tax + CAD 75 (Municipal administrative fee)

    Provincial Land Transfer Tax is calculated through a progressive scale:
    For a property value under CAD 55,000, the fee is 0.5%
    From CAD 55,001 to CAD 250,000, the fee is 1%
    Over CAD 250,000, the fee is 1.5%.

    Municipal Land Transfer Tax for the City of Toronto is calculated through the following scheme (plus an administration fee of CAD 75 effective on April 1. 2016):
    For a property value up to and including CAD 55,000.00, the MLTT Rate is 0.5%
    From CAD 55,000.01 to CAD 400,000.00, the MLTT Rate is 1%
    From CAD 400,000.01 to CAD 40,000,000.00, the MLTT Rate is 1.5%
    Over CAD 40,000,000.00, the MLTT Rate is 1%.

    * Takes place simultaneously with previous procedure.

  • Measure of quality
    Answer Score
    Quality of the land administration index (0-30) 21.5
    Reliability of infrastructure index (0-8) 7.0
    What is the institution in charge of immovable property registration? Toronto Land Registry Office
    In what format are the majority of title or deed records kept in the largest business city—in a paper format or in a computerized format (scanned or fully digital)? Computer/Fully digital 2.0
    Is there an electronic database for checking for encumbrances (liens, mortgages, restrictions and the like)? Yes 1.0
    In what format are the majority of maps of land plots kept in the largest business city—in a paper format or in a computerized format (scanned or fully digital)? Computer/Scanned 1.0
    Is there an electronic database for recording boundaries, checking plans and providing cadastral information (geographic information system)? Yes 1.0
    Is the information recorded by the immovable property registration agency and the cadastral or mapping agency kept in a single database, in different but linked databases or in separate databases? Different databases but linked 1.0
    Do the immovable property registration agency and cadastral or mapping agency use the same identification number for properties? Yes 1.0
    Transparency of information index (0–6) 3.0
    Who is able to obtain information on land ownership at the agency in charge of immovable property registration in the largest business city? Freely accessible by anyone 1.0
    Is the list of documents that are required to complete any type of property transaction made publicly available–and if so, how? Yes, online 0.5
    Link for online access: https://www.teranetexpress.ca/csp/welcome.htm
    Is the applicable fee schedule for any property transaction at the agency in charge of immovable property registration in the largest business city made publicly available–and if so, how? Yes, online 0.5
    Link for online access: https://www.teranetexpress.ca/content/tvuser/customer/Teranet_eXpress_Prici...
    Does the agency in charge of immovable property registration commit to delivering a legally binding document that proves property ownership within a specific time frame–and if so, how does it communicate the service standard? No 0.0
    Link for online access:
    Is there a specific and separate mechanism for filing complaints about a problem that occurred at the agency in charge of immovable property registration? No 0.0
    Are there publicly available official statistics tracking the number of transactions at the immovable property registration agency? No 0.0
    Number of property transfers in the largest business city in 2015:
    Who is able to consult maps of land plots in the largest business city? Freely accessible by anyone 0.5
    Is the applicable fee schedule for accessing maps of land plots made publicly available—and if so, how? Yes, online 0.5
    Link for online access: https://www.teranetexpress.ca/content/tvuser/customer/Teranet_eXpress_Prici...
    Does the cadastral or mapping agency commit to delivering an updated map within a specific time frame—and if so, how does it communicate the service standard? No 0.0
    Link for online access:
    Is there a specific and separate mechanism for filing complaints about a problem that occurred at the cadastral or mapping agency? No 0.0
    Geographic coverage index (0–8) 6.0
    Are all privately held land plots in the economy formally registered at the immovable property registry? Yes 2.0
    Are all privately held land plots in the largest business city formally registered at the immovable property registry? Yes 2.0
    Are all privately held land plots in the economy mapped? No 0.0
    Are all privately held land plots in the largest business city mapped? Yes 2.0
    Land dispute resolution index (0–8) 5.5
    Does the law require that all property sale transactions be registered at the immovable property registry to make them opposable to third parties? Yes 1.5
    Is the system of immovable property registration subject to a state or private guarantee? Yes 0.5
    Is there a specific compensation mechanism to cover for losses incurred by parties who engaged in good faith in a property transaction based on erroneous information certified by the immovable property registry? Yes 0.5
    Does the legal system require a control of legality of the documents necessary for a property transaction (e.g., checking the compliance of contracts with requirements of the law)? Yes 0.5
    If yes, who is responsible for checking the legality of the documents? Registrar; Notary.
    Does the legal system require verification of the identity of the parties to a property transaction? Yes 0.5
    If yes, who is responsible for verifying the identity of the parties? Registrar; Notary; Lawyer.
    Is there a national database to verify the accuracy of identity documents? No 0.0
    For a standard land dispute between two local businesses over tenure rights of a property worth 50 times gross national income (GNI) per capita and located in the largest business city, what court would be in charge of the case in the first instance? Superior Court of Justice
    How long does it take on average to obtain a decision from the first-instance court for such a case (without appeal)? Between 1 and 2 years 2.0
    Are there any statistics on the number of land disputes in the first instance? No 0.0
    Number of land disputes in the largest business city in 2015:
    Equal access to property rights index (-2–0) 0.0
    Do unmarried men and unmarried women have equal ownership rights to property? Yes 0.0
    Do married men and married women have equal ownership rights to property? Yes 0.0