Category: Uncategorized

When entrepreneurs enter a partnership, things do not always go as planned. Due to the risks, high-value assets, and liabilities involved in running one’s own business, entrepreneurs often engage in Limited Liability Partnerships (LLP). However, these relationships can become tricky when things fall out of place, high stakes are involved, and partners are failing to see eye-to-eye and come to an agreement. This often times results in businesses falling apart. Before engaging into a partnership, it is important to understand the possible risks associated with it, and how you and your partner can effectively and efficiently combat a fallout without it being detrimental to the relationship both partners have built.

Prior to the fallout happening, you are responsible for ensuring you seek the support and legal assistance you may require. A common misconception people believe is that fallouts are always due to arguments between partners, or one getting greedy for the monetary benefits. This, however, is not always the case. One owner can decide to split and go separate ways due to one partner not being as invested as the other, or even because one partner wants to retire. Due to this, it is crucial to have an exit strategy ready no matter who your partner is and what relationship you may have.

Have an Exit Strategy

Prior to engaging in a business partnership, you want to discuss how you plan on splitting the assets with your partner. Some options include:

1. Buying a partner out

2. Selling your stake to your partner

3. Selling your stake to another individuals

4. Merging with another business

Be sure to discuss with your partner before engaging in business together to properly understand and know what each person wants.

Discuss The Aftermath of The Business

Not only is it important to discuss the plans of the business with your partner, it is also important to disclose any plans you may have regarding another business, plans or prospects. This is to ensure that you do not run into conflicts in the future, nor any legal issues. You want to make sure that you are as transparent as possible so you can avoid any misunderstandings or agreements.

Obtain Legal Support

Although a business starts with good intentions, you can never predict the future. Some people do have bad intentions, no matter what relationship the partners have outside of business. If the intention is for the business to be successful, and if both partners are moving with honesty and by the books, there should be no problem to engage with a corporate lawyer. This is to ensure that both partners have something in place to determine what the split will look like when the business flourishes, if one partner chooses to leave for whatever reason. Since there is a lot of paperwork involved in dismantling a business and splitting assets, the lawyers here at 6ix Estates LLP work hard to make sure nothing is overlooked. Hence, we know how to best protect our clients’ interests. Get in touch with our firm at 416-206-6816 anytime Monday to Friday between

9am and 5pm. We will be more than happy to assist you to ensure the success of your business journey

Unsurprisingly, the housing market has been booming in Ontario and the prices have soared to heights never seen before. Due to the influx of individuals moving into Ontario, the population continues to increase rapidly. Unfortunately, the population is increasing exponentially and much quicker than the number of residential units being built. Of course, the last thing anybody wants is to be unsure of their housing situation especially if they urgently need to move out of their current residence and do not have much time. Due to this, the competition between buyers persists and increases. This also results in buyers taking on unconventional contracts without obtaining advice from a lawyer in attempts to come out on top in the bidding process. Having a lawyer, however, is extremely beneficial and an absolute necessity as we can help guide you through the process, protects your assets, ensure you get what you signed up for, depict which contracts are unconventional or unbeneficial to you, are ensure the other party in a signed agreement hold up their end of the contract.

A buyer puts in an offer for a dwelling, it gets accepted by the seller, the Purchase and Sale Agreement is signed by both parties, but last minute the seller backs out and abandons the agreement because a higher offer came along. This is the case far too often in the now booming housing market of Ontario. With many immigrants, young adults, and uninformed individuals coming in who have no knowledge of their rights or any procedures in the real estate process. In Ontario formal written and signed contract is required for every real estate transaction. The Agreement of Purchase and Sale entails all the important elements of the contract and the obligations all parties need to fulfill. Once an APS (Agreement of Purchase and Sale) is made and signed, both the buyer and seller are bound by a set of terms and conditions.

In the beginning of the process, when a buyer submits an offer, the buyer cannot revoke their offer for a specific period of time. During this time, the seller can accept it, reject it, or issue a counteroffer. If the other is accepted, then this transaction become legally binding. A deposit requirement usually follows within 24-48 hours after the offer has been accepted. This means that all parties in the contract are contractually obligated and any breach in contract is a fundamental breach. Keep in mind to ensure that your deposit is always secured. If a real estate transaction falls through, all deposits must be secured to ensure that the buyer can get their money back. If your deposit is unsecured, the chances of money being returned if a deal falls through is slim to none.

A lawyer can help you with this process and your needs. We can assist you in looking at other options, such as purchasing pre-construction homes that can be customized and catered to your liking. The lawyers here at 6ix Estates LLP are experienced and can help you have the painless, effortless real estate transaction you deserve. Get in touch with our firm at 416-206-6816 anytime Monday to Friday between 9am and 5pm. We will be more than happy to assist you with your home buying and selling needs.

In Canada, a mortgage lender is an individual or institution that can provide a loan for property purchases. There are multiple types of mortgage lending entities that hold different requirements for loan eligibility, which can vary depending on the particular institution. Specifically, mortgage lenders are divided into Institutional Lenders – A-Lenders and B-Lenders; and Alternative Mortgage Lenders – Private and Monoline.

For the purposes of this blog post, Private mortgage lenders will be scrutinized, focusing on their general logistics, as well as the pros and cons of their services.

Private mortgage lenders are businesses or individuals that privately lend money in the form of short-term, interest-only loans. As they focus more on your mortgage as an investment, they tend to be less strict on credit history and background checks. Therefore, borrowers who cannot qualify with Institutional lenders will seek out the services of a Private lender.

When applying, Private lenders require borrowers to state what the money is needed for. Most borrowers will need a loan to: help consolidate existing debt like high-interest credit cards, pay tuition fees, pay for home repairs or renovations, and to cover living expenses.

For a borrower, it is important to understand and evaluate the pros and cons of a Private mortgage as it is major financial agreement. 

The pros of Private mortgage lenders are the following:

1. Flexible eligibility criteria: Borrowers who do not qualify with an Institutional lender, such as a bank, can still acquire a mortgage loan with a Private lender, as they are fairly easy to qualify for, due to the removal of the Stress Test
2. Quicker money-lending process: Compared to major banks, Private lenders can provide a faster process as they are not required to follow a comprehensive mortgage approval process

The cons of Private mortgage lenders are the following:

1. Higher interest rates: Because private lenders are not restricted to the same regulations as Institutional lenders. they can charge higher interest rates
2. Interest-only payments: Most, if not all, Private mortgages require that payments only go towards interest; thus, not contributing to your principal mortgage
3. Extra fees:  Borrowers are expected to pay additional fees, such as lender fees; broker fees; legal fees etc, that would not need to be paid If borrowing from an Institutional lender
4. Only short-term loans available: The borrower is usually expected to pay back the loan within 24 months

Due to the many complexity of mortgage lending, it may be of interest to reach out to a real estate lawyer. A lawyer will not only help you understand the terms and conditions of your mortgage loan, but they can help you determine if the transaction will benefit you. Real estate lawyers will even facilitate the entire mortgage transaction between you and your lender, ensuring that you are receiving and entering a legitimate offer.

At 6ix Estates LLP, we represent clients in mortgage financing or refinancing transactions, both with institutional and private mortgage lenders. We will meet with all borrowers before closing to review the entire transaction, sign the documents and arrange for funds.

Contact us today for a free, 30-minute, no obligation consultation.

A Power of Attorney (POA) is a legal document that provides authority to a person or persons you trust to make decisions on your behalf, should you become mentally incapable. Depending on the authority given by you – the ‘grantor’ or ‘donor’ – the acts an appointed attorney can perform includes anything from bill payments and sale of property to decisions related to healthcare.

In Ontario, there are two types of Power of Attorney documents: Power of Attorney for personal care and Power of Attorney for property.

What is a Personal Care Power of Attorney?

A Power of Attorney for personal care allows your appointed attorney to make personal decisions regarding your healthcare should you become incapacitated. Usually, your POA for personal care is a spouse, family member, or a close acquaintance that understands your wishes and can make good decisions for your wellbeing on your behalf. As this is a large responsibility with implications, a health professional will always determine that you are incapable of making these decisions on your own before your attorney can act.

What is a Property Power of Attorney?

A Power of Attorney for property allows your appointed attorney to make decisions regarding your property and finances should you become mentally incapable. Their decisions can include bill payments, investment management, benefit applications, and the collection of income. This POA ensures that your assets remain protected and can be as specific as you wish it to be.

Continuing Power of Attorney vs. Non-Continuing Power of Attorney

As both types of Power of Attorney involve a continuing power – in that the appointed attorney remains responsible for making decisions regardless of time – Ontario also recognizes non-continuing Power of Attorney. A non-continuing POA is restricted only to property. Specifically, this POA allows an appointed attorney to cover financial affairs only for a specified length of time. It is only used in instances where the grantor is travelling away from home for a long period of time and would thus need another individual to make financial decisions on their behalf. It is important to note that a non-continuing Power of Attorney becomes null should the grantor become incapacitated.

How Do I Make a Power of Attorney?

While a lawyer is not mandatory to legitimize your Power of Attorney, they will ensure that any complex wishes are addressed in your document, while providing the required legal advice.

There is a certain criterion for making a legal Power of Attorney:

1. You must be over the age of majority within the province and be of capable mind
2. The document must be signed in the presence of two valid witnesses
3. The signatures must be of wet ink (cannot be digitally signed)
4. A physical document must be stored (cannot be digitalized and stored online)

Because of COVID-19, the Ontario Ministry of the Attorney General is now permitting lawyers to virtually witness the physical signing of Powers of Attorney.

At 6ix Estates LLP, our office can prepare Powers of Attorney for Property to manage your financial affairs and Personal Care to make decisions about your health care, housing, and other aspects. We also offer all our services remotely. Our lawyers are happy to meet with you virtually or at a location of your choice, within the GTA.

Contact us today!

The simplest way to define commercial real estate is property that is used to conduct business activities to generate a profitable gain. This broad definition of commercial property can include anything from office buildings and retail facilities to farmland, garages, and warehouses. Compared to residential real estate, purchasing commercial property tends to be more complex with many factors influencing the transaction process. It is important to understand the steps involved.

Before you begin the process of purchasing commercial property, hiring a real estate lawyer will ensure a smooth and efficient transaction process, from start to finish. Examples of what a lawyer can assist with are (but not limited to) the following:

Agreements of Purchase and Sale

An agreement of purchase and sale is a legally binding written agreement that is utilized by both the buyer and seller in a commercial real estate transaction. The transaction begins when a buyer writes an offer of purchase and submits it to the seller. If the seller accepts, then the agreement of purchase and sale is established. A lawyer will assist you by drafting and negotiating Agreements of Purchase and Sale, offering legal advice where needed.

The following are examples of what is included in an Agreement of Purchase and Sale:

• Property address and legal description
• Offer and closing dates
• Legal names of the buyer(s) and seller(s)
• Offer price and deposit amount
• Conditions related to the sale

Due Diligence of Title Searches

A lawyer ensures proper checks are done to make sure that the property being purchased has a clear and marketable title. As well, the proper title checks will include reviewing everything registered to the property title such as subdivision agreements, right of way agreements, municipal by laws, development agreements and any registered leases.

Harmonized Sales Tax (HST) and Land Transfer Tax

As a buyer, it is important to know and understand the relevant taxes imposed on the purchasing of commercial property. Specifically, Land Transfer Tax is levied by the Province of Ontario against buyers when purchasing real property. Additionally, in the city of Toronto, municipal land tax is collected on all property purchases in Toronto. Buyers are also obligated to pay HST on purchased commercial property, with non-residents of Canada paying a Resident Speculation Tax when buying within Canada.

How We Can Help

At 6ix Estates LLP, whether you are purchasing selling, or refinancing real property, we will not only seek to close your matter efficiently, but we’ll also personally guide you throughout the transaction. We bring extensive experience and professionalism to every transaction and customize our support to your specific needs and concerns. We’re on the pulse of modern technology and have monitored its evolution to inform our own legal approaches – all to give you exceptional timely advice and service.

Contact us today for a free 30-minute no obligation consultation to discuss all your real estate needs.

Overview of Trusts

A trust in wills and estate planning is a mechanism that allows a person – known as the settlor – to provide property to another person – the trustee – for the gain of a beneficiary. Thus, the property is entrusted and administered by the trustee as a method of settling property. 

For a trust to be legally valid, the following three characteristics must be present:

1. Certainty of Intention – the settlor must intent to create a trust
2. Certainty of Subject Matter – there must be property conferred upon the trustee
3. Certainty of Objects – the beneficiaries of the trust must be explicitly ascertained 

Therefore, a valid trust must outline the settlor, the property, the trustee, and beneficial owners. 

As well, it is important to note that trusts are not revocable. The property cannot revert to the settlor unless specifically suggested within the trust document. 

There are two types of trusts:

1. Inter Vivos

This trust is established during an individual’s lifetime, with the purpose of transferring the benefit of assets to the trust’s beneficiaries. A trust’s terms will impose restrictions over the assets; with the gaining of the assets occurring once the stated conditions have been met.

Examples of inter vivos trusts:

• Employee Life and Health Trust (ELHT)
• Insurance Segregated Fund Trust
• Registered Retirement Savings (RRSP) Trust
• Tax-Free Savings Account (TFSA) Trust

1. Testamentary

This trust is created as a consequence of death of the settlor. The appointed trustee manages the assets of this trust under the guidelines of the particular trust provision.

Examples of testamentary trusts:

• Lifetime Benefit Trust
• Qualified Disability Trust (QDT)
• Graduated Rate Estate (GRE)
• Spousal or Common-Law Partner Trust

Duties of Trusties 

With respect to administration of a trust, trustees are given certain powers to act. In order to possess the legal power to act, a trustee must follow these central duties:

1. Duty of loyalty to the beneficiaries – trustees must act solely for the best interest and benefit of the beneficiaries. 
2. Duty of reasonable care – trustees must conduct business of the trust in a proper manner, in the same manner they were to conduct their own business 
3. Duty to act with an even hand – trustees cannot favour one beneficiary over another
4. Duty to act personally – trustees must not delegate their powers to others

How Can We Help?

At 6ix Estates LLP, we will work with you directly to structure your estate plan by drafting your Will and assisting with any estate administration applications with or without a Will. Contact us today at for a free 30-minute, no obligation consultation. 

Estate Administration Tax is a fee charged by the Ontario government based on the value of estate assets owned by the deceased. Depending on the type and nature of the deceased’s estate assets, you may need an estate certificate to collect and manage the estate.  To obtain authority for the executor to act on behalf of the deceased (Probate), the payment of this tax is mandatory. 

It is important to note that there is a difference between estate assets and non-estate assets that effect the value of the Estate Administration Tax. Ultimately, only estate assets owned by the deceased are included in the total value of the property in the estate.

Examples of Estate Assets: 

• Real Estate in Ontario (only when the title is not held jointly with a spouse) 
• Bank accounts and financial investments (without a beneficiary)
• Vehicles and other personal property (without a beneficiary) such as:
  • Insurance
  • Goods
  • Business interests 
  • Intangible property

Examples of Non-Estate Assets:

• Real Estate outside of Ontario
• Any assets that are expected to be paid to a designated beneficiary 
• Assets with joint ownership that automatically becomes that of the other owner
• Debts owed by the deceased such as car loans, lines of credit, and credit card debts

Consequently, the less property one has in their estate when they die, the lower the Estate Administration Tax. The tax is paid as a deposit when the estate representative applies for a Certificate of Appointment of Estate Trustee with the Superior Court of Justice. Following changes in January 2020, you no longer need to pay Estate Administration Tax if the value of the estate is $50,000 or less. Instead, you must file an Estate Information Return within 180 days after the estate certificate has been issued. Therefore, the probate fees in Ontario are now $15 on every $1,000 of assets over $50,000.

At 6ix Estates LLP, we will work with you directly to structure your estate plan by drafting your Will and assisting with any estate administration applications. Contact us today for a 30-minute, no-obligation consultation.

The act of separation is when partners – either married or common-law – choose to live apart. Those who have separated often set out their rights and responsibilities after separation in a document known as a separation agreement. In the context of marriage, separation does not mean the marriage has ended. Rather, a divorce is needed to legally end the marriage. Therefore, for the purposes of this blog post, we will outline what a separation agreement is, the issues considered within one, and how it differs from marriage contracts and divorce.

What is a Separation Agreement? 

In Ontario, separation agreements allow partners to live ‘separate and apart’ without officially ending the marriage. Technically, ‘separate and apart’ is not synonymous with living in separate homes. Rather, legal separation can involve living in the same house; as long as both individuals have separate rooms, meals, and finances. 

Within a separation agreement, the following issues are addressed: 

1. Property: 
   1. What happens with the home?
   2. Are there any specific allocations of items within the home?
   3. How will shared assets and debts be addressed? Pension and life insurance?

1. Children
   1. Who has custody over financially dependent children?
   2. How is responsibility for deciding matters on education, health, and welfare of the children allocated?
   3. Who is/are the child(ren) living with? Is there a specific living schedule?
   4. Who is paying child support? How much and how often?
   5. Are there any special expenses specific to the child(ren)’s circumstances?

1. Spousal Support
   1. Who is paying spousal support? How much and how often?
   2. What date with the spousal payments end?
   3. Are there any tax implications?

To make this agreement, with the addressed issues, legally binding, it must be drafted and signed by both partners in front of a witness, who must also sign the document. As well, the agreement should include the date of separation, as that gives motion for the valuation of property that will be divided between the couple. 

How is a Separation Agreement Different from a Marriage Contract and Divorce? 

A marriage contract differs from a separation agreement. Commonly referred to as a prenuptial agreement (or a prenup), a marriage contract is a written document that outlines the expectations within the marriage, and what is to be done if separation were to occur. Most often, marriage contracts address issues of property division and spousal support. If a couple were to separate, these issues addressed and agreed upon within the marriage contract would carry into the separation agreement. However, a marriage contract cannot discuss issues regarding children. Thus, if separation were to be sought, child responsibility and support are to be addressed within the separation agreement proceeding the marriage contract.

A divorce cannot occur without a separation agreement. Specifically, spouses cannot apply for divorce until one year after separation. Courts will only grant the divorce if they are satisfied with the arrangements involved in the separation. The exception to the one-year rule of separation is if the spouse is applying for divorce on the grounds of cruelty or adultery. 

How Can We Help?

Our office will work closely with you in drafting Cohabitation Agreements, Marriage Contracts, and Separation Agreements. We also offer all our services remotely. Our lawyers are happy to meet with you virtually or at a location of your choice. Get in touch with us to set up a free 30-minute consultation.

As lawyers, we often get requests to commission oaths and notarize documents. However, we find ourselves coming across incorrect requests from clients frequently. Hence, we decided to cover this topic for our current and prospective clients to assist them in understanding the different between commissioning and notarizing documents. The misunderstanding between the two can result in spending more money than required, delays in completing documents, and rejection of documents in applications. 

Commissioning Documents

As per the Commissioners for Taking Affidavits Act, R.S.O. 1990, c. C. 17, the Ontarian legislation allows the appointment of people to become commissioners of oaths. A commissioner of oaths is a title that expires and must be renewed. These individuals, with the official title, are able to take and receive affidavits, affirmations and declarations in and for Ontario. This is done through the use of a stamp that contains only a signature, but no seal. 

Although eligible individuals can become commissioners of taking oaths through an application process, certain professionals are automatically commissioners and do not need to apply. This is either by virtue of their office or status. This includes, but is not limited to:

1. Judges 
2. Lawyers
3. Students-at-law
4. Political representatives
5. Police officers
6. Notary publics
7. Paralegals
8. Law clerks

Notarizing Documents

A notary public has the same abilities as a commissioner of oaths, and then some. The Commissioners for Taking Affidavits Act in Ontario allows notary public to administer oaths or take affidavits, affirmations or declarations and attest them just like a commissioner of oaths. However, notary public can also certify and attest a true copy of a document, and certify or witness and attest the execution of a documents. A notary is also given a stamp with their signature, along with a seal that can be used in Ontario, within Canada, and internationally. An appointment of notary public expires in 3 years for professionals who are not in the legal or pollical field. The appointment for judges, lawyers, paralegals, etc never expires.

The Difference

The biggest difference between a notary public and a commissioner for oaths is how to document is being used, and the jurisdiction that the documents are accepted. For a simple taking of an oath, both a notary public and commissioner are acceptable to provide their services in Ontario. However, outside the province of Ontario, a notary is required and only their certified documents are acceptable. For example, the Ontario land titles office will not accept an affidavit of execution that is sworn in Alberta if the document is commissioned. The office will only accept it if the document is notarized. Another difference is that notary appointments are not granted to people who only require the powers of a commissioner. If the Minister of the Attorney General believes that you are not required to notarize documents, your application will be rejected and you will not receive an appointment.

Whether you need your document commissioned or notarized, your best bet would be to contact the professional lawyers here at 6ix Estates LLP. We will be able to assess your situation and provide you with the services you require, saving you from the headache of obtaining to wrong services and wasting time, energy, and money.  Get in touch with our firm at 416-206-6816 anytime Monday to Friday between 9am and 5pm. We will be more than happy to assist you with your document commissioning notarizing needs.

Source: https://larsenlaw.ca/understanding-commissioning-vs-notarizing-documents/#:~:text=The%20main%20difference%20between%20a,province%2C%20a%20notary%20is%20required

Get in touch with our firm at 416-206-6816 anytime Monday to Friday between 9am and 5pm. We will be more than happy to assist you with your document commissioning notarizing needs.

Refinancing a mortgage involves renegotiating one’s current mortgage loan agreement. Whether one enters a new mortgage agreement with the same lender or with a different lender, the goal of a mortgage refinance is to benefit the homeowner. For the purposes of this blog post, we will be discussing mortgage refinancing under the scope of institutional mortgage lending.

Institutional mortgage lenders can be divided into two categories: A-Lenders and B-Lenders. A-Lenders, also referred to as ‘prime’ mortgage lenders, are comprised of the major Canadian banks: TD, CIBC, BMO, RBC, Scotiabank, and National Bank. These banks, as well as a select few other lenders, provide the best interest mortgage rates and terms in the market. Because of their rates, they have the strictest lending requirements. Generally, the A-Lenders only accept applicants who exemplify the highest level of financial stability and lowest level of risk. Thus, to be approved, an applicant must pass a mortgage stress test. Comparatively, B-Lenders offer more flexibility in their lending requirements but can still provide homeowners with a good lending rate. Examples of B-Lenders in Canada include: Home Trust, First National, MCAP, and RFA.

Why might someone refinance their mortgage? There are a few pros a mortgage refinance can provide: 

1. Obtain a lower interest rate

Depending on the pre-payment penalty and the size of the outstanding mortgage, refinancing, and obtaining a lower interest rate can potentially save you money over time. 

1. Accessing equity of the home

Refinancing allows homeowners to access up to 80% of their home’s value, less the value of the mortgage.

1. Consolidate debt

Using the accessed equity, homeowners can use their built-up equity to pay any outstanding high-interest debts, consolidating their debt through the mortgage refinance options available. 

Although there are benefits to refinancing, there are some risks that should be taken into consideration. First, breaking a mortgage and entering a new one lengthens the time to pay off the mortgage of the home. As well, although you may have secured a low overall interest rate, the amount owing on your mortgage may be significantly higher. In addition, the process of refinancing is associated with additional costs, such as a prepayment charge for breaking your mortgage early.

Therefore, due to the many complex aspects of refinancing a mortgage, it may be of interest to reach out to a real estate lawyer. A lawyer will not only help you understand the terms and conditions of your mortgage loan, but they can help you determine if a refinance transaction will benefit you. Real estate lawyers will even facilitate the entire mortgage transaction between you and your lender, ensuring that you are receiving and entering a legitimate offer.

At 6ix Estates LLP, we represent clients in mortgage financing or refinancing transactions, both with institutional and private mortgage lenders. We will meet with all borrowers before closing to review the entire transaction, sign the documents and arrange for funds. 

Contact us today for a free, 30-minute, no obligation consultation.